Contents
Description
Percentage tax
is a business tax imposed on persons or entities who sell or lease
goods, properties or services in the course of trade or business whose
gross annual sales and/or receipts do not exceed P750,000 and who are
not VAT-registered.
Who Are Required To File Percentage Tax Returns
· Any person who is not a VAT-registered person (persons exempt from VAT under Sec. 109z of the Tax Code)
· Domestic carriers and keepers of garages, except owners of bancas and owners of animal drawn two- wheeled vehicle
· Operators of international air and shipping carriers doing business in the Philippines
· Franchise grantees of electric, gas or water utilities
· Franchise
grantees of radio and/or television broadcasting companies whose gross
annual receipts for the preceding year do not exceed Ten Million Pesos
(P 10,000,000.00) and did not opt to register as VAT taxpayers
· Operators
of communication equipment sending overseas dispatch, messages, or
conversations from the Philippines, except on services involving the
following:
o Government
of the Philippines - for messages transmitted by the Government of the
Republic of the Philippines or any of its political subdivisions and
instrumentalities
o Diplomatic services - for messages transmitted by any embassy and consular offices of a foreign government
o International
organizations - for messages transmitted by a public international
organization or any of its agencies based in the Philippines enjoying
privileges, exemptions and immunities which the government of the
Philippine is committed to recognize pursuant to an international
agreement
o News
Services - for messages from any newspaper, press association, radio or
television newspaper broadcasting agency, or newsticker services to any
other newspaper, press association, radio or television, newspaper, broadcasting
agency or newsticker services, or to bonafide correspondents, which
messages deal exclusively with the collection of news items for, or the
dissemination of news items through public press, radio or television
broadcasting or a newsticker service furnishing a general news service
similar to that of the public press
· Banks and non-bank financial intermediaries and finance companies
· Life insurance premiums
· Agents of foreign insurance companies
· Proprietor,
lessee, or operator of cockpits, cabarets, night or day clubs, boxing
exhibitions, professional basketball games, jai-alai and race tracks
· Every
stock broker who effected a sale, barter, exchange or other disposition
of shares of stock listed and traded through the Local Stock Exchange
(LSE) other than the sale by a dealer in securities
· Corporate
issuer / stock broker, whether domestic of foreign, engaged in the
sale, barter, exchange or other disposition through Initial Public
Offering (IPO) seller in secondary public offering of shares of stock
in closely held corporations
Monthly Percentage Tax
Tax Form BIR Form 2551 M - Monthly Percentage Tax Return
Documentary Requirements
1. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
2. Duly approved Tax Debit Memo, if applicable
3. Copy
of Certificate of Registration issued by Cooperative Development
Authority for cooperatives and from the National Electrification
Administration for electric cooperatives
4. Previously filed return and proof of payment, for amended return
Procedures 1. Fill-up BIR Form 2551 M in triplicate copies
2. If there is payment:
· Proceed
to the nearest Authorized Agent Bank (AAB) of the Revenue District
Office where taxpayer is required to register and present the duly
accomplished BIR Form 2551 M, together with the required attachments
and payment. (The Percentage Tax imposed shall be paid at the time the
return is filed by the taxpayer.)
· In
places where there are no AABs, the duly accomplished BIR Form 2551 M,
together with the required attachments and payment, shall be filed/paid
with the Revenue Collection Officer or duly Authorized Treasurer of the
city or municipality where said business or principal place of business
is located.
· Receive
taxpayer's copy of the duly stamped and validated form from the teller
of the AAB/Revenue Collection Officer/duly Authorized City or Municipal
Treasurer.
3. If there is no payment:
· Proceed
to the Revenue District Office where taxpayer is required to register
and present the duly accomplished BIR Form 2551M, together with the
required attachments.
· Receive taxpayer's copy of the duly stamped and validated form from the RDO representative.
Note: "No payment" returns filed late shall be
imposed the necessary penalties by the RDO, which shall be paid at the
concerned AAB.
Deadline
· Manual Filing
Not later than 20th day following the end of each month
· Filing Through Electronic Filing and Payment System (eFPS)
Group A - Twenty-Five (25) days following the end of the month Group B - Twenty-Four (24) days following the end of the month Group C - Twenty-Three (23) days following the end of the month Group D - Twenty-Two (22) days following the end of the month Group E - Twenty-One (21) days following the end of the month
Quarterly Percentage Tax
Tax Form BIR Form 2551 Q - Quarterly Percentage Tax Return
Documentary Requirements
1. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
2. Duly approved Tax Debit Memo, if applicable
3. Copy
of Certificate of Registration issued by Cooperative Development
Authority for cooperatives and from the National Electrification
Administration for electric cooperatives
4. Previously filed return and proof of payment, for amended return
Procedures
1. Fill-up BIR Form 2551 Q in triplicate copies.
2. If there is payment:
· Proceed
to the nearest Authorized Agent Bank (AAB) of the Revenue District
Office where taxpayer is required to register and present the duly
accomplished BIR Form 2551Q, together with the required attachments and
payment. (The Percentage Tax imposed shall be paid at the time the
return is filed by the taxpayer.)
· In
places where there are no AABs, the accomplished BIR Form 2551 Q,
together with the required attachments and payment, shall be filed/paid
with the Revenue Collection Officer or duly Authorized Treasurer of the
city or municipality where said business or principal place of business
is located.
· Receive
taxpayer's copy of the duly stamped and validated form from the teller
of the AAB/Revenue Collection Officer/duly Authorized City or Municipal
Treasurer.
3. If there is no payment:
-
Proceed
to the Revenue District Office where taxpayer is required to register
and present the duly accomplished BIR Form 2551Q, together with the
required attachments.
-
Receive taxpayer's copy of the duly stamped and validated form from the RDO representative. Note:
"No payment" returns filed late shall be imposed the necessary
penalties by the RDO, which shall be paid at the concerned AAB.
Deadline
· Manual Filing
Not later than 20th day following the end of each quarter
· Filing Through Electronic Filing and Payment System (eFPS)
Not later than the 20th day following the end of the quarter
Percentage
Tax For Transactions Involving Shares of Stocks Listed and Traded
Through the Local Stock Exchange or Through Initial and/or Secondary
Offering
Tax Form
BIR
Form 2552 - Percentage Tax Return (For Transactions Involving Shares of
Stocks Listed and Traded Through the Local Stock Exchange or Through
Initial and/or Secondary Offering)
Documentary Requirements
1. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
2. Proof of Exemption for transactions not subject to tax, if applicable
3. Duly approved Tax Debit Memo, if applicable
4. Previously filed return and proof of payment, for amended return
Procedures
1. Fill-up BIR Form 2552 in triplicate copies.
2. If there is payment:
· Proceed
to the nearest Authorized Agents Banks (AABs) of the Revenue District
Office where the local stock exchange is located and present the duly
accomplished BIR Form 2552, together with the required attachments and
payment. (The Percentage Tax imposed shall be paid at the time the
return is filed by the taxpayer.)
· Receive taxpayer's copy of the duly stamped and validated form from the teller of the AAB
3. If there is no payment:
· Proceed
to the Revenue District Office where the local stock exchange is
located and present the duly accomplished BIR Form 2552, together with
the required attachments.
· Receive taxpayer's copy of the duly stamped and validated form from the RDO representative. Note:
"No payment" returns filed late shall be imposed the necessary
penalties by the RDO, which shall be paid at the concerned AAB.
Deadline
· For
tax on sale of shares of stocks listed and traded through the local
stock exchange (LSE) – within five (5) banking days from the date of
collection
· For tax on shares of stocks sold or exchanged through primary offering - within 30 days from the date of listing in the LSE
· For tax on shares of stocks sold or exchanged through secondary public offering - within five (5) banking days from the date of collection
Tax Rates
Coverage |
Basis |
Tax Rate |
Persons exempt from VAT under Sec. 116 |
Gross Sales or Receipts |
3% |
Domestic carriers and keepers of garages |
Gross Receipts |
3%
|
International Carriers:
|
International air/shipping carriers doing business in the Philippines |
Gross Receipts |
3% |
Franchise Grantees: |
Electric , gas and water utilities |
Gross Receipts |
2% |
Radio
and television broadcasting companies whose annual gross receipts of
the preceding year do not exceed P 10,000,000 and did not opt to
register asVAT taxpayer |
Gross Receipts |
3 % |
Banks and non-bank financing intermediaries |
Interest,
commissions and discounts from lending activities as well as income
from leasing on the basis of remaining maturities of instruments: |
|
|
- Short term maturity (not over 2 years)
|
5 % |
|
- Medium term (over 2 years but not over 4 years)
|
3 % |
|
|
|
|
- Over 4 years but not over 7 years
|
1 % |
|
|
0 % |
|
On Dividends |
0 % |
On
royalties, rentals of properties, real or personal, profits from
exchange and all other items treated as gross income under Sec. 32 of
the Code |
5 % |
Finance Companies |
On
interest, discounts and other items of gross income paid to finance
companies and other financial intermediaries not performing quasi
banking functions |
5 % |
|
Interest,
commissions and discounts paid from their loan transactions from
finance companies as well as income from financial leasing shall be
taxed based on the remaining maturities of instruments: |
|
|
- Short term maturity (not over 2 years)
|
5 % |
|
- Medium term (over 2 years but not over 4 years)
|
3 % |
|
|
|
|
- Over 4 years but not over 7 years
|
1 % |
|
|
0 % |
Life Insurance Companies (except purely cooperative companies or associations) |
Total premiums collected |
5 % |
Agents of foreign insurance companies: (except reinsurance premium) |
|
|
· Insurance
agents authorized under the Insurance Code to procure policies of
insurance for companies not authorized to transact business in the
Phils. |
Total premium collected |
10 % |
· Owners of property obtaining insurance directly with foreign insurance companies |
Total premium collected |
5 % |
Proprietors, lessee or operator of the following: |
|
|
Cockpits |
Gross receipts |
18% |
Cabarets, Night or Day Clubs |
Gross receipts |
18% |
Boxing exhibitions |
Gross receipts |
10% |
Professional basketball games |
Gross receipts |
15% |
Jai-alai and race track (operators shall withheld tax on winnings) |
Gross receipts |
30% |
Every
stock broker who effected a sale, barter, exchange or other disposition
of shares of stock listed and traded through the Local Stock Exchange
(LSE) other than the sale by a dealer in securities |
Gross selling price or gross value in money of shares of stocks sold, bartered, exchanged or otherwise disposed |
½ of 1 % |
A
corporate issuer/stock broker, whether domestic of foreign, engaged in
the sale, barter, exchange or other disposition through Initial Public
Offering (IPO)/secondary public offering of shares of stock in closely
held corporations |
Gross
selling price or gross value of in money of shares of stocks sold,
bartered, exchanged or otherwise disposed in accordance with the proportion of stocks sold, bartered or exchanged or after listing in the stock exchange |
|
|
· Up to 25 % |
4% |
|
· Over 25% but not over 33 1/3% |
2% |
|
· Over 33 1/3 % |
1% |
Related Revenue Issuances
RR
No. 4-95, RR 7-95, RR No. 5-97, RR No. 2-98, RR No. 7-95, RR No.
6-2001, RR No. 12-2001, RR No. 4-2002, RR No. 26-2002, RR No. 14-2003,
RR No. 9-2004, RR No. 10-2004, RMC No. 6-2003, RMC No. 73-2004
Codal Reference
Sections 116 to 128 of the National Internal Revenue Code
|