Module VI

Ayson, Francis Neil C.
BSA-3
Module VI: Taxes
This report aims to discuss the steps necessary in order to file the Percentage Tax, Expanded Withholding Tax and
Income Tax of Lorrena Aguinaldo. The report is arranged in the following order:
A. Percentage Tax
1. What is the Percentage Tax?
2. What form will be filed in paying the Percentage Tax?
3. Who are required to File the BIR Form 2551Q?
4. When is the Deadline for filing BIR Form No. 2551Q?
5. What are the Required Documents when filing BIR Form No. 2551Q?
6. What are the steps needed when filing BIR Form No. 2551Q?
7. What are the Penalties for Failure to File BIR 2551Q?
B. Expanded Withholding Tax

1. What is the Expanded Withholding Tax?
2. What forms will be filed in paying the Expanded Withholding Tax?
3. Who are required to file BIR Form No. 0619-E, BIR Form No. 1601-EQ, and BIR Form No. 1604-E?
4. When is the Deadline for filing BIR Form No. 0619-E, BIR Form No. 1601-EQ, BIR Form No. 1604-E, and
BIR Form 2307?
5. What are the Required Documents when filing BIR Form No. 0619-E, BIR Form No. 1601-EQ, BIR Form
No. 1604-E, and BIR Form 2307?
6. What are the steps needed when filing BIR Form No. 0619-E, BIR Form No. 1601-EQ, and BIR Form No.
1604-E?
7. What are the Penalties for Failure to File BIR Form No. 0619-E, BIR Form No. 1601-EQ, and BIR Form No.
1604-E?
C. Income Tax
1. What is an Income Tax?
2. What forms will be filed in paying the Income Tax?
3. Who are required to file BIR Form No. 1701Q and BIR Form No. 1701?
4. When is the Deadline for filing BIR Form No. 1701Q and BIR Form No. 1701?
5. What are the Required Documents when filing BIR Form No. 1701Q and BIR Form No. 1701?
6. What are the steps needed when filing BIR Form No.1701 and BIR Form No. 1701Q?
7. What are the Penalties for Failure to File BIR Form No.1701 and BIR Form No. 1701Q?
A. The Percentage Tax
1. What is a Percentage Tax?
Percentage Tax refers to the business tax enforced on individual taxpayers or businesses that conduct in the selling or leasing
of goods and services with annual sales not exceeding ₱3,000,000 and is not VAT registered in the Philippines as stated under
Sections 116 to 127 of the Tax Code or National Internal Revenue Code of 1997 and as required under special laws.
Source:
 https://www.bir.gov.ph/index.php/tax-information/percentage-tax.html
2. What form will be filed in paying the Percentage Tax?

The BIR Form No. 2551Q shall be filed by the taxpayer every quarter in paying the Percentage Tax. However, prior to
TRAIN Law, taxpayers were required to file the percentage tax monthly through the BIR Form 2551M. Additionally, taxpayers may
be exempt from filing Percentage Tax if he or she opts to avail for the 8% Gross Income Tax on Gross Sales and Receipts in lieu of
filing the Percentage Tax and Annual Income Tax.
Sources:
 https://juan.tax/blog/juantax-exclusive-a-closer-look-on-percentage-tax-2551q/
 https://www.full-suite.com/blog/train-law-effect-freelancers/
 https://www.grantthornton.com.ph/insights/articles-and-updates1/lets-talk-tax/the-8-tax-for-self-employed-
individuals/
3. Who are required to File the BIR Form 2551Q?

The following are required to file in triplicate the BIR Form 2551Q:
 Persons whose gross annual sales and/or receipts do not exceed ₱3,000,000 and who are not VAT-registered
persons.
 Domestic carriers and keepers of garages, except owners of bancas and owners of animal-drawn two wheeled
vehicles.
 Operators of international air and shipping carriers doing business in the Philippines.
 Franchise grantees of radio and/or television broadcasting companies whose gross annual receipts of the preceding
year do not exceed Ten Million Pesos (P10,000,000.00) and did not opt to register as VAT taxpayers.
 Franchise grantees sending overseas dispatch, messages or conversations from the Philippines, except on services
involving the following:
o Government of the Philippines - for messages transmitted by the Government of the Republic of the
Philippines or any of its political subdivisions and instrumentalities;
o Diplomatic services - for messages transmitted by any embassy and consular offices of a foreign government;
o International organizations - for messages transmitted by a public international organization or any of its
agencies based in the Philippines enjoying privileges and immunities pursuant to an international agreement;
and
o News Services - for messages from any newspaper, press association, radio or television newspaper,
broadcasting agency, or newsticker services to any other newspaper, press association, radio or television
newspaper broadcasting agency or newsticker services or to bonafide correspondents, which messages deal
exclusively with the collection of news items for, or the dissemination of news items through, public press,
radio or television broadcasting or a newsticker service furnishing a general news service similar to that of the
public press.
 Franchise grantees of gas or water utilities.
 Proprietors, lessees or operators of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball
games, jai-alai and racetracks.
 Banks, non-bank financial intermediaries and finance companies.
 Life insurance companies.
 Agents of foreign insurance companies.
*Considering that Classique Furniture Co. is not VAT-Registered and the Annual Gross Sales do not exceed ₱3,000,000,
Lorrena Aguinaldo shall be required to file BIR Form No. 2551Q.
Source:
4. When is the Deadline for filing BIR Form No. 2551Q?
The BIR Form No. 2551Q shall be filed within twenty-five (25) days after the end of each taxable quarter. However,
those who are classified as non-large and large taxpayers who files through the Electronic Filing and Payment System (EFPS), their
deadline shall depend on the provisions of existing applicable revenue issuances when filing electronically and paying the taxes due.
Source:
5. What are the Required Documents when filing BIR Form No. 2551Q?
 BIR Form 2551Q or the Quarterly Percentage Tax Return Form for Manual Filing
 BIR Tax Confirmation Receipt of Filing for electronic filing
 Proof of Payment
 Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
 Duly approved Tax Debit Memo, if applicable
 For amended return, proof of payment and the return previously filed
 Authorization letter, if filed by an authorized representative
 Copy of Certificate of Registration issued by Cooperative Development Authority for cooperatives, and from the
National Electrification Administration for electric cooperatives
Source:
6. What are the steps needed when filing BIR Form No. 2551Q?
 Manual Filing and/or Payment
1) The taxpayer should download the most updated version BIR Form 2551Q pdf file in the BIR website which is
at:
https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/2551Q%20Jan%20201
8%20ENCS%20final%20rev%203_copy.pdf
2) The taxpayer shall then fill-up the BIR Form 2551Q in triplicate copies with their correct details.
3) The taxpayer shall then go to any Authorized Agent Bank (AAB) that is situated within the territorial jurisdiction
of the Revenue District Office (RDO) where the taxpayer is registered and pass all the requirements including the
duly accomplished BIR Form 2551Q.
* If the taxpayer pays manually, he or she shall present the required documents with the BIR-prescribed deposit
slip, and payment to the respective AAB. The Quarterly Percentage Tax shall be paid upon filing.
*If there are no AABs, the duly accomplished BIR Form 2551Q and the required attachments and payment, shall
be file or paid with the Revenue Collection Officer (RCO), through the use of 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, wherein an Electronic Revenue Official Receipt
(eROR) will be issued.
4) The duplicate of BIR Form 2551Q duly validated or stamped as “Received-Stamp” by the AAB/RCO/authorized
City or Municipal Treasurer shall be received by the taxpayer.
5) Taxpayers who opted for manual filing and prefers to pay online can use the following for payment:
o GCash Mobile Payment

o LandBank of the Philippines (LBP)
o Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card)
o DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card)
 eFPS Filing and/or Payment:
1) Taxpayers shall use the already-existing and enhanced version of the old BIR Form 2551Q in the eFPS system
which has all the alphanumeric tax codes (ATCs) listed in the said form in filing the return.
2) The taxpayer shall then indicate the taxable amount in the quarterly percentage return which are the quarterly total
gross sales or receipts.
3) If the percentage taxes for the first three months of the quarter had already been paid by the taxpayer, the said
payments shall be reflected in the BIR Form 2551Q under Item No. 20A-Creditable Percentage Tax Withheld
per BIR Form 2307.
4) The taxpayer may proceed to the online payment of the corresponding quarterly percentage tax due by clicking the
proceed to payment button.
*Taxpayers may go to this website for more details: https://efps.bir.gov.ph/
 eBIRForms filing and/or payment:
1) The taxpayer shall use the existing and enhanced version of the old BIR Form 2551Q which is in Offline
eBIRForms Package V7, which contains all the alphanumeric tax codes (ATCs) enumerated in BIR Form 2551M
in filing the return.
*Taxpayers may use this link to directly go to mentioned form:

https://www.bir.gov.ph/index.php/eservices/ebirforms.html
2) The total gross sales or receipts for the quarter shall be the taxable amount to be indicated in the quarterly
percentage return.
3) If the first three months of the quarter had been paid, they shall be reflected in BIR Form 2551Q under Item No.
20A-Creditable Percentage Tax Withheld per BIR Form 2307.
4) The taxpayer shall go to any AAB located within the territorial jurisdiction of the RDO where he or she is
registered and present the duly accomplished BIR Form 2551Q along with the other requirements.
*If there is manual payment, the said documents and the BIR-prescribed deposit slip, and payment shall be
presented to the respective AAB. The Percentage Tax shall be paid at the time upon filing.
5) If there are no AABs within the area, the duly accomplished BIR Form 2551Q, the essential attachments and
payment, shall be filed and paid with the RCO, through the use of 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).
6) Taxpayers who opt to pay online can use the following as the means for payment:

o LandBank of the Philippines (LBP
Sources:
 https://www.bir.gov.ph/index.php/tax-information/percentage-tax.htm
 lhttps://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/2551Q_%20Jan%202018
%20Guide.pdf
7. What are the Penalties for Failure to File BIR 2551Q?

The taxpayer that fails to file BIR 255Q shall incur interest of 12%, 25% surcharge, compromised penalty in the following
cases:
o Failure to file and pay quarterly percentage tax return on or before the deadline
o Filed a return in the wrong RDO Office
o Failure to pay the full or part of the amount of tax to be paid
o Failure to pay the deficiency tax
o Filed a false or fraudulent tax return
Source:
 https://juan.tax/blog/juantax-exclusive-a-closer-look-on-percentage-tax-2551q/
B. Expanded Withholding Tax

1. What is an Expanded Withholding Tax?
The Expanded Withholding Tax is a classification of Withholding Tax that is required for certain income payments.
This tax is creditable against the payee’s income tax payable for the taxable quarter or year when the income was earned.
Among income payments subject to the Expanded Withholding Tax include Gross Rentals of personal property in excess of
P10,000 annually and real property used in business, Professional Fees, and Income distribution to the beneficiaries of estate
and trusts
Since Lorrena Aguinaldo rents the business place from Jhun Cayanan, her rental payments qualifies as an income
subjected to the Expanded Withholding Tax.
Source:
 https://www.bir.gov.ph/index.php/tax-information/withholding-
tax.html#:~:text=Expanded%20%2D%20is%20a%20kind%20of,the%20particular%20income%20was%20earned.
2. What forms will be filed in paying the Expanded Withholding Tax?

The forms to be filed by the taxpayer are the BIR Form No. 0619-E, BIR Form No. 1601-EQ, BIR Form No. 1604-
E. The BIR Form No. 0619-E shall be filed monthly, the BIR Form No. 1601-EQ shall be filed quarterly, and the BIR Form
No. 1604-E shall be filed annually. Additionally, the Withholding Agents are also required to file BIR Form 2307 or
Certificate of Creditable Tax Withheld at Source. This form will be given to the income payee so that they may be allowed
to have the withheld tax be treated as tax credit against their income tax.
3. Who are required to file BIR Form No. 0619-E, BIR Form No. 1601-EQ, and BIR Form No. 1604-E?
These forms shall be filed in triplicate by the payor or withholding agent who are required to deduct and withhold taxes on
their income payments subjected to Expanded/Creditable Withholding Taxes.
The following enumerates certain guidelines with regards to special cases when filing the Expanded Withhold Tax:
 The form shall be filed in the name of the corporation with the verification of the president, vice-president, or any
authorized officer in the case of a corporation being required to withhold and pay taxes.
 If the payor or withholding agents is the Government of the Philippines or any of its agencies, political subdivisions
or instrumentalities or a government-owned or controlled corporation being required to withhold and pay taxes, the
form shall be filed and signed by the officer or employee who has authority over the disbursement of income
payment or other officer or employee assigned for said purpose.
 For the case of a fiduciary, the form shall be filed under the name of the individual, estate or trust for which such
fiduciary acts and shall be signed and verified by such fiduciary. If there are two or more joint fiduciaries, the form
shall be signed and verified by one of such fiduciaries.
 Authorized Representative and Accredited Tax Agent filing in behalf of the taxpayer may also utilize this form in
order to remit the creditable taxes withheld.
Source:
 https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/0619-
E%20Jan%202018%20Guidelines.pdf
4. When is the Deadline for filing BIR Form No. 0619-E, BIR Form No. 1601-EQ, BIR Form No. 1604-
E, and BIR Form 2307?
 The deadline for filing BIR Form No. 0619-E and paying the corresponding tax shall be on or before the 10th day
after the month in which withholding was made. This form shall be filed for the first two (2) months of each
calendar quarter.
 As for filing BIR Form No. 1601-EQ and paying the corresponding tax, the deadline shall be not later than the last
day of the month after the end of the quarter during which withholding was made.
 For the BIR Form No. 1604-E, the filing and paying of taxes shall be on or before March 1 of the year after the
calendar year in which the income payments subject to expanded withholding taxes or exempt from
withholding tax were paid or accrued.
 The BIR Form 2307 shall be issued on or before the 20th day of the month after the end of the taxable quarter.
The payor must furnish the said statement to the payee together with the income payment upon the payee’s request.
5. What are the Required Documents when filing BIR Form No. 0619-E, BIR Form No. 1601-EQ,
BIR Form No. 1604-E?
Generally, the following are the requirements needed for filing Expanded Withholding Tax:
o Duly-accomplished BIR Form No. 0619-E, BIR Form No. 1601-EQ, BIR Form No. 1604-E for manual files
o BIR Tax Confirmation Receipt of Filing for electronic filers
o Proof of Payment
o BIR Form 2307 or Certificate of Creditable Tax Withheld at Source
o Quarterly Alphalist of Payees
The following enumerates the specific requirements stated under their respective forms:
 BIR Form No. 1601-EQ
o Acknowledgment Receipt or Validation Successful Message as proof of submission of Quarterly
Alphalist of Payees (QAP) thru Electronic attachment for eFPS or email to esubmission@bir.gov.ph
Source:
EQ%20Guide%20January%202019%20ENCS%20rev.pdf
 BIR Form No. 1604-E

o Acknowledgement Receipt/Validation Successful message as proof of submission thru electronic
attachment for eFPS or email to esubmission@bir.gov.ph of the following:
a. Alphalist of Payees Subjected to Expanded Withholding Tax.
b. Alphalist of Other Payees Whose Income Payments Are Exempt from Withholding Tax but
Subject to Income Tax.
o Authorization letter, if returns is filed by an authorized representative
o Return previously filed and proof of tax payment for amended return
Source:
 https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1604E%20Jan%202018%
20ENCS%20Final2.pdf
6. What are the steps needed when filing BIR Form No. 0619-E, BIR Form No. 1601-EQ, and BIR
Form No. 1604-E?
 BIR Form No. 0619-E and BIR Form No. 1601-EQ
1) The Taxpayer or Withholding Agent shall fill-up the BIR Form No. 0619-E and BIR Form No. 1601-EQ in
triplicate copies with the correct information asked. The forms may be downloaded in the following links:
o https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1604E%20
Jan%202018%20ENCS%20Final2.pdf (BIR Form No. 0619-E)
o https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/0619-
E%20Jan%202018%20rev%20final.pdf (BIR Form No. 1601-EQ)
2) The Withholding Agent shall then go to the Authorized Agent Bank of the Revenue District Office (RDO)
where he or she is registered or has authority over the place of business.
*If the Withholding Agent filed with an AAB, then he or she shall accomplish and submit the validated BIR-
prescribed deposit slip as an evidence that the payment was received by the AAB.
**If there are no AAB in the area, the Withholding Agent shall file and remit the tax with the Revenue
Collection Officer of the RDO who is responsible for issuing an Electronic Revenue Official Receipt (eROR).
3) The duplicate of the duly stamped and validated form from the RDO/Tax Filing Center representative shall be
received by the taxpayer.
*Additionally, the word “Received” shall be stamped on the form and it shall be validated as an evidence of
the taxpayer’s tax filing and remittance. The validation is done through a machine and shall reflect the
remittance date, remitted amount, transaction code, name of the bank, branch code, teller’s code and initial.
The Bank debit memo number and date should be placed in the form for taxpayers remitting under the bank
debit system
**A taxpayer has the option to file a separate form for the head office and for each branch or file a
consolidated form for the head office and all the branches. However, in the case of large taxpayers only one
consolidated form is required.
1) The Taxpayer or Withholding Agent should gather and record all information from the BIR Form 1601E that
were filed and submitted for all months of the taxable year. Information include:
o Date Remitted
o Month and Year
o Bank where the payment was made. If there was no payment, the taxpayer shall put “Not Applicable”
o ROR with the Reference Number of Filing or Payment. If there is no reference number, the taxpayer
should put “Not Applicable”.
o Amount of Tax Withheld
o Penalties, if any
2) Next, the taxpayer shall fill-up and accomplish the BIR Form No. 1604-E. This can be downloaded in
https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1604E%20Jan%20
2018%20ENCS%20Final2.pdf
3) The Alphalist of Payees (Schedule 3 and Schedule 4) for the applicable taxable year shall be prepared through
the use of the BIR Alphalist Data Entry. This is where the taxpayer shall record all payees with their
respective amount in the Alphalst Data Entry.
4) The Withholding Agent shall then proceed to the Authorized Agent Bank of the Revenue District Office
(RDO) where he or she is registered or has authority over the place of business.
*If the Withholding Agent filed with an AAB, then he or she shall accomplish and submit the validated BIR-
prescribed deposit slip as an evidence that the payment was received by the AAB.
**If there are no AAB in the area, the Withholding Agent shall file and remit the tax with the Revenue
Collection Officer of the RDO who is responsible for issuing an Electronic Revenue Official Receipt (eROR).
5) The duplicate of the duly stamped and validated form from the RDO/Tax Filing Center representative shall be
* Additionally, the word “Received” shall be stamped on the form and it shall be validated as an evidence of
filing and remittance o tax by the taxpayer. The validation is done through a machine and shall reflect the
remittance date, remitted amount, transaction code, name of the bank, branch code, teller’s code and initial.
The Bank debit memo number and date should be placed in the form for taxpayers remitting under the bank
debit system.
Additionally, taxpayers may also opt for eFPS or eBIR Forms when filing Expanded Withholding Taxes. You may revisit the
discussion above under the Percentage Taxes for more details as the procedures are similar.
Sources:
20Guidelines.pdf
 https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1601EQ%20Guide%20Ja
nuary%202019%20ENCS%20rev.pdf
20ENCS%20Final2.pdf
 https://mpm.ph/guideline-in-preparing-bir-form-1604e-and-alphalist-of-payees/
7. What are the Penalties for Failure to File BIR Form No. 0619-E, BIR Form No. 1601-EQ, and BIR Form No.
1604-E?
 BIR Form No. 0619-E and BIR Form No. 1601-EQ
There shall be imposed and collected as part of the tax:
o A surcharge of twenty-five percent (25%) for the following violations:

 Failure to file any return and pay the amount of tax or installment due on or before the due date;
 Unless otherwise authorized by the Commissioner, filing a return with a person or office other
than those with whom it is required to be filed;
 Failure to pay the full or part of the amount of tax shown on the return, or the full amount of tax
due for which no return is required to be filed on or before the due date;
 Failure to pay the deficiency tax within the time prescribed for its remittance in the notice of
assessment.
o A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case any payment has been made
on the basis of such return before the discovery of the falsity or fraud, for each of the following violations:
 Willful neglect to file the return within the period prescribed by the Code or by rules and
regulations; or
 In case a false or fraudulent return is willfully made.
o Interest at the rate of double the legal interest rate for loans or forbearance of any money in the absence of
an express stipulation as set by the Bangko Sentral ng Pilipinas from the date prescribed for remittance
until the amount is fully remitted: Provided, that in no case shall the deficiency and the delinquency
interest prescribed under Section 249 Subsections (B) and (C) of the National Internal Revenue Code, as
amended, be imposed simultaneously.
o Compromise penalty.
Source:
EQ%20Guide%20January%202019%20ENCS%20rev.pdf
E%20Jan%202018%20Guidelines.pdf
In the case of each failure to file an information return, statement or list, or keep any record, or supply any
information required by the Code or by the Commissioner on the date prescribed therefor, unless it is shown that
such failure is due to reasonable cause and not to willful neglect, there shall, upon notice and demand by the
Commissioner, be paid by the person failing to file, keep or supply the same One thousand pesos (P1, 000.00) for
each such failure. Provided, however, that the aggregate amount imposed for all such failures during a calendar year
shall not exceed Twenty-five thousand pesos (P25, 000.00).
Source:
20ENCS%20Final2.pdf
C. Income Tax
1. What is an Income Tax?
Income Tax refers to the tax applied on an individual’s income, emoluments, profits earned from property owned and from
the practice of profession, conduct of business or trade or on certain items of gross income as stated under the Tax Code of 1997, as
amended, less the deductions, if applicable, that are authorized for said income, by the Tax Code or special laws.
Source:
 https://www.bir.gov.ph/index.php/tax-information/income-tax.html
2. What forms will be filed in paying the Income Tax? (Based on Lorrena Aguinaldo’s case)
The forms that will be filed by Ms. Lorrena Aguinaldo is the BIR Form No. 1701 or the Annual Income Tax Return for
Individuals (including MIXED Income Earner), Estates and Trusts for the Annual Income Tax Return since she is a sole owner of a
sole proprietorship business without having any compensation income, and the BIR Form No. 1701Q or the Quarterly Income Tax
Return for Individuals, Estates and Trusts for the Quarterly Income Tax Return.
Other forms that may be filed by a taxpayer include:
 BIR Form 1700 - Annual Income Tax for Individuals Earning Purely Compensation Income (Including Non-
Business/Non-Profession Related Income)
 BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships)
3. Who are required to file BIR Form No. 1701Q and BIR Form No. 1701?
 BIR Form No. 1701Q
o A resident citizen engaged in trade, business, or practice of profession within and without the
Philippines.
o A resident alien, non-resident citizen or non-resident alien individual engaged in trade, business or
practice of profession within the Philippines.
o A trustee of a trust, guardian of a minor, executor/administrator of an estate, or any person acting in
any fiduciary capacity for any person, where such trust, estate, minor, or person is engaged in trade
or business.
 BIR Form No. 1701
o A resident citizen engaged in trade, business, or practice of profession within and without the
Philippines.
o A resident alien, non-resident citizen or non-resident alien individual engaged in trade, business or
practice of profession within the Philippines.
o A trustee of a trust, guardian of a minor, executor/administrator of an estate, or any person acting in
any fiduciary capacity for any person, where such trust, estate, minor, or person is engaged in trade or
business.
o An individual engaged in trade or business or in the exercise of their profession and receiving
compensation income as well
4. When is the Deadline for filing BIR Form No. 1701Q and BIR Form No. 1701?
 The BIR Form No. 1701Q shall be filed on the following dates:
o 1st quarter On or before May 15 of the current taxable year
o 2nd quarter On or before August 15 of the current taxable year
o 3rd quarter On or before November 15 of the current taxable year
 The BIR Form No. 1701 shall be filed on or before April 15 of each year covering income for the
preceding taxable year.
5. What are the Required Documents when filing BIR Form No. 1701Q and BIR Form No. 1701?
 BIR Form 1701Q
o BIR Form No. 2307 or Certificate of Creditable Tax Withheld at Source, if applicable;
o Duly Approved Tax Debit Memo, if applicable;
o Authorization letter, if return is filed by authorized representative;
o Proof of other payment/s made, if applicable; and
o Summary Alphalist of Withholding Agents of Income Pay
 BIR Form 1701
o BIR Form No. 2316 or Certificate of Income Tax Withheld on Compensation, if applicable
o BIR Form No. 2304 or Certificate of Income Payments Not Subjected to Withholding Tax, if applicable
o BIR Form No. 2307 or Certificate of Creditable Tax Withheld at Source, if applicable
o Account Information Form (AIF) or the Certificate of the independent Certified Public Accountant
(CPA) with Audited Financial Statements if the gross annual sales, earnings, receipts or output exceed
₱3,000,000
o Account Information Form or Financial Statements not necessarily audited by an independent CPA if the
gross annual sales, earnings, receipts or output do not exceed ₱3,000,000 and is subject to graduated income
tax rates under Section 24(A)(2)(a)
o Duly approved Tax Debit Memo, if applicable
o Proof of Foreign Tax Credits, if applicable
o Income Tax Return previously filed and proof of payment, if filing an amended return for the same year
o Proof of prior year’s excess tax credits, if applicable
Source:
 https://www.bir.gov.ph/index.php/tax-information/income-tax.html#a2
 https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1701Q%20Guide%20Jan
%202018_copy.pdf
6. What are the steps needed when filing BIR Form No.1701 and BIR Form No. 1701Q?
 BIR Form 1701Q
 For Manual Filing
1) The Taxpayer shall gather all information needed from its Financial Statements that will be used for filling out
the form.
2) The taxpayer shall fill-up the BIR Form No. 1701Q in triplicate copies. The form may be found in
https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1701Q%20Jan%20201
8%20final%20rev2_copy.pdf
*Compensation Income does not need to be reported in the Quarterly Income Tax Return and is to be declared
only on the Annual Income Tax Return.
3) The taxpayer shall then proceed to the Revenue District Office where he or she is registered or to any Tax Filing
Center established by the BIR and submit the duly accomplished BIR Form 1701Q and the required attachments.
4) The taxpayer shall receive his or her copy of the duly stamped and validated form from the RDO.
 For eFPS Filing
the form.
2) The taxpayer shall fill-up the applicable fields in the BIR Form No. 1701Q
3) The taxpayer shall proceed to paying electronically by clicking the “Proceed to Payment” button and fill-up the
necessary information in the fields in the “eFPS Payment Form” then click “Submit” button.
4) The taxpayer shall receive the payment confirmation from eFPS-AABs as an evidence for a successful e-filing
and e-payment.
 For non-eFPS Filing
the form.
2) The taxpayer shall fill-up all applicable fields in the BIR Form No. 1701Q in the downloaded Electronic
Bureau of Internal Revenue Form (eBIRForm) Package.
3) After which, the taxpayer should print the BIR Form No. 1701Q after accomplishing it.
4) The taxpayer shall go to the Authorized Agent Bank (AAB) under the authority of the Revenue District Office
where he or she is registered and submit the duly accomplished BIR Form 1701Q with the required attachments
and payment.
*If there are no AABs in the area, the taxpayer should proceed to the Revenue Collection Officer or duly
Authorized City or Municipal Treasurer that is situated within the Revenue District Office where he or she is
registered and submit the duly accomplished BIR Form 1701Q with the required attachments and payment.
5) The taxpayer shall now accept his or her copy of the duly stamped and validated tax return and BIR prescribed
deposit slip from the teller of the AABs or Electronic Revenue Official Receipt (eROR) from the Revenue
Collection Officer/duly Authorized City or Municipal Treasurer.
 BIR Form 1701

 For Manual Filing
1) The Taxpayer shall gather all information needed from its Financial Statements that will be used for filling
out the form.
2) The taxpayer shall fill-up the BIR Form No. 1701 in triplicate copies with the correct information asked. The
form may be downloaded in
https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1701%20Jan%202
018%20final%20with%20rates.pdf
3) The taxpayer shall then go to the Revenue District Office where he or she is registered or to any Tax Filing
Center established by the BIR and present the duly accomplished BIR Form 1701, together with the required
attachments.
4) The copy of the duly stamped and validated form from the RDO/Tax Filing Center representative shall be
 For eFPS Filing
out the form.
2) The taxpayer shall fill-up the applicable fields in the BIR Form No. 1701
3) The taxpayer shall proceed to paying electronically by clicking the “Proceed to Payment” button and fill-up
the required information in the fields in the “eFPS Payment Form” then click “Submit” button.
4) The taxpayer shall receive the payment confirmation from eFPS-AABs for successful e-filing and e-payment.
 For non-eFPS Filing
out the form.
2) The taxpayer shall fill-up all the necessary fields in the BIR Form No. 1701 in the downloaded Electronic
Bureau of Internal Revenue Form (eBIRForm) Package
3) The duly accomplished BIR Form No. 1701 shall be printed.
4) The taxpayer shall go to the nearest Authorized Agent Bank (AAB) that is under the jurisdiction of the
Revenue District Office where he or she is registered and present the duly accomplished BIR Form 1701,
together with the required documents and payment.
*For areas without AABs, the taxpayer shall proceed to the Revenue Collection Officer or duly Authorized
City or Municipal Treasurer located within the Revenue District Office where he or she is registered and
present the duly accomplished BIR Form 1701, together with the required attachments and your payment.
5) The taxpayer shall receive his or her respective copy of the duly stamped and validated form from the teller of
the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
Sources:
 https://www.bir.gov.ph/index.php/bir-forms/income-tax-return.html
 https://www.bir.gov.ph/index.php/tax-information/income-tax.html#a3
 https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1701Q%20Guide%20Jan
%202018_copy.pdf
 https://www.taxumo.com/blog/how-do-i-file-an-annual-income-tax-return/
7. What are the Penalties for Failure to File BIR Form No.1701 and BIR Form No. 1701Q?
There shall be imposed and collected as part of the tax:
o A surcharge of twenty-five percent (25%) for the following violations:

 Failure to file any return and pay the amount of tax or installment due on or before the due date;
 Unless otherwise authorized by the Commissioner, filing a return with a person or office other
than those with whom it is required to be filed;
 Failure to pay the full or part of the amount of tax shown on the return, or the full amount of tax
due for which no return is required to be filed on or before the due date;
 Failure to pay the deficiency tax within the time prescribed for its remittance in the notice of
assessment.
o A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case any payment has been made
on the basis of such return before the discovery of the falsity or fraud, for each of the following violations:
 Willful neglect to file the return within the period prescribed by the Code or by rules and
regulations; or
 In case a false or fraudulent return is willfully made.
o Interest at the rate of double the legal interest rate for loans or forbearance of any money in the absence of
an express stipulation as set by the Bangko Sentral ng Pilipinas from the date prescribed for remittance
until the amount is fully remitted: Provided, that in no case shall the deficiency and the delinquency
interest prescribed under Section 249 Subsections (B) and (C) of the National Internal Revenue Code, as
amended, be imposed simultaneously.
o Compromise penalty.
Source:
 https://www.bir.gov.ph/images/bir_files/taxpayers_service_programs_and_monitoring_1/1701Q%20Guide%20Jan%
202018_copy.pdf

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Ayson, Francis Neil C.

B. Expanded Withholding Tax

2. What form will be filed in paying the Percentage Tax?

3. Who are required to File the BIR Form 2551Q?

 Manual Filing and/or Payment

o GCash Mobile Payment

*Taxpayers may go to this website for more details: https://efps.bir.gov.ph/

 eBIRForms filing and/or payment:

*Taxpayers may use this link to directly go to mentioned form:

o GCash Mobile Payment

7. What are the Penalties for Failure to File BIR 2551Q?

B. Expanded Withholding Tax

2. What forms will be filed in paying the Expanded Withholding Tax?

 BIR Form No. 1604-E

 BIR Form No. 1604-E

o A surcharge of twenty-five percent (25%) for the following violations:

 BIR Form No. 1604-E

 BIR Form No. 1701Q

 BIR Form No. 1701

 BIR Form 1701Q

 BIR Form 1701

 For eFPS Filing

 For non-eFPS Filing

 BIR Form 1701

 For non-eFPS Filing

o A surcharge of twenty-five percent (25%) for the following violations:

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