[Updated] Quarterly filing of Percentage Tax Return: Monthly remittance of Percentage Tax Withheld

[Updated] Quarterly filing of Percentage Tax Return: Monthly remittance of Percentage Tax Withheld

(BIR Tax Advisory)

This Updated Tax Alert is issued to inform all concerned on the filing and payment deadline for remittance of percentage tax pursuant to TRAIN Law and BIR Advisory dated February 19, 2018 and signed by Commissioner Dulay.

Following the TRAIN Law (RA No. 10963), the BIR advised that the percentage tax return shall be due quarterly within 25 days from the close of the taxable quarter (TQ).

Hence, filing and payment of percentage tax returns of the following taxpayers will be on a quarterly basis from the previous monthly filing and remittance prescribed by Revenue Regulations (RR) No. 6-2001, as amended:

1. VAT-exempt taxpayers with annual revenues not exceeding P3M;
2. domestic carriers and keepers of garages, international air/shipping carriers;
3. franchisees of gas or water utilities, franchisees of radio and/or TV broadcasting with revenues not exceeding P10M;
4. banks, non-bank financial intermediaries and finance companies, life insurance companies; and
5. agent of foreign insurance companies.

Notwithstanding the quarterly filing of percentage tax returns, remittance of withholding VAT and other percentage tax shall still be monthly. Hence, BIR Form No. 1600 shall still be used for the filing and remittance of taxes withheld for VAT (VAT withheld on government money payments and payments to non-residents) and Other Percentage Taxes (OPT), on a monthly basis on or before the tenth (10th) day of the month following the month in which withholding was made.