A large taxpayer is a taxpayer, regardless of its location in the country, which has been classified and notified in writing by the Bureau of Internal Revenue as one that has satisfied the criteria for determining large taxpayers.
A taxpayer can be classified as a Large Taxpayer when it satisfies any or a combination of the following:
As to tax payment:
- Value Added Tax – Any taxpayer with net VAT paid or payable of at least P200,000 per quarter for the preceding year;
- Excise Tax – Any taxpayer with an annual excise tax paid or payable of at least P1 million for the preceding year;
- Income Tax – Any taxpayer with annual income tax paid or payable for at least P1 million for the preceding year;
- Withholding Tax – Any taxpayer with annual withholding tax payment/remittance from all types of withholding taxes (i.e., on compensation, expanded, final and government money payments) of at least P1 million (For taxpayers, business establishments and government offices with branches/units, the basis is the total annual taxes withheld by the Head Office and all the branches/units);
- Percentage Tax – Any taxpayer with percentage taxes paid or payable of at least P200,000 per quarter for the preceding year;
- Documentary Stamp Taxes – Any taxpayer with aggregate annual documentary stamp taxes of at least P1 million; or
As to financial condition and results of operation:
- Gross Sales/Receipts – Any taxpayer with total annual gross sales/receipts of at least P1 billion for the preceding year;
- Net Worth – Any taxpayer with a total Net Worth at the close of each calendar or fiscal year of at least P300 million;
- Gross Purchases – Any taxpayer with total annual gross purchases of at least P800 million for the preceding year;
- Top corporate taxpayers listed and published by the Securities and Exchange Commission (SEC).
All Large Taxpayers should file all their tax returns through Electronic Filing and Payment System (eFPS).
Filing of returns should follow the following schedules:
For income tax returns:
- Quarterly Income Tax Returns (BIR Form No. 1702Q) – not later than 60 days from the close of each of the first three (3) quarters of the taxable year, whether calendar or fiscal.
- Annual Income Tax Return (BIR Form No. 1702) – on or before the 15th day of the 4th month following close of the calendar or fiscal year.
- Improperly Accumulated Earnings Tax Return (BIR Form No. 1704) – within 15 days after the close of the year immediately succeeding taxpayer’s covered taxable year.
For withholding tax remittance and information returns:
- Monthly Remittance Return on Value Added Tax and Other Percentage Taxes Withheld (BIR Form No. 1600) – on or before the 10th day of the following month
- Quarterly Remittance Return of Final Income Taxes Withheld (on fringe benefits paid to employees other than Rank-and-File) (BIR Form No. 1603) – on or before the 15th day of the month following the calendar quarter.
- Remittance Return of Percentage Tax on Winnings and Prizes Withheld by Race Track Operators (BIR Form No. 1600-WP) – within 20 days from the date the tax was deducted and withheld
- Annual Information Return of Income Tax Withheld on Compensation and Final Withholding Taxes (BIR Form No. 1604-CF) – on or before January 31 of the succeeding year together with the required Alphabetical List of Payees.
- Annual Information Return of Creditable Income Taxes Withheld (Expanded)/Income Payments Exempt from Withholding Taxes (BIR Form No. 1604-E) – not later than March 1 of the following year in which payments were made.
For value-added tax:
- Monthly VAT Declaration (BIR Form No. 2550M) – on a staggered basis in accordance with the classification of the industry and tax shall be paid not later than 20th day following the end of each month.
- Quarterly VAT Return (BIR Form No. 2550Q) – on a staggered basis in accordance with the classification of the industry and tax shall be paid not later than 25th day following the end of each quarter
For other percentage taxes:
- Monthly Percentage Tax Return (BIR Form No. 2551M) – consolidated return on a staggered basis according to the classification of industry and aggregate percentage tax due must be paid within 20 days after the end of each taxable month.
- Quarterly Percentage Tax Return (BOR Form No. 2551Q) – consolidated return on a staggered basis according to the classification of industry and aggregate percentage tax due must be paid within 25 days after the end of each taxable quarter.
- Returns of Percentage Tax Payable under Special Laws – according to what is stated in the special law.
For excise tax:
- BIR Form No. 2200A, 2200AN, 2200P, 2200T and 2200M – e-filing of tax returns and e-payments must be made before removal from the place of production
For locally produced or extracted metallic mineral or mine products (BIR Form No. 2200M) – within 15 days after the end of the calendar quarter when such products were removed
For documentary stamp taxes:
- Documentary Stamp Tax Declaration/Return (BIR Form No. 2000) – within 5 days after the close of the month when the taxable document was made, signed, issued, accepted or transferred or when reloading a metering machine becomes necessary or upon remittance by revenue collection agents of collection from sale of loose stamps, through purchase or actual affixture or by imprinting the documentary stamps on the taxable document using the e-DST System or in the manner prescribed by existing rules and regulations.
Documentary Stamp Tax Declaration/Return (One-time Transactions) BIR Form No. 2000-OT- within 5 days after the close of the month when the taxable document was made, signed, issued, accepted or transferred.
For capital gains tax/withholding tax on gains realized on sale, exchange or transfer of property and documentary stamp tax:
- Capital Gains Tax Return for Onerous Transfer of Real Property classified as Capital Asset (BIR Form No. 1706)- within 30 days following each sale, exchange or disposition of real property
- Withholding Tax Remittance Return (For transactions involving real property other than capital asset including taxable and exempt) (BIR Form No. 1606) – on or before the 10th day following the end of the month in which the transaction occurred.
- Documentary Stamp Tax Due thereon – within 5 days following the end of the month in which the transaction occurred.
For capital gains tax return for onerous transfer of shares of stocks not traded through the local stock exchange:
- Capital Gains Tax Return for Onerous Transfer of Shares of Stocks Not Traded through the Local Stock Exchange (BIR Form No. 1707) – within 30 days after each cash sale, barter, exchange or other disposition of shares of stock not traded through the local stock exchange. In case of installment sale, the return shall be filed within 30 days following the receipt of the first down payment and within 30 days following each subsequent installment payment.
- Annual Capital Gains Tax Return for Onerous Transfer of Shares of Stock Not Traded Through the Local Stock Exchange (BIR Form No. 1707-A) – filed in a consolidated return of all transactions during the taxable year on or before the 15th day of the 4th month following the close of the taxable year covering all transactions of the preceding taxable year.
- Percentage Tax Return for Transactions Involving Shares of Stock Listed and Traded through the Local Stock Exchange or through Initial and/or Secondary Public Offering (BIR Form No. 2552):
- Initial Public Offering (IPO)- within 30 days from the date of listing of the shares of stock in the local stock exchange
- Secondary offering- within 5 banking days from the date of collection by the stockbroker.
Large Taxpayer can file their returns manually but only in cases where the system for online filing is not available. However, as soon as e-filing becomes available, the returns filed manually must be e-filed within 15 days from the date of manual filing.
This article is intended to equip the taxpayers or their bookkeepers in complying with the Bureau of Internal Revenue’s (BIR) and other Government rules and regulations. It is not intended to teach the taxpayers the details of tax planning and avoidance or to commit tax evasion or any fraudulent tax activities. Certain advice, comments and opinions expressed in this article are based on specific situations, limited available definitive tax and other government rulings and the actual experience of the authors, and may not apply to the reader’s specific tax or business concern and should not be used to avoid tax under the National Internal Revenue Code (NIRC) or applicable tax laws and other government regulations without consulting an accountant or lawyer or secure a BIR ruling before using any suggested advice or strategy.
Revenue Regulations No. 17-2010