Law Summary
Coverage of Large Taxpayers under These Regulations
- Initial 1,500 Large Taxpayers located in specified Revenue Regions including Pampanga, Valenzuela, Metro Manila (excluding some districts), Quezon City, Makati City, and San Pablo City (excluding some districts).
- Taxpayers outside these regions with branches in the covered areas may also be classified as Large Taxpayers.
- Future Large Taxpayers notified by the Commissioner will also fall under these Regulations.
- Commissioner may designate separate venues for filing and payment.
- Classification as a Large Taxpayer is continuous until revoked by the Commissioner.
Criteria for Determining Large Taxpayers
- Tax Payment thresholds:
- VAT: Net VAT paid/payable of at least PHP 100,000 per quarter.
- Excise Tax: Annual excise tax of at least PHP 1,000,000.
- Income Tax: Annual income tax of at least PHP 1,000,000.
- Withholding Tax: Annual withholding tax of at least PHP 1,000,000.
- Percentage Taxes: At least PHP 100,000 per quarter.
- Documentary Stamp Taxes: Aggregate annual tax of at least PHP 1,000,000.
- Financial Condition:
- Gross Sales/Receipts: Total annual gross sales/receipts of PHP 1,000,000,000.
- Net Worth: Total net worth of at least PHP 300,000,000 at the close of each year.
Filing of Returns and Payment of Taxes by Large Taxpayers
- Place of Filing and Payment:
- File all tax returns and documents at Large Taxpayers Division, BIR National Office Building.
- Taxes payable at DBP or LBP branches at the same location.
- Exception to regular filing and payment locations per NIRC provisions.
- Modes of Payment:
- Bank Debit Memo against taxpayer's account with DBP or LBP.
- Tax Debit Memo applied against unutilized tax credit certificates (except withholding taxes).
- Specific Filing and Payment Schedules:
- Income Tax: Quarterly returns for corporates, final annual return due 15th day of fourth month after fiscal year-end.
- Individual Large Taxpayers pay in four installments, declaration by April 15.
- Consolidated returns for operational units with a covering schedule detailing tax amounts.
- Withholding Tax: Consolidated monthly returns due 25 days after month-end with schedule listing remitted taxes; annual returns deadlines January 31 and March 1.
- VAT: Monthly declarations and quarterly returns due by the 25th day after month or quarter end.
- Percentage Taxes: Consolidated quarterly returns and payments due 25 days after quarter end with accompanying schedule.
- Excise Tax: Payments made before removal of goods from production or customs release.
- Documentary Stamp Taxes: Payment within 10 days after month-end when documents issued, via filing returns or affixing stamps.
- Capital Gains and Withholding Taxes on sales or transfers of property or shares: Returns filed and taxes paid within 30 days of transaction, with final consolidated returns due as prescribed.
Amendments and Modification of Selection Criteria
- Commissioner of Internal Revenue may recommend amendments to the criteria considering inflation, business volume, wages, employment, and other economic factors.
Repealing Clause
- All inconsistent rules or regulations are amended accordingly to conform with these regulations.
Effectivity
- These regulations take effect immediately upon adoption on April 8, 1998.