- Percentage Tax Description
- Quarterly Percentage Tax
- Who are required to file?
- How to file/pay?
- What are the Quarterly Percentage Tax Rates?
- Percentage Tax for Transactions Involving Shares of Stocks
- Who are required to file?
- How to file/pay?
- What are the Transactions Involving Share of Stocks Tax Rates?
- List of Relevant Revenue Issuances
Percentage tax is a business tax imposed on persons, entities, or transactions specified under Sections 116 to 127 of the National Internal Revenue Code of 1997 (also known as Tax Code), as amended, and as required under special laws.
Quarterly Percentage Taxunder Sections 116 to 126 of the Tax Code, as amended
BIR Form 2551Q- Quarterly Percentage Tax Return
- Persons refer to individuals and non-individuals, which include, but are not limited to, estates, trusts, partnerships, and corporations.
Persons, who are not VAT-registered, who sell goods, properties or services, whose annual gross sales and/or receipts do not exceed three million pesos (Php3,000,000.00) and are exempt from value-added tax (VAT) under Section 109 (BB) of the National Internal Revenue Code, as amended by Republic Act (RA) No. 10963.
Persons who lease residential units where the monthly rental per unit exceeds fifteen thousand pesos (Php15,000.00) but the aggregate of such rentals of the lessor during the year does not exceed three million pesos (Php3,000,000.00)
Persons engaged in the following industries/transactions:
Cars for rent or hire driven by the lessee, transportation contractors, including persons who transport passengers for hire, and other domestic carriers by land for the transport of passengers (except owners of bancas and owners of animal-drawn two-wheeled vehicle) and keepers of garages
International air/shipping carriers doing business in the Philippines on their gross receipts derived from transport of cargo from the Philippines to another country
Franchise grantees of–
radio and/or television broadcasting companies whose annual gross receipts for the preceding year do not exceed Php 10,000,000.00 and did not opt to register as VAT taxpayers, and
gas and water utilities.
Overseas dispatch, message or conversation transmitted from the Philippines by telephone, telegraph, tele-writer exchange, wireless and other communication equipment services, except those transmitted by:
The Philippine Government or any of its political subdivisions or instrumentalities;
Diplomatic services;
Public international organizations orany of their agencies based in the Philippines enjoying privileges, exemptions and immunities which the Philippine Government is committed to recognize pursuant to international agreement; and
News servicesfor messages which deal exclusively with the collection of news items for, or the dissemination of news item through, publicpress, radio or television broadcasting or a newsticker service furnishing a general news service similar to that of the public press.
Banks,non-bank financial intermediaries performing quasi-banking functions
Other non-bank financial intermediaries (including pawnshops as clarified under Revenue Regulations [RR] No. 10 – 2004)
Person, company or corporation (except purely cooperative companies or associations) doing life insurance business in the Philippines
Fire, marine or miscellaneous agents of foreign insurance companies
Proprietor, lessee or operator of co*ckpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, Jai-Alai and racetracks,including videoke bars, karaoke bars, karaoke televisions, karaoke boxes and music lounges as clarified under Revenue Memorandum Circular (RMC) No. 18 – 2010
Winnings or 'dividends' in horse races
Documentary Requirements
- BIR Form 2551Q- Quarterly Percentage Tax Return Form
- Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
- Duly approved Tax Debit Memo, if applicable
- For amended return, proof of payment and the return previously filed
- Authorization letter, if filed by an authorized representative
- Copy of Certificate of Registration issued by Cooperative Development Authority for cooperatives, and from the National Electrification Administration for electric cooperatives
Procedures
For Manual filing and/or payment:
Download the newly-revisedBIR Form 2551Qpdf file format under theBIR Forms-VAT/Percentage Tax Returnssection of the BIR website.
Properly fill-upBIR Form 2551Qin triplicate copies.
Proceed to anyAuthorized Agent Bank(AAB)located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered and present the duly accomplishedBIR Form 2551Qand other requirements.If paying manually, present the aforementioned documents together with BIR-prescribed deposit slip, and payment to the respectiveAAB. The Quarterly Percentage Tax shall be paid at the time the return is filed by the taxpayer.
In places where there are noAABs, the duly accomplishedBIR Form 2551Q, together with the required attachments and payment, shall be filed/paid with the Revenue Collection Officer (RCO), thru the Mobile Revenue Collection Officers System (MRCOS) facility, or duly Authorized Treasurer of the city or municipality where said business or principal place of business / where the taxpayer is registered, who will issue an Electronic Revenue Official Receipt (eROR).
Receive copy ofBIR Form 2551Qduly validated/stamp-received by the AAB/RCO/authorized City or Municipal Treasurer.
Manual Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
For eFPS filing and/or payment:
Use the existing and enhanced old BIR Form 2551Q in the eFPS system which contains all the alphanumeric tax codes (ATCs) enumerated in the said form in filing the return.
Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for the quarter.
In case percentage taxes for the first, second and/or third month of the quarter had been paid, payment/s made are to be reflected in BIR Form 2551Q in Item No. 20A-Creditable Percentage Tax Withheld perBIR Form 2307.
After e-filing, proceed to online payment by clicking the proceed to payment button and pay the quarterly percentage tax due.
For eBIRForms filing and/or payment:
Use the existing enhanced old BIR Form 2551Q in Offline eBIRForms Package V7, which contained all the alphanumeric tax codes (ATCs) enumerated in BIR Form 2551M in filing the return.
Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for the quarter.
In case percentage taxes for the first, second and/or third month of the quarter had been paid, payment/s made are to be reflected in BIR Form 2551Q in Item No. 20A-Creditable Percentage Tax Withheld perBIR Form 2307.
Proceed to anyAABlocated within the territorial jurisdiction of the RDO where the taxpayer is registered and present the duly accomplishedBIR Form 2551Q and other requirements.If there is payment that will be done manually, present the aforementioned documents together with BIR-prescribed deposit slip, and payment to the respectiveAAB. The Percentage Tax shall be paid at the time the return is filed by the taxpayer.
In places where there are noAABs, the duly accomplishedBIR Form 2551Q, together with the required attachments and payment, shall be filed/paid with the RCO, thru the MRCOS facility, or duly Authorized Treasurer of the city or municipality where said business or principal place of business / where the taxpayer is registered, who will issue an Electronic Revenue Official Receipt (eROR).
eBIRForms Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
Note: "No payment" returns filed late will result on imposition by the RDO of penalties, which shall be paid at the concernedAAB.
When to File/Pay
·Within twenty-five (25) days after the end of each taxable quarter
Quarterly Percentage Tax Rates Table
Coverage | Taxable Base | Tax Rate |
Non-VAT registered persons under Section 109 (BB) | Gross sales or receipts | 3% |
Domestic carriers and keepers of garages | Gross receipts | 3% |
International air/shipping carriers doing business in the Philippines | Gross receipts on transport of cargo from the Philippines to a foreign country | 3% |
Franchise grantees: Gas and water utilities Radio and television broadcasting companies whose annual gross receipts of the preceding year do not exceed Php10,000,000 and did not opt to register as VAT taxpayer |
|
|
Overseas dispatch, message or conversation originating from the Philippines | Amount paid for the service | 10% |
Banks and non-bank financial intermediaries performing quasi-banking functions | Interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which receipts are derived: | |
• If maturity period is five years or less | 5% | |
• If maturity period is more than five years | 1% | |
Dividends and equity shares and net income of subsidiaries | 0% | |
Royalties, rentals of property, real or personal, profits from exchange and all other items treated as gross income under Sec. 32 of the Tax Code, as amended | 7% | |
Net trading gains within the taxable year of foreign currency, debt securities, derivatives and other similar financial instruments | 7% | |
Other non-bank financial intermediaries | Interest, commissions, discounts and all other items treated as gross income under the Tax Code, as amended | 5% |
Interest, commissions, discounts from lending activities, as well as income from financial leasing on the basis of remaining maturities of instruments from which such receipts are derived: | ||
• If maturity period is five years or less | 5% | |
• If maturity period is more than five years | 1% | |
Life Insurance Company/Agent/Corporation (except purely cooperative companies or associations) | Total premiums collected | 2% |
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 Philippines | Total premiums collected | 4% |
Owners of property obtaining insurance directly with foreign insurance companies | Total premiums paid | 5% |
Proprietor, lessee or operator of the following: | ||
co*ckpits | Gross receipts | 18% |
Cabarets, Night or Day Clubs, videoke bars, karaoke bars, karaoke televisions, karaoke boxes and music lounges | Gross receipts | 18% |
Boxing exhibitions (except when the World or Oriental Championship is at stake in any division, provided further that at least one of the contenders for World Championship is a citizen of the Philippines and said exhibitions are promoted by a citizen/s of the Philippines or by a corporation/ association at least 60% of the capital of which is owned by said citizen/s) | Gross receipts | 10% |
Professional basketball games (in lieu of all other percentage taxes of whatever nature and description) | Gross receipts | 15% |
Jai-alai and race track | Gross receipts | 30% |
Winnings on horse races | · Winnings or 'dividends' | 10% |
· Winnings from double forecast/quinella and trifecta bets | 4% | |
· Prizes of owners of winning race horses | 10% | |
[return to index]
Percentage Tax for Transactions Involving Shares of Stocksunder Section 127 of the Tax Code, as amended
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 Public Offering
Every stock broker who effected a sale, barter or exchange of shares of stock listed and traded through the local stock exchange other than the sale by a dealer in securities, which tax shall be paid by the seller/transferor
A corporate issuer, engaged in the sale, exchange or other disposition through Initial Public Offering (IPO) of shares of stock in closely-held corporations
A stock broker who effected a sale, exchange or other disposition through secondary public offering of shares of stock in closely-held corporations
Documentary Requirements
- BIR Form 2552- Percentage Tax Return for Transactions Involving Shares of Stocks
- Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
- Proof of Exemption for transactions not subject to tax, if applicable
- Duly approved Tax Debit Memo, if applicable
- For amended return, proof of payment and the return previously filed
- Authorization letter, if filed by an authorized representative
Procedures
For Manual filing and/or payment:
Properly fill-up the existing oldBIR Form 2552in triplicate copies using the new tax rate then compute the tax due thereon.
Proceed to anyAABlocated within the territorial jurisdiction of the RDO where the where the broker or corporate issuer is registered, and present the duly accomplished oldBIR Form 2552, together with the required attachments.
If paying manually, present the aforementioned documents together with BIR-prescribed deposit slip, and payment to the respectiveAAB. The Percentage Tax Involving Shares of Stocks shall be paid at the time the return is filed by the taxpayer.
Receive theBIR Form 2552taxpayer's copy duly validated and stamp-received by the teller of the AAB.
Manual Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
For eFPS filing and/or payment;
File online using the existingBIR Form 2552in the eFPS and pay online the corresponding taxes due thereon by proceeding to payment. The result of this transaction is deficiency tax.
To cover the deficiency tax, eFPS filers shall likewise file and pay online the deficiency tax usingBIR Form No. 0605and fill in the corresponding information in the Tax Type (ST Percentage Tax – Stocks) and ATC field (ATC MC 031 – Deficiency Tax) in lieu of the correct BIR form that should have been used.
eFPS filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
Note: Once the enhanced version of theBIR Form 2552is available in eFPS, there will be a notification/announcement through a Revenue Memorandum Circular (RMC). Guidelines shall be issued accordingly if there is a necessity whether or not to amend the previously filed returns in eFPS.
For eBIRForms filing and payment:
File online using the existingBIR Form 2552in the eBIRForms Package and pay the corresponding tax dues via over-the-counter (OTC) of AAB under the jurisdiction of the RDO where the taxpayer is registered.
For eBIRForms filers who want to pay online, you can pay thru GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
The result of this transaction thru eBIRForms is deficiency tax.
To cover the resulting deficiency tax, eBIRForms filers shall likewise file and pay online the deficiency tax usingBIR Form No. 0605and fill in the corresponding information in the Tax Type (ST Percentage Tax – Stocks) and ATC field (ATC MC 031 – Deficiency Tax) in lieu of the BIR Form 2552 that should have been used.
Note: "No payment" returns filed late will result on penalties that will be imposed by the RDO, which shall be paid at the concernedAAB.
When to File/Pay
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
Note: Aside fromBIR Form No. 2552, a stockbroker or corporate issuer is also required to submit a true and complete return to the Secretary of the Stock Exchange of which he is a member. The said return shall contain a declaration of all transactions effected through him during the preceding week and of taxes collected by him and turned over to the BIR.
Percentage Tax for Transactions Involving Shares Rates Table
| Coverage | Basis | Tax Rate |
| Sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange other than the sale by a dealer of securities | Gross selling price or gross value in money | 6/10 of 1% |
Sale, barter or exchange or other disposition through:
| Gross selling price or gross value in money Proportion of disposed shares to total outstanding shares after the listing in the local stock exchange: | |
| 4% | |
| 2% | |
| 1% | |
[return to index]
LIST OF RELEVANT REVENUE ISSUANCES
REVENUE REGULATIONS (RRs) | ||
IssuanceNo. | Subject | Date of Issue |
RR No. 9-2018 | Prescribes the rules and regulations implementing the increase in the Stock Transfer Tax pursuant to RA No. 10963 (TRAIN Law) (Published in Manila Bulletin on February 28, 2018)Digest|Full Text | February 26, 2018 |
RR No. 8-2015 | Amends RR No. 6-2015 on the definition of raw cane sugar for purposes of the imposition of advance business tax (Value-Added Tax or Percentage Tax) and for other related purposes (Published in Manila Bulletin on May 28, 2015)Digest|Full Text | May 27, 2015 |
RR No. 6-2015 | Implements regulations imposing advance Business Tax (VAT or Percentage Tax) payments on sugar and for other related purposes (Published in Manila Bulletin on April 1, 2015)Digest|Full Text | March 31, 2015 |
RR No. 8-2008 | Supplementing Revenue Regulations No. 9-2004, as Amended by Revenue Regulations No. 10-2004, Clarifying that the Transactionsof the Bangko Sentral ng Pilipinas (BSP) Entered into the Exercise of its Governmental/Regulatory Authority are outside of the Coverage of the Gross Receipts Tax Imposed Under Sections 121 and 122 of the 1997 National Internal Revenue Code, as Last Amendedby Republic Act No. 9337 (published in Philippine Star on August 30, 2008)Digest|Full Text | August 29, 2008 |
RR No. 9-2007 | Prescribing the Updated Minimum Monthly/Quarterly Gross Receipts in Computing the Percentage Tax of Domestic Carriers and Keepers of Garages. Digest|Full Text | August 1, 2007 |
RR No. 9-2004 | Implements certain provisions of Republic Act No. 9238, re-imposing the gross receipts tax on banks and non-bank financial intermediaries performing quasi-banking functions and other non-bank financial intermediaries beginning January 1, 2004 (published in Manila Standard on July 1, 2004) Digest|Full Text | June 25, 2004 |
RR No. 15-2002 | Governs the imposition of Income Tax on the Gross Philippine Billings, other income of International Air Carriers and Common Carrier's Tax, as well as the manner of claiming deductions on travel expenses and freight charges incurred. (published in Manila Bulletin on Oct. 11, 2002) Digest|Full Text | October 7, 2002 |
RR No. 1-2003 | Implementing Section 5 of Republic Act No. 8424, Otherwise Known as the Tax Reform Act of 1997, and Other Pertinent Provisions of the National Internal Revenue Code of 1997, as last Amended by Republic Act No. 9010, Imposing Value-Added Tax (VAT) on Sale of Services by Persons Engaged in the Practice of Profession or Calling and Professional Services Rendered by General Professional Partnerships; Services Rendered by Actors, Actresses, Talents, Singers and Emcees; Radio and Television Broadcasters and Choreographers; Musical, Radio, Movie, Television and Stage Directors; and Professional Athletes, as Well as Services Rendered by Customs, Real Estate, Stock, Immigration and Commercial Brokers, beginning January 1, 2003. (published in Phil. Daily Inquirer on Jan. 8, 2003) Digest|Full Text | January 7, 2003 |
RR No. 3-1995 | Implementing Republic Act No. 7717, An Act Imposing a Tax on the Sale, Barter or Exchange of Shares of Stock Listed and Traded Through the Local Stock Exchange or Through Initial Public Offering, Amending for the Purpose the National Internal Revenue Code, as Amended, by Inserting a New Section and Repealing Certain Subsections Thereof | February 7, 1995 |
REVENUE MEMORANDUM CIRCULARs (RMCs) | ||
Issuance No. | Subject | Date of Issue |
RMC No. 26-2018 | Circularizing the Revised BIR Form No. 2551Q (Quarterly Percentage Tax Return) January 2018 (ENCS)Full Text | Annex A | Guidelines | April 25, 2018 |
RMC No. 2-2018 | Provides the transition procedures for all taxpayers filing tax returns affected by the revised tax rates pursuant to the provisions of RA No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law) Digest|Full Text | January 8, 2018 |
RMC No. 104-2017 | Circularizes the copy of RA No. 10963 (Tax Reform for Acceleration and Inclusion [TRAIN] Act) and President Duterte’s VETO message to the TRAIN Act Digest|Full Text|VETO|RA 10963 | December 29, 2017 |
RMC No. 62-2016 | Clarification on proper tax treatment of passed-on Gross Receipts Tax Digest|Full Text | June 14, 2016 |
RMC No. 71-2015 | Allows taxpayers who are mandated to file their tax returns thru Electronic Filing and Payment System and Electronic BIR Forms in areas affected by Typhoon Lando to temporarily file their tax returns and pay their taxes manually Digest|Full Text | October 30, 2015 |
RMC No. 40-2015 | Clarifying the Nature and Extent of the Agricultural Cooperative Being the Producer of Sugar for Exemption from Advance VAT and Percentage Tax Purposes Pursuant to Section 5(b)(c) of Revenue Regulations (RR) No. 8-2015; in relation to Section 4(a) of RR No. 13-2008, and in line with Section 8(b.2.1.2) of the Joint Rules and Regulations Implementing Articles 60, 61 and 144 of Republic Act (RA) No. 9520, or the Cooperative Code of 2008. Digest|Full Text | July 15, 2015 |
RMC No. 25-2015 | Clarifies pertinent provisions of RR No. 6-2015 more particularly on the imposition of advance business tax (Value-Added Tax or Percentage Tax) on raw cane sugar and refined sugar Digest|Full Text | May 6, 2015 |
RMC No. 24-2015 | Clarifies pertinent provisions of Revenue Regulations No. 2-2015 more particularly on the submission of scanned copies of BIR Form Nos. 2307 and 2316 Digest|Full Text | May 6, 2015 |
RMC No. 21-2015 | Provides alternative modes in the filing of BIR Form Nos. 2551M, 2551Q, 2550M and 2550Q using the electronic platforms of BIR Digest|Full Text | April 20, 2015 |
RMC No. 9-2013 | Clarifying the taxability of association dues, membership fees and other assessments/charges collected by homeowners’ associations Digest|Full Text | January 30, 2013 |
RMC No. 49-2010 | Further Amending Certain Portions of RMC No. 30-2008, as Amended by RMC No. 59-2008, on the Subject of the Taxability of Insurance Companies for Minimum Corporate Income Tax (MCIT), Business Tax and Documentary Stamp Tax Purposes Digest|Full Text | June 7, 2010 |
RMC No. 18-2010 | Clarification on the Coverage and Taxability of Amusem*nt Places under Section 125(b) of the National Internal Revenue Code of 1997, as Amended Digest|Full Text | March 8, 2010 |
RMC No. 16-2009 | Clarifying the Instruments Embraced by the Term "Deposit Substitutes" Under Revenue Regulations No. 8-2008 Digest|Full Text | March 17, 2009 |
RMC No. 59-2008 | Amending Certain Portions of RMC No. 30-2008 on the Subject of the Taxability of Insurance Companies for Minimum Corporate Income Tax, Business Tax and Documentary Stamp Tax Purposes Digest|Full Text | August 27, 2008 |
RMC No. 46-2008 | Clarification of Issues Concerning Common Carriers by Air and Their Agents Relative to the Revenue and Receipt from Transport of Passengers, Goods/Cargoes and Mail, and from Excess Baggage Digest|Full Text | June 20, 2008 |
RMC No. 30-2008 | Clarifies the Taxability of Insurance companies for Minimum Corporate Income Tax, Business Tax and Documentary Stamp Tax Purposes Digest|Full Text | April 8, 2008 |
RMC No. 73-2004 | Guidelines and Policies Applicable to the Business Tax Applicable to Pawnshops as a Result of the Issuance of Revenue Regulations No. 10-2004, Including Pawnshops Under the Classification of Other Non-Bank Financial Intermediaries in Accordance with the Power Granted the Commissioner of Internal Revenue Under Section 4 of Republic Act No. 9238 | November 26, 2004 |
RMC No. 37-2004 | Settlement of the Value-Added Tax Liabilities of Pawnshops for Taxable Years 1996 to 2002 Digest|Full Text|Annex A|Annex 1|Annex 2 | June 16, 2004 |
RMC No. 10-2004 | Guidelines and Policies to Supplement RMC No. 9-2004 issued in Relation to the Implementation of Republic Act No. 9238 for Banks and Non-Bank Financial Intermediaries, Specifically for the Re-imposition of Gross Receipts Tax Digest|Full Text | February 23, 2004 |
RMC No. 9-2004 | Guidelines and Policies Applicable to the Business Tax Applicable to Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions and other Non-Bank Financial Intermediaries as a Result of the Enactment and Effectivity of Republic Act No. 9238, An Act Amending Certain Provisions of the National Internal Revenue Code of 1997, as amended, by Excluding Several Services from the Coverage of the Value-Added Tax and Re-Imposing the Gross Receipts Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions and Other Non-Bank Financial Intermediaries Beginning January 1, 2004 Digest|Full Text | RA 9238 | February 19, 2004 |
RMO No. 69-2003 | Clarifying the Tax Base for Purposes of the Percentage (Gross Receipts) Tax Imposed under Sections 121 and 122 of the Tax Code Digest|Full Text | October 22, 2003 |
RMC No. 14-2003 | Waiver of Penalties on Persons Engaged in the Practice of Profession or Calling and Professional Services Rendered by General Professional Partnerships; Services Rendered by Actors, Actresses, Talents, Singers and Emcees, Radio and Television Broadcasters and Choreographers, Musical, Radio, Movie, Television and Stage Directors, and Professional Athletes; and, Services Rendered by Customs, Real Estate, Stock, Immigration and Commercial Brokers Becoming Liable to VAT or Percentage Tax, Whichever is Applicable, Beginning January 1, 2003 Who Failed to File Their VAT/Percentage Tax Returns for the Months of January and February on the Due Dates Specified Under Revenue Regulations No. 1-2003, as amended by Revenue Regulations Nos. 3-2003 and 11-2003 Digest|Full Text | March 26, 2003 |
RMC No. 6-2003 | Clarifying Certain Issues Relative to the Services Rendered by Individual Professional Practitioners, General Professional Partnerships, Entertainers, and Professional Athletes who are subject to the Value-Added Tax or Percentage Tax, whichever is Applicable, Beginning January 1, 2003 Digest|Full Text|Annex A | January 22, 2003 |
RMC No. 51-2002 | Imposition of the Gross Receipts Tax Under Sections 121 and 122 of the Tax Code on Items of Gross Income Subject to Final Withholding Tax and Clarifying the Tax Base thereof Digest | November 15, 2002 |
[return to index]
As a seasoned tax professional with extensive knowledge and experience in Philippine tax regulations, I'll dive into the concepts outlined in the provided article about the Percentage Tax, focusing on the Quarterly Percentage Tax and Percentage Tax for Transactions Involving Shares of Stocks. Let me break down the information for better understanding:
Quarterly Percentage Tax
1. Percentage Tax Description:
- The percentage tax is a business tax imposed on specified persons, entities, or transactions under Sections 116 to 127 of the National Internal Revenue Code of 1997.
2. Who are required to file?
- Individuals and non-individuals, including estates, trusts, partnerships, and corporations.
- Persons not VAT-registered selling goods, properties, or services with annual gross sales not exceeding PHP 3,000,000 and exempt from VAT.
- Lessors of residential units with monthly rentals exceeding PHP 15,000 but annual aggregate not exceeding PHP 3,000,000.
- Various industries/transactions like car rentals, transportation contractors, international air/shipping carriers, franchise grantees, banks, etc.
3. How to file/pay?
- Use BIR Form 2551Q (Quarterly Percentage Tax Return).
- Manual filing or e-filing through various platforms like eFPS or eBIRForms.
- Payments made through authorized channels, including authorized agent banks (AABs) and online payment portals.
4. Quarterly Percentage Tax Rates Table:
- Different tax rates based on the nature of the business or transaction, ranging from 1% to 30%.
5. When to File/Pay:
- Within twenty-five (25) days after the end of each taxable quarter.
Percentage Tax for Transactions Involving Shares of Stocks
1. Percentage Tax Description:
- Imposed under Section 127 of the Tax Code on the sale, barter, or exchange of shares of stock listed and traded through the local stock exchange.
2. Who are required to file?
- Stock brokers, corporate issuers engaged in Initial Public Offering (IPO), and those involved in secondary public offerings.
3. How to file/pay?
- Use BIR Form 2552 (Percentage Tax Return for Transactions Involving Shares of Stocks).
- Manual or e-filing with corresponding payment methods.
- Different timelines for filing and payment based on the nature of the transaction.
4. Percentage Tax for Transactions Involving Shares Rates Table:
- Tax rates vary based on the nature of the sale, barter, or exchange, ranging from 0.6% to 4%.
List of Relevant Revenue Issuances
1. Revenue Regulations (RRs):
- Various RRs providing rules and regulations related to tax matters, including RR No. 9-2018 on the Stock Transfer Tax.
2. Revenue Memorandum Circulars (RMCs):
- RMCs offering guidelines and clarifications on specific tax issues, such as RMC No. 26-2018 on the Revised BIR Form No. 2551Q.
In summary, the Quarterly Percentage Tax and Percentage Tax for Transactions Involving Shares of Stocks involve specific rules, rates, and procedures outlined by the Bureau of Internal Revenue (BIR). Adhering to these guidelines is crucial for businesses and individuals to fulfill their tax obligations accurately. If you have any specific questions or need further clarification on certain aspects, feel free to ask.
