OPERATION CODE
ATC
DESCRIPTION
TAX RATE
TAX BASE

DOMESTIC CORPORATION

01
IC010
1. In General    
a. 1998
34%
Taxable Income from All Sources
    1999
33%
     2000
32%
02
IC030
2. Proprietary Educational Institutions
10%
On Taxable Income from All Sources
IC031
3. Non-stock, Non-Profit Hospitals
10%
On Taxable Income from All Sources
04
IC040
4. GOCC Agencies & Instrumentalities
  
On Taxable Income from All Sources
a. 1998
34%
    1999
33%
     2000
32%
IC041
National Gov't & LGU's
  
On Taxable Income from Proprietary activities
a. 1998
34%
    1999
33%
     2000
32%
08
IC020
5.Taxable Partnership
 
On Taxable Income from All Sources
    1998
34%
     1999
33%
     2000
32%

 13

 IC011

6. Exempt Corporation    

 01

 IC010

a. On Exempt Activities 0% *same rate as in
On Taxable Income
    b. On Taxable Activities

 

OPERATION CODE
ATC
DESCRIPTION
TAX RATE
TAX BASE
14
IC021

7.General Professional Partnership

0%
 
8.Corporation covered by Special Law  
RESIDENT FOREIGN CORPORATION
09
IC070
1. In General
  
 
a. 1998
34%
On Taxable Income within the Philippines
    1999
33%
     2000
32%
10
IC080
2. International Carriers
2.5%
Gross Philippine Billing
IC101
3. Regional Operating Headquarters
10%
On Taxable Income
4. Corporation covered by Special Law
IC190
5. Offshore Banking Units (OBU's)
10%

On Gross Taxable Income on Foreign Currency Transaction not subjected to Final Tax                          On Taxable Income Other than Foreign Currency Transaction

a. 1998
34%
    1999
33%
     2000
32%
IC191
6.Foreign Currency Deposit Units (FCDU's)
10%
On Gross Taxable Income on Foreign Currency Transaction not subjected to Final Tax                          On Taxable Income Other than Foreign Currency Transaction
 a.  1998
34%
     1999
33%
     2000
32%

 

BIR Form No. 1702Q - Quarterly Income Tax Return
GUIDELINES AND INSTRUCTIONS

Who Shall File

     Every corporation, partnership no matter how created or organized, joint stock companies, joint accounts, associations (except foreign corporation not engaged in trade or business in the Philippines and joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations), government-owned or controlled corporations, agencies and instrumentalities shall render a true and accurate income tax return in accordance with the provisions of the Tax Code. The return shall be filed in triplicate copies by the president, vice-president or other Treasurer or Assistant Treasurer.

     Every general professional partnership shall file a return of its income setting forth the items of gross income and of deductions and the names, TINs, addresses and shares of each of the partners.

The general professional partnership is not required to file quarterly income tax return/quarterly information return. Its is required, however, to file annual income tax return/annual information return (Form 1702) with Account Information Form/Financial Statements.

The general professional partnership is not supposed to pay income tax, such tax to be paid by the individual partners.


When and Where to File

     The corporate quarterly declaration shall be filed with or without payment within sixty (60) days following the close of each of the first three (3) quarters of the taxable year whether calendar or fiscal year.

      The return shall be filed with any Authorized Agent Bank (AAB) within the territorial jurisdiction of the Revenue District office where the taxpayer is required to register/which has jurisdiction over the location of the principal office of the "CORPORATION" filing the return or place where its main books of accounts and other data from which the return is prepared are kept. In places where there are no AABs, the return shall be filed directly with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer within the Revenue District Office where the taxpayer is required to register/which has jurisdiction over the location of the principal office of the "CORPORATION" filing the return or place where its main books of accounts and other data from which the return is prepared and kept.

      ( It is suggested, however, that the tax return be filed with the appropriate collection agent of the Revenue District Office where the taxpayer is required to register.)

      Taxpayer may file and pay their Income tax return manually or through the Electronic Filing and Payment System. (EFPS)

When and Where to Pay

      Upon filing this return, the total amount payable shall be paid to the Authorized Agent Bank (AAB) where the return is filed. In places where there are no AABs, payment shall be made directly to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer who shall issue a Revenue Official Receipt (BIR Form NO. 2524) therefor.

      Where the return is filed with an AAB, the lower portion of the return must be properly machine-validated and stamped by the Authorized Agent Bank to serve as the receipt of payment. The machine validation shall reflect the date of payment, amount paid and transaction code, and the stamped mark shall show the name of the ban, branch code, teller's code and teller's initial. The AAB shall also issue an official receipt or bank debit advice or credit document, which ever is applicable, as additional proof of payment.

Rate of Income Tax

Effective January 1, 1998, the rate of income tax shall be 34%; effective Jan 1, 1999, the rate shall be 33%; and effective January 1, 2000 and thereafter, the rate shall be 32%.

Penalties

     There shall be imposed and collected as part of the tax:

1.

A surcharge of twenty five percent (25%) for each of the following violations:

 
  a.

Failure to file any return and pay the amount of tax or installment due on or before the due date;

 
b.

Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed;

 
c.

Failure to pay the full or part of the amount of tax shown on the return, or the full amont of tax due for which no return is required to be filed on or before the due date;

 
d.

Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment.

 
2.

A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case any payment has been made on the basis of such return before the discovery of the falsity or fraud, for each of the following violations:

a.

Willful neglect to file the return within the period prescribed by the Code or by rules and regulations; or

 
b.

In case a false or fraudulent return is willfully made.

 
3.

Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until the amount is fully paid.

 
4.

Compromise penalty.

Attachments Required
1.  Certificate of Income Payments not Subject to Withholding Tax (BIR Form 2304), if applicable;
2.  Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable; and
3.  Duly approved Tax Debit Memo, if applicable.

The quarterly income tax return does not have to be accompanied with the Account Information Form and/or Financial Statements.

Note: All background information must be properly filled up.

All returns filed by an accredited tax representative on behalf of a taxpayer shall bear the following information:
     A. For Individual (CPA's members of General Professional Partnerships and Others)
          A.1  Taxpayer Identification Number (TIN); and
          A.2  Certificate of Accreditation Number, Date of Issuance, and Date of Expiry
     B.  For Members of the Philippine Bar:
          B.1   Taxpayer Identification Number (TIN); and
          B.2  Attorney's Roll Number or Accreditation Number, if any
Nos. 1, 2 and 3 of this form refer to the transaction period and not the date of filing this return.
The last 3 digits of the 12-digit TIN refers to the branch code.

TIN = Taxpayer Identification Number

ENCS