Question & AnswerQ&A (BIR REGULATIONS NO. 1-98)
The objectives are to redefine "Large Taxpayers" in view of RA 8424, modify criteria for determining Large Taxpayers considering economic factors, expand the selection of Large Taxpayers to 1,500 initially to cover 85% of total collections, and prescribe the filing and payment procedures for Large Taxpayers.
The initial Large Taxpayers are located in Revenue Region No. 4 (San Fernando, Pampanga), No. 5 (Valenzuela), No. 6 (Manila except certain districts), No. 7 (Quezon City), No. 8 (Makati City), and No. 9 (San Pablo City except some districts).
Yes, Large Taxpayers whose offices are outside but maintain branch offices within these regions can be classified and notified as Large Taxpayers.
Taxpayers must satisfy any of the following tax payment criteria: VAT net paid/payable of at least P100,000 per quarter; annual excise tax of at least P1,000,000; annual income tax of at least P1,000,000; withholding tax payments of at least P1,000,000 annually; percentage tax of at least P100,000 per quarter; or annual documentary stamp taxes of at least P1,000,000.
A taxpayer with total annual gross sales/receipts of at least P1,000,000,000 or total net worth of at least P300,000,000 at year-end can be classified as a Large Taxpayer.
Large Taxpayers must file all internal revenue tax returns at the Large Taxpayers Division, BIR National Office Building, and pay taxes at the Development Bank of the Philippines or Land Bank of the Philippines branches there.
Payments may be made via bank debit memo/advice against the taxpayer's account with DBP or LBP, or through tax debit memo applied against the unutilized portion of tax credit certificates, except for withholding taxes.
Corporate Large Taxpayers must file quarterly tax returns and pay taxes no later than 60 days after the close of each of the first three quarters.
Withholding taxes from the Head Office and branches must be consolidated and remitted within 25 days after each month's close, with an accompanying schedule detailing the office names and amounts. Annual returns for final withholding taxes are due by January 31 of the following year, and for creditable withholding taxes by March 1.
Monthly VAT declarations and quarterly VAT returns must be filed and paid no later than the 25th day following the end of the month or quarter as provided under Section 114 of the NIRC.
Yes, once notified, a taxpayer continuously is classified as a Large Taxpayer until otherwise notified by the Commissioner of Internal Revenue.
Yes, the Commissioner of Internal Revenue may recommend amendments to the criteria for determining Large Taxpayers to the Secretary of Finance, considering inflation, business volume, wage levels, and similar factors.