111 Tax Guide

TAX GUIDE
with UPDATES
FLORENTINO U. DAZ, CPA
REVENUE OFFICER III
BUREAU OF INTERNAL
REVENUE
COMPLIANCE
REQUIREMENTS
P F B I R
Registration Requirement
Invoicing Requirement
Bookkeeping Requirement
Filing of Tax Returns
Payment of Tax Liabilities
FLORENTINO U. DAZ, CPA, RO II, BIR

REGISTRATION
 SEC. 236. Registration Requirements. -
 (A) Requirements. - Every person subject to
any internal revenue tax shall register once
with the appropriate Revenue District Officer:
 (1) Within ten (10) days from date of
employment, or
 (2) On or before the commencement of
business, or
 (3) Before payment of any tax due, or
 (4) Upon filing of a return, statement or
declaration as required in this Code.
REGISTRATION
 (B) Annual Registration Fee - An annual registration
fee in the amount of Five hundred pesos
(P500) for every separate or distinct establishment
or place of business, including facility types where
sales transactions occur, shall be paid upon
registration and every year thereafter on or before
the last day of January: Provided, however,
That cooperatives, individuals earning purely
compensation income, whether locally or abroad,
and overseas workers are not liable to the
registration fee herein imposed.
 Annual Registration Fee.oxps
REGISTRATION
BIR FORMS
 For Individuals (Self Employed / Professionals)
 BIR FORM 1901_Front Page.pdf
 BIR FORM 1901_Back Page.pdf
 BIR FORM 1902.pdf – TIN APPLICATION FOR
EMPLOYEES
 For Non-Individuals (Corporations / Partnerships)

 BIR FORM 1903.pdf

REGISTRATION
REQUIREMENTS
A. For Individuals and For Branch (RMC 30-2018)
1. BIR Form 1901
2. Any identification issued by any authorized government
body (e.g. Birth Cert, passport, driver’s license, CTC) that
shows the name, address and birthdate of the applicant;
3. Photocopy of the Mayor’s Permit; or duly received
Application for Mayor’s Business Permit, or Professional Tax
Receipt
4. DTI Certificate of registration
5. BIR FORM 1906_ATP.pdf
6. Final and clear sample of Principal Receipts/Invoices (
Business Registration\SingleWindow_Annex_C1_C2_C3.docx)
*** Books of Account shall be registered by the taxpayer within
thirty (30) days from the date of business registration
REGISTRATION
PROOF OF REGISTRATION
 BIRFORM NO. 2303_Certificate of
Registration.jpg
 Ask For Receipts.jpg

REGISTRATION
INVOICING (as amended by RA 10963 / TRAIN LAW)
 SECTION 73. Section 237 of the NIRC, as amended, is hereby further amended
to read as follows:
“SEC. 237. Issuance of Receipts or Sales or Commercial
Invoices.—
“(A) Issuance.— All persons subject to an internal revenue tax shall, at the point of
each sale and transfer of merchandise or for services rendered valued at One
hundred pesos (₱100) or more, issue duly registered receipts or sale or
commercial invoices, showing the 1date of transaction, 2quantity, 3unit
cost and 4description of merchandise or nature of service: Provided,
however, That where the receipt is issued to cover payment made as rentals,
commissions, compensation or fees, receipts or invoices shall be issued which
shall show the 1name, 2business style, if any, and 3address of the
purchaser, customer or client: Provided, further, That where the purchaser
is a VAT-registered person, in addition to the information herein required, the
invoice or receipt shall further show the 4Taxpayer Identification
Number (TIN) of the purchaser.

INVOICING
AUTHORITY TO PRINT (ATP)
 BIRFORM 1906_ATP.pdf
 RMO 12-2013\Sample Receipts and
Invoices_Annex C.pptx

INVOICING
POINT OF SALES (POS) / CASH REGISTER MACHINE
(CRM)
 RR No. 16-2018_POS CRM.pdf
 RMC No 36-2018_Validity of POS.pdf
 EACCREG.jpg - is an online accreditation, registration and use of CRM/POS

machines and/or other business machines generating receipts/invoices.
 ESALES.jpg - is the process of reporting the gross monthly sales of taxpayers

engaged in business using Cash Register Machine (CRM), Point of Sale (POS)
System and Other Sales Machines (OSM) or any other similar devices through
different channels.
 SUBMISSION OF ESALES
 TIN LAST DIGIT – EVEN 8TH DAY OF THE FOLLOWING MONTH
 TIN LAST DIGIT – ODD 10TH DAY OF THE FOLLOWING MONTH

POS / CRM
PENALTIES - ESALES
 SECTION 78. A new section designated as Section 264-A under Chapter II, Title X
of the NIRC, as amended, is hereby inserted as follows:
 “SEC. 264-A. Failure to Transmit Sales Data Entered on Cash Register Machine
(CRM)/Point of Sales System (POS) Machines to the BIR’s Electronic Sales
Reporting System.— Any taxpayer required to transmit sales data to the
Bureau’s electronic sales reporting system but fails to do so, shall pay, for each
day of violation, a penalty amounting to one-tenth of one percent (1⁄10 of 1%)
of the annual net income as reflected in the taxpayer’s audited financial
statement for the second year preceding the current taxable year for each
day of violation or Ten thousand pesos (₱10,000), whichever is
higher: Provided, That should the aggregate number of days of violation
exceed one hundred eighty (180) days within a taxable year, an
additional penalty of permanent closure of the taxpayer shall
be imposed: Provided, further, That if the failure to transmit is due to force
majeure or any causes beyond the control of the taxpayer the penalty shall
not apply.”

REGISTRATION
BOOKKEEPING (RA 10963/TRAIN LAW)
 SECTION 71. Section 232 of the NIRC, as amended, is hereby further amended to read
as follows:
“SEC. 232. Keeping of Books of Accounts.—
“(A) Corporations, Companies, Partnerships or Persons Required to Keep Books of

Accounts.— All corporations, companies, partnerships or persons required by law to pay
internal revenue taxes shall keep and use relevant and appropriate set of
bookkeeping records duly authorized by the Secretary of Finance wherein
all transactions and results of operations are shown and from which all taxes due the
Government may readily and accurately be ascertained and determined any time of
the year: Provided, That corporations, companies, partnerships or persons whose gross
annual sales, earnings, receipts or output exceed Three million pesos (₱3,000,000),
shall have their books of accounts audited and examined yearly by
independent Certified Public Accountants and their income tax returns
accompanied with a duly accomplished Account Information Form (AIF) which shall
contain, among others, information lifted from certified balance sheets, profit and loss
statements, schedules listing income-producing properties and the corresponding
income therefrom and other relevant statements.

REGISTRATION
BOOKKEEPING
 Manual Books of Account (BOA) should be registered on or
before the start of the accounting period. However,
previously registered books of accounts whose pages are not
yet fully exhausted can still be used in the succeeding years
without the need of re-registering . RMC NO 82-2008.pdf
 SAMPLE BOOKS OF ACCOUNTS
 Cash Receipts Journal.jpg
 Cash Disbursement Journal.jpg
 Sales Journal
 Purchases Journal
 Subsidiary Sales Journal.xlsx
 Subsidiary Purchases Journal.xlsx
 General Ledger.jpg
 Senior Citizens Book.xlsx
BOOKKEEPING
COMPUTERIZED ACCOUNTING SYSTEM (CAS)
 The application for permit to use CAS

should be applied before the system is
used or the enhanced system is adopted
(RMC 71-2003)
 Registration of Computerized Books of
Account – January 30 – RMC 82-2008
 BIR FORM 1900_CAS.pdf

BOOKKEEPING
LOOSE LEAF BOA
 Registration
of Loose Leaf BOA – 15 DAYS
AFTER THE END OF THE CALENDAR YEAR
(RMC 13-82)

FILING OF TAX RETURNS
INCOME TAX RATES
SECTION 5. Section 24 of the NIRC, as amended, is hereby further amended to read as
follows:
“SEC. 24. Income Tax Rates.—
“(A) Rates of Income Tax on Individual Citizen and Individual, Resident Alien of the
Philippines.—
 “(2) Rates of Tax on Taxable Income of Individuals.— The tax shall be computed in
accordance with and at the rates established in the following schedule:
 “(a) Tax Schedule Effective January 1, 2018 until December 31, 2022:
“Not over ₱250,000 0%
“Over ₱250,000 but not over ₱400,000 20% of the excess over ₱250,000
“Over ₱400,000 but not over ₱800,000 ₱30,000 + 25% of the excess over ₱400,000
“Over ₱800,000 but not over ₱2,000,000 ₱130,000 + 30% of the excess over ₱800,000
“Over ₱2,000,000 but not over ₱5,000,000 ₱490,000 + 32% of the excess over ₱2,000,000
“Over ₱8,000,000 ₱2,410,000 + 35% of the excess over ₱8,000,000

INCOME TAX RATES
“Tax Schedule Effective January 1, 2023 and
onwards:
“Not over ₱250,000 0%
“Over ₱250,000 but not over ₱400,000 15% of the excess over ₱250,000
“Over ₱400,000 but not over ₱800,000 ₱22,500 + 20% of the excess over ₱400,000
“Over ₱800,000 but not over ₱2,000,000 ₱102,500 + 25% of the excess over ₱800,000
“Over ₱2,000,000 but not over ₱8,000,000 ₱402,500 + 30% of the excess over ₱2,000,000
“Over ₱8,000,000 ₱2,202,500 + 35% of the excess over ₱8,000,000

INCOME TAX
“(b) Rate of Tax on Income of “Purely Self-employed
Individuals and/ or Professionals Whose Gross Sales or
Gross Receipts and Other Non-operating Income Does
Not Exceed the Value-added Tax (VAT) Threshold as
Provided in Section 109(BB) (P3,000,000.00).—
Self-employed individuals and/or professionals

shall have the option to avail of an eight percent (8%)
tax on gross sales or gross receipts and other non-
operating income in excess of Two hundred fifty
thousand pesos (₱250,000) in lieu of the graduated
income tax rates under Subsection (A)(2)(a) of this
Section and the percentage tax under Section 116 of
this Code.
PURELY SELF EMPLOYED INDIVIDUALS /
1ST QUARTER 2ND QUARTER 3RD QUARTER ANNUAL
PROFESSIONALS
SALES / REVENUE / RECEIPTS / FEES

RETAIL / SALE (MEDICINE, MERCHANDISE) 100,000.00 100,000.00 100,000.00 400,000.00
PRACTICE OF PROFESSION / CLINIC 300,000.00 300,000.00 300,000.00 1,200,000.00
PROFESSIONAL FEES SUBJECTED TO EWT 5% 250,000.00 250,000.00 250,000.00 1,000,000.00
TOTAL SALES / REVENUE / RECEIPTS / FEES 650,000.00 650,000.00 650,000.00 2,600,000.00
ADD: NON-OPERATING INCOME - - -
TOTAL INCOME FOR THE QUARTER 650,000.00 650,000.00 650,000.00 2,600,000.00
ADD: TOTAL TAXABLE INCOME / (LOSS) PREVIOUS QUARTER - 400,000.00 1,050,000.00
CUMULATIVE TAXABLE INCOME / (LOSS AS OF THIS QUARTER 650,000.00 1,050,000.00 1,700,000.00 2,600,000.00
LESS: ALLOWABLE REDUCTION FROM GROSS SALES /
RECEIPTS AND OTHER NON-OPERATING INCOME OF PURELY
SELF-EMPLOYED INDIVIDUALS AND / OR PROFESSIONALS IN
THE AMOUNT OF P 250,000.00 250,000.00 - - 250,000.00
TAXABLE INCOME (LOSS) TO DATE 400,000.00 1,050,000.00 1,700,000.00 2,850,000.00
TAX RATE 8% 8% 8% 8%
TAX DUE 32,000.00 84,000.00 136,000.00 228,000.00
TAX CREDITS / PAYMENTS

TAX PAYMENTS FOR THE PREVIOUS QUARTER
1ST QUARTER - 19,500.00 19,500.00 19,500.00
2ND QUARTER - 39,500.00 39,500.00
3RD QUARTER - 39,500.00
CREDITABLE TAX WITHHELD FOR THE PREVIOUS QUARTER 12,500.00 25,000.00 37,500.00
CREDITABLE TAX WITHHELD PER BIR FORM 2307 FOR THIS
QUARTER 12,500.00 12,500.00 12,500.00 12,500.00
TOTAL TAX CREDITS / PAYMENTS 12,500.00 44,500.00 96,500.00 148,500.00
TAX PAYABLE / (OVERPAYMENTS) 19,500.00 39,500.00 39,500.00 79,500.00
INCOME TAX
“(c) Rate of Tax for Mixed Income Earners.— Taxpayers earning both compensation
income and income from business or practice of profession shall be
subject to the following taxes:
“(1) All Income from Compensation – The rates prescribed under Subsection (A)(2)(a) of
this Section. (GRADUATED INCOME TAX RATES)
“(2) All Income from Business or Practice of Profession –

“(a) If Total Gross Sales and/or Gross Receipts and Other Non- operating
Income Do Not Exceed the VAT Threshold as Provided in Section 109(BB) of this
Code.— The rates prescribed under Subsection (A)(2)(a) of this Section on taxable
income, or eight percent (8%) income tax based on gross sales or gross receipts and other
non- operating income in lieu of the graduated income tax rates under Subsection
(A)(2)(a) of this Section and the percentage tax under Section 116 of this Code.
“(b) If Total Gross Sales and/or Gross Receipts and Other Non- operating
Income Exceeds the VAT Threshold as Provided in Section 109(BB) of this Code.—
The rates prescribed under Subsection (A)(2)(a) of this Section.

COMPENSATION, NET OF MANDATORY DEDUCTIONS 150,000.00 150,000.00 150,000.00 600,000.00
WITHHOLDING TAX
@ MONTHLY COMPENSATION OF P 50,000.00,
EQUIVALENT WITHHOLDING TAX MONTHLY P
6,666.75 20,000.25 20,000.25 20,000.25 80,000.00
MIXED INCOME EARNERS 1ST QUARTER 2ND QUARTER 3RD QUARTER ANNUAL

ADD: NON-OPERATING INCOME - - -
TOTAL INCOME FOR THE QUARTER 650,000.00 650,000.00 650,000.00 2,600,000.00
ADD: TOTAL TAXABLE INCOME / (LOSS) PREVIOUS QUARTER - 650,000.00 1,300,000.00
CUMULATIVE TAXABLE INCOME / (LOSS AS OF THIS QUARTER 650,000.00 1,300,000.00 1,950,000.00 2,600,000.00
LESS: ALLOWABLE REDUCTION FROM GROSS SALES /
RECEIPTS AND OTHER NON-OPERATING INCOME OF PURELY
SELF-EMPLOYED INDIVIDUALS AND / OR PROFESSIONALS IN N/A N/A N/A N/A
THE AMOUNT OF P 250,000.00
TAXABLE INCOME (LOSS) TO DATE 650,000.00 1,300,000.00 1,950,000.00 2,600,000.00
TAX RATE 8% 8% 8% 8%
TAX DUE 52,000.00 104,000.00 156,000.00 208,000.00

1ST QUARTER - 39,500.00 39,500.00 39,500.00
2ND QUARTER - 39,500.00 39,500.00
3RD QUARTER - 39,500.00
QUARTER 12,500.00 12,500.00 12,500.00 12,500.00
TOTAL TAX CREDITS / PAYMENTS 12,500.00 FLORENTINO
64,500.00 U. DAZ, CPA, RO II, BIR
116,500.00 168,500.00
TAX PAYABLE / (OVERPAYMENTS 39,500.00 39,500.00 39,500.00 39,500.00
INCOME TAX
ALLOWABLE DEDUCTIONS
“SEC. 34. Deductions from Gross Income.— Except for taxpayers earning
compensation income arising from personal services rendered under an
employer-employee relationship where no deductions shall be allowed under
this Section, in computing taxable income subject to income tax under
Sections 24(A); 25(A); 26; 27(A), (B), and (C); and 28(A)(1), there shall be
allowed the following deductions from gross income:
 (A) Expenses. -
 (1) Ordinary and Necessary Trade, Business or Professional Expenses. -
 (a) In General. - There shall be allowed as deduction from gross income all
the ordinary and necessary expenses paid or incurred during the taxable
year in carrying on or which are directly attributable to, the development,
management, operation and/or conduct of the trade, business or
exercise of a profession, including:
 (b) Substantiation Requirements. - No deduction from gross income shall
be allowed under Subsection (A) hereof unless the taxpayer shall
substantiate with sufficient evidence, such as official receipts or other
adequate records: (i) the amount of the expense being deducted, and (ii)
the direct connection or relation of the expense being deducted to the
development, management, operation and/or conduct of the trade,
business or profession of the taxpayer. FLORENTINO U. DAZ, CPA, RO II, BIR
INCOME TAX
 (B) Interest. -
 (C) Taxes. -
 (D) Losses. -
 (E) Bad Debts. -
 (F) Depreciation. -
 (G) Depletion of Oil and Gas Wells and Mines. -
 (H) Charitable and Other Contributions. -
 (I) Research and Development. -
 (J) Pension Trusts
 (K) Additional Requirements for Deductibility of Certain
Payments.

PROFESSIONALS

LESS: COST OF SALES / SERVICES 260,000.00 260,000.00 260,000.00 1,040,000.00
GROSS INCOME / (LOSS) FROM OPERATION 390,000.00 390,000.00 390,000.00 1,560,000.00
LESS: ALLOWABLE DEDUCTIONS
TOTAL ALLOWABLE ITEMIZED DEDUCTIONS 65,000.00 78,000.00 65,000.00 390,000.00

OPTIONAL STANDARD DEDUCTIONS (OSD) (40%)
NET INCOME / (LOSS) THIS QUARTER 325,000.00 312,000.00 325,000.00 1,170,000.00
ADD: TAXABLE INCOME / (LOSS) PREVIOUS QUARTERS 325,000.00 637,000.00
NON-OPERATING INCOME
AMOUNT RECEIVED/SHARE IN INCOME BY A PARTNER
FROM GENERAL PROFESSIONAL PARTNERSHIP (GPP)
TOTAL TAXABLE INCOME / (LOSS) TO DATE 325,000.00 637,000.00 962,000.00 1,170,000.00
TAX DUE 15,000.00 89,250.00 178,600.00 241,000.00

1ST QUARTER - 2,500.00 2,500.00 2,500.00
2ND QUARTER - 61,750.00 61,750.00
3RD QUARTER - 76,850.00
QUARTER 12,500.00 12,500.00 12,500.00 12,500.00
PERCENTAGE TAX
TAX RATE 3% FLORENTINO
3% U. DAZ, CPA,
3% RO II, BIR 3%
TAX DUE 19,500.00 19,500.00 19,500.00 78,000.00
INCOME TAX
 L) Optional Standard Deduction (OSD).—
 INDIVIDUAL - (40%) of his gross sales or gross
receipts
 CORPORATION -(40%) of its gross income
 WHEN TO AVAIL – FILING OF 1ST QUARTER ITR OR
THE INITIAL RETURN.
 ONCE ELECTED, IRREVOCABLE FOR THE TAXABLE
YEAR

PROFESSIONALS

LESS: COST OF SALES / SERVICES
GROSS INCOME / (LOSS) FROM OPERATION 650,000.00 650,000.00 650,000.00 2,600,000.00
LESS: ALLOWABLE DEDUCTIONS
TOTAL ALLOWABLE ITEMIZED DEDUCTIONS
OPTIONAL STANDARD DEDUCTIONS (OSD)
(40%) 260,000.00 260,000.00 260,000.00 1,040,000.00
NET INCOME / (LOSS) THIS QUARTER 390,000.00 390,000.00 390,000.00 1,560,000.00
ADD: TAXABLE INCOME / (LOSS) PREVIOUS QUARTERS 390,000.00 780,000.00
NON-OPERATING INCOME
AMOUNT RECEIVED/SHARE IN INCOME BY A PARTNER
FROM GENERAL PROFESSIONAL PARTNERSHIP (GPP)
TOTAL TAXABLE INCOME / (LOSS) TO DATE 390,000.00 780,000.00 1,170,000.00 1,560,000.00
TAX DUE 28,000.00 125,000.00 241,000.00 358,000.00

1ST QUARTER - 15,500.00 15,500.00 15,500.00
2ND QUARTER - 84,500.00 84,500.00
3RD QUARTER - 103,500.00
QUARTER 12,500.00 12,500.00 12,500.00 12,500.00
PERCENTAGE TAX FLORENTINO U. DAZ, CPA, RO II, BIR

TAX RATE 3% 3% 3% 3%
TAX DUE 19,500.00 19,500.00 19,500.00 78,000.00
INCOME TAX
BIR FORMS - INDIVIDUAL
 BIR FORM 1701Q Jan 2018 .pdf
 1ST QUARTER - MAY 15
 2ND QUARTER - AUGUST 15
 3RD QUARTER - NOVEMBER 15
 BIR FORM 1701 – ANNUAL ITR – NOT AVAILABLE YET – APRIL 15
maximum of four (4) pages

“(5) The income tax return (ITR) shall consist of a in
paper form or electronic form, and shall only contain the following information:
“(A) Personal profile and information;
“(B) Total gross sales, receipts or income from compensation for services
rendered, conduct of trade or business or the exercise of a profession, except
income subject to final tax as provided under this Code;
“(C) Allowable deductions under this Code;
“(D) Taxable income as defined in Section 31 of this Code; and
“(E) Income tax due and payable.

INCOME TAX
BIR FORMS - CORPORATION
 BIR FORM 1702Q VERSION 2008.pdf
 1ST QUARTER - MAY 30
 2ND QUARTER - AUGUST 29
 3RD QUARTER - NOVEMBER 29
 BIR FORM 1702 – ANNUAL ITR – NOT AVAILABLE YET – APRIL 15

 SECTION 15. Section 52 of the NIRC, as amended, is hereby further amended to read as follows:
 “SEC. 52. Corporation Returns.—

 “(A) Requirements.— Every corporation subject to the tax herein imposed, except foreign corporations not
engaged in trade or business in the Philippines, shall render, in duplicate, a true and accurate quarterly
income tax return and final or adjustment return in accordance with the provisions of Chapter XII of this Title.
The income tax return shall consist of a maximum of four (4) pages in paper form or electronic
form, be filed by the president, vice president or other principal officer, shall be sworn to by such officer and
by the treasurer or assistant treasurer, and shall only contain the following information:
 “(1) Corporate profile and information;
 “(2) Gross sales, receipts or income from services rendered, or conduct of trade or business, except income
subject to final tax as provided under this Code;
 “(3) Allowable deductions under this Code; “(4) Taxable income as defined in Section 31 of this Code; and
 “(5) Income tax due and payable.
 Provided, That the foregoing provisions shall not affect the implementation of Republic Act No. 10708 or TIMTA.

INCOME TAX
INSTALLMENT PAYMENT
 SECTION 16. Section 56 of the NIRC, as amended. is hereby further
amended to read as follows:
 “SEC. 56. Payment and Assessment of Income Tax for Individuals
and Corporations.—
 “(A) Payment of Tax.—
 “(1) x x x
 “(2) Installment of Payment.— When a tax due is in excess of Two
thousand pesos (₱2,000), the taxpayer other than a corporation,
may elect to pay the tax in two (2) equal installments, in
which case, the first installment shall be paid at the time the return
is filed and the second installment on or before October 15
following the close of the calendar year, if any installment is not
paid on or before the date fixed for its payment, the whole amount
of the tax unpaid becomes due and payable together with the
delinquency penalties.”

FILING OF RETURNS
PERCENTAGE TAX
 SECTION 38. Section 116 of the NIRC, as amended, is
hereby further amended to read as follows:
 “SEC. 116. Tax on Persons Exempt from Value-added Tax
(VAT).— Any person whose sales or receipts are exempt
under Section 109(BB) of this Code from the payment of
value-added tax and who is not a VAT-registered person
shall pay a tax equivalent to three percent (3%) of
his gross quarterly sales or receipts:
 SEC. 109. Exempt Transactions“(BB) Sale or lease of goods

or properties or the performance of services other than
the transactions mentioned in the preceding paragraphs,
the gross annual sales and/or receipts do not exceed the
amount of Three million pesos (₱3,000,000).
PERCENTAGE TAX
MONTH GROSS RECEIPTS TAX RATE TAX DUE DUE DATE
JAN 216,666.67
FEB 216,666.67
MAR 216,666.67
TOTAL 650,000.00 3% 19,500.00 25 Apr
APR 216,666.67
MAY 216,666.67
JUN 216,666.67
TOTAL 650,000.00 3% 19,500.00 25 Jul
JUL 216,666.67
AUG 216,666.67
SEP 216,666.67
TOTAL 650,000.00 3% 19,500.00 25 Oct
OCT 216,666.67
NOV 216,666.67
DEC 216,666.67 FLORENTINO U. DAZ, CPA, RO II, BIR
TOTAL 650,000.00 3% 19,500.00 25 Jan
PERCENTAGE TAX
BIR FORMS
 BIR
FORM 2551Q_Quarterly Percentage Tax
Return.pdf

FILING OF RETURNS
VALUE ADDED TAX (VAT)
 SEC. 105. Persons Liable. - Any person who, in the course of trade
or business, sells barters, exchanges, leases goods or properties,
renders services, and any person who imports goods shall be
subject to the value-added tax (VAT) imposed in Sections 106 to
108 of this Code.
 SEC. 106. Value-Added Tax on Sale of Goodsor Properties. –

 SEC. 107. Value-Added Tax on Importation of Goods. -
 SEC. 108. Value-added Tax on Sale of Services and Use or
Lease of Properties. -

VAT
EXEMPT TRANSACTIONS
 “SEC. 109. Exempt Transactions.— (1) Subject to the
provisions of Subsection (2) hereof, the following
transactions shall be exempt from the value-added
tax:
 NEW PROVISIONS UNDER RA 10963
 (Z) Sale of Gold to BSP
 (AA) Sale of Drugs and Medicines prescribed for
diabetes, high cholesterol , and hypertension beginning
Jan 1, 2019
 (BB) Sale or Lease of Goods or properties of
performance of services other than transactions
mentioned in the preceding paragraphs, the gross annual
sales and /or receipts do not exceed the amount of THREE
MILLION PESOS (P 3,000,000.00) FLORENTINO U. DAZ, CPA, RO II, BIR
VAT EXEMPT
SENIOR CITIZENS
 REPUBLIC ACT NO. 9994 – EXPANDED SENIOR
CITIZENS ACT OF 2010 / REVENUE
REGULATIONS NO. 7-2010
 Revenue Regulation 7-2010_Senior Citizens.pdf –
By Marivic Acosta –Galban, Office of the
Commissioner, BIR
 RR No. 11-2015_ID FOR SENIOR CITIZEN.pdf –
Acceptable ID for Senior Citizens

VAT
BIR FORMS
 BIR FORM 2550M.oxps
 Jan, Feb, Apr, May, Jul, Aug, Oct, Nov
 Due Date – 20th day following the close of the
taxable month
 BIR FORM 2550Q.oxps
 Mar, Jun, Sep, Dec
 Due Date – 25th day following the close of the taxable
quarter
 SUMMARY LISTS OF SALES / PURCHASES / IMPORTATIONS –
25TH day following the close of the taxable quarter
 -submitted through esubmission@bir.gov.ph
VAT
Reconciliation of Listings for Enforcement System (RELIEF)

VAT
PENALTIES – SLS/SLP/SLI

VAT
PENALTIES – SLP / SLS / SLI

VAT
RETURN AND PAYMENT
 “SEC. 114. Return and Payment of Value-added Tax.—
 “(A) In General.— Every person liable to pay the
value-added tax imposed under this Title shall file a
quarterly return of the amount of his gross sales or
receipts within twenty-five (25) days following the
close of each taxable quarter prescribed for each
taxpayer: Provided, however, That VAT-registered
persons shall pay the value-added tax on a monthly
basis: Provided, finally, That beginning January
1, 2023, the filing and payment required under this
Subsection shall be done within twenty-five (25)
days following the close of each taxable quarter.
VAT
INVOICING REQUIREMENTS
 SEC. 113. Invoicing and Accounting
Requirements for VAT-Registered Persons. -
 (A) Invoicing Requirements. - A VAT-registered
person shall issue:
 (1) A VAT invoice for every sale, barter or
exchange of goods or properties; and
 (2) A VAT official receipt for every lease of
goods or properties, and for every sale, barter
or exchange of services. [74]
 (B) Information Contained in the VAT Invoice or
VAT Official Receipt. - The following information
shall be indicated in the VAT invoice or VAT official
receipt:
 1. VAT – TIN OF THE SELLER
 2. TOTAL AMOUNT AND WITH BREAKDOWN OF THE FF:
 THE AMOUNT OF TAX – 12% VAT
 VAT EXEMPT SALE
 ZERO RATED SALES
 TAXABLE – VATABLE
 3. DATE, QUANTITY, UNIT COST AND DESCRIPTION OF THE
GOODS/SERVICE
 4 In the case of sales in the amount of One thousand pesos
(P1,000) or more where the sale or transfer is made to a VAT-
registered person, the name, business style, if any, address and
Taxpayer Identification Number (TIN) FLORENTINO
of the purchaser,
U. DAZ, CPA, customer
RO II, BIR
or client. [75]
VAT
VAT TO NON-VAT
 Deadline to change from VAT TO NONVAT
 March 31, 2018 – RR 8-2018
 April 30, 2018 – RR 15-2018
 RMC No 39-2018.pdf dated May 8, 2018
 Reiterates the Imposition of Value-Added Tax on Goods
Disposed of or Existing as of the Date of Change in or
Cessation of Status of a Person as VAT-Registered
Taxpayer Pursuant to Sec. 4.106-8 of Revenue
Regulations (RR) No. 16-2005, Implementing sec. 106(C)
of the Tax Code of 1997, as further amended by R.A.
10963, Otherwise Known as the "Tax Reform for
Acceleration and Inclusion" or the TRAIN Law.

VAT
VAT REFUND – RA 10963 – TRAIN LAW
 SECTION 36. Section 112 of the NIRC, as amended, is hereby further amended to read as
follows:
 “SEC. 112. Refunds or Tax Credits of Input Tax.—

 “(A) x x x
 “(B) x x x
 “(C) Period within which Refund of Input Taxes shall be Made.— In proper cases, the
Commissioner shall grant a refund for creditable input taxes within ninety (90)
days from the date of submission of the official receipts or invoices and other
documents in support of the application filed in accordance with Subsections (A) and (B)
hereof: Provided, That should the Commissioner find that the grant of refund is not proper,
the Commissioner must state in writing the legal and factual basis for the denial.
 “In case of full or partial denial of the claim for tax refund, the taxpayer affected may,
within thirty (30) days from the receipt of the decision denying the claim, appeal the
decision with the Court of Tax Appeals: Provided, however, That failure on the part of any
official, agent, or employee of the BIR to act on the application within the ninety (90)-day
period shall be punishable under Section 269 of this Code.
 “x x x.“

FILING OF RETURNS
WITHHOLDING TAXES – COMPENSATION (WC)
 SEC. 79. Income Tax Collected at Source. -
 (A) Requirement of Withholding. - Except in
the case of a minimum wage earner as
defined in Section 22(HH) of this Code, every
employer making payment of wages shall
deduct and withhold upon such wages a tax
determined in accordance with the rules and
regulations to be prescribed by the Secretary
of Finance, upon recommendation of the
Commissioner. [42]

WC
YEAR END ADJUSTMENT
 (H) Year-end Adjustment. - On or before the end of the
calendar year but prior to the payment of the
compensation for the last payroll period, the employer
shall determine the tax due from each employee on
taxable compensation income for the entire taxable
year in accordance with Section 24(A). The difference
between the tax due from the employee for the entire
year and the sum of taxes withheld from January to
November shall either be withheld from his salary in
December of the current calendar year or refunded to
the employee not later than January 25 of the
succeeding year.
WC
MINIMUM WAGE EARNERS - MWE
 SECTION 5. Section 24 of the NIRC, as amended, is hereby
further amended to read as follows:
 “SEC. 24. Income Tax Rates.—
 “(A) Rates of Income Tax on Individual Citizen and
Individual, Resident Alien of the Philippines.—
 “Provided, That minimum wage earners as defined in

Section 22(HH) of this Code shall be exempt from the
payment of income tax on their taxable income: Provided,
further, That the holiday pay, pay received by such
minimum wage earners shall likewise be exempt from
income tax.
 MWE RR 1\RR 1 Minimum Wage_Feb 2018.pdf
WC
EXCLUSIONS FROM GROSS INCOME
 SECTION 9. Section 32 of the NIRC, as amended, is hereby
further amended to read as follows:
 “SEC. 32. Gross Income.—
 “(A) General Definition.— x x x
 “(B) Exclusions from Gross Income.— x x x
 “(1) x x x
 “(7) Miscellaneous Items.—
 “(a) x x x
 “(e) 13th Month Pay and Other Benefits.— Gross benefits
received by officials and employees of public and private
entities: Provided, however, That the total exclusion under
this subparagraph shall not exceed Ninety thousand pesos
(₱90,000) which shall cover:

DE MINIMIS BENEFITS
(a) Monetized unused vacation leave credits of private employees not
exceeding ten (10) days during the year;
(b) Monetized value of VACATION AND SICK leave credits paid to government officials
and employees; (RR 5-2011)
(c) Medical cash allowance to dependents of employees not exceeding P1,500.00 per
employee per semester or P 250 per month; (amended by RR 11-2018)
(d) Rice subsidy of P2,000.00 or one (1) sack of 50-kg. rice per month amounting to not
more than P2,000.00;(RR 11-2018)
(e) Uniform and clothing allowance not exceeding P 6,000.00 per annum (RR 11-
2018);
(f) Actual medical assistance, e.g. medical allowance to cover medical and healthcare
needs, annual medical/executive check up, maternity assistance, and routine
consultations, not exceeding P 10,000.00 per annum;
(g) Laundry allowance not exceeding P300.00 per month;
(h) Employees achievement awards, e.g., for length of service or safety achievement,
which must be in the form of a tangible personal property other than cash or gift
certificate, with an annual monetary value not exceeding P10,000.00 received by the
employee under an established written plan which does not discriminate in favor of highly
paid employees;
(i) Gifts given during Christmas and major anniversary celebrations not exceeding
P5,000.00 per employee per annum;
WC
LIABILITY FOR TAX
 SEC. 80. Liability for Tax. -
 (A) Employer. - The employer shall be liable
for the withholding and remittance of the
correct amount of tax required to be
deducted and withheld under this Chapter. If
the employer fails to withhold and remit the
correct amount of tax as required to be
withheld under the provision of this Chapter,
such tax shall be collected from the employer
together with the penalties or additions to the
tax otherwise applicable in respect to such
failure to withhold and remit.
WC
STATEMENTS AND RETURNS
 SEC. 83. Statements and Returns. -
 (A) Requirements. - Every employer required to deduct and withhold a tax
shall furnish to each such employee in respect of his employment during the
calendar year, on or before January thirty-first (31st) of the
succeeding year, or if his employment is terminated before the close of
such calendar year, on the same day of which the last payment of wages is
made, a written statement confirming the wages paid by the employer to
such employee during the calendar year, and the amount of tax deducted
and withheld under this Chapter in respect of such wages. The statement
required to be furnished by this Section in respect of any wage shall contain
such other information, and shall be furnished at such other time and in
such form as the Secretary of Finance, upon the recommendation of the
Commissioner, may, by rules and regulation, prescribe.
 BIR FORM 2316 VERSION JUL 2008.pdf – DUPLICATE COPY TO BE SUBMITTED

TO BIR ON OR BEFORE FEBRUARY 28 (CERTIFIED LIST OF EMPLOYEES QUALIFIED
FOR SUBSTITUTED FILING – Annex F RR 11-2018.docx )

WC
ANNUAL INFORMATION RETURNS
 (B) Annual Information Returns. - Every employer required to
deduct and withhold the taxes in respect of the wages of his
employees shall, on or before January thirty-first (31st) of the
succeeding year, submit to the Commissioner an annual
information return containing a list of employees, the total amount
of compensation income of each employee, the total amount of
taxes withheld therefrom during the year, accompanied by copies
of the statement referred to in the preceding paragraph, and such
other information as may be deemed necessary. This return, if
made and filed in accordance with rules and regulations
promulgated by the Secretary of Finance, upon recommendation
of the Commissioner, shall be sufficient compliance with the
requirements of Section 68 of this Title in respect of such wages.
 BIR FORM 1604CF VERSION JAN 2008.pdf

WC
SUBSTITUTED FILING
 SECTION 14. A new section designated as Section 51-A of the
NIRC, as amended, is hereby inserted to read as follows:
 “SEC. 51-A. Substituted Filing of Income Tax Returns by

Employees Receiving Purely Compensation Income.—
Individual taxpayers receiving purely compensation
income, regardless of amount, from only one employer in
the Philippines for the calendar year, the income tax of
which has been withheld correctly by the said employer
(tax due equals tax withheld) shall not be required to file an
annual income tax return. The certificate of withholding
filed by the respective employers, duly stamped ‘received’
by the BIR, shall be tantamount to the substituted filing of
income tax returns by said employees.”

WC
BIR FORMS
 BIR FORM 1601C VERSION JAN 2018.pdf
 Jan – Nov – 10th day following the close of taxable
month
 Dec – 15th day following the close of taxable month
 Withholding Tax Table_2018 to 2022.pdf
 Withholding Tax Table_2023 onwards.pdf
 BIR FORM 1604CF VERSION JAN 2008.pdf
 Due date – Jan 31
 Subject for revision
 WITH ATTACHMENTS – ALPHALIST OF EMPLOYEES
SUBMITTED THROUGH esubmission@bir.gov.ph

WC
SAMPLE COMPUTATION
Withholding Tax Table_2018 to 2022.pdf

WC
ALPHALIST DATA ENTRY – VERSION 6

Sample Alphalist of Employees_Schedule MWE.xls
FILING OF RETURNS
WITHHOLDING TAX – EXPANDED (WE) / FINAL (WF)
 SEC. 57. Withholding of Tax at Source. -
 (A) Withholding of Final Tax on Certain Incomes. - Subject to rules and
regulations the Secretary of Finance may promulgate, upon the
recommendation of the Commissioner, requiring the filing of income tax
return by certain income payees, the tax imposed or prescribed by Sections
24(B)(1), 24(B)(2), 24(C), 24(D)(1); 25(A)(2), 25(A)(3), 25(B), 25(C), 25(D), 25(E),
27(D)(1), 27(D)(2), 27(D)(3), 27(D)(5), 28 (A)(4), 28(A)(5), 28(A)(7)(a),
28(A)(7)(b), 28(A)(7)(c), 28(B)(1), 28(B)(2), 28(B)(3), 28(B)(4), 28(B)(5)(a),
28(B)(5)(b), 28(B)(5)(c); 33; and 282 of this Code on specified items of income
shall be withheld by payor-corporation and/or person and paid in the same
manner and subject to the same conditions as provided in Section 58 of this
Code.
 (B) Withholding of Creditable Tax at Source. - The Secretary of Finance may,
upon the recommendation of the Commissioner, require the withholding of a
tax on the items of income payable to natural or juridical persons, residing in
the Philippines, by payor-corporation/persons as provided for by law, at the
rate of not less than one percent (1%) but not more than thirty-two percent
(32%) thereof, which shall be credited against the income tax liability of the
taxpayer for the taxable year.

WE
PROFESSIONAL FEES
 (A) Professional fees, talent fees, etc. for services rendered – On the
gross professional, promotional, and talent fees or any other form of
remuneration for the services rendered by the following:
 Individual payee:
 If gross income for the current year did not exceed ₱3M - Five percent
(5%);
 If gross income is more than ₱3M OR VAT Registered - Ten percent
(10%)
 Non-individual payee:
 If gross income for the current year did not exceed ₱720,000-Ten percent
(10%);
 If gross income exceeds ₱720,000 - Fifteen percent (15%)

WE
ANNEXES
 ANNEX A: Affidavit of No Professional Fee.docx
 DUE DATE: within ten (10) days from the occurrence of such
event. (APPLICABLE TO HOSPITALS AND CLINICS)
 ANNEX B1: Sworn Declaration_3M.docx
 ANNEX B2: Sworn Declaration_250K.docx
 ANNEX B3: Sworn Declaration_720K.docx
 DUE DATE: not later than January 15 of each year or prior to the
initial income payment
 ANNEX C: Income Payors Withholding Agents
Declaration.docx
 DUE DATE: on or before January 31 of each year or fifteen (15)
days following the month when a new income recipient has
submitted the payee’s sworn declaration.

WE
RENTALS
 (B) Rentals [formerly under letter (C)]
 (1) Real Properties - On gross rental for the continued use or possession of real property
used in business which the payor or obligor has not taken or is not taking title, or in which
he has no equity – Five percent (5%)
 (2) Personal Properties – On gross rental or lease in excess of Ten Thousand Pesos
(₱10,000) annually for the continued use or possession of personal property used in
business which the payor or obligor has not taken or is not taking title, or in which he has
no equity, except those under financial lease arrangements with leasing and finance
companies authorized to operate under Republic Act No. 8556 (Financing Company
Act of 1998). – Five percent (5%)
 However, the Ten Thousand Pesos (₱10,000) threshold shall not apply when the
accumulated gross rental or lease paid by the lessee to the same lessor exceeds or is
reasonably expected to exceed ₱10,000 within the year. In which case, the lessee shall
withhold the five percent (5%) withholding tax on the entire amount.

WE
CONTRACTORS
 (C) Income payments to certain contractors [formerly
under letter (E)] – On gross payments to the following
contractors, whether individual or corporate — Two
percent (2%)
 (g) Messengerial, janitorial, private detective and/or
security agencies, credit and/or collection agencies and
other business agencies;
 (h) Advertising agencies, exclusive of gross payments to
media;
 (i) Independent producers of television, radio and stage
performances or shows;
 (j) Independent producers of "jingles";

WE
TOP WITHHOLDING AGENTS
 a. Classified and duly notified by the Commissioner as either any of the following
unless previously de-classified as such or had already ceased business operations:
 (1) A large taxpayer under Revenue Regulations No. 1-98, as amended;
 (2) Top twenty thousand (20,000) private corporations under RR No. 6-2009;
or
 (3) Top five thousand (5,000) individuals under RR No. 6-2009;
 b. Taxpayers identified and included as Medium Taxpayers, and

those Taxpayer
under the Account Management
Program (TAMP).
 Supplier of goods – One percent (1%)
 Supplier of services – Two percent (2%)

WE
BIR FORMS
 BIR FORM 0619E.oxps
 Due Date – 10th day of the month following the close
of the taxable month
 BIR FORM 1601EQ.oxps
 Due Date – last day of the month following the close of
the taxable quarter
 Submission to Quarterly Alphabetical List of Payees
(QAP) through esubmission@bir.gov.ph
 BIR FORM 1604E.pdf DUE DATE : March 1
 Tax Advisory_Tax advisory Jan312018.pdf

WE
QUARTERLY ALPHABETICAL LIST OF PAYEES (QAP)

SAMPLE DATE FILE.TXT – SAMPLE ONLY
Validation Report_esubmission.pptx – SAMPLE ONLY
Sample Alphalist of Payees.xlsx – SAMPLE ONLY

WE
WITHHOLDING TAX CERTIFICATES
 (B) Withholding Tax Statement for Taxes Withheld - Every
payor required to deduct and withhold taxes under this
subsection shall furnish each payee, a withholding tax
statement, in triplicate, within twenty (20) days from the
close of the quarter. The prescribed form (BIR Form No, 2307
for creditable withholding tax and BIR Form 2306 for final
withholding tax) shall be used, showing the monthly income
payments made, the quarterly total, and the amount of
taxes withheld. Provided, however, that upon request of
the payee, the payor must furnish such statement,
simultaneously with the income payment.
 BIR FORM 2306.pptx - SAMPLE ONLY

 BIR FORM 2307.pptx – SAMPLE ONLY

FILING OF RETURNS
WITHHOLDING TAX – FINAL (WF)
 “SECTION 2.57.1. Income Payments
Subject to Final Withholding Tax. The
following forms of income shall be subject
to final withholding tax at the rates herein
specified:

WF
FRINGE BENEFITS TAX
 (G) Fringe Benefits Granted to the Employee (Except Rank and File Employee).
– [formerly under letter (J)] – On the grossed-up monetary value of the fringe
benefits granted or furnished by the employer to his employees (except rank-
and-file as defined in the Code). –
 Employee is a citizen/resident alien/non-resident alien engaged in trade or
business within the Philippines
 - Thirty-five percent (35%)
 Employee is a non-resident alien not engaged in trade or business within the
Philippines
 - Twenty-five percent (25%)
 The grossed-up value of the fringe benefit shall be determined by dividing the
actual monetary value of the fringe benefit by the difference between one
hundred percent (100%) and the applicable rate of income tax. The actual
monetary value of the fringe benefit shall be divided by sixty-five percent
(65%) to get the grossed-up value subject to 35% fringe benefit tax (FBT); while
the divisor shall be seventy-five percent (75%) to get the grossed-up value
subject to 25% FBT.

WF
FRINGE BENEFITS TAX
 Fringe benefits, however, which are required by the nature of or necessary to the trade,
business or profession of the employer, or where such fringe benefit is for the convenience
and advantage of the employer shall not be subject to the fringe benefit tax.
 The term fringe benefit means any good, service or other benefit furnished or granted in
cash or in kind by an employer to an individual employee (except rank and file
employees) such as but not limited to, the following:
 (1) Housing;
 (2) Expense account;
 (3) Vehicle of any kind;
 (4) Household personnel, such as maid, driver and others;
 (5) Interest on loan at less than market rate to the extent of the difference between the
market rate and actual rate granted;
 (6) Membership fees, dues and other expenses borne by the employer for the employee in
social and athletic clubs or other similar organizations;
 (7) Expenses for foreign travel;
 (8) Holiday and vacation expenses;
 (9) Educational assistance to the employee or his dependents; and
 (10) Life or health insurance and other non-life insurance premiums or similar amounts in
excess of what the law allows.
WF
BIR FORMS
 BIR FORM 0619F.oxps
 Due Date – 10th day of the month following the close of the taxable
month
 BIR FORM 1603_FRINGE BENEFIT TAX.oxps
 1601-FQ final Jan 2018 rev DPA.pdf
 Due Date – last day of the month following the close of the taxable quarter
 Submission to Quarterly Alphabetical List of Payees (QAP) through
esubmission@bir.gov.ph
 1602Q Jan 2018 final rev DPA.pdf – APPLICABLE TO BANKS

 1603Q Jan 2018 final rev DPA.pdf – FRINGE BENEFITS TAX
 BIR FORM 1604F – NOT YET AVAILABLE

PENALTIES
 SEC. 248. Civil Penalties. -
 (A) There shall be imposed, in addition to the tax
required to be paid, a penalty equivalent to twenty-
five percent (25%) of the amount due, in the
following cases:
 (B) In case of willful neglect to file the return within the
period prescribed by this Code or by rules and
regulations, or in case a false or fraudulent return is
willfully made, the penalty to be imposed shall be 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:

PENALTIES
 SECTION 75. Section 249 of the NIRC, as amended, is
hereby further amended to read as follows:
 “SEC. 249. Interest.—
 “(A) In General.— There shall be assessed and collected
on any unpaid amount of tax, 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 payment until the amount is fully
paid: Provided, That in no case shall the deficiency and
the delinquency interest prescribed under Subsections (B)
and (C) hereof, be imposed simultaneously.
 CURRENT BSP LEGAL INTEREST RATE = 6% X 2 = 12%
PENALTIES
 RMO No 7-2015 Annex A_Compromise Penalties.pdf
 RMC No 21-2018.pdf – Imposition of Surcharge,
Interest and Compromise Penalties on AMENDED
RETURNS
 Annex_Memo 016-2018.pdf - Compromise Penalties are
only amounts suggested by the BIR in settlement of
criminal liability for violations committed by taxpayers, the
payment of which is consensual in nature, and may not
be therefore imposed or exacted on the taxpayer. Thus,
in the event that a taxpayer refuses to pay the suggested
compromise penalty, the violation shall be referred to the
appropriate office for criminal action
MODE OF FILING
 1. OVER THE COUNTER – AABs / RCOs
 Use of Preprinted BIR Forms / Offline EBIR
 2. ONLINE
 EBIR FORMS PACKAGE.jpg
 EFPS.jpg – ELECTRONIC FILING AND PAYMENT
SYSTEM
 PENALTIES FOR MANUAL FILING/PAYMENT (RR 5-

2015)
 1. 25% SURCHARGE OF THE BASIC TAX
 2. P 1,000.00
MANDATORY USERS
EFPS EBIR (RR 6-2014 / RMC 19-2015)
Accredited TAX Agents / Practitioners and all its
Large Taxpayers (RR 2-2002)
client-taxpayers
Top 20,000 Private Corporation (RR 14-2008/RR Accredited Printers of Principal and
5-2004) Supplementary Receipts / Invoices
Stock Brokers, Insurance Companies (RMC 71- ONETT Taxpayerss who are classified as real
2004) estate dealers/developers (RR 9-2016)
Taxpayers who wish to enter into contract with
No Payment Returns
Government Offices ( RR 3-2005)
Corporations with Paid Up Capital of P 10M &
Govt Owned or Controlled Corporations (GOCCs)
Above (RR 10-2007)
Taxpayers using CAS (RR 10-2007) Local Government Units (LGUs) except Barangays
Volunteering Taxpayers (RR 10-2007) Cooperatives registered with NEA and LWUA
Top 5000 Individual Taxpayers ( RR 6-2009)
PEZA Registered Entities and those located
within Special Economic Zones ( (RR 1-2010)
Licensed Local Contractors ( RR 10-2012)
Government Offices on remittance on withheld
VAT and Business Tax (RR 1-2013)
National Government Agencies mandatorily
required to use the ETRA (RR 1-2013)
TAMP Taxpayers (RR 10-2014)
Accredited Importers/ Customs Brokers (RR 10-
2014)
PAYMENT OF TAX LIABILITIES
MODE OF PAYMENT
 MANUAL
 REVENUE COLLECTION OFFICERS
 AUTHORIZED AGENT BANKS – CASH / CREDIT CARD /
DEBIT CARD / PREPAID CARDS
 DBP ONLY – ACCEPTS CREDIT CARDS
 MOBILE
 GCASH - GLOBE
 ONLINE
 ELECTRONIC FILING AND PAYMENT SYSTEM (EFPS)
 EPAY – LBP AND DBP

REGISTRATION UPDATES
Application for Registration Information Update (BIR FORM
NO 1905.pdf)
 Cessation of Registration
 Cancellation of TIN
 Change in Registered Address
 Change in Registered Activities
 Change in Registered Name/Trade Name
 Change in Tax Type Details
 Update of Books of Accounts
 Change in Accounting Period
 Changes in Information data in BIR Form 1902 (family
name)
RMC 12-2018 DATED Feb 22, 2018
ATTORNEY-CLIENT PRIVILEGE / ACCOUNTANT –
CLIENT PRIVILEGE
 First Rule 21.01"of the Lawyer's Code of Professional Responsibility provides that a lawyer shall
not reveal the confidence or secrets of his client except, among others, when required by law,
 Second, in Genato v. Silapan, the Supreme Court stressed that the privilege against disclosure
of confidential communication or information does not extend to those made in
contemplation of a crime or perpetration of fraud. Notably, attempt to evade or defeat tax is
a criminal offense defined and punishable under Section 254 of the NIRC, as amended.
 Third, Section 29 of RA 9298 states that the accountant-client privilege does not apply if the
production of documents is through a subpoena issued by any court, tribunal, or government
regulatory or administrative body.
 Fourth, Section 140.1 of the Code of Ethics of Professional Accountants provides that
professional accountants shall refrain from disclosing outside the firm or employing organization
confidential information acquired as a result of professional and business relationships unless
there is a legal right or duty to disclose.
 Finally, taxes are the lifeblood of our nation so its collection should be actively pursued without
unnecessary impediment.

RMC 12-2018 DATED Feb 22, 2018
ATTORNEY-CLIENT PRIVILEGE / ACCOUNTANT –
CLIENT PRIVILEGE
 Clearly, therefore, the privileged

communication of attorney-client and
accountant-client cannot be used to
defeat the very purpose and objective of
the Commissioner's power to obtain
information under Section 5 of the NIRC,
as amended.


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TAX GUIDE

Filing of Tax Returns

Payment of Tax Liabilities

FLORENTINO U. DAZ, CPA, RO II, BIR

 For Non-Individuals (Corporations / Partnerships)

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

 EACCREG.jpg - is an online accreditation, registration and use of CRM/POS

 ESALES.jpg - is the process of reporting the gross monthly sales of taxpayers

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

“(A) Corporations, Companies, Partnerships or Persons Required to Keep Books of

FLORENTINO U. DAZ, CPA, RO II, BIR

 The application for permit to use CAS

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

“Not over ₱250,000 0%

“Over ₱8,000,000 ₱2,410,000 + 35% of the excess over ₱8,000,000

“Not over ₱250,000 0%

“Over ₱8,000,000 ₱2,202,500 + 35% of the excess over ₱8,000,000

FLORENTINO U. DAZ, CPA, RO II, BIR

Self-employed individuals and/or professionals

SALES / REVENUE / RECEIPTS / FEES

TAX CREDITS / PAYMENTS

“(2) All Income from Business or Practice of Profession –

FLORENTINO U. DAZ, CPA, RO II, BIR

SALES / REVENUE / RECEIPTS / FEES

TAX CREDITS / PAYMENTS

FLORENTINO U. DAZ, CPA, RO II, BIR

SALES / REVENUE / RECEIPTS / FEES

TOTAL ALLOWABLE ITEMIZED DEDUCTIONS 65,000.00 78,000.00 65,000.00 390,000.00

TAX CREDITS / PAYMENTS

FLORENTINO U. DAZ, CPA, RO II, BIR

SALES / REVENUE / RECEIPTS / FEES

TAX CREDITS / PAYMENTS

PERCENTAGE TAX FLORENTINO U. DAZ, CPA, RO II, BIR

 BIR FORM 1701 – ANNUAL ITR – NOT AVAILABLE YET – APRIL 15

maximum of four (4) pages

FLORENTINO U. DAZ, CPA, RO II, BIR

 BIR FORM 1702 – ANNUAL ITR – NOT AVAILABLE YET – APRIL 15

 “SEC. 52. Corporation Returns.—

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

 SEC. 109. Exempt Transactions“(BB) Sale or lease of goods

FLORENTINO U. DAZ, CPA, RO II, BIR

 SEC. 106. Value-Added Tax on Sale of Goodsor Properties. –

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

 “SEC. 112. Refunds or Tax Credits of Input Tax.—

FLORENTINO U. DAZ, CPA, RO II, BIR

FLORENTINO U. DAZ, CPA, RO II, BIR

 “Provided, That minimum wage earners as defined in

FLORENTINO U. DAZ, CPA, RO II, BIR

 BIR FORM 2316 VERSION JUL 2008.pdf – DUPLICATE COPY TO BE SUBMITTED

FLORENTINO U. DAZ, CPA, RO II, BIR

 BIR FORM 1604CF VERSION JAN 2008.pdf

FLORENTINO U. DAZ, CPA, RO II, BIR