Revenue Memorandum Order (RMO) No. 19-2016 dated May 17, 2016 prescribed the use of Revised Taxpayer Type Classifications and adopt the latest 2009 Philippine Standard Industrial Code (PSIC) and 2012 Philippine Standard Occupational Code (PSOC), amending RMO No. 2-2014.
Among the policies prescribed are:
- The standard taxpayer type classifications and its corresponding codes shall be uniformly used by all district offices and other concerned offices in classifying taxpayers and their corresponding taxes to avoid inconsistencies in the registration.
- There should be one taxpayer type classification per taxpayer by choosing the taxpayer’s main line of business/profession as the criteria for classification. For cases with multiple line of businesses/profession, Client Support Section is required to indicate applicable 2009 PSIC/ 2012 PSOC as many as appropriate.
- Passive income earners are those active individual taxpayers who are no longer engaged in trade or business with no outstanding tax liabilities or no longer employed (e.g. retired, persons with disabilities, pensioner) without business income but receiving passive income only from sources within or without the Philippines.
- “Passive Income Earner Only” is available in the update of taxpayer type classification for those existing taxpayers only and cannot be used as classification during initial registration. Therefore, no new taxpayers shall be registered under this classification.
- The prescribe revised format on Report on Registration by “Taxpayer Type” Classification shall be submitted on or before the 10th day of the following month.
- In the case of tax type classifications, the same codes shall be used for system generated report purposes. Any modification/addition in classification shall be covered by a separate RMO.
- RDO’s front liners should strictly follow Section II and III of this Order in classifying the correct taxpayer type of the taxpayers.
- The Client Support Service shall monitor and recommend to the Internal Investigation Division penalties to RDO’s who fail to comply with the provisions of this Order.
This RMO shall take effect immediately to RDOs under eTIS and upon implementation of Taxpayer Registration Information Update (TRIU). Pending the eTIS roll out to other Revenue District Offices, policies and procedures set forth under RMO 11 – 2004 shall still be observed in the meantime.
TAXPAYER TYPE CLASSIFICATIONS
The following is the updated Taxpayer Type Classifications with ITS applicable codes:
LINKS TO UPDATED PSIC AND PSOC
For 2012 PSOC: http://nap.psa.gov.ph/activestats/psoc/default.asp