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General rule 1) When return filed: Quarterly (sales, receipts, earnings) 2) Number of returns: The taxpayer, at his option, may file-a) A separate return for each branch/place of business, or b) a consolidated return. 3) Where filed: in the place of business or principal place of business, as the case may be-a) Authorized agent bank, b) Revenue district officer, c) Collection agent, or d) Authorized Treasurer (City/Municipality). 4) When paid: a) Generally: Within 25d after end of quarter b) Exceptions: i) If VAT registration cancelled - Date of cancellation ii) Person retiring from business - He must notify the nearest IR officer and pay within 20d after closing his business BASIS WHO COVERED VAT-exempt persons (earning <P1.919M) (116) a) Domestic carriers (cars for hire driven by lessee, transpo contractors, persons who transport passengers for hire, other domestic carriers by land) b) Keepers of garages (117)
Minimum quarterly gross receipts (presumed) Jeepneys for hire a. Manila, other 2,400 cities b. Provincial 1,200 PUBs a. Not > 30 3,600 passengers b. 30-50 6,000 c. >50 7,200 Taxis a. Manila, other 3,600 cities b. Provincial 2,400

Exceptions: May be made by Commissioner based on sales, financial conditions, etc; may also provide for prepayment. Determination of correct sales/receipts 1) When applicable: a) Person failed to issue receipts/invoices; b) No return was filed, or c) There's reason to believe that the books don't correctly reflect the declarations made/to be made in the return 2) How determined: Commissioner prescribes a minimum amount (of the taxable base), taking into account the sales/receipts/other taxable base, and other relevant information of another-a) Doing a similar business, b) Under similar circumstances.

Payment (128)


EXCEPTIONS Cooperatives a) Owners of bancas b) Animal-drawn two-wheeled vehicle c) c. Common carriers' freight (subject to local taxation)

3% Gross quarterly receipts/ sales


International air and shipping carriers doing business (118) -Includes: ticket, baggage, freight, mail, rent, penalties, deposits, services charges, and other fees actually/constructively received during the taxable quarter of passage of persons/baggage/cargo/mail -In case of tickets revalidated/exchanged/endorsed to another airline: still part of gross receipts, basta passenger boarded in the PH -In case of stopovers/transshipments: only an aliquot portion


OTHER PERCENTAGE TAXES taxed (RR 11-2011) 3% Annual gross receipts of preceding year TV and Radio franchise holders (119) -with receipts not exceeding 10M -must file returns as per 128 Gas and water utilities (119) -derived from business covered by the law granting the franchise -must file returns as per 128 Overseas dispatch, message or conversation originating from the PH (120) -telephone, telegraph, wireless, etc. -Who pays: person paying for the services rendered, to be paid to the person rendering the services -Duty of business owner: collect and pay within 20 days after end of quarter a) Government b) Diplomatic services (embassies, consular offices of a foreign govt) c) International organization (or any of its agencies in PH, pursuant to intl agreements) d) News services (from one news service to another, or to a correspondent, as to messages EXCLUSIVELY dealing with news items) a) In excess of 10M/year b) Those registered as VAT taxpayers (irrevocable choice)



Amount paid for services

Banks, non-bank financial intermediaries performing quasibanking functions (121)

1) Rates Interest, commission, a. Remaining discounts from lending, maturity: 5y or less financial leasing b. >5y -Pre-termination: reckoned from such date Dividends, equity shares in income of subsidiaries Royalties, rent (property), profits from exchange, other items of gross income Net trading gains on foreign currency 5% 1%



0% to 7%



Other non-bank financial intermediaries doing business (122) -from: interest, commission, discounts from lending activities, financial leasing 5% Gross receipts (?)
Basis of "gross receipts" Interest, commission, a. Remaining discounts from lending, maturity: 5y or less financial leasing b. >5y - Pre-termination: reckoned from such date 5% 1%


Total collected

Life insurance premiums from all persons doing life insurance business (123)

1) Purely cooperative companies/associations


OTHER PERCENTAGE TAXES premiums -Payment form: immaterial 2) Exclude: a) Premiums refunded within 6mos after pmt b) Tax paid upon reinsurance by a company that already paid the tax c) Those collected by a branch of a domestic corporation doing business outside for LI of a nonresident insured upon which the foreign country already imposed a tax d) Variable contracts to insure the lives of variable contract workers 1) Reinsurance


Total collected premiums

Agents of foreign insurance companies authorized under the Insurance Code (124) -What kind of insurance: fire, marine, misc. -Situs of risk: those located in the PH Property owner obtaining policies from foreign insurance companies without the services of an agent -Duty: report and pay the tax themselves Amusement (125) What covered: gross receipts from sources other than admission tickets (RMC 8-88) Who files a return and pays: proprietor, lessee, operator, any party liable Period: 20 days after end of each quarter "Gross receipts": all receipts, including income from TV/radio/movie rights; includes receipts of others benefiting from the activities (ex: concessionaires)
1) Rates Boxing exhibitions 10% Exceptions World/Oriental Championships: a) At least 1 contender is a citizen; and b) Promoted by-i. A citizen, or ii. A corporation at least 60% of capital is owned by citizens IN LIEU OF ALL OTHER PERCENTAGE TAXES

ADMISSION receipts Paid to the LGU, to the exclusion of the national govt (this includes the BIR) (RMC 888)

10% to 30%

Gross receipts
2) Professional basketball games Cockpits Cabarets, clubs day or night Jai-alai, race tracks 30% 15%

3) 4)



4% to 10% Winnings KIM G. ESPINA A2014

Winnings from horse races (126)


Person liable 1) Bettor Rate 10% Exception 4% for Double, quinella, trifecta bets


Race horse owner


-How collected: withheld by operator/manager/person in charge -Duty: file a return with Commissioner within 20 days from withholding Sale, barter, or exchange of listed stocks (127)
Kind of stock 1) Traded tin local stock exchange (Xpn: Sale made by a dealer in securities) Initial public offering of closely held corporations (depends on what proportion of shares sold after the listing) Basis Gross selling price / value in money Rate 0.5%


a) b) c)

Up to 25% 25% - 33.33% >33.33%

4% 2% 1%

0.5% to 4%

-"Closely held corporations": at least 50% of value of OCS/total combined voting power of all stock classes owned directly/indirectly by/for not > 20 individuals. a) Stock not owned by indivs (owned by corporation, partnership, estate, trust): treated as owned proporionately by its SHs/partners/beneficiaries b) Family and partnership ownership: one is considered as owning the stock owned by/for his family/partner. (Family = siblings whether full or half-blood, spouse, ancestors and lineal descendants) c) Option: considered as owned d) Constructive ownership: considered as actual ownership (for 1 and 3, but not 2) -How paid: a) Local stock exchange Who collects and remits: stockbroker Duties: 1) Remit tax 5 banking days from collection 2) Every Monday, submit to Secretary of stock exchange a declaration stating-a) All transactions, and b) Taxes collected and turned over to the BIR b) Public offerings i. Who collects and remits: corporate issuer ii. Duties: 1) File return and pay tax within 30 days from listing a) If secondary offering, (a) applies i. ii.


OTHER PERCENTAGE TAXES -Other notes: a) Not subject to income and capital gains tax!