04-30-2013, 07:08 AM #1
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- Jul 2011
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Common Taxes Paid by Corporations to the BIR
The following are the common taxes paid to the Bureau of Internal Revenue (BIR) by corporate taxpayers who are engaged in typical types of business or service industries.
1. BIR Annual Registration Fee (BIR Form 0605) – The P500 BIR annual registration fee should be paid upon registration, and afterwards, on or before January 31 of the current taxable year.
2. Documentary Stamp Tax Declaration Return (BIR Form 2000) – Docs stamp tax is paid on the corporation’s original issue of Shares of Stock. The return shall be filed within five (5) days after the close of the month when the taxable document was made, signed, issued, accepted or transferred. This is actually a requirement for a corporation before it is registered with the BIR to ensure that the corporation has paid its docs stamp tax on its original issue of shares of stock.
3. Quarterly Income Tax (BIR Form 1702Q) –The corporate quarterly income tax return shall be filed with or without payment within sixty (60) days following the close of each of the first three (3) quarters of the taxable year whether calendar or fiscal year.
Take note that there is no 4th quarterly ITR, but instead the taxpayer pays annual ITR as the final ITR for the taxable year.
4. Annual Income Tax (BIR Form 1702) – The return shall be file/e-filed and the tax shall be paid/e-paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year.
5. Monthly and Quarterly Value Added Tax (BIR Form 2550M/2550Q)/ Monthly Percentage Tax (BIR Form 2551). The corporation could be either VAT registered (those who pay VAT payable) or nonVAT registered (those who pay Percentage Tax). VAT registered taxpayers are those whose gross annual sales and/or receipt is at least P1,919,500, persons who are required to register as VAT taxpayers by the law, and those who have opted to duly register as VAT registered taxpayers.
- Monthly VAT (BIR Form 2550M) is filed and paid on or before the 20th day following the taxable month.
- Quarterly VAT (BIR Form 2550Q) is filed and paid on or before the 25th day following the taxable quarter.
Monthly VAT returns are only filed for the months of Jan, Feb, Apr, May, July, Aug, Oct, and Nov. For March, June, Sept and Dec, the quarterly VAT is filed instead.
If you’re NonVAT, you file and pay Percentage tax instead of VAT.
- The Monthly Percentage (BIR Form 2551M) Tax should be filed and paid on or before the 20th day following the taxable month.
6. Monthly Remittance Return of Income Taxes Withheld on Compensation (BIR Form 1601C). This is for individual taxpayers who have employees. The return must be filed on or before the 10th day of the month following the month in which withholding was made. For the month of December, it must be filed on or before January 15 of the following year.
A summary report or Annual Information Return of Income Tax Withheld on Compensation and Final Withholding Taxes BIR (Form 1604CF) is filed on or before January 31 of the year following the calendar year in which the compensation payment and other income payments subject to final withholding taxes were paid or accrued.
7. Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) (BIR Form 1601E). This is for self-employed individuals who are paying for rental, professional services, and other income payment subject to Expanded/Creditable Withholding taxes. The return must be filed and remitted on or before the tenth (10th) day of the month following the month in which withholding was made except for taxes withheld for the month of December which shall be filed on or before January 15 of the succeeding year.
An Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Taxes (BIR Form 1604E) is also filed on or before January 31 of the year following the calendar year in which the compensation payment and other income payments subject to final withholding taxes were paid or accrued.
The list above is only for corporate taxpayers which are engaged in typical businesses or services. The BIR may also impose other taxes to them like Excise Tax, Final Withholding Tax, Improperly Accumulated Tax, Quarterly Percentage Taxes, and other taxes applicable for other types of business activities, line of business, and other circumstances.
When the corporation is registered with the BIR, they will conduct a briefing on you to determine the right taxes applicable to it, and these taxes will be stated in your BIR Certificate of Registration (BIR Form 2303). Thus, you may refer to your BIR Form 2303 to determine the BIR Forms and kinds of taxes that you should file and pay to the BIR or the government.Read business and other related articles at BusinessTips.Ph
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