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MotherTouch

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Paano ba compute-in ang Percentage Tax?
« on: April 24, 2012, 12:52:14 AM »
May nakakaalam po ba dito Paano ba compute-in ang Percentage Tax? Paano po ba?

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Paano ba compute-in ang Percentage Tax?
« on: April 24, 2012, 12:52:14 AM »

Mountain View

DonaldTrumpPH

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Re: Paano ba compute-in ang Percentage Tax?
« Reply #1 on: April 24, 2012, 12:52:49 AM »
I thought sharing what i found during my personal readings...

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What is percentage tax?

Percentage tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales and/or receipts do not exceed P1,500,000 and who are not VAT-registered.

 

Who are required to pay and/or file?

The following persons are required to pay and or file percentage tax.

A. Required to pay and file Monthly Percentage Tax Return (BIR Form 2551M)

1. Any person who is not a VAT-registered person (persons exempt from VAT under Sec. 109z of the Tax Code)

2. Domestic carriers and keepers of garages, except owners of bancas and owners of animal drawn two- wheeled vehicle.

3. Operators of international air and shipping carriers doing business in the Philippines.

4. Franchise grantees of electric, gas or water utilities

5. Franchise grantees of radio and/or television broadcasting companies whose gross annual receipts for the preceding year do not exceed Ten Million Pesos (P 10,000,000.00) and did not opt to register as VAT taxpayers.

6. Banks and non-bank financial intermediaries and finance companies

7. Life insurance premiums

8. Agents of foreign insurance companies

B. Required to pay and file Quarterly Percentage Tax Return (BIR Form 2551Q)

9. Operators of communication equipment sending overseas dispatch, messages, or conversations from the Philippines, except on services involving the following:

  a. Government of the Philippines – for messages transmitted by the Government of the Republic of the Philippines or   any of its political subdivisions and instrumentalities

  b. Diplomatic services – for messages transmitted by any embassy and consular offices of a foreign government

  c. International organizations – for messages transmitted by a public international organization or any of its agencies based in the Philippines enjoying privileges, exemptions and immunities which the government of the Philippine is committed to recognize pursuant to an international agreement

  d. 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

10. Proprietor, lessee, or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai and race tracks

C. Required to pay and file Percentage Tax Return (BIR Form 2552)

11. Every stock broker who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities

12. Corporate issuer / stock broker, whether domestic of foreign, engaged in the sale, barter, exchange or other disposition through Initial Public Offering (IPO) seller in secondary public offering of shares of stock in closely held corporations

D. Required to pay and file Percentage Tax Return (BIR Form 2553)

13.  All taxpayers liable to pay percentage tax under special laws.

 

How to compute?

To clearly understand how to compute and prepare the percentage tax returns to be filed with the BIR, please download first the following links to percentage tax return forms. To determine what form is applicable to you, please read carefully the preceding paragraphs on “who are required to pay”. Once you determine where you belong, you can now click and download the right form for you. The following are the bases and rates in computing percentage tax for each type of taxpayers.

1. BIR form 2551M – Monthly Percentage tax return (Pls. click to download form)

Since I’m a professional who belongs to persons exempt from VAT under Sec. 109v (Sec.116), this return is what I’m filing and paying every month. Below are the tax rates for each type of taxpayer. In my case, I am paying 3% of my monthly gross revenue / receipts with the BIR or authorized bank agent. Percentage tax is based on gross sales, receipts or earnings except on insurance companies where the basis of tax is the total premium collected/paid. This means you just need to multiply your gross sales, receipts or earning, premium collected by the tax rate applicable to you to arrive at total tax due. Then it should be reduced by (a) creditable percentage tax withheld per BIR form no. 2307 and (b) tax paid in return previously file, if you are filing for an amended return. Assuming there are no penalties (surcharge, interest and compromise), you will already be able to compute your total tax payable.

 



PT means percentage tax while ATC means Alphanumeric Tax Code.

2. BIR form 2551Q – Quarterly Percentage tax return (Pls. click to download form)

If you or your company belongs to the second group and is required to pay and file BIR form 2551Q, the following are the rates in computing the tax due:





The tax due is based on gross receipts. For the purpose of the amusement tax, the term “gross receipts” embraces all the receipts of the proprietor, lessee or operator of the amusement place. Said gross receipts also include income from television, radio and motion picture rights if any. To arrive at the total amount tax payable, the tax due must also be reduced by creditable taxes and previous payments and increased by penalties, if any (same with the 2551M).

3. BIR form 2552 – For transactions involving shares of stock listed and traded through the Local Stock Exchange or through Initial and /or Secondary Offering (Pls. click to download form)

This return should be filed by the following with their corresponding rates:

a. Every stock broker, who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities, subject to a tax rate of one-half of one percent (1/2 of 1%) of the gross selling price or gross value in money of the stock sold, bartered or exchanged or otherwise disposed, which tax shall be shouldered by the seller or transferor.

b. A corporate issuer, engaged in the sale, exchange or other disposition through Initial Public Offering (IPO) of shares of stock in closely-held corporation at the rates provided hereunder based on the gross selling price or gross value in money of the shares of stock sold, bartered, exchanges or otherwise disposed in accordance with the proportion of shares of stock sold, bartered, exchanged or other wise disposed to the total outstanding shares of stock after the listing in the local stock exchange:

          Up to 25%                                  4%

          Over 25% but not over 33 1/3%     2%

          Over 33 1/3%                              1%

c. A stock broker who effected a sale, exchange or other disposition through secondary public offering of shares of stock in closely-held corporations at the rates provided hereunder based on the gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed in accordance with the proportion of shares of stock sold, bartered, exchanged or otherwise disposed to the total outstanding shares of stock after the listing in the local stock exchange:

After you have computed your percentage due, it must also, if applicable, be deducted by creditable taxes and previous payments and added by penalties, if any (same with the last two returns).

4. BIR form 2553 – Return of Percentage tax payable under special laws (Pls. click to download form)

This return is filed by all taxpayers liable to pay percentage tax under Special Laws.

 

When to and where to file?

1. Monthly Percentage Tax Return – BIR Form No. 2551M

The return shall be filed not later than the 20th day following the end of each month. Any person retiring from a business subject to percentage taxes shall notify the nearest Revenue District Office, file his return and pay the tax due thereon within twenty (20) days after closing his business.

The return shall be filed with any Authorized Agent Bank (AAB) within the territorial jurisdiction of the Revenue District Office where the taxpayer is required to register/conducting business.  In places where there are no AABs, the return shall be filed with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer within the Revenue District Office where the taxpayer is required to register/conducting business.

A taxpayer may, at his option, file a separate return for the head office and for each branch or place of business or a consolidated return for the head office and all the branches except in the case of large taxpayers where only one consolidated return is required.

2. Quarterly Percentage Tax Return – BIR Form No. 2551Q

The return shall be filed within twenty (20) days after the end of  each quarter,  provided, however, that with respect to taxpayers enrolled with  the Electronic Filing and Payment System (EFPS),  the deadline for e-filing  and e-paying the tax due thereon shall be five (5) days later than the deadline set above. Any person retiring from a business subject to percentage taxes shall notify the nearest Revenue District Office, file his return and pay the tax due thereon within twenty (20) days after closing his business.

The return shall be filed with any Authorized Agent Bank (AAB) within the territorial jurisdiction of the Revenue District Office where the taxpayer is required to register/conducting business.  In places where there are no AABs, the return shall be filed with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer within the Revenue District Office where the taxpayer is required to register/conducting business.

A taxpayer may, at his option, file a separate return for the head office and for each branch or place of business or a consolidated return for the head office and all the branches or place of business except in the case of large taxpayers where only one consolidated return is required.

3. Percentage Tax Return – BIR Form No. 2552

This return shall be filed as follows:

a. For tax on sale of shares of stock listed and traded through the Local Stock Exchange (LSE), within five (5) banking days from date of collection.

b. For shares of stocks sold exchanged through primary public offering, within thirty (30) days from date of listing of shares of stock in the LSE; and

c. For tax on shares of sold or exchanged through secondary public offering, within five (5) banking days from date of collection.

The return shall be filed with any Authorized Agent Bank (AAB) located within the jurisdiction of the Revenue District (RDO) where the Local Stock Exchange is located.

A stockholder or corporate issuer, in addition to BIR 2552, is required to submit on Monday of each week to the Secretary of the Stock Exchange, of which he is a member, a true and complete return which shall contain a declaration of all the transactions effected through him during the preceding week and of taxes collected by him and turned over to the Bureau of Internal Revenue.

4. Return of Percentage Tax Payable under Special Laws – BIR Form No. 2553

Upon filing this return, the total amount payable shall be paid to the Authorized Agen Bank (AAB) where the return is files. In places where there are no AABs, payment shall be made directly to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer who shall issue a revenue Official Receipt (BIR Form No. 2524) therefore.

For more detailed information on the filing and payment of percentage tax, including the attachments required and the computation of penalties, you may refer directly to the BIR forms. Links to the BIR download pages are provided above. In the forms, specifically on the last pages, information like rates, deadlines, procedures, attachments and computation of penalties on percentage tax are stated. If you have questions and clarifications, feel free to comment below. We will try our best to answer them. We also encourage our readers who have something to share on this matter. Now that you’ve been told, do what is right. God bless to everyone.

Source:

Bureau of Internal Revenue

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Re: Paano ba compute-in ang Percentage Tax?
« Reply #1 on: April 24, 2012, 12:52:49 AM »

 

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