Revised Quarterly Percentage Tax Returns for Contractors

May 17, 1984 REVENUE REGULATIONS NO. 06-84 SUBJECT : Revised Quarterly Percentage Tax Returns for Contractors TO : All Internal Revenue Officers and Others Concerned SECTION 1 . Scope . Pursuant to the provisions of Section 326 in relation to Section 205 of the National Internal Revenue Code, these regulations are hereby promulgated prescribing the revised quarterly percentage tax returns for contractors. SECTION 2. Revised Quarterly Percentage Tax Returns for Contractors . Section 2 of Revenue Regulations No. 6-81 is hereby amended to read as follows: casia "Sec. 2. Percentage Tax . In general, unless otherwise specifically provided in the Tax Code, every person conducting business on which percentage tax is imposed under Chapter II Title V of the Tax Code must render quarterly declaration on cumulative basis of the amount of his sales, receipts or earnings or gross value of output actually removed from the factory or near warehouse, compute and pay the tax due thereon." "(a) Quarterly Percentage Tax Return . For each of the first three quarters of the taxable year, the tax so computed shall be decreased by the amount of tax previously paid and by the sum of the tax credits allowed under this Title for the preceding and current quarters. The tax due shall be paid not later than twenty (20) days following the close of each of the first three quarters of the taxable year (BIR Form No. _____). "(b) Final Annual Percentage Tax Return . On or before the twentieth day of the second month following the close of the taxable year, a final percentage tax return shall be filed under BIR Form No. _____ covering the entire taxable year. If the sum of the total quarterly percentage tax payments made for the first three quarters and the total tax credit allowable for the taxable year are not equal to the total tax due on the entire gross sales, receipts or earnings or gross value of the output for that taxable year, the taxpayer shall either: casia "(1) Pay the tax all due; or "(2) Credit to the extent allowable under this Title, the amount of excess tax credits shown in the final adjustment return against the quarterly percentage tax liabilities for the succeeding taxable quarters "Sales on consignment shall be considered actually sold on the day of sale or sixty (60) days after the date consigned, whichever is earlier. "A. PERSON ENGAGED IN BUSINESS AS A PRIME OR PRINCIPAL CONTRACTOR AND AS A SUBCONTRACTOR AT THE SAME TIME SHALL DECLARE HIS ENTIRE GROSS RECEIPTS DERIVED FROM HIS PRINCIPAL CONTRACTING AND SUB-CONTRACTING BUSINESS ON A CUMULATIVE BASIS FOR THE FOUR QUARTERS OF THE TAXABLE YEAR. PAYMENTS MADE TO ANOTHER SUBCONTRACTOR SHALL LIKEWISE BE INDICATED IN THE CONTRACTOR'S QUARTERLY PERCENTAGE TAX RETURN (BIR FORM NO. __) SPECIFYING THEREIN THE NAMES AND TAX ACCOUNT NUMBERS OF THE FOLLOWING: 1. CONTRACTEES FROM WHOM HIS TAXABLE GROSS RECEIPTS WERE RECEIVED. 2. CONTRACTORS FROM WHOM HE DERIVED SUB-CONTRACT RECEIPTS. 3. SUBCONTRACTORS TO WHOM HE MADE SUB-CONTRACT PAYMENTS. THE "TAXABLE" AND "NON-TAXABLE" RECEIPTS SHALL BE DECLARED ON CUMULATIVE BASIS WITH THE AMOUNT RECEIVED OR PAID IN THE PRECEDING QUARTER OR QUARTERS BEING ADDED TO THE AMOUNT RECEIVED OR PAID IN THE SUCCEEDING AND LAST QUARTERS OF THE SAME TAXABLE YEARS, IRRESPECTIVE OF WHETHER OR NOT THE RECEIPTS ARE RECEIVED FROM OR THE PAYMENTS MADE TO THE SAME OR DIFFERENT PRINCIPAL CONTRACTORS OR SUBCONTRACTORS, PROVIDED, HOWEVER , THAT IF THE AMOUNT IN ANY ONE QUARTER DOES NOT EXCEED FIFTY THOUSAND PESOS (P50,000.00), THE AMOUNTS MAY BE LUMPED AND DECLARED UNDER THE TERM "VARIOUS". SECTION 3 . Effectivity . These regulations shall take effect beginning with the third quarter of the current taxable year following the approval hereof. CESAR E. A. VIRATA Minister of Finance Recommending Approval: RUBEN B. ANCHETA Acting Commissioner ATTACHMENT Contractors Quarterly Percentage Tax Return Taxable Gross Receipt as Principal Contractor