Tax Updates - RMC 36-2024 Clarification on the Manner of Computing the MCIT for Taxable Year 2023

Corporate Recovery and Tax Incentives for Enterprises Act (RA 11534) prescribed MCIT for July 1,2020 until June 30,2023 at 1%.

Effective July 1, 2023, onwards, the MCIT rate returned to the original rate of 2%.

RMC 36-2024 provides the clarification on how to compute for the MCIT given that the rate for Jan to June 30,2023 was at 1% and Jul 1 to December 31,2023 was at 2%.

1. Divide Gross Income by 12 months to get average monthly gross income and apply rate of 1% for January to June 30, 2023 and 2% for July 1 to December 31, 2023.

2. The following table may also be used for ease of computation:

Source: RMC 36-2024 from BIR website.