Question & AnswerQ&A (Republic Act No. 253)
The percentage taxes on business shall be payable at the end of each calendar quarter, and every person conducting business subject to percentage tax must file a true and complete return and pay the tax due within twenty days after the end of each calendar quarter.
If the percentage tax is not paid within the prescribed time, the amount of the tax shall be increased by twenty-five percent, which shall be part of the tax.
In case of willful neglect to file the return or if a false or fraudulent return is willfully made, a surcharge of fifty percent of the tax or deficiency shall be added to the tax. This amount is collected as part of the tax.
The percentage taxes on imported articles must be paid in advance by the importer before the release of such articles from customs custody, based on the total value of the articles including freight, postage, insurance, commission, customs duty, and similar charges, according to regulations by the Secretary of Finance.
Yes, percentage taxes shall be paid in advance on the total value of locally produced or manufactured articles prior to removal from the producer’s or manufacturer’s warehouse. The amount paid is credited against the percentage taxes due on sales each quarter.
All persons residing or doing business in the Philippines who purchase or receive from outside the Philippines any commodities, goods, wares, or merchandise (except those subject to specific taxes under Title IV) must pay a compensating tax based on the total value at the time of receipt.
Merchants, importers, and manufacturers subject to certain sections of the tax code are exempt if the imported goods are to be sold, resold, used in manufacture/preparation of articles for sale, or consigned abroad as part of manufacturing. Also, goods used by the importer for manufacturing articles subject to specific tax or for consignment abroad are exempt.
The compensating tax amount shall be increased by twenty-five percent, and this increment is considered part of the tax due.
Yes, shipments valued at one hundred pesos or less for a single consignment to any single person are not subject to compensating tax. Also, goods brought by residents returning from abroad valued at five hundred pesos or less are exempt.
They must immediately notify the nearest internal revenue officer and, within ten days after closing the business, file a return declaration and pay the tax due on the business transacted.