Circularizing the Flyers for Professionals, Corporations and Online Sellers

November 16, 2020 REVENUE MEMORANDUM CIRCULAR NO. 131-20 SUBJECT : Circularizing the Flyers for Professionals, Corporations and Online Sellers TO : All Internal Revenue Officers, Employees and Others Concerned For the information and guidance of all internal revenue officials, employees and others concerned, attached herewith are three (3) flyers containing updated information on registration, filing and payment of taxes specifically prepared for professionals, corporations and online sellers. Said flyers were prepared in line with the Bureau's tax information and education campaign strategies, which aimed at providing its internal and external stakeholders with customized information materials based on taxpayer classifications, among others. The digital copies of flyers are available for access/download through the "downloadable"/"information materials" portion of the BIR website ( https://www.bir.gov.ph/index.php/downloadables.html#info-mat ). For easy access to said online contents, scan the below Quick Response Codes (QR Codes): Flyer for Professionals Flyer for Corporations Flyer for Online Sellers All internal revenue officials and employees are enjoined to give this Circular as wide a publicity as possible. (SGD.) CAESAR R. DULAY Commissioner of Internal Revenue ATTACHMENT Tax Guide for Professionals Steps and Requirements for Registration, Filing, & Payment Prepared by: Public Information & Education Division under the supervision of the Client Support Service, Bureau of Internal Revenue A PROFESSIONAL is a self-employed individual who is engaged in the practice of profession or calling, with or without license under a regulatory board or body. Steps and Requirements for BIR Registration 1. Secure checklist & accomplish BIR Form No. 1901 (2018 version) (Application for Registration). Submit this form to the New Business Registrant Counter (NBRC) together with the following requirements: Any government-issued ID ( e.g. , Birth Certificate, passport, driver's license, Community Tax Certificate) that shows the name, address and birthdate of the applicant, in case of professionals not regulated by PRC. Valid PRC ID, in case practice is regulated by the Professional Regulation Commission (PRC). Additional Documents, if applicable: o If with business name DTI Certificate o If transacting through a representative Special Power of Attorney (SPA) executed by taxpayer-applicant, and any government-issued ID of authorized representative. Where to Register At the New Business Registrant Counter (NBRC) of the Revenue District Office (RDO) having jurisdiction over the place of business if there is a physical business address or RDO having jurisdiction over the place of residence. When to Register On or before the first sale transaction occurred, or within thirty (30) days from the issuance of Mayor's Permit/Professional Tax Receipt. Newly Registered Taxpayers are encouraged to attend the Taxpayer's Briefing at the Revenue District Office (RDO). 2. Pay the following to the Revenue Collection Officer (RCO) through the NBRC: Annual Registration Fee of P500.00 (for every head office and/or branch) o To be paid every January 31 of each year, after registration through any of the following: Authorized Agent Banks (AABs) ePayment Channels Documentary Stamp Tax (DST) P30.00 BIR Printed Receipt/Invoice (BPR/BPI) available for purchase. If the taxpayers want their own receipt/invoice printed, they must apply for an Authority to Print (ATP), together with the final and clear sample of their own principal/supplementary. 3. Receive the following: BIR Certificate of Registration (COR) Received copy of BIR Form No. 1901 Notice to Issue Receipt/Invoice (NIRI), BPR/BPI or ATP (whichever is applicable) Proof of payments Reminders On Posting The Certificate of Registration, proof of payment of ARF, and NIRI must be visibly displayed in the business establishment. On Books of Accounts Taxpayers are required to keep and use relevant and appropriate sets of bookkeeping records or books of accounts (journal, ledger, columnar). These must show all transactions and results of operations, so that all taxes due may readily and accurately be determined any time of the year. These must be registered before the deadline for filing of the first quarterly Income Tax Return or Annual Income Tax Return whichever comes earlier. Those with annual sales, earnings, and receipts exceeding P3,000,000 shall have their Books of Accounts audited by a Certified Public Accountant (CPA). On Preservation of Books and Other Records Books of accounts and other accounting records shall be preserved for a period of 10 years from the day following the deadline in filing a return. Or, if filed after the deadline, 10 years from the date of the filing of the return for the taxable year when the last entry was made in the books of accounts. Books and/or records shall be kept in hard copies for the first 5 years and thereafter, may be converted to electronic copies and stored in an electronic storage system. Schedules of Filing and Payment of Taxes I. INCOME TAX Period BIR Form Deadline 1st Qtr (Jan to March) 1701Q May 15 2nd Qtr (April to June) 1701Q August 15 3rd Qtr (July to Sept) 1701Q November 15 Annual 1701/1701A April 15 II. VALUE ADDED TAX (for persons whose gross sales and/or receipts reached PhP3 Million and those who opted to register as VAT taxpayer) Period BIR Form Deadline Monthly 2550M 20th day following the close of the month* 1st Qtr (Jan to March) 2550Q April 25 2nd Qtr (April to June) 2550Q July 25 3rd Qtr (July to Sept) 2550Q October 25 4th Qtr (Oct to Dec) 2550Q January 25 of the ff. year * for eFPS deadlines, refer to RR No. 26-2002. III. PERCENTAGE TAX (for persons whose gross sales and/or receipts do not exceed P3 Million and who are not VAT-registered) Period BIR Form Deadline 1st Qtr (Jan to March) 2551Q April 25 2nd Qtr (April to June) 2551Q July 25 3rd Qtr (July to Sept) 2551Q October 25 4th Qtr (Oct to Dec) 2551Q January 25 of the ff. year The Graduated Income Tax Rates Taxable Income Tax Due Over Not Over Basic Amount Additional Rate Of the Excess Over - 250,000 - - - 250,000 400,000 - 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 - 2,410,000 35% 8,000,000 Reports/Forms to Submit, If Applicable SAWT (Summary Alphalist of Withholding Tax) through eSubmission when claiming Creditable Withholding Tax upon filing of: 1701, 1701A, 1701Q, 2550M, 2550Q & 2551Q. SLSP (Summary List of Sales and Purchases) through eSubmission as attachment to 2550Q (RMO 4-2003). 0619E Monthly Remittance Form for Creditable Income Taxes Withheld (Expanded) Deadline: 10th day of the month following the month when the withholding was made; for eFPS, refer to RR No. 26-2002. 1601EQ Quarterly Remittance Return of Creditable Income Taxes Withheld (Expanded) Deadlines: April 30, July 31, October 31 & January 31; QAP (Quarterly Alphalist of Payees) must be submitted as attachment to 1601EQ. 1604E (Annual Alphalist of Payees regardless of number of payees to be filed through eSubmission) Deadline: on or before March 1 of the year following the calendar year. 1601C Monthly Remittance Return of Income Taxes Withheld on Compensation Deadlines: o For manual filer: For the months of January to November on or before the tenth (10th) day of the following month in which withholding was made. For the month of December on or before January 15 of the following year. o For eFPS filers: refer to RR No. 26-2002. 1604C Annual Alphalist of Employees file through eSubmission (Deadline: January 31 of the following year) regardless of number of employees. The 3 Different Ways to File Tax Returns Manual file hard copies of tax returns (plus any attachments) at the Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs). Senior Citizens and Persons with Disability who are filing their own returns can file manually. eBIRForms or Electronic BIR Forms Platform use the latest downloadable eBIRForms Software Package to prepare and file tax returns. eFPS or Electronic Filing & Payment System file tax returns (plus any attachments) electronically, and pay taxes due online. 8% INCOME TAX RATE option under the TRAIN Law is available to: Self-employed individuals earning income purely from self-employment/business and/or practice of profession , whose gross sales and/or receipts and other non-operating income does not exceed the Value-Added Tax (VAT) threshold of P3 Million. Mixed Income Earners or individuals earning income both from compensation and from self-employment (business or practice of profession) whose gross sales/receipts and other non-operating income do not exceed the VAT threshold but may choose Graduated Income Tax Rates. But remember that: o The compensation income shall be subject to graduated income tax rates. o If the gross sales/receipts and other non-operating income exceeds the VAT threshold, these individuals shall be subject to the graduated income tax rates. How to avail the 8% income tax rate For First Year of Operation o Upon registration using BIR Form No. 1901. o On the initial quarter return (BIR Form No. 2551Q and/or 1701Q) of the taxable year after the commencement of a new business/practice of profession. For Subsequent Years o Filing of BIR Form 1905 (Application for Registration Information Update) at the beginning of the taxable year, to end-date the form type of quarterly percentage tax. o Filing of 1st Quarterly Percentage Tax Return or Income Tax Return (otherwise, graduated income tax rates will apply). PAYMENT OPTIONS: Manual Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs) ePayment http://bit.ly/BIRePay Landbank, Development Bank of the Philippines, UnionBank, GCash, PESONet, & PayMaya Tax Guide for Corporations, Partnerships, & Other Non-Individuals Steps and Requirements for Registration, Filing, & Payment Steps and Requirements for BIR Registration 1. Secure checklist & accomplish BIR Form No. 1903 (Application for Registration). Submit this form to the New Business Registrant Counter, together with the following requirements: For domestic corporations: - SEC Certificate of Incorporation; - Articles of Incorporation For Partnership: - SEC Certificate of Recording; - Articles of Partnership For Foreign Corporations: - License to Do Business in the Philippines - Articles of Incorporation or Articles of Partnership Additional documents, if transacting through a representative: - Board Resolution indicating the purpose and the name of the authorized representative; or Secretary's Certificate; - Any government-issued ID of the authorized representative. For other additional documents, see the BIR Citizen's Charter through this link: http://bit.ly/BIRCitizensCharter Where to Register At the New Business Registrant Counter (NBRC) of the Revenue District Office (RDO) having jurisdiction over the place of business. When to Register On or before the first sale transaction, or before payment of any tax due, or within thirty (30) days from the issuance of Mayor's Permit or Certificate of Registration issued by SEC, whichever comes earlier. 2. Pay the following through the NBRC: Annual Registration Fee of P500 (for every head office and/or branch) o To be paid every January 31 of each year, after registration through any of the following: Authorized Agent Banks (AABs) ePayment Channels Documentary Stamp Tax (DST) P30 BIR Printed Receipt/Invoice (BPR/BPI) available for purchase. If the taxpayer wants their own receipt/invoice printed, they must apply for an Authority to Print (ATP), together with the final and clear sample of their own principal/supplementary receipt/invoice. 3. Receive the following: BIR Certificate of Registration (COR) Received copy of BIR Form No. 1903 Notice to Issue Receipt/Invoice (NIRI), BPR/BPI or ATP (whichever is applicable) Proof of payments Reminders On Posting The Certificate of Registration, proof of payment of ARF, and NIRI must be visibly displayed in the business establishment. On Books of Accounts Taxpayers are required to keep and use relevant and appropriate sets of bookkeeping records. Books of accounts must be registered before the deadline for filing of the first quarterly Income Tax Return or Annual Income Tax Return whichever comes earlier. Those with annual sales, earnings, and receipts exceeding P3,000,000 shall have their Books of Accounts audited by a Certified Public Accountant (CPA). On Preservation of Books and Other Records Books of accounts and other accounting records shall be preserved for a period of 10 years from the day following the deadline in filing a return; or if return was filed after the deadline, 10 years from the date of the filing of the return. The taxpayer must keep hardcopies for the first 5 years. Afterwards, the taxpayer may convert hardcopies to electronic copies and store them in an electronic storage system. On the issuance of Official Receipts or Sales Invoices Every sale and/or transfer of merchandise or for services rendered valued at One Hundred Pesos (P100) or more, must be issued a duly registered receipt or sales/commercial invoice. Schedules of Filing and Payment of Taxes I. INCOME TAX Period BIR Form Deadline 1st Qtr 1702Q Within 60 days following the close of each taxable quarter (Whether calendar or fiscal year) 2nd Qtr 1702Q 3rd Qtr 1702Q Annual 17O2-RT/EX/MX April 15, calendar year; or 15th day of the 4th month following the close of the fiscal year II. VALUE ADDED TAX (for persons whose gross sales and/or receipts reached P3 Million and those who opted to register as VAT taxpayer) Period BIR Form Deadline Monthly 2550M 20th day following the close of the month* 1st Qtr 2550Q 25th day following the close of each taxable quarter (whether calendar or fiscal year) 2nd Qtr 2550Q 3rd Qtr 2550Q 4th Qtr 2550Q *For eFPS deadlines, refer to RR No. 26-2002. III. PERCENTAGE TAX (for persons whose gross sales and/or receipts do not exceed P3 Million and who are not VAT-registered) Period BIR Form Deadline 1st Qtr 2551Q 25th day following the close of each taxable quarter 2nd Qtr 2551Q 3rd Qtr 2551Q 4th Qtr 2551Q IV. WITHHOLDING TAX 0619E (Monthly Remittance Form for Creditable Income Taxes Withheld [Expanded]) On or before the 10th day of the month following the month when the withholding was made for the first two (2) months of the calendar quarter. FOR EFPS USER, refer to RR No. 26-2002. 0619F (Monthly Remittance Form for Final Income Taxes Withheld) On or before the 10th day of the month following the month when the withholding was made for the first two (2) months of the calendar quarter. FOR EFPS USER, refer to RR No. 26-2002. 1601C (Monthly Remittance Return of Income Taxes Withheld on Compensation) For the months of January to November on or before the 10th day of the month following the month when the withholding was made; and for the month of December on or before January 15 of the following year; FOR EFPS USER, refer to RR No. 26-2002. 1601EQ (Quarterly Remittance Return of Creditable Income Taxes Withheld [Expanded]) Not later than the last day of the month following the close of the calendar quarter. 1601FQ (Quarterly Remittance Return of Final Income Taxes Withheld) Not later than the last day of the month following the close of the calendar quarter. 1603Q (Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File) Not later than the last day of the month following the close of the calendar quarter. 1604C (Annual Information Return of Income Taxes Withheld on Compensation) On or before January 31 of the following year. 1604F (Annual Information Return of Income Payments Subjected to Final Withholding Taxes) On or before January 31 of the following year. 1604E (Annual Information Return of Creditable Income Taxes Withheld [Expanded]/Income Payments Exempt from Withholding Tax) On or before March 1 of the following year. See the required reports/forms to be submitted through this link: http://bit.ly/BIRForms The 3 Different Ways to File Tax Returns Manual file hard copies of tax returns (plus any attachments) at the Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs). eBIRForms or Electronic BIR Forms Platform use the latest downloadable offline eBIRForms Package to prepare and file tax returns, and submit attachments through eAFS. eFPS or Electronic Filing & Payment System file tax returns (plus any attachments) electronically, and pay taxes due online. Tax Rate Description Tax Rate Tax Base DOMESTIC CORPORATION 1. a. In General 30% Taxable Income from All Sources b. Minimum Corporate Income Tax 2% Gross Income 2. Proprietary Educational Institutions 10% Taxable Income from All Sources a. Proprietary Educational Institutions whose gross income from unrelated trade, business, or other activity exceeds fifty percent (50%) of the total gross income from all sources. 30% Taxable Income from All Sources b. Minimum Corporate Income Tax 2% Gross Income 3. Non-Stock, Non-Profit Hospitals 10% Taxable Income from All Sources a. Non-Stock, Non-Profit Hospitals whose gross income from unrelated trade, business, or other activity exceeds fifty percent (50%) of the total gross income from all sources 30% Taxable Income from All Sources b. Minimum Corporate Income Tax 2% Gross Income 4. a. GOCC, Agencies, & Instrumentalities 30% Taxable Income from All Sources b. Minimum Corporate Income Tax 2% Gross Income 5. a. National Gov't & LGUs 30% Taxable Income from Proprietary Activities b. Minimum Corporate Income Tax 2% Gross Income 6. a. Taxable Partnership 30% Taxable Income from All Sources b. Minimum Corporate Income Tax 2% Gross Income 7. General Professional Partnership Exempt 8. Corporation covered by Special Law a. PEZA Free Port Zones 0%/5% Gross Income b. Microfinance Non-government Organizations (NGOs) 2% Gross Receipts RESIDENT FOREIGN CORPORATION 1. a. In General 30% Taxable Income from within the Philippines b. Minimum Corporate Income Tax 2% Gross Income 2. International Carriers 2.5% Gross Philippine Billing 3. Regional Operating Headquarters* 10% Taxable Income 4. Corporations Covered by Special Law* 5. Offshore Banking Units (OBUs) a. Foreign Currency Transaction not subjected to Final Tax 10% Gross Taxable Income on Foreign Currency Transaction not subjected to Final Tax b. Other Than Foreign Currency Transaction 30% Taxable Income Other Than Foreign Currency Transaction 6. Foreign Currency Deposit Units (FCDUs) a. Foreign Currency Transaction not subjected to Final Tax 10% Gross Taxable Income on Foreign Currency Transaction not subjected to Final Tax b. Other Than Foreign Currency Transaction 30% Taxable Income Other Than Foreign Currency Transaction Tax Guide for Online Sellers Steps and Requirements for Registration, Filing, & Payment Steps and Requirements for BIR Registration 1. Secure checklist & accomplish BIR Form No. 1901 if individual, or 1903 if non-individual (Application for Registration). Submit this form to the New Business Registrant Counter, together with the following requirements: For Individuals: Any government-issued ID ( i.e. , Birth Certificate, passport, driver's license, Community Tax Certificate) that shows the name, address and birthdate of the applicant. Additional Documents, if applicable: o If with business name DTI Certificate o If transacting through a representative Special Power of Attorney (SPA) executed by taxpayer-applicant, and any government-issued ID of authorized representative. For Domestic Corporations: SEC Certificate of Incorporation Articles of Incorporation For Partnerships: SEC Certificate of Recording; Articles of Partnership For Foreign Corporations: License to Do Business in the Philippines Articles of Incorporation or Articles of Partnership Additional Documents, if transacting through a representative: Board Resolution indicating the purpose and the name of authorized representative; or Secretary's Certificate; Any government-issued ID of the authorized representative. For other additional documents, see the BIR Citizen's Charter through this link: http://bit.ly/BIRCitizensCharter Where to Register At the New Business Registrant Counter (NBRC) of the Revenue District Office (RDO) having jurisdiction over the place of business. When to Register On or before the first sale transaction, or before payment of any tax due, or within thirty (30) days from the issuance of: Mayor's Permit/Professional Tax Receipt for individual. Mayor's Permit or Certificate of Registration issued by SEC, whichever comes earlier for non-individual. Newly Registered Taxpayers are encouraged to attend the Taxpayer's Briefing at the Revenue District Office (RDO). 2. Pay the following through the NBRC: Annual Registration Fee of P500 (for every head office and/or branch); o To be paid every January 31 of each year, after registration through any of the following: Authorized Agent Banks (AABs) ePayment Channels Documentary Stamp Tax (DST) P30 BIR Printed Receipt/Invoice (BPR/BPI) available for purchase. If the taxpayer wants their own receipt/invoice printed, they must apply for an Authority to Print (ATP), together with the final and clear sample of their own principal/supplementary receipt/invoice. 3. Receive the following: BIR Certificate of Registration (COR) Received copy of BIR Form No. 1901 for individual , or 1903 for non-individual , or 1903 for non-individual Notice to Issue Receipt/Invoice (NIRI), BPR/BPI or ATP (whichever is applicable) Proof of payments Reminders On Posting The Certificate of Registration, proof of payment of ARF, and NIRI must be visibly displayed in the business establishment. On Books of Accounts Taxpayers are required to keep and use relevant and appropriate sets of bookkeeping records. Books of accounts must be registered before the deadline for filing of the first quarterly Income Tax Return or Annual Income Tax Return whichever comes earlier. Those with annual sales, earnings, and receipts exceeding P3,000,000 shall have their Books of Accounts audited by a Certified Public Accountant (CPA). On Preservation of Books and Other Records Books of accounts and other accounting records shall be preserved for a period of 10 years from the day following the deadline in filing a return; or if return was filed after the deadline, 10 years from the date of filing of the return. The taxpayer must keep hardcopies for the first 5 years. Afterwards, the taxpayer may convert hardcopies to electronic copies and store them in an electronic storage system. On the issuance of Official Receipts or Sales Invoices Every sale and/or transfer of merchandise or for services rendered valued at One Hundred Pesos (P100) or more, must be issued a duly registered receipt or sale or commercial invoice. Schedules of Filing and Payment of Taxes I. SELF-EMPLOYED INDIVIDUALS Period Income Tax Value Added Tax & Percentage Tax* BIR Form Deadline BIR Form Deadline VAT Percentage Tax Monthly 2550M 20th day following the close of the month** 1st Q 1701Q May 15 2550Q 2551Q April 25 2nd Q 1701Q Aug 15 2550Q 2551Q July 25 3rd Q 1701Q Nov 15 2550Q 2551Q Oct 25 4th Q 2550Q 2551Q Jan 25 of the following year Annual 1701/1701A April 15 *VAT for persons whose gross sales and/or receipts reached P3 million and those who opted to register as VAT taxpayer. Percentage Tax for persons whose gross sales and/or receipts do not exceed P3 million and who are not VAT-registered. **Deadlines for eFPS filers , refer to RR No. 26-2002. II. CORPORATIONS, PARTNERSHIPS, & OTHER NON-INDIVIDUALS Period Income Tax Value Added Tax & Percentage Tax BIR Form Deadline BIR Form Deadline VAT Percentage Tax Monthly 2550M 20th day following the close of the month (whether Calendar or Fiscal Year)* 1st Q 1702Q 60 days following the close of each taxable quarter (whether Calendar or Fiscal Year) 2550Q 2551Q 25th day following the close of each taxable quarter (whether Calendar or Fiscal Year) 2nd Q 1702Q 2550Q 2551Q 3rd Q 1702Q 2550Q 2551Q 4th Q 2550Q 2551Q Annual 1702 RT/EX/MX 15th day of the 4th month following the close of the taxable year (whether Calendar or Fiscal Year) *Deadlines for eFPS filers, refer to RR No. 26-2002. Deadline of Withholding 0619E (Monthly Remittance Form for Creditable Income Taxes Withheld [Expanded]) On or before the 10th day of the month following the month when the withholding was made for the first two (2) months of the calendar quarter. FOR EFPS USER, refer to RR No. 26-2002. 0619F (Monthly Remittance Form for Final Income Taxes Withheld) On or before the 10th day of the month following the month when the withholding was made for the first two (2) months of the calendar quarter. FOR EFPS USER, refer to RR No. 26-2002. 1601C (Monthly Remittance Return of Income Taxes Withheld on Compensation) For the months of January to November on or before the 10th day of the month following the month when the withholding was made; and for the month of December on or before January 15 of the following year; FOR EFPS USER, refer to RR No. 26-2002. 1601EQ (Quarterly Remittance Return of Creditable Income Taxes Withheld [Expanded]) Not later than the last day of the month following the close of the calendar quarter. 1601FQ (Quarterly Remittance Return of Final Income Taxes Withheld) Not later than the last day of the month following the close of the calendar quarter 1603Q (Quarterly Remittance Return of Final Income Taxes Withheld on Fringe Benefits Paid to Employees Other than Rank and File) Not later than the last day of the month following the close of the calendar quarter. 1604C (Annual Information Return of Income Taxes Withheld on Compensation) On or before January 31 of the following year. 1604F (Annual Information Return of Income Payments Subjected to Final Withholding Taxes) On or before January 31 of the following year. 1604E (Annual Information Return of Creditable Income Taxes Withheld [Expanded]/Income Payments Exempt from Withholding Tax) On or before March 1 of the following year. See the required reports/forms to submit/file through this link: http://bit.ly/BIRForms Manual file hard copies of tax returns (plus any attachments) at the Authorized Agent Banks (AABs) or Revenue Collection Officers (RCOs). eBIRForms or Electronic BIR Forms Platform use the latest downloadable eBIRForms Package to prepare and file tax returns. eFPS or Electronic Filing & Payment System file tax returns (plus any attachments) electronically, and pay taxes due online. 8% INCOME TAX RATE option under the TRAIN Law is available to: Self-employed individuals earning income purely from self-employment/business and/or practice of profession , whose gross sales and/or receipts and other non-operating income does not exceed the Value-Added Tax (VAT) threshold of P3 Million. Mixed Income Earners or individuals earning income both from compensation and from self-employment (business or practice of profession) whose gross sales/receipts and other non-operating income do not exceed the VAT threshold but may choose Graduated Income Tax Rates. But remember that: o The compensation income shall be subject to graduated income tax rates. o If the gross sales/receipts and other non-operating income exceeds the VAT threshold, these individuals shall be subject to the graduated income tax rates. Self-employed Individuals must signify their n intention to avail of the 8% Income Tax rate: For 1st year of Operation o Upon registration using BIR Form No. 1901. o On the initial quarter return (BIR Form No. 2551Q and/or 1701Q) of the taxable year after the commencement of a new business/practice of profession. For Subsequent Years o Filing of BIR Form 1905 (Application for Registration Information Update) at the beginning of the taxable year, to end-date the form type of quarterly percentage tax. o Filing of 1st Quarterly Percentage Tax Return or Income Tax Return (otherwise, graduated income tax rates will apply). Individual Income Tax Rates (Jan. 1, 2018 to Dec. 31, 2022) Taxable Income Tax Due Over Not Over Basic Amount Additional Rate Of the Excess Over - 250,000 - - - 250,000 400,000 - 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 - 2,410,000 35% 8,000,000 Corporate Income Tax Rates Description Tax Rate Tax Base DOMESTIC CORPORATION 1. a. In General 30% Taxable Income from All Sources b. Minimum Corporate Income Tax 2% Gross Income RESIDENT FOREIGN CORPORATION 1. a. In General 30% Taxable Income from within the Philippines b. Minimum Corporate Income Tax 2% Gross Income n Note from the Publisher: Copied verbatim from the official copy.