The passage of RA No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, was a welcome news to small business owners and freelancers struggling to survive in the worst global economic disaster.
The new law changed the Percentage Tax rate from 3% to 1% on gross sales of goods or services for non-VAT registered businesses.
But the new bill creates confusion among taxpayers, given the significant changes in the National Internal Revenue Code, such as the lowered tax rates or the additional allowable deductions from gross income of some type of taxpayers, among others.
Amid the pandemic, when we are forced to stay at home, the BIR expects us to pay our taxes correctly and timely. Otherwise, we would end up paying tax penalties ranging from a compromise fee, 20% interest, and 25% surcharge.
How to file and pay the Quarterly Percentage Tax Using eBIR Form 2551Q
We can file and pay our taxes in the comforts of our homes with BIR’s new tax filing and payment system. All we need to have is an internet connection and funds in our bank accounts or electronic wallets authorized by the bureau to accept tax payments.
1. Download the Offline eBIRForms Package Version 7.9 on the BIR website;
2. Access the file and fill in the Taxpayer’s Profile, such as taxpayer’s personal information, TIN, RDO, etc.;
3. Select BIR Form 2551Qv2018 Quarterly Percentage Tax Return in the List of BIR Forms and click “Fill up”;
4. Fill up all the required information on the form. On the second page, click on the drop-down menu for ATC Code and scroll down to the last option. Select PT 010.
There are two PT010’s. Do not select the first PT 010 of the drop-down menu because it would lead you to the 3% PT rate
Once you key in the taxable income, the BIR system will automatically compute your tax due. There is no need for manual percentage tax computation nor percentage tax calculator to know how much you should pay to BIR.
5. Click “Validate” to check the correctness of your data and click “Save”;
6. Tap “Print” if you wish to print and “Submit Final Copy”;
Note: You are not allowed to modify/edit the form up to this point.
7. Check your email for the BIR confirmation, informing you that they have successfully received the form;
8. Access your mobile banking account or your e-wallet to pay the tax due.
9. Refer to this link to know the payment channels accepting tax payments.
LIKE this post? PIN IT.
For micro entrepreneurs and freelancers, dealing with BIR and taxes is a challenge. The implementation of RA 11534 weeks before the deadline of the filing and payment of annual income tax and some quarterly tax payables made the problem even more stressful.
By updating ourselves with the latest BIR rulings and how we can complete our transactions on time and in a safe manner, we may keep our tax worries at bay.
Please show your LOVE and SUPPORT. Like or Share this post.