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.
Except on services rendered by franchise grantees sending overseas dispatch, messages or conversations from the Philippines involving the following:
Government of the Philippines - for messages transmitted by the Government of the Republic of the Philippines or any of its political subdivisions and instrumentalities;
Diplomatic Services - for messages transmitted by any embassy and consular offices of a foreign government;
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
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(@)cbos.com.ph
Frequently Asked Questions
What form should be filed for transactions involving shares of stocks under Section 127 of the Tax Code?
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
Who are required to file for BIR Form No. 2552?
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
When to file/pay for BIR Form No. 2552?
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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