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PERCENTAGE
TAX
Description
Who are Required to File Percentage Tax Returns
Monthly Percentage Tax
Quarterly Percentage Tax
Percentage Tax for Transactions Involving Shares of Stocks Listed
and Traded Through The Local Stock Exchange Or Through Initial
and/or Secondary Offering
Tax Rates
Related Revenue Issuances
Codal Reference
Frequently Asked Questions
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 or receipts do not exceed P 550,000 and are not VAT-registered.
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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 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:
· Government of the Philippines - for messages transmitted
by the Government of the Republic of the Philippines or any of
its political subdivisions and instrumentalities
· Diplomatic services - for messages transmitted by any
embassy and consular offices of a foreign government
· International organizations - for messages transmitted
by a public international organization or any of its agencies
based in the Philippines enjoying privileges and immunities pursuant
to an international agreement
· 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 companies
-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
-A 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
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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 Agents Banks (AABs)
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 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 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 D - Twenty-One (21) days following the end of the month
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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 Agents Banks (AABs)
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
Not later than 20th day following the end of each
quarter
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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 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 5 banking days from the date of collection
Tax
Rates
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RELATED
REVENUE ISSUANCES
RR No. 4-95, 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
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CODAL
REFERENCE
Sections 116 to 128 of the
National Internal Revenue Code
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FREQUENTLY
ASKED QUESTIONS
1) 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)
Ø Domestic carriers and keepers of garages, except owners
of bancas and owners of animal drawn two- wheeled vehicle
Ø Operators of international carriers doing business in
the Philippines
Ø Franchise grantees of electric, gas or water utilities
Ø 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
Ø Operators of communication equipment sending overseas
dispatch, messages, or conversations from the Philippines, except
on services involving the following:
· Government of the Philippines - for messages transmitted
by the Government of the Republic of the Philippines or any of
its political subdivisions and instrumentalities
· Diplomatic services - for messages transmitted by any
embassy and consular offices of a foreign government
· International organizations - for messages transmitted
by a public international organization or any of its agencies
based in the Philippines enjoying privileges and immunities pursuant
to an international agreement
· 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
Ø Banks and non-bank financial intermediaries and finance
companies
Ø Life insurance companies
Ø Agents of foreign insurance companies
Ø Proprietor, lessee, or operator of cockpits, cabarets,
night or day clubs, boxing exhibitions, professional basketball
games, jai-alai and race tracks
Ø 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
Ø A 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
2) What are the procedures in the filing of the
Percentage Tax returns and payment of the corresponding taxes?
Ø BIR Form 2551M -The return shall be filed
with any Authorized Agent Bank (AAB) located within the Revenue
District Office (RDO) where the taxpayer is registered. In places
where there are no AABs, the return shall be filed with the Revenue
Collection Officer or duly Authorized Treasurer of the city or
municipality where said business or principal place of business
is located. The Percentage Tax imposed shall be paid at the time
the return is filed by the taxpayer.
Ø BIR Form 2551Q -The return shall be filed with any Authorized
Agent Bank (AAB) located within the Revenue District Office (RDO)
where the taxpayer is registered. In places where there are no
AABs, the return shall be filed with the Revenue Collection Officer
or duly Authorized Treasurer of the city or municipality where
said business or principal place of business is located. The Percentage
Tax imposed shall be paid at the time the return is filed by the
taxpayer.
Ø BIR Form 2552 - The return shall be filed with any AAB
of the RDO where the local stock exchange is located. The Percentage
Tax imposed shall be paid at the time the return is filed by the
taxpayer.
All "no payment" returns shall
be filed with the Revenue District Office (RDO) where the taxpayer
is registered/local stock exchange is located (For BIR Form 2552).
"No payment" returns filed late shall be imposed the
necessary penalties by the RDO, which shall be paid at the concerned
AAB/Revenue Collection Officer or duly Authorized City or Municipal
Treasurer (in places where there are no AABs).
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