JuanTax Exclusive: A Closer Look on Percentage Tax (2551Q)

Percentage Tax (2551Q)

A list of important things you need to know about Percentage Tax

  • Percentage Tax is a business tax regulated in our country

  • Taxpayers who are Non-VAT with annual revenues less than PHP 3M

  • Filing of 2551Q is on or before the 25th day after the last quarter

  • Failure to pay BIR form 2551Q, individual will incur 12% interest based on their tax payables

Percentage Tax is a business tax that is regulated in the Philippines which is imposed on individuals or businesses that sell/lease goods and services with annual sales not exceeding PHP 3 Million and is not VAT registered.

Those who need to file percentage tax are any of the following individuals/business listed below:

  • Individuals who are not VAT-registered with annual gross sales/receipts not more than Php 3,000,000

  • Individuals who lease residential units where monthly rentals exceed Php 15,000 but the aggregate of rentals is not more than Php 3,000,000

  • Individuals engaged in the following industries:Franchise grantees of gas/water utilities, radio/TV broadcasting with revenue, not more than Php 10,000,000 Million and did not opt to register as VATCars for rent and hireDomestic and international air/shipping carriersBanks and Non-Bank intermediaries Individuals, company, or corporations doing life insurance Fire, marine, or agents of foreign insurance companies Operators and/or lessee of cockpits, clubs, exhibitions, pro-basketball games, racetracks, Jai-Alai, music lounges under the RMC No. 18-2010

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