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 Section 1, Article III,    
laws Bill of Rights
Prohibition against imprisonment for non- Section 20, Article    
payment of poll tax III, Bill of Rights
Prohibition against impairment of Section 10, Article    
obligation of contracts III, Bill of Rights
Requirement of uniformity and equity in Section 28, Article    
taxation VI, Legislative
Department
Prohibition against taxation appropriation Section 29, Article    
for religious purposes VI, Legislative
Department
Prohibition against taxation of religious, Section 28, Article    
charitable and educational VI, Legislative
entities(Religious and charitable Department
institutions exempt from property taxes)
Prohibition against taxation of non-stock , section 4, Article    
non-profit educational institutions and XVI, Education
proprietary educational 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   Tax Code  
1997
Organization and Function of the Bureau Title I, NIRC Tax Code  
of Internal 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 Book II, Title I,    
Other Revenue-Raising Powers of Local Chapter II
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 Book II, Title II,    
Property 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 Book II, Title III    
Proceeds of the National Taxes
Allotment of Internal Revenue Book II, Title III,    
Chapter I
Share of Local Government Units in the Book II, Title III,    
National Wealth Chapter 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    PEZA Website available at the BIR
Act library
(Republic Act 7903)      
Cagayan Special Economic Zone Act of    PEZA Website available at the BIR
1995 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     available at the BIR
Enterprise 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     available at the BIR
2000) 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 FORM TITLE

NO.

0605 Payment Form

Remittance Return of Percentage Tax on Winnings and Prizes Withheld by

1600WP
Race Track Operators

1601C Monthly Remittance Return of Income Taxes Withheld on Compensation

Monthly Remittance Return of Creditable Income Taxes Withheld

1601E
(Expanded)

1601F Monthly Remittance Return of Final Income Taxes Withheld

Monthly Remittance Return of Final Income Taxes Withheld (On Interest

1602
Paid on Deposits and Yield on Deposit Substitutes/Trusts/Etc.)

Annual Information Return of Income Tax Withheld on Compensation and

1604CF
Final Withholding Taxes

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

1604E
Income Payments Exempt from Withholding Taxes 

Withholding Tax Remittance Return (For Transactions Involving Real

1606
Property other than Capital Asset including Taxable and Exempt) 

Account Information Form (AIF) for Self-employed Individuals, Estates and

1701-AIF
Trusts (engaged in trade and business)

Account Information Form (AIF) For Corporations and Partnerships in

1702-AIF
General

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

 Accounting Records

Application for Registration for Self-Employed and Mixed Income Individuals,

1901
Estates/Trusts

Application for Registration For Individuals Earning Purely Compensation

1902
Income, and Non-Resident Citizens / Resident Alien Employee

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

1903
Taxable)

Application for Registration for One-Time Taxpayer and Persons Registering

1904 under E.O. 98 (Securing a TIN to be able to transact with any Government
Office)

Application for Registration Information Update for Updating / Cancellation

1905 of Registration / 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

2110
Under Rev. Reg. 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

2304
Compensation Income)

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

2305
Information

2306 Certificate of Final Income Tax Withheld

2307 Certificate of Creditable Tax Withheld at Source

Certificate of Compensation Payment / Tax Withheld For Compensation

2316
Payment With or 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
1600 Withheld under RAs 1051, 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
1600WP Track Operators

Download Description

(Zipped This return shall be in filed in triplicate by operators of race tracks for remittance of
Excel) |(PDF) withholding of percentage tax on race horse prizes and winnings on horse racing bets.
 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
(Zipped non-individual, required 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- On or before the tenth (10th) day of In accordance with the
large Taxpayer the month following the month in schedule set forth in RR No.
which withholding was made 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

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- On or before January 15 of In accordance with the schedule set forth
large Taxpayer the following year in RR 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

Download
Description

(Zipped Excel)
This return is filed by every Withholding Agent (WA)/payor who is either an individual or
non-individual, required 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 In accordance with
Non-large following the month in which withholding was made the schedule set forth
Taxpayer except for taxes withheld for the month of December in RR No. 26-2002 as
which shall be filed on or before January 15 of the follows:
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 On or before the tenth (10th) day of the In accordance with the
Non-large month following the month in which schedule set forth in RR No. 26-
Taxpayer withholding was made 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

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
1602 Deposits and 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 In accordance with
Non-large following the month in which withholding was made the schedule set forth
Taxpayer except for taxes withheld for the month of December in RR No. 26-2002 as
which shall be filed on or before January 15 of the follows:
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
1603 Paid to 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 On or before the fifteenth (15th) day of the
month following the quarter in which the month following the quarter in which the
withholding was made withholding was made

BIR Form No. Annual Information Return of Income Tax Withheld on Compensation and Final
1604CF Withholding Taxes

Download Description

(Zipped This return is filed by every employer or withholding agent/payor who is either an
Excel) |(PDF) individual, estate, trust, partnership, corporation, government agency and instrumentality,
government-owned and controlled corporation, 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)/
1604E Income Payments Exempt from Withholding Taxes

Download Description

(Zipped This return is filed by every withholding agent/payor who is either an individual, estate,
Excel) |(PDF) trust, partnership, 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
1606 other than Capital Asset including Taxable and Exempt)

Download Description

(Zipped This return is filed by every Withholding Agent/Buyer on the sale, transfer or exchange of
Excel) |(PDF) real property classified 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 
January to To (Manual)
(EFPS)
November
A) Large and Non- On or before the tenth (10th) day of In accordance with the
large Taxpayer the month following the month in schedule set forth in RR No.
which withholding was made 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

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- On or before January 15 of In accordance with the schedule set
large Taxpayer the following year forth in RR 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