Penalties

"Gross receipts" means all amounts received by the prime or principal
contractor, undiminished by any amount paid to any subcontractor under a

subcontract arrangement.
Penalties
1.
Who Shall File

1.
2.
3.
4.
5.
6.
7.
8.
This return shall be filed in triplicate by the following:

Persons whose gross annual sales and/or receipts do not exceed P1,500,000
and who are not VAT-registered persons.
Domestic carriers and keepers of garages, except owners of bancas and owners
of animal-drawn two wheeled vehicle.
Operators of international air and shipping carriers doing business in the
Philippines.
Franchise grantees of gas or water utilities.
Franchise
grantees of radio
and/or
television
broadcasting
companies whose gross annual receipts of the preceding year do not exceed
Ten Million Pesos (P10,000,000.00) and did not opt to register as VAT
taxpayers.
Banks, non-bank financial intermediaries and finance companies.
Life insurance companies.
Agents of foreign insurance companies.
When and Where to File
The return shall be filed not later than the 20 th day following the end of each
month. Any person retiring from a business subject to percentage taxes shall notify
the nearest Revenue District Office, file his return and pay the tax due thereon
within twenty (20) days after closing his business.
The return shall be filed with any Authorized Agent Bank (AAB) within the
territorial jurisdiction of the Revenue District Office where the taxpayer is required
to register/conducting business. In places where there are no AABs, the return shall
be filed with the Revenue Collection Officer or duly Authorized City or Municipal
Treasurer within the Revenue District Office where the taxpayer is required to
register/conducting business.
A taxpayer may, at his option, file a separate return for the head office and for
each branch or place of business or a consolidated return for the head office and all
the branches except in the case of large taxpayers where only one consolidated return
is required.
When and Where to Pay
Upon filing this return, the total amount payable shall be paid to the
Authorized Agent Bank (AAB) where the return is filed. In places where there are
no AABs, payment shall be made directly to the Revenue Collection Officer or duly
Authorized City or Municipal Treasurer who shall issue a Revenue Official Receipt
BIR Form No. 2524) therefor.
Where the return is filed with an AAB, taxpayer must accomplish and submit
BIR-prescribed deposit slip, which the bank teller shall machine validate as
evidence that payment was received by the AAB. The AAB receiving the tax return
shall stamp mark the word Received on the return and also machine validate the
return as proof of filing the return and payment of the tax by the taxpayer,
respectively. The machine validation shall reflect the date of payment, amount paid
and transactions code, the name of the bank, branch code, tellers code and tellers
initial. Bank debit memo number and date should be indicated in the return for
taxpayers paying under the bank debit system.
For Electronic Filing and Payment System (EFPS) Taxpayer
The deadline for electronically filing and paying the taxes due thereon shall
be in accordance with the provisions of existing applicable revenue issuances.
Basis of Tax
The tax is based on gross sales, receipts or earnings except on insurance

companies where the basis of tax is the total premium collected/paid.
2.
3.
4.
There shall be imposed and collected as part of the tax:

A surcharge of twenty five percent (25%) for each of the following violations:
a.
Failure to file any return and pay the amount of tax or installment due
on or before the due date;
b.
Unless otherwise authorized by the Commissioner, filing a return with a
person or office other than those with whom it is required to be filed;
c.
Failure to pay the full or part of the amount of tax shown on the return,
or the full amount of tax due for which no return is required to be filed
on or before the due date;
d.
Failure to pay the deficiency tax within the time prescribed for its
payment in the notice of assessment.
A surcharge of fifty percent (50%) of the tax or of the deficiency tax, in case
any payment has been made on the basis of such return before the discovery of
the falsity or fraud, for each of the following violations:
a.
Willful neglect to file the return within the period prescribed by the
Code or by rules and regulations; or
b.
In case a false or fraudulent return is willfully made.
Interest at the rate of twenty percent (20%) per annum, or such higher rate as
may be prescribed by rules and regulations, on any unpaid amount of tax
from the date prescribed for the payment until the amount is fully paid.
Compromise penalty.
Attachments Required
1.
2.
3.
4.
Certificate of Creditable Tax Withheld at Source, if applicable;

Duly approved Tax Debit Memo, if applicable;
For amended return, proof of the payment and the return previously filed;
All returns filed by an authorized representative must attach authorization
letter.
Note: All background information must be properly filled up.
All returns filed by an accredited tax representative on behalf of a taxpayer

shall bear the following information:
A. For CPAs and others (individual practitioners and members of GPPs);
a.1 Taxpayer Identification Number (TIN); and
a.2 Certificate of Accreditation Number, Date of Issuance,
and Date of Expiry.
B. For members of the Philippine Bar (individual practitioners, members of
GPPs):
b.1 Taxpayer Identification Number (TIN); and
b.2 Attorneys Roll Number or Accreditation Number, if any.
Nos. 1, 2 and 3 of this form refer to transaction period and not the date of
filing this return.
The last 3 digits of the 12-digit TIN refers to the branch code.
TIN = Taxpayer Identification Number

ENCS
2551M

Penalties

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Penalties

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"Gross receipts" means all amounts received by the prime or principal

contractor, undiminished by any amount paid to any subcontractor under a

Who Shall File

This return shall be filed in triplicate by the following:

When and Where to File

When and Where to Pay

The tax is based on gross sales, receipts or earnings except on insurance

There shall be imposed and collected as part of the tax:

Certificate of Creditable Tax Withheld at Source, if applicable;

Note: All background information must be properly filled up.

All returns filed by an accredited tax representative on behalf of a taxpayer

TIN = Taxpayer Identification Number

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