Filing Guidelines: Percentage Tax

By: Pamela Ruth G. Calog, CPA

2 months ago

Percentage tax is a business tax imposed on persons, entities, or transactions specified under Sections 116 to 127 of the National Internal Revenue Code of 1997 (also known as Tax Code), as amended, and as required under special laws.


BIR Form No. 2551M

BIR Form No. 2551Q


Monthly Percentage Tax Return

Quarterly Percentage Tax Return

Who shall file

There is no need to file and pay monthly percentage tax using BIR Form No. 2551M.

As provided in Tax Advisory dated 8 February 2018 issued by the Commissioner of Internal Revenue in compliance with Section 40 of the TRAIN Law.

This return shall be filed in triplicate by the following:

  1. Persons whose gross annual sales and/or receipts do not exceed P 3,000,000 and who are not VAT-registered persons;

  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 gas or water utilities;

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

  6. Franchise grantees sending overseas dispatch, messages or conversations from the Philippines;

  7. Proprietors, lesses or operators of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai and racetracks;

  8. Banks, non-bank financial intermediaries and finance companies;

  9. Life insurance companies; and

  10. Agents of foreign insurance companies.

When to File (and Remit)

Not later than the 20th day following the end of each month.

For EFPS, in accordance with the schedule set forth in RR No. 26-2002.

Within twenty-five (25) days after the end of each taxable quarter.

Except on services rendered by franchise grantees sending overseas dispatch, messages or conversations from the Philippines involving the following:

  1. Government of the Philippines - for messages transmitted by the Government of the Republic of the Philippines or any of its political subdivisions and instrumentalities;

  2. Diplomatic Services - for messages transmitted by any embassy and consular offices of a foreign government;

  3. 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

  4. News services - for messages from any newspaper, press association, radio or television newspaper, broadcasting agency, or newsticker service to any other newspaper, press association, radio or television newspaper broadcasting agencu or newsticker services or to bonadife 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.

    For comments, you may also please send email at info(@)

Frequently Asked Questions

  • BIR Form No. 2552 - Percentage Tax Return for Transactions Involving Shares of Stocks Listed and Traded Through The Local Stock Exchange or Through Initial and/or Secondary Public Offering

  • a. Every stock broker who effected a sale, barter or exchange of shares of stock listed and traded through the local stock exchange other than the sale by a dealer in securities, which tax shall be paid by the seller/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 corporations; and

    c. A stock broker who effected a sale, exchange or other disposition through secondary public offering of shares of stock in closely-held corporations

  • a. For tax on sale of shares of stocks listed and traded through the local stock exchange (LSE) – within five (5) banking days from the date of collection;

     b. For tax on shares of stocks sold or exchanged through primary offering - within 30 days from the date of listing in the LSE; and

     C. For tax on shares of stocks sold or exchanged through secondary public offering - within five (5) banking days from the date of collection.


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