IN compliance with Sec. 40 of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act, the Bureau of Internal Revenue (BIR) issued a tax advisory providing instructions for percentage taxpayers under Title V of the 1997 Tax Code.
Using BIR Form No. 2551Q, all percentage tax taxpayers must file a quarterly return of their gross sales, receipts, or earnings within 25 days after the end of each taxable quarter. This guideline also applies to taxpayers who are subject to percentage tax due to change of registration from value-added tax (VAT) to non-VAT.
On the other hand, the following taxpayers must continue to withhold and remit taxes monthly using BIR Form No. 1600: Taxpayers who are required to withhold other percentage tax and VAT under Revenue Regulations No. 2-98, as amended; and Taxpayers who are required to withhold VAT on government money payments and payments to non-residents.
The BIR advisory takes effect beginning taxable year of 2018.
Please be guided accordingly.
Source: P&A GRANT THORNTON
Certified Public Accountants Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu dated 27 February 2018.