REVENUE REGULATIONS NO. 1-98

PAYMENT OF TAXES BY LARGE TAXPAYERS

 

Q: Who are considered as Large Taxpayers?

A: A "Large Taxpayer" is either an individual or a corporate taxpayer who has met or satisfied the following criteria:

    1. As to tax payment:

    1. Value-added tax (VAT) - Any taxpayer with net VAT paid or payable of at least P100,000 per quarter;

    2. Excise tax- Any taxpayer with annual excise tax paid or payable of at least P1.0 Million;

    3. Income tax - Any taxpayer with annual income paid or payable of at least P1.0 Million;

    4. Withholding tax - Any taxpayer with annual withholding tax payment/remittance for all kinds of withholding taxes (on compensation, expanded, final and government money payments) of at least P1.0 Million; The basis is the total annual taxes withheld by the Head Office and all the branches/units.

    5. Percentage Taxes - Any taxpayer with percentage taxes of at least P100,000 per quarter; or

    6. Documentary Stamp Taxes - Any taxpayer with aggregate annual documentary stamp taxes of at least P1.0 Million.

 

    1. As to financial condition and results of operations:

    1. Gross Sales/Receipts - Any taxpayer with total annual gross sales/receipts of P1.0 Billion; and

    2. Net Worth - Any taxpayer with a total net worth at the close of each calendar or fiscal year of at least P300,000.

In addition to satisfying the any of the above criteria, notification by the BIR that a taxpayer has been classified as a Large Taxpayer is required.

 

Q: How would identification of large taxpayers be done?

A: The first 1,500 Large Taxpayers to be identified from taxpayers located within the following Revenue Regions:

Large taxpayers whose offices are not located in any of the above-mentioned places but who maintain branch offices in said areas may also be considered as Large Taxpayers. Once a taxpayer has been identified and notified by the BIR, he/it shall continue to be classified as such until otherwise notified.

In the future, the BIR may also classify as Large Taxpayers those not located in or maintaining branch offices in any of the above-mentioned areas. Additional taxpayers selected would be notified by the BIR.

 

Q: Where should Large Taxpayers pay their taxes?

A: All Large Taxpayers shall file internal revenue tax returns, information returns or declarations and other required documents at the Large Taxpayers Division, Ground Floor, BIR National Office Building. Taxes will be paid at either the Development Bank of the Philippines (DBP) or the Land Bank of the Philippines (LBP) branches located at the same place.

 

Q: How should payment be made?

A: Payments may be made only through any or a combination of the following modes:

Q: When should the return be filed and taxes paid?

A: Depending on the type of tax, payment must be made in accordance with the following schedule:

Income Tax

Corporate Large Taxpayers must file quarterly income tax returns and pay the taxes due not later than 60 days from the close of each of the first three (3) calendar quarters of the taxable year, whether calendar or fiscal. The final return and the corresponding income tax should be paid on or before the fifteen (15th) day of the fourth month following the close of the taxable year.

If the taxpayer is required to file separate income tax returns for operation units which are subject to different taxation (e.g., banks filing separate income tax returns for their regular banking operations, trust operations and foreign currency units), these practices may be continued. However, the returns shall be forwarded to the Head Office of the Large Taxpayer which shall file a consolidated return and pay the total income taxes due.

Withholding Tax

All withholding taxes of the Head Office and/or branch/unit of a Large Taxpayer shall be covered by a consolidated return, and remitted within twenty-five (25) days after the close of each month.

Annual information returns on final withholding taxes shall be filed on or before January 31 of the succeeding year. For creditable withholding taxes, the return must be filed not later than March 1 of the following year.

VAT

Monthly VAT declarations and quarterly VAT returns of Large Taxpayers shall be filed and the taxes paid not later than the 25th day following the end of each month and quarter.

Percentage Taxes

Large Taxpayers shall file a consolidated percentage tax return and pay the aggregate percentages taxes due within twenty-five (25) days after the end of each taxable quarter.

Excise Tax

Payments of Large Taxpayers as indicated in the corresponding Authorities to Accept Payment (ATAP)s issued for excise taxes shall be made before removal from the place of production or before release of the articles from the customs house.

Documentary Stamp Tax

Large Taxpayers shall pay their documentary stamp taxes within ten (10) days after the close of the month when the taxable document was signed, made, issued, accepted or transferred. This is done by the filing of the documentary stamp tax return, through purchase or actual affixture or by imprinting the documentary stamps through a documentary stamp metering machine.

Capital Gains Tax on Gains Realized from the Sale or Transfer of Real Property or Shares of Stock

A Large Taxpayer shall file capital gains and pay the corresponding taxes for gains from the sale or disposition of real property within thirty (30) days following each sale or disposition. Similarly, the capital gains return must be filed and tax paid on gains from the sale or exchange of shares of stock not traded thru a local stock exchange within thirty (30) days following each transaction. A final consolidated return will be filed on or before April 15 of each year covering all stock transactions of the preceding taxable year.

Back to Main PageBack to Index