If you’re a business owner, there’s a good chance you’ve been eagerly awaiting the release of the new BIR Form No. 2551Q. After all, this form is essential for claiming your tax refund. And with the deadline for filing looming, it’s important to make sure you’re aware of how to properly complete the form. So if you’re wondering what’s new on Form No. 2551Q and the percentage tax deadlines, keep reading! We’ll fill you in on all the latest changes so you can submit your claim without any delays.
What is BIR Form 2551Q?
BIR Form 2551Q is the Quarterly Percentage Tax Return. This form is filed by individuals and entities subject to percentage tax. It is a business tax levied on persons or entities who sell or lease goods, properties, or services in a trade or business or engages in certain other activities prescribed by the National Internal Revenue Code (NIRC) of 1997.
Who Should File BIR Form 2551Q?
Persons or entities engaged in the sale of goods, properties, or services subject to percentage tax must file this return. The following are examples of businesses required to pay percentage tax:
- Retailers of goods
- Leasing companies
- Service providers such as laundry shops, repair services, and beauty parlors
- Persons engaged in the business of printing and publication
When is the Deadline for Filing BIR Form 2551Q?
The deadline for filing this return is on the 20th day of the month of each taxable quarter. For example, if you are required to file for the first quarter (January to March), the deadline would be April 20, 2022.
What Are the Required Documents for Filing BIR Form 2551Q?
Required documents must submit the following documents along with your return:
- Income tax return or statement duly received by the Bureau of Internal Revenue (BIR)
- Official receipts or sales invoices
- Books of accounts
- Other relevant supporting documents
How Do I File BIR Form 2551Q?
You can file this return electronically through the eBIRForms system, or you can file a paper return. If you are filing electronically, you must first register for an account on the eBIRForms website. Once you have registered and logged in, you can download the form and fill it out electronically. After filling out the form, you can submit it online and the required documents.
If you are filing a paper return, you can get a copy of the form from any authorized agent bank (AAB), revenue district office (RDO), or BIR office. You can also download the form from the BIR website. Once you have a copy of the form, you must fill it out and submit it to the RDO or BIR office that has jurisdiction over your place of business.
What are the Penalties for Filing Late or Not Filing BIR Form 2551Q?
If you fail to file this return on time, you will be subject to a penalty of 5% of the tax due per month, computed from the date prescribed for filing up to the date of actual filing. If you do not file this return, you will be subject to a penalty of 10% of the tax due plus a surcharge of 25% of the tax due. You will also be subject to interest at the rate of 20% per annum, computed from the date prescribed for filing up to the date of actual payment.
How To Calculate Quarterly Percentage Tax
A percentage tax is a business tax levied on persons or entities engaged in certain activities prescribed by the National Internal Revenue Code (NIRC). The tax is imposed on the gross selling price or gross value in money of goods, properties, or services sold, leased, or exchanged in the course of trade of business.
The following are examples of businesses required to pay percentage tax:
- Retailers of goods
- Leasing companies
- Service providers such as laundry shops, repair services, and beauty parlors
- Persons engaged in the business of printing and publication
- Non-VAT taxpayers with gross annual revenues not exceeding P3M ( most freelancers and sole proprietors who are just starting out fall under this category).
- Domestic and international carriers except those who use bancas and animal-drawn vehicles
- Franchisees of either of the following: gas or water utilities; radio and/or TV broadcasting companies whose gross annual revenues do not exceed P10M; services that send overseas dispatch, messages, or conversations from the Philippines
- Proprietors, lessees, or operators of cockpits, cabarets, racetracks, night or day clubs, professional basketball games, etc.
- Banks, non-bank financial intermediaries, and finance companies
- Life insurance companies and agents of foreign insurance companies
To calculate your quarterly percentage tax, you will need to determine your gross selling price or gross value in money of goods, properties, or services for the quarter. Once you have selected your gross selling price or gross value in money, you can multiply it by the appropriate tax rate. The tax rates vary depending on the type of business you are engaged in.
For example, if you are a retailer of goods with a gross selling price or gross value in money of Php 500,000 for the quarter, your percentage tax would be Php 5,000 (Php 500,000 x .01) the first quarter of 2021 (January to March), the deadline would be April 20, 2021.
Once you have calculated your quarterly percentage tax, you will need to file a return and pay the tax due on or before the 20th day of the month following the end of each taxable quarter. For example, if you are required to file for the first quarter of 2022 (January to March), the deadline would be April 20, 2022.
Failure to file the return and pay the tax due on time will result in penalties. If you fail to file this return on time, you will be subject to a penalty of 5% of the tax due per month, computed from the date prescribed for filing up to the date of actual filing. If you do not file this return, you will be subject to a penalty of 10% of the tax due plus a surcharge of 25% of the tax due. You will also be subject to interest at the rate of 20% per annum, computed from the date prescribed for filing up to the date of actual payment.
Conclusions
It is essential to file your quarterly percentage tax return and pay the tax due on time to avoid penalties. If you have any questions about your taxes, you should seek professional help. Filing your taxes can be a complex process, and it is always best to err on the side.
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