Who Shall File

This return shall be filed in triplicate by the following:

1)Persons whose gross annual sales and/or receipts do not exceed P550,000 and who are not VAT-registered persons.

2) Domestics carriers and keepers of garages, except owners of bancas and owners of animal-drawn two wheeled vehicle.

3) Operators of international air and shipping carriers doing business in the Phillipines.

4) Franchise grantees of electric, gas or water utilities.

5) Franchise grantees of radio and/or television broadcasting companies whose gross annual receipts of the preceding year do not exceed Ten Million Pesos (P10,000,000.00) and did not opt to register as VAT taxpayers.

6) Franchise grantees sending overseas dispatch, messages or conversations from the Philippines, except on services involving the following:

a) Government of the Philippines - for messages transmitted by the Government of the Republic of the Philippines or any of its political subdivisions and instrumentalities;

b) Diplomatic services - for messages transmitted by any embassy and  consular offices of a foreign government;

c) International organizations - for messages transmitted by a public international organization or any of its agencies based in thePhilippines enjoying privileges and immunities pursuant to an international agreement; and

d) 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 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.

7) Banks, non-bank financial intermediaries and finance companies.

8) Life insurance companies.

9) Agents of foreign insurance companies.

10) Proprietors, lesses or operators of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai and racetracks.

      Provided that cooperatives shall be exempt from the three percent(3%) gross receipts tax.

When and Where to File

      The return shall be filed on or before the 25th day of the month following the close of the quarter, except in the case of amusement taxes and tax on overseas dispatch, message or conversation transmitted from the Philippines where the return shall be filed within twenty (20) days after the end of each quarter. Any person retiring from a business subject to percentage taxes shall notify the nearest Revenue District Office, file his return and pay the tax due thereon within twenty (20) days after closing his business.

      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/conducting business. In places where there are no AABs, the return shall be filed with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer within the Revenue District Office where the taxpayer is required to register/ conducting business.

      A taxpayer may, at his option, file a separate return for the head office and for each branch or place of business or a consolidated return for the head office and all the branches except in the case of large taxpayers where only one consolidated return is required.

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 place 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.

Basic of Tax

The tax is based on gross receipts except on insurance companies where the basis of tax is the total premium collected.     

"Gross receipts" means all amounts received by the prime or principal contractor, undiminished by any amount paid to any subcontrator under a subcontract arrangement.

For the purpose of the amusement tax, the term " gross receipts" embraces all the receipts of the proprietor, lessee or operator of the amusement place. Said gross receipts also include income from television, radio and motion picture rights, if any.

Penalties
     There shall be imposed and collected as part of the tax:
1. A surcharge of twenty 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 amount 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. Comprise penalty.

Attachments Required

1. Certificate of Creditable Tax Withheld at Source, 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. For amended return, proof of the payment and the return previously filed.

Note: All background information must be properly filled up.