BIR Form 2551Q Percentage Tax Filing and Payment (A Complete Guide)

BIR Form 2551Q is used to file percentage tax returns quarterly. You will file either file a percentage tax (PT) return or a value-added tax (VAT) return if for business tax except if you’re an employee.

Did you know that the percentage tax is currently only 1% from the previous 3%. This is all thanks to the CREATE law which aims to assist small business enterprises in recovery by lowering the percentage tax.

This is going to be a long article so bear with me. In the first part, I will discuss what percentage tax is, who is required to pay it, and when it should be paid. In the second part, I will teach you how to file BIR Form 2551Q Percentage Tax using eBIRForms. In the third part, I will teach you how to pay the percentage tax due using GCash and PayMaya. And lastly, I will answer some of the frequently asked questions about BIR Form 2551Q and percentage tax.

If you are in a hurry and need to file a percentage tax, click this to jump to the actual procedures in filing your BIR Form 2551Q. You can also use the table of contents to navigate what you want to read in this article.

Percentage Tax Overview

What is Percentage Tax?

Percentage tax is a type of business tax like VAT that a registered taxpayer has to pay unless he or she is an employee.

The amount you pay depends on how much you earn in each quarter of the year.

Who needs to Pay Percentage Tax?

The National Internal Revenue Code (NIRC), as amended by the R.A. 10963, states that if a taxpayer’s gross sales or gross receipts do not exceed Php3,000,000 pesos, he or she must pay the percentage tax given that he or she is not a VAT-registered taxpayer.

Usually, if you are a small taxpayer or business owner, or freelancer, you have to pay percentage tax and not VAT.

Upon your initial registration with the BIR, your designated tax type is percentage tax except if you volunteer to be taxed using VAT.

And this is what I will teach in this article – how to file BIR Form 2551Q percentage tax for non-VAT taxpayers. However, if you want to know more about who are the persons required to pay percentage tax, you read visit this page to learn more.

Percentage Tax Table

Don’t even bother with the thought of where you belong. Because usually, you belong to Person Exempt from VAT – PT010.

This means the percentage tax you must pay is 3%. But because of the CREATE Law with a date of coverage from July 1, 2020, to June 30, 2023, you only have to pay 1%. This is also a big saving and helps to innovate your business due to the pandemic.

BIR Form 2551Q Percentage Tax Deadlines

If you don’t use eFPS for filing your tax returns, this means you’re a small taxpayer like me. In this case, we’ll use the eBIRForms in filing the BIR Form 2551Q percentage tax.

The deadline of BIR Form 2551Q percentage tax return filing payment is on every 25th day after the taxable quarter. Don’t wait for the deadline to file and pay your percentage tax return to avoid issues and problems.

If you’re using a calendar year, please refer to the deadlines below.

1st Quarter

The first quarter deadline of percentage tax filing and payment, if you use a calendar year, is on or before April 25 of the current year. This quarter covers the month of January to March of the current year.

2nd Quarter

The second quarter deadline of percentage tax filing and payment, if you use a calendar year, is on or before July 25 of the current year. This quarter covers the month of April to June of the current year.

3rd Quarter

The third quarter deadline of percentage tax filing and payment, if you use a calendar year, is on or before October 25 of the current year. This quarter covers the month of July to September of the current year.

4th Quarter

The 4th quarter deadline of percentage tax filing and payment, if you use a calendar year, is on or before January 25 of the next year. This quarter covers the month of October to December of the current year.

Quarter	Deadline
Quarter 1: January to March	April 25
Quarter 2: April to June	July 25
Quarter 3: July to September	October 25
Quarter 4: October to December	January 25 of the next year

How to File BIR Form 2551Q Percentage Tax Using eBIRForms?

For filing a percentage tax return, you need to download and install eBIRForms on your laptop or personal computer.

Maybe you want to ask me if you are required to file tax returns using eBIRForms. For complete answers, you may read the articles below.

Recommended Reading: Am I Required to File Tax Returns Using eBIRForms?

But to make the conversation easier, yes, you are probably required.

Now let’s dive into the actual filing.

Step 1: Open eBIRForms

You can open your eBIRForms using the desktop shortcut present (of course) on the desktop.) You can also open eBIRForms by locating it in the start menu and clicking eBIRForms.

Recommended Reading: How to Install eBIRForms and Setup Your Company File

Recommended Reading: How to Create eBIRForms Desktop Shortcut

Step 2: Input Your 9-digit TIN and 3-digit Branch Code

Click the first box under the TIN field and start typing your TIN. Press the TAB on your keyboard to jump to another box. After you’ve successfully inputted your TIN and branch code, the company file you’ve set up will populate the field required.

Step 3: Choose BIR Form 0605 in the Dropdown List

Under the List of BIR Forms >> select the BIR Form 2551Qv2018 – Quarterly Percentage Tax Return.

Do not select other versions of the 2551Q. These are older versions and are no longer used and accepted by the BIR. This is important so you don’t get in trouble later on.

Step 4: Click Fill Up

After selecting the form, click the fill-up button beside the dropdown list.

A popup will show. Click OK to close it.

Wait for the application to load the BIR Form 0605. It may take some time to load it. Sometimes, it will hang but don’t close the eBIRForms and wait for it.

Step 5: Fill Up the BIR Form 2551Q

Using eBIRForms, you can easily fill up the BIR Form 2551Q because some fields are already preloaded with your background information. This form has two pages. Don’t worry as this is not going to be difficult. Follow the guidance below for your reference.

Example: Let’s say you’re filing for the 4th quarter of the year 2021.

1. Choose Calendar Year

Oftentimes, you have a calendar year so select it.

2. Put December 31, 2021 in the Year Ended

This will be automatically filled in if you choose the calendar year. Also, the eBIRforms will detect the current year. So change the year of the necessary (this is important).

3. Select 4th Quarter

In this example, we’re filing the percentage tax return for the fourth quarter. But select the actual quarter you’re filing for.

4. Select No for Amended Returns

5. Put Zero “0” on the No. of Sheets Attached

Unless you have tax credits, you need to put how many sheets you need to attach. Otherwise, leave it as is.

6 – 11. eBIRForms Will Auto-Supply this Information Base on the Company File

Recommended Reading: How to Setup Your Company in eBIRForms?

12. Select No

Since we are not availing of any tax relief, we select no. But you have to select yes and you are and specify it in No. 12A.

13. Select Graduate Income Tax Rate on Net Taxable Income

You don’t select the 8% income tax rate.

If you have received a BIR Form 2307 (Certificate of Creditable Tax Withheld), you need to put the amount in Number 15.

If you have tax credits, specify and put the amount in Number 17.

You can leave the other numbers as is and proceed to Page 2. Click Next at the bottom of the form.

Fill up Schedule 1

On Schedule 1, you need to select the applicable ATC. Remember, if you’re a non-VAT taxpayer, select PT010. I’ll select it as I’m filing for it.

Note that there are two PT010 options in the dropdown list. You just need to select the current PT010 which is the 1% located at the very bottom of the list after the PT180. Don’t select the first one because it will compute your percentage tax based on 3%.

In the taxable amount column, input your income. For example, if you Php100,000 for the quarter, enter the exact amount. eBIRForms will automatically compute the percentage for you.

Step 6: Validate the BIR Form 0605

After you supplied all the necessary information, click the validate button. The eBIRForms will now validate if there is missing information.

If there is no error, the popup will appear saying validation successful. Click OK to close the popup.

Make sure that your BIR Form 2551Q is properly filled up. Double-check the data and make sure they are correct and accurate to avoid issues in the future.

Validating the BIR Form 0605 does NOT mean all the data you inputted is correct and does match with the BIR database. It only means that the fields have values. But eBIRForms will not check whether those values are correct or not.

For example, you can input a fictional address, TIN, or even put a wrong date. With all of these, it will still say validation successful. But in reality, these are all wrong. So a final reminder is that you check the information you supplied and correct them if they are wrong. You can click the edit button to modify the form.

Step 7: Submit the the BIR Form 2551Q

Before you submit the BIR Form 2551Q, make sure you have a stable internet connection. Also, make sure that you have entered an active and valid email address. BIR will send you a notification to your email once they received your eBIRForms submission.

Now that you’re sure of the information you supplied. It’s time to click the Submit / Final Copy button to submit online.

A popup will appear. Click ok to proceed with the submission. On the next page, you need to agree to the terms and conditions of the eBIRForms. Click ok to continue.

Wait for the process to complete. You’ll receive a popup message saying Submission Successful just like below.

If you have received an error message while filing BIR Form 2551Q in the eBIRForms, you’ll need to repeat the submission process. Make sure you have a stable internet connection for the transaction to push through.

Usually, you’ll receive the email confirmation from the BIR after a couple of minutes or hours. This is usually the case but I don’t know with the others. It will still depend on the situation.

This email confirmation will serve as proof that the BIR has received your online submission of BIR Form 2551Q.

How to Pay BIR Form 2551Q Percentage Tax Using GCash and PayMaya?

Now that you have received the email confirmation, you need to pay the percentage tax due. In this guide, I will just teach you how to pay it using GCash and PayMaya.

Pay the BIR Form 2551Q Percentage Tax Using GCash

Step 1. Open the GCash App.

Step 2. Click Pay Bills.

Step 3. Click Government.

Step 4. Click BIR.

Step 5. Fill up the payment form.

For your reference, these are the exact data to be entered for BIR Form 2551Q percentage tax return.

Please input your actual TIN. Note that if you have a branch, the branch will be 00001 or 00002, and so on.

Step 6. Click Next and Pay the Amount Due.

Step 7. Save and Download Your Receipt.

Pay the BIR Form 2551Q Percentage Tax Using PayMaya

Step 1. Open the PayMaya App.

Step 2. Click Pay Bills.

Step 3. Click Government.

Step 4. Click Bureau of Internal Revenue.

Step 5. Fill up the payment form.

For your reference, these are the exact data to be entered for BIR Form 2551Q percentage tax return.

Please input your actual TIN. Note that if you have a branch, the branch will be 00001 or 00002, and so on.

You should also input your RDO. You can find this in your COR. Just look at the header part.

Please ignore the red error. I don’t have sufficient funds at the time of writing this article.

Step 6. Click Continue and Pay the Amount Due.

Step 7. Save and Download Your Receipt.

Frequently Asked Questions?

Do I still need to file 2551M?

Under the TRAIN Law, you don’t need to file anymore a monthly percentage tax using the BIR Form 2551M.

What is the Return Period for BIR 2551Q in GCash?

The return period you’ll put in GCash when paying the BIR Form 2551Q percentage tax is the last date of the applicable quarter. For example, if you use the calendar year of 2021, you’ll put a return period of March 31, 2021, for the first quarter.

Is Percentage Tax Deductible from Income Tax?

Unline income taxes, percentage taxes you paid can be deducted from the taxable income. This will lessen your income tax, as a result.

How to Become Exempted from Percentage Tax?

You can be exempted from paying percentage tax if you are a ‘cooperative’, self-employed individual, and professionals availing of the 8% income tax rate.

Do I Need to Pay Percentage Tax if I am an Employee?

Percentage tax is a type of business tax. This means that if you are an employee, you do not have to pay percentage tax. However, if you are an employee and at the same time the owner of a business or freelancer, or you are practicing your profession, you will have to pay percentage tax on income derived from these activities.

Do I need to Go to BIR to Have my Percentage Returns Stamped?

If you file and submit your BIR Form 2551Q Percentage Return online using eBIRforms, you will receive an email confirmation from the BIR. This email confirmation will serve as a stamp confirming that you have filed your tax returns. This means that you do not have to go to the BIR to have these tax returns stamped.

Do I still need to print BIR Form 2551Q after filing using eBIRForms?

Even if you do not have to go to the BIR, you still need to print BIR Form 2551Q for your accounting records. Make sure you also print the email confirmation from the BIR and the payment receipt.

Other Related Articles:

Recommended Reading: Install eBIRForms And Setup Your Company in 3 Easy Steps

Recommended Reading: BIR Form 0605 Filing and Payment (An Ultimate Guide)

References

Bureau of Internal Revenue. (n.d.). Percentage Tax. Retrieved January 9, 2022, from https://www.bir.gov.ph/index.php/tax-information/percentage-tax.html

Bureau of Internal Revenue. (n.d.-b). Revenue Regulations No. 4 – 2021. Retrieved January 9, 2022, from https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full Text RR 2021/RR NO. 4 – 2021.pdf