The BIR recently issued Revenue Memorandum Order (RMO) No. 17-2017, which prescribes policies for the close monitoring of top taxpayers in the following Revenue Regions:
1. Revenue Region 1 – Calasiao, Pangasinan
2. Revenue Region 4 – San Fernando, Pampanga
3. Revenue Region 5 – Caloocan City
4. Revenue Region 6 – Manila
5. Revenue Region 7 – Quezon City
6. Revenue Region 8 – Makati City
7. Revenue Region 9A – Cavite, Batangas, Mindoro and Romblon
8. Revenue Region 9B – Laguna, Quezon and Marinduque
9. Revenue Region 12 – Negros Island Region
10. Revenue Region 13 – Cebu City
11. Revenue Region 16 – Cagayan de Oro
12. Revenue Region 19 – Davao City
Top taxpayers that have been identified for close monitoring include the top 500 non-individual taxpayers of the above Revenue Regions who satisfy the criteria for Large Taxpayers, but have not been notified by the Commissioner of Internal Revenue (CIR). They will comprise the Medium Taxpayers segment of the BIR.
The following are the criteria for classifying Large Taxpayers:
1. Subsidiaries, affiliates and entities of conglomerates/group of companies of a large
taxpayer;
2. The surviving company, in case of merger/consolidation involving a large taxpayer;
3. Any corporation that absorbs the operation/business in case of spin-off/s of any large
taxpayer;
4. Corporations with an authorized capitalization of at least PhP 300 million registered with
the Securities and Exchange Commission (SEC);
5. Multinational enterprises (MNEs) with an authorized capitalization or assigned capital of at
least PhP 300 million;
6. Publicly-listed corporations;
7. Universal, commercial and foreign banks;
8. Taxpayers with an authorized capitalization of at least PhP 100 million belonging to the . following industries: Banks, Insurance, Telecommunication, Utilities, Petroleum, Tobacco . . and Alcohol
9. Corporate taxpayers engaged in the production of metallic minerals.
Should you have any question on the above BIR issuance, please do not hesitate to contact SGV & Co. (PCCI Press Releases)