Summary
RMC No. 65-2021 gives guidelines on filing the Quarterly Percentage Tax Return (BIR Form No. 2551Q) from the quarter ending July 31, 2020, after the rate dropped from 3% to 1% under RA No. 11534 (CREATE Act).
Key points
- Amending returns. Taxpayers who amend filed quarterly returns to show excess Percentage Tax paid, to be carried forward to later quarters, follow the entries below.
- Manual and eBIRForms filers. On BIR Form 2551Q January 2018 (ENCS), Line 17 (Other Tax Credit/Payment), they specify ‘Carry-Over Excess Percentage Tax (PT) Paid from Previous Quarter/s’.
- eFPS filers. On BIR Form 2551 February 2002 (ENCS), the carry-over amount goes in line 20A, Creditable Percentage Tax Withheld per BIR Form No. 2307.
- Marking the return. To validate in eFPS and eBIRForms, the filer marks ‘To be issued a Tax Credit Certificate’, which is presumed to mean carry-over. Manual filers mark neither ‘To be Refunded’ nor ‘To be Issued a Tax Credit Certificate’ and write ‘To be Carried Over’. The same procedure applies until the overpaid amount is fully utilized.
Who is affected
- Percentage Tax taxpayers carrying over excess payments
Deadlines and effectivity
- Reduced 1% rate: July 1, 2020 to June 30, 2023
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.