REVENUE REGULATIONS

NO. 11-2018
Amending Certain Provisions of Revenue
Regulations No. 2-98, as Amended, to
Implement Further Amendments Introduced by
Republic Act No. 10963, Otherwise Known as
the “Tax Reform for Acceleration and Inclusion
(TRAIN)” Law, Relative to Withholding of
Income Tax.
Section 2.57.2. Income Payments Subject to
Creditable Withholding Tax and Rates Prescribed
Thereon
A. Professional Fees, talent fees, etc. for services
rendered.
J. Income Payments made by a government office,
national or local, including barangays, or their
attached agencies or bodies, and government-owned
or controlled corporations to its local/resident
supplier of goods/services, other than those covered
by other withholding tax.
A. Professional Fees, talent fees, etc. for services
On the gross professional, promotional, and talent fees or
any other form of remuneration for the services rendered by
the individual payee and non-individual payee.

Individual Payee:
1. If gross income for the current year did not
exceed Php3M - Five Percent (5%)
2. If gross income for the current year exceed
Php3M- Ten Percent (10%)
J. Income Payments made by a government office,
national or local, including barangays, or their attached
agencies or bodies, and government-owned or controlled
corporations to its local/resident supplier of
goods/services, other than those covered by other
withholding tax.

 Supplier of goods – One percent (1%)

 Supplier of services – Two percent (2%)
Section 2.57.3. Persons Required to Deduct and
Withhold
 An individual seller-income earner/payee, may
not be subjected to w/holding under Section
2.57.2 hereof if the source of income comes from
a lone income payor and the total income
payment is less than Php 250,000.00 in a taxable
year however the concerned individual shall
execute an Income Payee’s Sworn Declaration of
gross receipts/sales (Annex B-2) that shall be
submitted before January 15.
Section 2.57.3. Persons Required to Deduct
and Withhold

If the individual income payee failed to submit an

income payee’s sworn declaration to the lone
income payor/withholding agent, the income
payment shall be subject to the applicable
withholding tax even though in a taxable year the
income payment is Php250,000.00 and below.
 TAX PAYER – PROFESSIONAL (Php 250,000
and below)
PROFESSIONAL

Able to Submit Annex "B-2"?

YES NO
A.) Gross Receipts < 250k
a.) Opted to use Graduated Rate
Taxes: Income Tax Percentage Tax Income Tax Percentage Tax
Rate: 3% of Gross 3% of Gross
0% 0%
Receipts Receipts
Withholding Rate
(WA): 5%

b.) Opted to use 8% Gross Receipts Tax Rate

Taxes: Income Tax Income Tax
Rate: 0% 0%
Withholding Rate
(WA):
 TAX PAYER – NON-PROFESSIONAL
(Php 250,000 and below)
NON-PROFESSIONAL

Able to Submit Annex "B-2"?

YES NO
A.) Gross Receipts < 250k
a.) Opted to use Graduated Rate
Taxes: Income Tax Percentage Tax Income Tax Percentage Tax
Rate: 3% of Gross 3% of Gross
0% 0%
Receipts Receipts
Withholding Rate
(WA): 2% 3%

b.) Opted to use 8% Gross Receipts Tax Rate

Taxes: Income Tax Income Tax
Rate: 0% 0%
Withholding Rate
(WA):
TAX PAYER – PROFESSIONAL (above Php
250,000)
PROFESSIONAL

Able to Submit Annex "B-2"?

YES NO
B.) Gross Receipts > 250k & < 3M
a.) Opted to use Graduated Rate
Taxes: Income Tax Percentage Tax Income Tax Percentage Tax
Rate: Graduated Rate 3% of Gross Graduated Rate 3% of Gross
(table) Receipts (table) Receipts
Withholding Rate
(WA): 5% 3% 10% 3%

b.) Opted to use 8% Gross Receipts Tax Rate

Taxes: Income Tax
Rate: 8% on Gross
Receipts in
excess of 250k
Withholding Rate
(WA): 5%
 TAX PAYER – Non-PROFESSIONAL (above
Php 250,000)
NON-PROFESSIONAL

Able to Submit Annex "B-2"?

YES NO
B.) Gross Receipts > 250k & < 3M
a.) Opted to use Graduated Rate
Taxes: Income Tax Percentage Tax Income Tax Percentage Tax
Rate: Graduated Rate 3% of Gross Graduated Rate 3% of Gross
(table) Receipts (table) Receipts
Withholding Rate
(WA): 2% 3% 2% 3%

b.) Opted to use 8% Gross Receipts Tax Rate

Taxes: Income Tax
Rate: 8% on Gross
Receipts in
excess of 250k
Withholding Rate
(WA): 2%
Income Tax Table - For compensation income
earned for taxable years 2018 to 2022:
Requirements:
 BIR Form1901 – 3 copies
 1 Photocopy NSO Birth Certificate or Photocopy of 2 valid
IDs with address and birthdate
 1 Photocopy of current Contract of Service
 Payment of Php 500.00 (BIR Form 0605)
 Professional Tax Registration (PRT) (applicable for
professionals only)
Filing Dates of Quarterly/Annualy
Income Tax
BIR FORM 1701Q
 1st Quarter – May 15
 2nd Quarter – August 15
 3rd Quarter – November 15
 4th Quarter – January 15

BIR FORM 1701

Annually - April 15