BIR Advisories, dated Deb 8 & 19, 2018

PERCENTAGE TAX
a. Other Percentage Tax
Filing and payment of percentage tax of the following
b. Stock Transaction Tax
taxpayers shall be due
c. Compliance Requirement

on a quarterly basis on or before 25th day of the month following

PERCENTAGE TAX the close of

the taxable quarter

a. Percentage Tax on Domestic Carriers and Keepers of

Garages
• VAT-exempt taxpayers with annual revenues up to P3M

b. Percentage of Tax on International Carrier

• Domestic carriers and keepers of garages

c. Franchise Tax
• International air/shipping carriers

d. Tax on Overseas Communication

• Franchisees of gas or water utilities

e. Tax on Banks and Non-bank Financial Intermediaries • Franchisees of radio and/or TV broadcasting with revenues up
Performing Quasi-Banking Functions
to P10M

f. Tax on Life Insurance Premiums

• Banks, non-bank financial intermediaries and finance
g. Tax on Agents of Foreign Insurance Companies
companies

h. Amusement taxes
• Life insurance companies/Agent of foreign insurance
i. Tax on Winnings
companies

j. Tax on Sale, Barter or Exchange of Shares of Stock Listed

and Traded through the local stock exchange
Remittance of withholding VAT and other percentage tax
k. Return and Payment of Percentage Tax
withheld shall still be on a monthly basis

Due on or before 10th day of the following month

OPT RATE

A. 3% percentage tax on persons exempt from VAT — gross

annual sales/receipts does not exceed P3M (previously
P1,919,500)

B. 0.60 of 1% (previously 0.50 of 1%) Stock Transaction Tax

Exemptions from Sec 120

COMPLIANCE REQUIREMENT 1. Government

2. Diplomatic Services

3. International Organizations

4. News Services

Quarterly Percentage
Tax Return Q
Closely Held Corporations (Sec 127)

Any corporation at least 50% in value of the outstanding capital

stock or at least 50% of the total combined voting power of all
classes of stock entitled to vote is owned directly or indirectly by
or for not more than twenty (20) individuals.

WHEN AND WHERE TO FILE OPT RETURN

BEFORE TRAIN (by regulations)
WHEN
Monthly Filing
• within 25 days after the end of each taxable quarter (except
cancellation of VAT registration—OP tax accrues from the date
• 20th day after end of month (for non-EFPS filers)
of cancellation)

• 21st to 25th day after end of month (filing thru EFPS), payment
• Persons retiring from business subject to business tax must
on 25th day end of month

notify the nearest RDO, file his return and pay the tax within 20
days after closing the business.

AFTER TRAIN
NOTE: Commissioner by a revenue regulation may prescribe
Quarterly filing/payment
manner and time for filing.

• 25th day of the month following the close of the taxable quarter

WHERE

No more monthly filing payment

AAB’s, RDO, or duly authorized treasurer of the city or
municipality.

1

Coverage Basis
Persons exempt from VAT Gross Sales or Receipts
under Sec. 116
Domestic Carriers and Gross Receipts
keepers of garages
International air/shipping Gross Receipts
carriers doing business in
the Philippines
Electric, gas and water Gross Receipts
utilities
Radio and television Gross Receipts
broadcasting companies
whose annual gross
receipts of the preceding
year do not exceed P
10,000,000 and did not opt
to register as VAT
taxpayer
Tax on overseas dispatch, Amount paid for the service
message or conversation (paid by the person availing
originating from the the service to the person
Philippines rendering the service)
(Sec 120)
(by telephone, telegraph,
telewriter exchange,
wireless and other
communication services
Banks and non-bank Interest, commission and discounts
financing intermediaries from lending activities as well as
income from finance lease on the
basis of remaining maturities of
intsruments:
Short term maturity (5 yrs or
less)
Maturity period is more than 5
yrs
On dividends and equity
shares in net income of
subsidiaries
On royalties, rentals of
properties, real or personal,
profits from exchange and all
other items treated as gross
income under Sec 32 of the
Code
On Net Trading Gains within
the taxable year on foreign
currency, debt securities,
derivatives and other similar
financial instruments
1%
Coverage Basis Tax
Tax Rate
Rate
Other non-bank Finance On interest discounts and 5%
3% Intermediaries other items of gross income
paid to finance companies and
other financial intermediaries
3% not performing quasi-banking
functions
3% Interest, commissions and
discounts paid from their
loan transactions from
finance companies as well
2% as income from financial
leasing shall be taxed based
on the remaining maturities
3% of instruments
Maturity period is 5 years or 5%
less
Maturity period is more than 5 1%
years
Life Insurance Companies Total premiums collected 2%
10% (except purely
cooperative companies or
associations Sec 123
Agents of foreign total premiums collected Twice
insurance companies as the
(Sec 124) except tax
reinsurance premium impose
d in
sec
123
In all cases, where premiums paid 5%
owners of property obtain
insurance directly with
foreign companies
5% (without use of any agent)
Every stock broker who
1% effected a sales, barter,
exchange or other
disposition of shares of
0% stcock listed and traded
through LSD other than
the sale by a dealer in
securities
7%
A corporate issuer/stock GSP or gross value in money of shares
broker, whether domestic of stocks sold, bartered, exchanged or
or foreign, engaged in the otherwise disposed in accordance with
sale, barter, exchange or the proportion of stocks sold, bartered,
other disposition through or exchanged or after listing in the stock
IPO/secondary public exchange
7% offering of shares of stock
Up to 25% 4%
in closely held
corporations
Over 25% BUT NOT OVER 33 2%
1/3%
Over 33 1/3%
2
Coverage Basis Tax
Rate

AMUSEMENT TAXES

Proprietors, lessee or
operator of the following:

Cockpits Gross Receipts 18%

Cabarets, Night or Day Gross Receipts 18%

Clubs

Boxing exhibitions Gross Receipts 10%

(Except World or oriental
championship is at stake
AND one of the
contenders if Filipino
citizen promoted by the
Filipino citizen of
Philippine Corporation)

Professional basketball Gross Receipts 15%

games

Jai-alai and race track Gross Receipts 30%

(operators shall withheld
on winnings) irrespective
of whether or not any
amount is charged for
admission