TAX GUIDE ON PHILIPPINE TAXATION

source: http://www.bir.gov.ph/index.php/rulings-and-legal-matters/tax-guide-on-philippine-
taxation.html

TAX GUIDE ON PHILIPPINE TAXATION

LAWS
THE CONSTITUTION OF THE PHILIPPINES 1987 Constitution available at the BIR
(constitutional limitations) library
Observance of due process of law Section 1, Article III, Bill
of Rights
Observance of equal protection of the laws Section 1, Article III, Bill
of Rights
Prohibition against imprisonment for non-payment Section 20, Article III, Bill
of poll tax of Rights
Prohibition against impairment of obligation of Section 10, Article III, Bill
contracts of Rights
Requirement of uniformity and equity in taxation Section 28, Article VI,
Legislative Department
Prohibition against taxation appropriation for Section 29, Article VI,
religious purposes Legislative Department
Prohibition against taxation of religious, charitable Section 28, Article VI,
and educational entities(Religious and charitable Legislative Department
institutions exempt from property taxes)
Prohibition against taxation of non-stock , non-profit section 4, Article XVI,
educational institutions and proprietary educational Education
institutions (exempt from property and income taxes
as well as customs duties except income derived
from business activity not related to its educational
purpose)
NATIONAL INTERNAL REVENUE CODE OF 1997 Tax Code
Organization and Function of the Bureau of Internal Title I, NIRC Tax Code
Revenue
Income Tax Title II, NIRC Tax Code
Estate and Donor's Tax Title III, NIRC Tax Code
Value Added Tax Title IV, NIRC Tax Code
Other Percentage Taxes Title V, NIRC Tax Code
Excise Taxes Title VI, NIRC Tax Code
Documentary Stamp Tax Title VII, NIRC Tax Code
Remedies Title VIII, NIRC Tax Code
Compliance Requirements Title IX, NIRC Tax Code
Statutory Offenses and Penalties Title X, NIRC Tax Code
Allotment of Internal Revenue Title XI, NIRC Tax Code
Oversight Committee Title XII, NIRC Tax Code
Repealing Provisions Title XIII, NIRC Tax Code
Final Provisions Title XIV, NIRC Tax Code
Annexes Tax Code
TARIFF & CUSTOMS CODE ( Taxes on Customs Website available at the BIR
Importations) library
LOCAL GOVERNMENT TAXATION DILG Website available at the BIR
library
Local Government Taxation Book II, Title I
General Provisions Book II, Title I, Chapter I
Specific Provisions on the Taxing and Other Book II, Title I, Chapter II
Revenue-Raising Powers of Local Government
Units
Provinces Book II, Title I, Chapter II,
Art. 1
Municipalities Book II, Title I, Chapter II,
Art. 2
Cities Book II, Title I, Chapter II,
Art. 3
Barangays Book II, Title I, Chapter II,
Art. 4
Common Revenue Raising Powers Book II, Title I, Chapter II,
Art. 5
Community Tax Book II, Title I, Chapter II,
Art. 6
Collection of Taxes Book II, Title I, Chapter III
Civil Remedies for Collection of Revenues Book II, Title I, Chapter
IV
Miscellaneous Provisions Book II, Title I, Chapter V
Taxpayer's Remedies Book II, Title I, Chapter
VI
Real Property Taxation Book II, Title II
General Provisions Book II, Title II, Chapter I
Appraisal and Assessment of Real Property Book II, Title II, Chapter II
Assessment Appeals Book II, Title II, Chapter
III
Imposition of Real Property Tax Book II, Title II, Chapter
IV
Special Levies on Real Property Book II, Title II, Chapter
V
Collection of Real Property Tax Book II, Title II, Chapter
VI
Disposition of Proceeds Book II, Title II, Chapter
VII
Special Provisions Book II, Title II, Chapter
VIII
Share of Local Government Units in the Proceeds of Book II, Title III
the National Taxes
Allotment of Internal Revenue Book II, Title III, Chapter I
Share of Local Government Units in the National Book II, Title III, Chapter
Wealth II

SPECIAL LAWS
Omnibus Investment Code NEDA Website available at the BIR
library
(Executive Order 226 as amended by RA 7888,
7918 and 8756)
Philippine Economic Zone Authority PEZA Website available at the BIR
library
(Republic Act 7916 as amended by RA 8748)
Bases Conversion & Development Act BCDA Website available at the BIR
library
(Republic Act 7227)
Foreign Investment Act of 1991 BOI Website available at the BIR
library
(Republic Act 7042 as amended by RA 8179)
Foreign Bank Liberalization Act available at the BIR
library
(Republic Act 7721)
Build Operate Transfer Act BOI Website available at the BIR
library
(Republic Act 6957 as amended by RA 7718)
Retail Trade Liberalization Act of 2000 DTI Website available at the BIR
library
(Republic Act 8762)
Export Development Act of 1994 DTI Website available at the BIR
library
(Republic Act 7844)
Oil Industry Deregulation Act available at the BIR
library
(Republic Act 8180 as amended by RA 8479)
Zamboanga City Special Economic Zone Act PEZA Website available at the BIR
library
(Republic Act 7903)
Cagayan Special Economic Zone Act of 1995 PEZA Website available at the BIR
library
(Republic Act 7922)
Alien Social Integration Act available at the BIR
library
(Republic Act 7919 as amended by RA 8247)
Magna Carta for Small and Medium Enterprise available at the BIR
library
(Republic Act 6977 as amended by RA 8289)
Special Purpose Vehicle Act available at the BIR
library
(Republic Act 9182)

ADMINISTRATIVE MATERIALS
Revenue Regulations - BIR Website
1960s-2002 available at the BIR
library
1998 available at the BIR
library
1999 available at the BIR
library
2000 available at the BIR
library
2001 available at the BIR
library
2002 available at the BIR
library
2003 available at the BIR
library
Revenue Memorandum Circulars BIR Website
1960s-2002 available at the BIR
library
2001 available at the BIR
library
2002 available at the BIR
library
2003 available at the BIR
library
Revenue Memorandum Orders BIR Website
1960s-2002 available at the BIR
library
1998 available at the BIR
library
1999 available at the BIR
library
2000 available at the BIR
library
2001 available at the BIR
library
2002 available at the BIR
library
Revenue Memorandum Ruling BIR Website
2001 available at the BIR
library
2002 available at the BIR
library
ADMINISTRATIVE RULINGS/OPINIONS
BIR Numbered Rulings BIR Website
1960s-2002 available at the BIR
library
1998 available at the BIR
library
1999 available at the BIR
library
2000 available at the BIR
library
2001 available at the BIR
library
VAT Rulings available at the BIR
library
Delegated Authority Rulings available the Law
Division
Regional Rulings available at the Regional
Offices
CASE LAW
Supreme Court Decisions Supreme Court Website
Court of Tax Appeals Decisions
Court of Appeals Decisions

TREATIES
Philippine Treaty Series available at the BIR
Library and ITAD
Vienna Convention available at the BIR
Library and ITAD
UNESCO-Florence Agreement available at the BIR
Library and ITAD
RP-CARE Agreement available at the BIR
Library and ITAD
RP-UNICEF Agreement available at the BIR
Library and ITAD
RP-IBRD Agreement available at the BIR
Library and ITAD
RP-ILO Agreement available at the BIR
Library and ITAD
RP-FAO Agreement available at the BIR
Library and ITAD

PERIODICALS AND OTHER REFERENCES

Philippine Revenue Journal (up to year 2000) available at the BIR
Library
BIR Tax Bulletin available at the BIR
Library
BIR Annual Report BIR Website available at the BIR
Library
Taxpayer's Rights and Obligations BIR Website available at the BIR
Library
Zonal Valuation BIR Website available at the BIR
Library and Zonal
Valuation Division
NTRC Tax Research Journal available at the BIR
Library
BIR APPLICABLER FORMS

Source: http://www.bir.gov.ph/index.php/bir-forms.html

FORM NO. FORM TITLE

0605 Payment Form

Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track
1600WP
Operators

1601C Monthly Remittance Return of Income Taxes Withheld on Compensation

1601E Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)

1601F Monthly Remittance Return of Final Income Taxes Withheld

Monthly Remittance Return of Final Income Taxes Withheld (On Interest Paid on Deposits and
1602
Yield on Deposit Substitutes/Trusts/Etc.)

Annual Information Return of Income Tax Withheld on Compensation and Final Withholding
1604CF
Taxes

Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income

1604E
Payments Exempt from Withholding Taxes

Withholding Tax Remittance Return (For Transactions Involving Real Property other than
1606
Capital Asset including Taxable and Exempt)

Account Information Form (AIF) for Self-employed Individuals, Estates and Trusts (engaged in
1701-AIF
trade and business)

1702-AIF Account Information Form (AIF) For Corporations and Partnerships in General

1900 Application to Use Loose-Leaf / Computerized Books of Accounts and/or Accounting Records

1901 Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts

Application for Registration For Individuals Earning Purely Compensation Income, and Non-
1902
Resident Citizens / Resident Alien Employee

1903 Application for Registration for Corporations/ Partnerships (Taxable/Non-Taxable)

Application for Registration for One-Time Taxpayer and Persons Registering under E.O. 98
1904
(Securing a TIN to be able to transact with any Government Office)

Application for Registration Information Update for Updating / Cancellation of Registration /

1905
Cancellation of TIN / New Copy of TIN card / New copy of Certificate of Registration

1906 Application for Authority to Print Receipts and Invoices

1907 Application for Permit to Use Cash Register machines/Point-of-Sale Machine

2000 Documentary Stamps Tax Declaration/ Return

2000-OT Documentary Stamp Tax Declaration/Return (One Time Transactions)

Application for Abatement or Cancellation of Tax, Penalties and/or Interest Under Rev. Reg.
2110
No. ______
2200 A Excise Tax Return for Alcohol Products

2200 AN Excise Tax Return for Automobiles and Non-Essential

2200 M Excise Tax Return for Mineral Products

2200 P Excise Tax Return for Petroleum Products

2200 T Excise Tax Return for Tobacco Products

Certificate of Income Payment Not Subject to Withholding Tax (Excluding Compensation

2304
Income)

2305 Certificate of Update of Exemption and of Employer's and Employee's Information

2306 Certificate of Final Income Tax Withheld

2307 Certificate of Creditable Tax Withheld at Source

Certificate of Compensation Payment / Tax Withheld For Compensation Payment With or

2316
Without TAx Withheld
Various BIR PAYMENT FORMS http://www.bir.gov.ph/index.php/bir-forms/payment-remittance-
forms.html#prf0605

BIR Form No. Payment Form

0605
Description
Download

This form is to be accomplished every time a taxpayer pays taxes and fees which do not require
(Zipped the use of a tax return such as second installment payment for income tax, deficiency tax,
Excel) | (PDF) delinquency tax, registration fees, penalties, advance payments, deposits, installment payments,
etc.

Filing Date

This form shall be accomplished:

1 Every time a tax payment or penalty is due or an advance payment is made;
2. Upon receipt of a demand letter / assessment notice and/or collection letter from the BIR; and
3. Upon payment of annual registration fee for a new business and for renewals on or before
January 31 of every year.

BIR Form No. Payment Form Covered by a Letter Notice

0611-A
Description
(PDF)
This form shall be used by any person, natural or juridical, including estates and trusts, who are issued Letter
Notices generated through the following third-party information (TPI)data matching programs:

1. Reconciliation of Listings for Enforcement (RELIEF)/Bureau of Customs (BOC) Data Program; and

2. Tax Reconciliation Systems (TRS).

Filing Date

BIR Form No. Payment Form - Under Tax Compliance Verification Drive/Tax Mapping
0613
Description
Download
This form shall be used in paying penalties assessed under the Tax Compliance Verification
(Zipped Drive/Tax Mapping.
Excel) | (PDF)
Filing Date

This form shall be accomplished everytime a penalty is due.

BIR Form No. Monthly Remittance Return of Value-Added Tax and Other Percentage Taxes Withheld under RAs 1051,
1600 7649, 8241, 8424 and 9337

Download Description

(Zipped This return shall be filed in triplicate by the following:

Excel) |(PDF)
1. All government offices, bureaus, agencies or instrumentalities, local government units, government owned and
controlled corporation on money payments made to private individuals, corporations, partnerships, associations and
other juridical/artificial entities as required under RA Nos. 1051, 7649, 8241, 8424 and 9337.

2. Payors to non-residents receiving income subject to value-added tax.

 3. Payors to VAT registered taxpayers receiving income subject to value-added tax.

4. Payors to persons, natural or juridical, subject to percentage tax under Sec. 116 of the Tax Code, (ATC 082 &
084), if the taxpayer-payee opts to remit his percentage tax through the withholding and remittance of the same by
the withholding agent-payor which option is manifested by filing the "Notice of Availment of the Option to Pay the
Tax through the Withholding Process", copy-furnished the withholding agent-payor and the Revenue District
Offices of both the payor and payee.

Filing Date

The withholding tax return shall be filed and the tax paid on or before the tenth (10th) day of the month following
the month in which withholding was made.

BIR Form No. Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators
1600WP
Description
Download
This return shall be in filed in triplicate by operators of race tracks for remittance of withholding of percentage tax
(Zipped on race horse prizes and winnings on horse racing bets.
Excel) |(PDF)
Filing Date

The withholding tax return shall be filed/and the tax paid within twenty (20) days from the date the tax was
deducted and withheld.

BIR Form No. Monthly Remittance Return of Income Taxes Withheld on Compensation
1601C
Description
Download
This return is filed by every Withholding Agent (WA)/payor who is either an individual or non-individual, required
(Zipped to deduct and withhold taxes on compensation paid to employees.
Excel) |(PDF)
Filing Date

For the months of To

To (Manual)
January to November (EFPS)
A) Large and Non-large On or before the tenth (10th) day of the month In accordance with the schedule set
Taxpayer following the month in which withholding was forth in RR No. 26-2002 as follows:
made
Group A : Fifteen (15) days
following end of the month

Group B : Fourteen (14) days

following end of the month

Group C : Thirteen (13) days

following end of the month

Group D : Twelve (12) days

followingend of the month

Group E : Eleven (11) days

followingend of the month

For the month of To

To (Manual)
December (EFPS)
A) Large and Non-large On or before January 15 of the In accordance with the schedule set forth in RR
Taxpayer following year
 No. 26-2002 as follows:

Group A : Fifteen (15) days following end of the

month

Group B : Fourteen (14) days following end of the

month

Group C : Thirteen (13) days following end of the

month

Group D : Twelve (12) days following end of the

month

Group E : Eleven (11) days following end of the

month

BIR Form No. Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded)
1601E
Description
Download
This return is filed by every Withholding Agent (WA)/payor who is either an individual or non-individual, required
(Zipped Excel) to deduct and withhold taxes on income payments subject to Expanded / Creditable Withholding Taxes.

Filing Date

Manual EFPS
Large and On or before the tenth (10th) day of the month following the month In accordance with the
Non-large in which withholding was made except for taxes withheld for the schedule set forth in RR
Taxpayer month of December which shall be filed on or before January 15 of No. 26-2002 as follows:
the succeeding year.
Group A : Fifteen (15)
days following end of the
month

Group B : Fourteen (14)

days following end of the
month

Group C : Thirteen (13)

days following end of the
month

Group D : Twelve (12)

days following end of the
month

Group E : Eleven (11) days

following end of the month

BIR Form No. Monthly Remittance Return of Final Income Taxes Withheld
1601F
Description
Download

This return is filed by every Withholding Agent (WA)/payor who is either an individual or non-
(Zipped individual, required to deduct and withhold taxes on income payments subject to Final
Excel) | (PDF) Withholding Taxes.
 Filing Date

For Manual EFPS

A) Large and Non- On or before the tenth (10th) day of the month In accordance with the schedule set
large Taxpayer following the month in which withholding was forth in RR No. 26-2002 as follows:
made
Group A : Fifteen (15) days following
end of the month

Group B : Fourteen (14) days

following end of the month

Group C : Thirteen (13) days following

end of the month

Group D : Twelve (12) days

followingend of the month

Group E : Eleven (11) days

followingend of the month

BIR Form No. Monthly Remittance Return of Final Income Taxes Withheld (On Interest Paid on Deposits and
1602 Yield on Deposit Substitutes/Trusts/Etc.)

Download Description

(Zipped This return is filed by all banks, non-bank financial intermediaries, finance corporations,
Excel) | (PDF) investment and trust companies and similar institutions for final income tax withheld on interest
paid/accrued on deposit and yield or any other monetary benefit from deposit substitutes and
from trust fund and similar arrangements.

Filing Date

Manual EFPS
Large and On or before the tenth (10th) day of the month following the month In accordance with the
Non-large in which withholding was made except for taxes withheld for the schedule set forth in RR
Taxpayer month of December which shall be filed on or before January 15 of No. 26-2002 as follows:
the succeeding year.
Group A : Fifteen (15)
days following end of the
month

Group B : Fourteen (14)

days following end of the
month

Group C : Thirteen (13)

days following end of the
month

Group D : Twelve (12)

days following end of the
month

Group E : Eleven (11) days

following end of the month

BIR Form No. Quarterly Remittance Return of Final Income Taxes Withheld (On Fringe Benefits Paid to
1603 Employees Other than Rank and File)

Download Description

(Zipped This return is filed by every Withholding Agent (WA / payor) who is either an individual or non-
Excel) | (PDF) individual, required to deduct and withhold taxes on fringe benefits furnished or granted to
employees other than rank and file employees subject to Final Withholding Taxes.

Filing Date

To (Manual) To (EFPS)
On or before the tenth (10th) day of the month On or before the fifteenth (15th) day of the month
following the quarter in which the withholding was following the quarter in which the withholding was
made made

BIR Form No. Annual Information Return of Income Tax Withheld on Compensation and Final Withholding Taxes
1604CF
Description
Download
This return is filed by every employer or withholding agent/payor who is either an individual, estate, trust,
(Zipped partnership, corporation, government agency and instrumentality, government-owned and controlled corporation,
Excel) |(PDF) local government unit and other juridical entity required to deduct and withhold taxes on compensation paid to
employees and on other income payments subject to Final Withholding Taxes.

Filing Date

On or before January 31 of the year following the calendar year in which the compensation payment and other
income payments subject to final withholding taxes were paid or accrued.

BIR Form No. Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt
1604E from Withholding Taxes

Download Description

(Zipped This return is filed by every withholding agent/payor who is either an individual, estate, trust, partnership,
Excel) |(PDF) corporation, government agency and instrumentality, government-owned and controlled corporation, local
government unit and other juridical entity required to deduct and withhold taxes on income payments subject to
Expanded Withholding Taxes, or making income payments not subject to withholding tax but subject to income
tax.

Filing Date

On or before March 1 of the year following the calendar year in which the income payments subject to expanded
withholding taxes or exempt from withholding tax were paid or accrued.

BIR Form No. Withholding Tax Remittance Return (For Transactions Involving Real Property other than Capital Asset
1606 including Taxable and Exempt)

Download Description

(Zipped This return is filed by every Withholding Agent/Buyer on the sale, transfer or exchange of real property classified
Excel) |(PDF) as ordinary asset.

Filing Date

This return is filed on or before the tenth (10th) day following the end of the month in which the transaction
occurred. Provided, however, that taxes withheld in December shall be filed on or before January 25 of the
following year. Provided, that large taxpayers as determined by the Commissioner shall file/pay on or before the
25th day of the following month.
Filing Date FOR 1601- C - Monthly Remittance Return of Income Taxes Withheld on Compensation

For the months of To

To (Manual)
January to November (EFPS)
A) Large and Non-large On or before the tenth (10th) day of the month In accordance with the schedule set
Taxpayer following the month in which withholding was forth in RR No. 26-2002 as follows:
made
Group A : Fifteen (15) days
following end of the month

Group B : Fourteen (14) days

following end of the month

Group C : Thirteen (13) days

following end of the month

Group D : Twelve (12) days

followingend of the month

Group E : Eleven (11) days

followingend of the month

For the month of To

To (Manual) (EFPS)
December
A) Large and Non-large On or before January 15 of the In accordance with the schedule set forth in RR
Taxpayer following year No. 26-2002 as follows:

Group A : Fifteen (15) days following end of the

month

Group B : Fourteen (14) days following end of the

month

Group C : Thirteen (13) days following end of the

month

Group D : Twelve (12) days following end of the

month

Group E : Eleven (11) days following end of the

month