Reversion of Regular Corporate Income Tax to 10% for proprietary educational institutions and non-profit hospitals, Percentage Tax to 3%, and Minimum Corporate Income Tax to 2%, effective July 1, 2023
(Revenue Memorandum Circular No. 69-2023, issued on June 20, 2023)
This Tax Alert is issued to inform all concerned on the reversion of the reduced rates of Regular Corporate Income Tax (RCIT) of proprietary educations institutions and non-profit hospitals, Percentage Tax (PT), and Minimum Corporate Income Tax (MCIT) to original rates, pursuant to Republic Act (RA) No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The following tax rates shall apply effective July 1, 2023:
Based on the foregoing, the computation of relevant taxes for taxable year 2023 shall be as follows:
A. Calendar Year
B. Fiscal Year
Based on the sample computations provided in the RMC, the corporate income tax rate shall be applied on the amount computed by multiplying the number of months covered by the new rate within the fiscal year by the taxable income of the corporation for the period, divided by twelve.
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