Percentage Tax is a tax regulated in the Philippines imposed on individuals or businesses that engage in the sale, barter, exchange or importation of goods or sale of services with annual sales not exceeding Php 3 million and for those who are not VAT registered.
In case the sole-proprietor fails to file BIR Form 2551Q and pay the percentage tax due, he/she will incur 12% interest additional to the amount of tax that should have been paid.
Who are required to file percentage tax?
1. Individuals or businesses who are not VAT-registered with annual gross sales/receipts not exceeding Php 3,000,000
2. Individuals who lease residential spaces charging monthly rentals more than Php 15,000 but the annual rental sales do not exceed Php 3,000,000.
3. Small businesses engaged in the following industries:
Cars for rent or hire
Domestic and international sea and air transport carriers
Gas and water utility franchisees, radio/TV broadcasting whose annual revenue is no more than Php 10,000,000 and did not opt to register as VAT
Overseas communication except by public organizations and news outlets
Banks and Non-Bank intermediaries
Individuals, company, or corporations doing life insurance business
Fire, marine, or agents of foreign insurance companies
Operators and/or lessee of cockpits, clubs, exhibitions, pro-basketball games, racetracks, Jai-Alai, and music lounges
Winnings from horse races
Table for Quarterly Percentage Tax Rates
The table below shows the deadline of filing BIR Form 2551Q.
Attached is a sample of accomplished eBIR Form 2551Q.
References:
Transfer and Business Taxation (2019 Edition)- Enrico Tabag CPA, MBA & Earl Jimson Garcia CPA, MBA
Comments