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Revenue Memorandum CIRCULAR NO. 51-2018

This memorandum provides instructions for individuals working under job orders or service contracts at PNU to properly register with the Bureau of Internal Revenue (BIR). It outlines the registration steps, which include filling out required forms at the BIR and paying an annual registration fee. It also explains the tax withholding and reporting requirements based on an individual's income level and choice of graduated income tax or 8% tax rate. Failure to register properly will result in taxes being withheld at 13% of gross receipts.

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Jastine Breathe
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432 views16 pages

Revenue Memorandum CIRCULAR NO. 51-2018

This memorandum provides instructions for individuals working under job orders or service contracts at PNU to properly register with the Bureau of Internal Revenue (BIR). It outlines the registration steps, which include filling out required forms at the BIR and paying an annual registration fee. It also explains the tax withholding and reporting requirements based on an individual's income level and choice of graduated income tax or 8% tax rate. Failure to register properly will result in taxes being withheld at 13% of gross receipts.

Uploaded by

Jastine Breathe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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REVENUE

MEMORANDUM
CIRCULAR NO. 51-2018
Registration and Compliance
Requirements of Individuals under
a Job Order or Service Contract
Agreement
CATEGORIZATION OF INDIVIDUALS

1. PROFESSIONALS
Generally, these individuals are those with
professional license issued by PRC.

2. OTHER SERVICE PROVIDERS


Those who do not fall under the category of
professionals
WHAT ARE THE STEPS IN
REGISTERING?
Instructions:
1. Go to BIR (in your respective RDO) and register as an
Individual under Contract of Service of PNU.
2. You will be given the checklist & BIR Forms to be filled
up and to be submitted to PNU:
 Duly received BIR Form 1901
 Notarized Income Payee’s Sworn Declaration of Gross
Receipts (Annex A)
 Others required by the Bureau (contract, ID, etc.)
3. After accomplishing the required documents,
pay the annual registration fee of P500.00 ONLY
thru BIR Form 0605.
4. Submit all of duly accomplished documents to
HR.
AFTER COMPLETION OF REGISTRATION

Based on your Sworn Declaration, you will be taxed


depending on what you have chosen (Graduated
Income Tax or 8% Tax Rate)
For those COS earning below Php
250,000 (Annual)

EWT GMP
Graduated - 3%
Income Tax Rate

8% Income Tax - -
Rate Option
For those COS (Non-Professionals)
earning above Php 250,000 but less
than Php 3,000,000 (Annual)

EWT GMP
Graduated 2% 3%
Income Tax Rate
8% Income Tax 2% -
Rate Option
For those COS (Professionals) earning
above Php 250,000 but less than Php
3,000,000 (Annual)

EWT GMP
Graduated Income 5% 3%
Tax Rate

8% Income Tax 5% -
Rate Option
SAMPLE COMPUTATION FOR
PROFESSIONALS (8% tax rate)
Monthly Income 25,000.00
Monthly Threshold 20,833.33
(250,000/12)
Taxable Amount 4,166.67
Multiply by Withholding
Tax Rate 5%
Tax to be withheld 208.33

* 5% total tax withheld by PNU will be used as creditable withholding tax when
filing for the 8% income tax for your Annual Income Tax Return.
NON-COMPLIANCE OF REGISTRATION
AND NON-SUBMISSION OF DOCUMENTS

EWT GMP
Withholding Tax based on 10% 3%
GROSS RECEIPTS
SAMPLE COMPUTATION
Monthly Income 25,000.00
Tax Rate 13%
Tax to be withheld 3,250.00
REQUIRED DOCUMENTS FOR
SUBMISSION TO PNU
 Notarized Income Payee’s Sworn Declaration
 Received Copy of BIR Form No. 1901
 BIR No. 0605 for annual registration fee payment
 Certificate
of Registration (BIR Form 2303), for those
earning Php 250,000 and above
THANK YOU!

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