Compliance Requirements

Register with the BIR

Keep accounting records/books
Issue invoices/receipts
File tax returns and pay tax
Withhold tax on certain transactions
RULES Non-VAT Registered Persons (NVRP) VAT Registered Persons (VRP)

1. Vat-exempt persons who did not opt to register as

1. Gross sales/receipts exceeds 1,919,500 for 12month period.
VRP
2. Reasonable grounds that GS/R will exceed threshhold.
2. Marginal Income Earners. Gross/receipts do not
Required/ Mandatory 3. Vat-registrable person - required but fails to registered. Not entitled to input tax credits as well
exceed 100k (12month).
as customers.
3. Non-stock, non-profit do not exceed margina
4. Franchise grantees or radio & TV with annual gross income exceeds 10M; w/in 30days from end
threshhold (1,919,500)
of CY.
4. Cooperatives (excpt electric).

1. Vat exempt person do not exceed marginal threshhold; irrevocable for 3 years.
Optional Registration 2. VRP with VAT exempt transactions may opt to apply VAT to transactions; irrevocable for 3 years.
3. Franchise grantees or radio & TV with annual gross income less than 10M; irrevocable

Registration (to the RDO)
1. on or before commencement of business
2. w/in 10 days from date of transfer to
another district
Cancellation
Annual Fee PHP500 on or before Jan 31 for every separate district except marginal income earners (semi-annual payment is allowed)
Written application (<1,919,500.00)
Ceased business
Business become exempt
change in nature of business to exempt
Change of ownership
No cancellation
Dissolution
M&A
Registered but failed to start business
Cancel registration after 3 years in case of NVRP who registers
VRP did not exceed threshhold for 3 years

Failure to issue VAT receipts

Suspension/Closure of Failure to file VAT returns
No suspension
Business Understatement of qtr sales by 30% or more
Failure to register as VAT person

1. Required to keep journal written in native language (English/Spanish)

Keeping of Accounting Records 2. If quarterly sales/earnings do not exceed 50,000.00 - can use simplified records authorized by finance secretary
3. If quarterly sales/earnings exceeds 150,000.00 - should be audited by CPA
4. Subsidiary books - optional
Preservation of Acctng Records Period of 10 years after the deadline of filing the return (or at the date of filing in case if late) for the taxable year when the last entry was made. (RR17-2013)
Monthly or Quarterly Monthly and Quarterly
When to File and Pay (PAYF) Within twenty (20) days following the end of each Not later than the 20th day following the end of each month
month/quarter Within twenty five (25) days following the close of taxable quarter.
 Frequency of
NIRC Non-Vat Registered Persons Basis Tax Rate
Reporting

116 Persons exempt from VAT under Sec. 109 (Seller of Goods or Services) Gross Receipts 3% Montlhly

Domestic carriers and keepers of garages

117 A. Domestic common carriers by Land for transport of passengers Gross Receipts 3% Montlhly/Quarterly
B. Keepers of garage

International air/shipping carriers doing business in the Philippines for

118 Gross Receipts 3% Montlhly
transport of passengers
Franchise Grantees:
A. Gas and water utilities Gross Receipts 2%
B. Radio and television broadcasting companies whose annual gross
119 Montlhly
receipts of the preceding year do not exceed P 10,000,000 and did Gross Receipts 3%
not opt to register asVAT taxpayer
C. Franchise tax on PAGCOR (RMC33-2013) Gross Receipts 5%
Overseas Communications Originating from PH to abroad
Exempt - DING
Diplomatic Services
120 Gross Receipts/Payments 10% Quarterly
International Orgs
News Services
Government
Interest, commissions and discounts from lending activities as well as income from
leasing on the basis of remaining maturities of instruments:
• Maturity period is five years or less 5%
• Maturity period is more than five years 1%
Banks and non-bank financing intermediaries (quasi-banking functions), On Dividends 0%
121 Montlhly
money changers, pawnshop
On royalties, rentals of properties, real or personal, profits from exchange and all other
7%
items treated as gross income under Sec. 32 of the Code
On net trading gains within the taxable year of foreign currency, debt securities,
7%
derivatives and other similar financial instruments

On interest, discounts and other items of gross income paid to finance companies and
5%
other financial intermediaries not performing quasi banking functions

Finance Companies Interest, commissions and discounts paid from their loan transactions from finance
122 Montlhly
(Non-bank, non quasi-banking) companies as well as income from financial leasing shall be taxed based on the
remaining maturities of instruments:
• Maturity period is five years or less 5%
• Maturity period is more than five years 1%
Life Insurance Companies (except purely cooperative companies or
123 Total premiums collected 2% Montlhly
associations)

Agents of foreign insurance companies: (except reinsurance premium)

124 Montlhly
A. Indirect Insurance Agents Total premium collected 4%
B. Direct Insurance by Owner Total premium paid 5%
Proprietors, lessee or operator of the following:
Cockpits Quarterly Gross receipts 18%
Cabarets, Night or Day Clubs Quarterly Gross receipts 18%

125 Quarterly
 Boxing exhibitions
Exempt -
125 - if world or oriental championship Quarterly Gross receipts 10% Quarterly
- promoted by Filipino citizen or corp (60% Filipino owned)
- at least one contender is Filipino
Professional basketball games Quarterly Gross receipts 15%
Jai-alai and race track (operators shall withheld tax on winnings) Quarterly Gross receipts 30%
Winners in Horse races
A. Owner Prizes 10% within 20 days after
126
B. Double Forecast/Quinella/Trifecta Net ticket cost 4% each racing days
B. Bettor Net ticket cost 10%
Seller, Transferor of Stocks

Every stock broker who effected a sale, barter, exchange or other

Gross selling price or gross value in money of shares of stocks sold, bartered, exchanged
disposition of shares of stock listed and traded through the Local Stock ½ of 1%
or otherwise disposed
Exchange (LSE) other than the sale by a dealer in securities
within 30 days after
127 Gross selling price or gross value of in money of shares of stocks sold, bartered,
date of listing
A corporate issuer/stock broker, whether domestic of foreign, engaged exchanged or otherwise disposed in accordance with the proportion of stocks sold,
in the sale, barter, exchange or other disposition through Initial Public bartered or exchanged or after listing in the stock exchange
Offering (IPO)/secondary public offering of shares of stock in closely • Up to 25 % 4%
held corporations • Over 25% but not over 33 1/3% 2%
• Over 33 1/3 % 1%
 Year 1978
Updated Minimum Updated International
Old Minimum
Domestic Carriers Gross Quarterly Minimum Gross Rules on Carriers Domestic (RR15-2013)
Gross Quarterly
Receipts Monthly Receipts (RR15-2015)
Receipts
Jeepney for hire Passenger others Passenger
1. Manila and other cities 2,400.00 65,700.00 21,900.00 Land OPT VAT NA
2. Provincial 1,200.00 32,900.00 10,967.00 Air/Sea VAT VAT VAT Exempt
Public Utility Bus
Not exceeding 30 passengers 3,600.00 98,600.00 32,867.00 Domestic transport of passengers by air and water is subject to VAT under RA 9337.
Exceeding 30 passengers Likewise, under RMC 70-2015, transport network companies, such as but not limited to the
But not exceeding 50 likes of UBER, GRAB TAXI, their Partners/suppliers and similar arrangements, which are
holders of a valid and current Certificate of Public Convenience are known as common
passengers 6,000.00 164,200.00 54,733.00 carriers subject to the 3% common carriers tax under Sec. 117. Otherwise, they are
Exceeding 50 passengers 7,200.00 197,100.00 65,700.00 classified as land transportation service contractors subject to the 12% VAT.
Taxis
Manila and other cities 3,600.00 98,600.00 32,867.00
Provincial 2,400.00 65,700.00 21,900.00
Car for hire (with chauffeur) 3,000.00 82,100.00 27,367.00
Car for hire (without chauffeur) 1,800.00 49,300.00 16,434.00

Note: Under RR 9-2007, the presumptive gross receipts amount were tried to be adjusted but the RR was barred for lack of legal basis
 rnational
R15-2013)
R15-2015)
others
NA
OPT

RA 9337.
not limited to the
ts, which are
as common
, they are
T.