Question:
Tax was already deducted in my income, what is Percentage tax? How come I still need to pay this monthly?
Percentage tax – is a tax imposed for those who sell or lease good, properties or services, including those practicing medical profession with gross annual sales and receipts of less than P1,919,500 in a given year and who are not VAT-registered.
How is it computed?
It is 3% of your gross sales/income:
E.g.
Gross Income: 100,000 Income Tax: 10,000
Net Income: 90,000
Percentage tax: 3,000 (compute it using the Gross Income)
Procedures (Adapted from BIR website)
- Fill-up BIR Form 2551M in triplicate copies
- If there is payment:
-
- Proceed to any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered and present the duly accomplished BIR Form 2551M, together with the required attachments and payment.
- In places where there are no AABs, the duly accomplished BIR Form 2551M, together with the required attachments and payment, shall be filed/paid with the Revenue Collection Officer (RCO) or duly authorized Treasurer of the city or municipality where said business or principal place is located.
- Receive the taxpayer’s copy of BIR Form 2551M duly validated/stamp-received by the AAB/RCO/authorized City or Municipal Treasurer.
For Electronic Filing:
For eFPS filers, you may click this Job Aid in filling and payment thru said system.
- If there is no payment
-
- Proceed to the RDO where the taxpayer is registered or with the concerned RDO and present the duly accomplished BIR Form 2551M, together with the required attachments.
- Receive the taxpayer’s copy of BIR Form 2551M duly stamp-received by the RDO representative.
Note: “No payment” returns filed late shall be imposed the necessary penalties by the RDO, which shall be paid at the concerned AAB.
When to File/Pay
- Manual Filing
Within twenty (20) days following the end of each month.
Deadline: 20th of the month
- Electronic Filing
For taxpayers enrolled with the Electronic Filing and Payment System (eFPS), in accordance with the schedule set forth in RR No. 26-2002 as follows:
- Group A : Twenty five (25) days following the end of the month
- Group B : Twenty four (24) days following the end of the month
- Group C : Twenty three (23) days following the end of the month
- Group D : Twenty two (22) days following end the of the month
- Group E : Twenty one (21) days following the end of the month
Rx
- Doctors are required to pay monthly percentage tax and NOT the quarterly percentage tax. What you need to pay quarterly, is the Quarterly Income Tax Return (to be discussed soon).
- Deadline of filing every month is the 20th day of the month.
- Keep the paid monthly percentage tax forms since you will be needing this in filing for your quarterly and annual income tax return.
Keeping you informed,
P.S.
A gentle reminder, the deadline in filing the Annual Income Tax Return for last year’s taxable year will be on April 15. So, don’t forget to file and pay to prevent penalties.
To guide you on this, Read this and download the Tax Calculator made for doctors:
Learn more here:
Part 1: The Ultimate Guide on How to Register as a Doctor/Physician in BIR
Part 2: How to Issue Receipts: Guidelines for Moonlighters/Starting Private Practice
Part 3: How to file INCOME TAX RETURN as a Physician
Part 4: Penalties for late filing of Income Tax Return for Doctors FILIPINO DOCTORS AND TAXATION
Do you need a Financial Consultant that knows exactly what you need to retire you and rich? Ask me here!
Source:
Disclaimer: Though this article was based on reliable resources and comprehensive research, this article was provided for educational and informational purposes only, and doesn’t constitute formal professional advice. New laws, rules, issuance, and regulations may render this article obsolete or inaccurate in whole or in part. For more clarifications, please visit and inquire personally with your RDO.
Do you want to know how to file your taxes online without going out?
These courses will teach you how to file and pay your Income Tax returns at the comfort of your home.
Start to end, step by step, no going out. From encoding, filing and payment. (All done online)
Enroll in our online course:
For Physicians/Doctors/Dentists/Vets:
https://pro.myfinancemd.com/taxcination/
For Financial Advisors:
https://pro.myfinancemd.com/taxcination-for-financial-advisors/
Latest posts by Pinky De Leon-Intal, MD, RFC (see all)
- Say Goodbye to Chronic Lifestyle Diseases (Hypertension, Diabetes, Cancer, Gout, etc.) with Right Food and Right Water - 23 May, 2023
- Embracing Superpowers: A Mom’s Journey as a Doctor, Professor, and Financial Consultant - 19 May, 2023
- Celebrating the Power of Women: Honored by Philippine Daily Inquirer - 17 May, 2023
Dr, can you use the percentage tax paid as.deduction for the income tax?
Yes. 🙂
keep up the good work!
hi dr! are the penalties in late itr filing/payment also the same with that of monthly percentage tax? thank you.
hi, no po. they are different. late filling for both has different penalties too. 🙂
thank you so much for replying. do you have any sample computations para penalties sa monthly percentage tax? thank you dr 🙂
wala pa. Just watch out, i may be making one soon.
Hi! Do moonlighters also need to file a percentage tax?
Yes, you are a self-employed individual and needs to pay 3% percentage tax monthly, if not VAT.
Hi doctor, thanks for a very helpful blog. My question is, I receive a monthly 2307 form for my withholding tax. Can this be deducted on my monthly percentage tax?
Hi dra. Percentage tax is different. It can be deducted in the quarterly or annual income tax return
Hi doc, im a mixed income tax payor. A medical officer and ROD in a pvt hospital and part time dr in pvt clinic. I received a monthly basic salary taxed at 10%. Ex 3000/ mo tax 300 = 2800 net). They issued a 2307 quarterly for me. Do i need to include this on my monthly percentage 3%? Then file it again for quarterly income of 15%? Ibelievei need to issue a receipt to the hospital or to the clinic, do i need to issue OR per payday then issue another OR for 2307 quarterly ? Can you give a photo or sample on what to put on the receipt.. Do i need to put the gross 3000 or net 2800 as received payment on the receipts from that particular hospital? Tnx.
Hi dra, sige will try to make a sample of the receipt soon. Basically, here is how it goes: 10-15% is deducted (income tax), 3% percentage tax monthly, consolidate for quarterly income tax, and tax table max at 32% on you annual income tax return.
hi doc pinky, i do have the same confusion on what to put in the receipts for a particular hospital/HMO,as they already deducted the income tax…can i also have a sample on what to put on the receipt? one more questions po, does i need to include the payment of the HMO to my monthly gross income? thanks po.
Hi doc,
will try to make a post on this soon. PLease watch out
Hi, Dra. I am VAT-registered so I am required to pay BIR the 12% VAT (which I can charge the patient). However, for HMO/Philhealth patients, I cannot charge the 12% to them. So, does that mean I will have to further deduct this 12% from what I get from HMOs/Philhealth aside from the 15% that they already deducted? Thanks in advance.
Hi Doc, the 12% vat is the business tax you impose in your receipts. The 15% tax they deduct is from the income tax. You also pay the 12% vat on top of the income tax monthly. Technically, you pay 15% income tax, 12% vat monthly. Then on annual income tax, if you add all together, it is 32% at the max. Sadly, we are over taxed.
hi doc. Im also VAT registered. is it right that i charged the patient 12% VAT on consultation and hospital PF? Senior Citizens are exemption right. The bulk of my hospital patients are Senior Citizens if i don”t charged them I still pay the 12% required VAT on top of the 15% witholding tax.?
hi doc. Im also VAT registered. is it right that i charged the patient 12% VAT on consultation and hospital PF? Senior Citizens are exemption right. The bulk of my hospital patients are Senior Citizens if i don”t charged them I still pay the 12% required VAT on top of the 15% witholding tax.?
It depends on you if it’s already vat inclusive or exclusive. Yes it’s still different. Monthly income tax, monthly 12% vat and quarterly ITR and annual ITR. 🙁
thanks doc ! akala ko kasi if my patients were senior citizen and i did not collect 12 % VAT i just need to declare them to BIR para hindi po ako magbayad ng 12%VAT for the senior patients.
thanks again.
Actually nasa resibo yun, if senior, you just indicated para vat exempt narin.
Hi doc, less mo yung VAT sa senior. Para you won’t charge sa VAT. although syempre witholding still applies.
Good day Dra! Just want to ask I registered just last July 15, how do I file for the monthly percentage tax? Thank you very much!
I just started my practice this August by appointment only. Do I file for July?
have you registered yourself as a physician? If yes, then you need to pay the monthly percentage tax and quarterly ITR…
yes for monthly percentage tax. Read on this: http://www.myfinancemd.com/filipino-doctors-taxation-monthly-percentage-tax/
Good day Doc! I just want to ask if I need to go to BIR monthly to file and pay for my monthly percentage tax? If able, can you brief me on the steps I have to go through to. Thank you.
Yes. You have to even if no payment you still need to file. The article says it all. What else do you still need?
Doc I’m still about to register using the steps in the ultimate guide. But I took moonlighting posts for Nov Dec and January
My questions are:
1. Is having a TIN the same as being registered? My mother took the liberty of getting one for me It she has a friend who works in the BIR
2. can I pay for November and December in one go?
Thank you.
You will only have 1 TIN in you lifetime. You cannot have 2. It will be a criminal offense to have more than 1 TIN. Yes, you can use the TIN your mother got from you. Yes, you can pay, as long as it is the right payment and right forms. Get some guide from an accountant if you doubt.
I have 4 registered clinics. My main branch , clinic # 0, has been inactive for years. It is served by RDO 39. My current 3 branches are all with RDO 38. where should I be filing my taxes? RDO 38 or 39?
Doc, sa RDO 39 po, always the head office ang filling. 🙂
Good PM Doc. I have a new clinic. Dapat ba two 2551M ang ifile ko. 1 for clinic #000 and 1 for clinic #001. Sa quarterly at annual tax return dapat hiwalay dun ba? Thanks
Depende po ano nakalagay sa COR nyo po. If magkahiwalay, hiwalay din filing, if hindi, kahit consolidate nyo na. Check your COR.
Hi doc,
With the TRAIN law, they said doctors who are Non VAT should pay percentage tax quarterly. However the form 2551Q has no ATC options for medical (only had the tax rates for basketball players, boxers etc). Do you know how doctors file with this new requirement this year? Thank you. I have asked a lot of people and i still have no clue what to do. Thank you Godbless
The form is still not updated. Let’s wait for the updated version.
Good day dra,
I was previously solely govt employed physician and has resign from my work last december. I would like to start my private practice. From what i have read, i need to register using BIR form 1901. Im wondering if its still possible for me to avail the 5% withholding tax and 8% income tax if i will only register by april 2018?
I think yes, just ask the RDO and your withholding agent what will be your procedure since you only just registered.