Percentage Tax Description

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 Tax under Sections 116 to 126 of the Tax Code, as amended

BIR Form 2551Q - Quarterly Percentage Tax Return

Who are required to file?

Persons refer to individuals and non-individuals, which include, but are not limited to, estates, trusts, partnerships,
and corporations.

1. 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.
2. 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)
3. Persons engaged in the following industries/transactions:
a. 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
b. International air/shipping carriers doing business in the Philippines on their gross receipts derived from
transport of cargo from the Philippines to another country
c. Franchise grantees of –
i. 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
ii. gas and water utilities.
d. 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:
i. The Philippine Government or any of its political subdivisions or instrumentalities;
ii. Diplomatic services;
iii. Public international organizations or any 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
iv. News services for messages which deal exclusively with the collection of news items for, or the
dissemination of news item through, public press, radio or television broadcasting or a newsticker
service furnishing a general news service similar to that of the public press.
e. Banks, non-bank financial intermediaries performing quasi-banking functions
f. Other non-bank financial intermediaries (including pawnshops as clarified under Revenue Regulations [RR]
No. 10 – 2004)
g. Person, company or corporation (except purely cooperative companies or associations) doing life insurance
business in the Philippines
h. Fire, marine or miscellaneous agents of foreign insurance companies
i. Proprietor, lessee or operator of cockpits, 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
j. Winnings or 'dividends' in horse races

How to file/pay?

Documentary Requirements

1. BIR Form 2551Q - Quarterly Percentage Tax Return Form

2. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
3. Duly approved Tax Debit Memo, if applicable
4. For amended return, proof of payment and the return previously filed
5. Authorization letter, if filed by an authorized representative
6. Copy of Certificate of Registration issued by Cooperative Development Authority for cooperatives, and from the
National Electrification Administration for electric cooperatives

Procedures
1. For Manual filing and/or payment:
a. Download the newly-revised BIR Form 2551Q pdf file format under the BIR Forms-VAT/Percentage Tax
Returns section of the BIR website.
b. Properly fill-up BIR Form 2551Q in triplicate copies.
 c. Proceed to any Authorized Agent Bank (AAB)located within the territorial jurisdiction of the Revenue District
Office (RDO) where the taxpayer is registered and present the duly accomplished BIR Form 2551Q and
other requirements. If paying manually, present the aforementioned documents together with BIR-
prescribed deposit slip, and payment to the respective AAB. The Quarterly Percentage Tax shall be paid
at the time the return is filed by the taxpayer.
d. In places where there are no AABs, the duly accomplished BIR 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).
e. Receive copy of BIR Form 2551Q duly validated/stamp-received by the AAB/RCO/authorized City or
Municipal Treasurer.
f. 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).
2. For eFPS filing and/or payment:
a. 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.
b. Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for
the quarter.
c. 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 per BIR
Form 2307.
d. After e-filing, proceed to online payment by clicking the proceed to payment button and pay the quarterly
percentage tax due.
3. For eBIRForms filing and/or payment:
a. 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.
b. Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for
the quarter.
c. 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 per BIR
Form 2307.
d. Proceed to any AAB located within the territorial jurisdiction of the RDO where the taxpayer is registered
and present the duly accomplished BIR 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 respective AAB. The Percentage Tax shall be paid at the time the return is filed by the
taxpayer.
e. In places where there are no AABs, the duly accomplished BIR 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).
f. 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
concerned AAB.

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 Gross sales or receipts 3%
(BB)
Domestic carriers and keepers of garages Gross receipts 3%
International air/shipping carriers doing business Gross receipts on transport of cargo 3%
in the Philippines from the Philippines to a foreign
country
Franchise grantees: 2%
Gas and water utilities
Radio and television broadcasting companies 3%
whose annual gross receipts of the preceding year Gross receipts
do not exceed Php10,000,000 and did not opt to
register as VAT taxpayer
Gross receipts

Overseas dispatch, message or conversation Amount paid for the service 10%
originating from the Philippines
Banks and non-bank financial intermediaries Interest, commissions and discounts from lending
performing quasi-banking functions 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 1%
years
Dividends and equity shares and net 0%
income of subsidiaries
Royalties, rentals of property, real or 7%
personal, profits from exchange and all
other items treated as gross income
under Sec. 32 of the Tax Code, as
amended
Net trading gains within the taxable year 7%
of foreign currency, debt securities,
derivatives and other similar financial
instruments
Other non-bank financial intermediaries Interest, commissions, discounts and all 5%
other items treated as gross income
under the Tax Code, as amended
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 1%
years
Life Insurance Company/Agent/Corporation Total premiums collected 2%
(except purely cooperative companies or
associations)
Agents of foreign insurance companies (except reinsurance premium):
Insurance agents authorized under the Insurance Total premiums collected 4%
Code to procure policies of insurance for
companies not authorized to transact business in
the Philippines
Owners of property obtaining insurance directly Total premiums paid 5%
with foreign insurance companies
Proprietor, lessee or operator of the following:
Cockpits Gross receipts 18%
Cabarets, Night or Day Clubs, videoke bars, Gross receipts 18%
karaoke bars, karaoke televisions, karaoke boxes
and music lounges
Boxing exhibitions (except when the World or Gross receipts 10%
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)
Professional basketball games (in lieu of all other Gross receipts 15%
percentage taxes of whatever nature and
description)
Jai-alai and race track Gross receipts 30%
Winnings on horse races  Winnings or 'dividends' 10%
 Winnings from double 4%
forecast/quinella and trifecta bets
 Prizes of owners of winning race 10%
horses
Percentage Tax for Transactions Involving Shares of Stocks under 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

Who are required to file?

1. 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
2. A corporate issuer, engaged in the sale, exchange or other disposition through Initial Public Offering (IPO) of shares
of stock in closely-held corporations
3. A stock broker who effected a sale, exchange or other disposition through secondary public offering of shares of
stock in closely-held corporations

How to file/pay?

Documentary Requirements

1. BIR Form 2552 - Percentage Tax Return for Transactions Involving Shares of Stocks
2. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
3. Proof of Exemption for transactions not subject to tax, if applicable
4. Duly approved Tax Debit Memo, if applicable
5. For amended return, proof of payment and the return previously filed
6. Authorization letter, if filed by an authorized representative

Procedures

1. For Manual filing and/or payment:

a. Properly fill-up the existing old BIR Form 2552 in triplicate copies using the new tax rate then compute the
tax due thereon.
b. Proceed to any AAB located within the territorial jurisdiction of the RDO where the where the broker or
corporate issuer is registered, and present the duly accomplished old BIR Form 2552, together with the
required attachments.
c. If paying manually, present the aforementioned documents together with BIR-prescribed deposit slip, and
payment to the respective AAB. The Percentage Tax Involving Shares of Stocks shall be paid at the time
the return is filed by the taxpayer.
d. Receive the BIR Form 2552 taxpayer's copy duly validated and stamp-received by the teller of the AAB.
e. 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).
2. For eFPS filing and/or payment;
a. File online using the existing BIR Form 2552 in the eFPS and pay online the corresponding taxes due
thereon by proceeding to payment. The result of this transaction is deficiency tax.
b. To cover the deficiency tax, eFPS filers shall likewise file and pay online the deficiency tax using BIR Form
No. 0605 and 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.
c. 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).
d. Note: Once the enhanced version of the BIR Form 2552 is 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.
3. For eBIRForms filing and payment:
a. File online using the existing BIR Form 2552 in 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.
b. 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).
c. The result of this transaction thru eBIRForms is deficiency tax.
d. To cover the resulting deficiency tax, eBIRForms filers shall likewise file and pay online the deficiency tax
using BIR Form No. 0605 and 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
concerned AAB.
When to File/Pay

1. 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
2. For tax on shares of stocks sold or exchanged through primary offering - within 30 days from the date of listing in
the LSE
3. 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 from BIR 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 Gross selling price or gross value 6/10 of 1%
listed and traded through the Local Stock Exchange other than in money
the sale by a dealer of securities
Sale, barter or exchange or other disposition through: Gross selling price or gross value in money
 Initial Public Offering (IPO) – the issuing corporation shall
pay the imposed tax Proportion of disposed shares to total outstanding
 Secondary Public Offering – the seller shall pay the shares after the listing in the local stock exchange:
imposed tax  Up to 25% 4%
 Over 25% but not over 33 2%
1/3%
 Over 33 1/3% 1%