BIR Issuances – RMC 36-2024

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The BIR issued the Clarification on the Manner of Computing the Minimum Corporate Income Tax (MCIT) for Taxable Year 2023.

Revenue Memorandum Circular (RMC) No. 36-2024

11 March 2024

Republic Act No. 11534, otherwise known as the “Corporate Recovery and Tax Incentives for Enterprises Act” prescribed the One Percent (1%) Minimum Corporate Income Tax (MCIT) for the period July 1, 2020 until June 30, 2023.

Effective July 1, 2023, the MCIT rate returned to its old rate of Two Percent (2%) based on the gross income of the corporation.

In computing the MCIT, the gross income shall be divided by 12 months to get the average monthly gross income and apply the rate of 1% for the period January 1 to 30 June 2023 and 2% for the period July 1 to 31 December 2023.

For ease of computing, the rates below corresponding to the taxable period of the taxpayer may be used:

Annual Accounting Period MCIT 2%/1% Annual Accounting Period MCIT 2%/1%
FY 7-31-23 1.08% FY 1-31-24 1.58%
FY 8-31-23 1.17% FY 2-28-24 1.67%
FY 9-31-23 1.25% FY 3-31-24 1.75%
FY 10-31-23 1.33% FY 4-30-24 1.83%
FY 11-31-23 1.42% FY 5-31-24 1.92%
CY 12-31-23 1.50% FY 6-30-24 2.00%

Copy of the RMC can be accessed thru the link below.

RMC No. 36-2024.pdf

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