ATC Percentage Tax On: Tax Rate ATC Percentage Tax On: Tax Rate
PT 010  Persons exempt from VAT under Sec. 109z (Sec. 116)  3%

Tax on finance companies

PT 040 Domestic carriers and keepers of garages  3% PT 111 1) On interest, discounts and other items of gross income paid to finance companies and other financial intermediaries not performing quasi-banking functions 5%
PT 041  International Carriers  3%  PT 112  2) On interest, commissions and discounts paid from their loan transactions from finance companies as well as financial leasing  intermediaries based on the remaining maturities of the instruments  5%,3%, 1%,0%
PT 060 Franchises on electric utilities, gas and water utility  2%  PT 120 Life Insurance premium  5%
PT 070  Franchises on radio/TV broadcasting companies whose annual gross receipts do not exceed P 10 M  3%

Agents of Foreign Insurance Companies

Tax on banks and non-bank financial

PT 130  a) Insurance Agents  10%
PT 101  1) On interest, commissions and discounts paid to banks and non-bank financial intermediaries arising out of lending activities as well as financial leasing, on the basis of the remaining maturities of the instrument 5%,3%, 1%,0% PT 131  b) Insurance Agents  5%
PT 102 2) On dividends  0% PT 132  c) Owners of property obtaining insurance directly with foreign insurance companies  5%
PT 103 3) On royalties, rentals of property, real or personal, profits from exchange and all other gross income 5% PT 210  On services rendered by stock, real estate, commercial, customs and immigration brokers  7%


BIR Form No. 2551M Percentage Tax Return
Guidelines and Instructions

Who Shall File

This return shall be filed in triplicate by the following:
I. Persons whose gross annual sales and/or receipts do not exceed
P550,000 and who are not VAT -registered persons.
2. Domestic 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 Philippines.
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
6. Banks, non-bank financial intermediaries and finance companies.
7. Life insurance companies.
8. Agents of foreign insurance companies.
9. Stock, real estate, commercial, cust oms and immigration brokers.
Provided that cooperatives shall be exempt from the three percent (3%) gross receipts tax.

When and Where to File

The return shall be filed not later than the 20th day following the end of each month, provided, however, that with respect to taxpayers enrolled with the Electronic Filing and Payment System (EFPS), the deadline for e-filing and e-paying the tax due thereon shall be fi ve (5) days later than the deadline set above.

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 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 (SIR Form No.2524) therefore. 

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 bank, branch code, teller's code and teller's initial. The AAB shall also issue an official receipt or bank debit advice or credit document, whichever is applicable, as additional proof of payment.

Basics 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 subcontractor under a subcontract arrangement.


There shall be imposed and collected as part of the tax:
I. A surcharge of twenty five percent (25%) for each of the following

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

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

4. Compromise penalty.

Attachments Required

I. Certificate of Creditable Tax Withheld at Source, if appl icable;
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.
All returns filed by an accredited tax representative on behalf of a
taxpayer shall bear the following information:

A. For CPAs and others (individual practitioners and members
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 (individual practitioners. members ofGPPs):
b.1 Taxpayer Identification Number (TIN); and
b.2 Attorney's Roll Number or Accreditation Number, if

- Nos. 1, 2 and 3 of this form refer to 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