BIR Form 2551Q – Quarterly Percentage Tax Return
BIR FORM 2551Q
Quarterly Percentage Tax Return — Non-VAT Registered Taxpayers
Bureau of Internal Revenue | NIRC Section 116 | TRAIN Law (RA 10963) | Due: 25th day after quarter end
PART I — TAXPAYER INFORMATION
Quarter: [Quarter] | Year: [Taxable Year]
Taxpayer Name: [Taxpayer Name] | TIN: [TIN]
RDO: [RDO Number]
PART II — PERCENTAGE TAX COMPUTATION
Gross Sales/Receipts for the Quarter: [Gross Receipts]
Percentage Tax Due (3% × Gross Receipts, Section 116 NIRC): [Percentage Tax Due]
Add: Surcharge and Interest (if late): [Surcharge/Interest]
Total Amount Due: [Total Amount Due]
Note: BIR Form 2551Q is NOT required for taxpayers who elected the 8% flat income tax rate option under Section 24(A)(2)(b) of the NIRC — the 8% rate is in lieu of both the graduated income tax and the 3% percentage tax. BIR Form 2551Q is also not required for VAT-registered taxpayers, who file BIR Form 2550M/2550Q instead.
CERTIFICATION
I, [Taxpayer Name], declare under the penalties of perjury that this return is true and correct pursuant to Section 267 of the National Internal Revenue Code.
[Taxpayer Name]
Taxpayer / Authorized Representative
Taxpayer / Authorized Representative
________________
Signature
What Is a BIR Form 2551Q – Quarterly Percentage Tax Return?
A BIR Form 2551Q – Quarterly Percentage Tax Return in the Philippines records the financial details the tax authority requires to determine what is owed for the period.
BIR Form 2551Q was introduced as the quarterly percentage tax return in 2018 under BIR Revenue Regulations No. 8-2018, which shifted from the previous monthly percentage tax return (BIR Form 2551M) to a quarterly filing frequency consistent with the TRAIN Law's simplification objectives. The percentage tax rate under Section 116 of the NIRC is 3% of quarterly gross sales or gross receipts.
BIR Form 2551Q is filed for each quarter of the taxable year: 1st Quarter (January–March), due April 25; 2nd Quarter (April–June), due July 25; 3rd Quarter (July–September), due October 25; and 4th Quarter (October–December), due January 25 of the following year. Payment accompanies the filing.
BIR Form 2551Q does not apply to taxpayers who elected the 8% flat income tax rate option under Section 24(A)(2)(b) of the NIRC as amended by TRAIN Law — the 8% rate is explicitly in lieu of both the income tax under the graduated rate schedule and the 3% percentage tax under Section 116. Taxpayers on the 8% option are exempt from filing BIR Form 2551Q. Similarly, VAT-registered taxpayers (gross receipts exceeding PHP 3,000,000) file BIR Form 2550M (monthly) and BIR Form 2550Q (quarterly) instead of BIR Form 2551Q.
The legal framework governing the BIR Form 2551Q – Quarterly Percentage Tax Return in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a BIR Form 2551Q – Quarterly Percentage Tax Return in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Internal Revenue Code (RA 8424) sets the foundational requirements.
When Do You Need a BIR Form 2551Q – Quarterly Percentage Tax Return?
BIR Form 2551Q is required quarterly in the Philippines for all non-VAT registered self-employed individuals and professionals who are not on the 8% flat income tax rate.
BIR Form 2551Q is required for a doctor, dentist, architect, engineer, lawyer, or CPA in private practice who registered under the graduated income tax rates (not the 8% option) and whose annual gross professional income is below the PHP 3,000,000 VAT threshold. The professional pays 3% percentage tax on quarterly gross professional income.
BIR Form 2551Q is required for a sole proprietor operating a DTI-registered retail or service business with annual gross receipts below PHP 3,000,000 who did not elect the 8% flat rate at the beginning of the taxable year and remains on the graduated income tax rates with itemized or OSD deductions.
BIR Form 2551Q is required for a freelancer or online seller who registered with the BIR under BIR Form 1901 and chose the graduated income tax rates but is below the VAT threshold. The 3% quarterly percentage tax is computed on total gross receipts from all clients for the quarter.
BIR Form 2551Q is required for lessors of residential units charging monthly rent below PHP 15,000 per unit — these are exempt from VAT under Section 109(P) of the NIRC but are subject to 3% percentage tax under Section 116, unless availing of the 8% option.
BIR Form 2551Q is NOT required for taxpayers who availed of the 8% flat income tax rate option, VAT-registered taxpayers, corporations (which do not pay percentage tax under Section 116), and taxpayers specifically exempt from percentage tax under other NIRC provisions.
Parties in Philippines should prepare a BIR Form 2551Q – Quarterly Percentage Tax Return proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your BIR Form 2551Q – Quarterly Percentage Tax Return
A complete BIR Form 2551Q for the Philippines must include the following essential elements.
Taxpayer Identification: Full legal name or registered business name, TIN, RDO number, and complete business address. The RDO number must correspond to the registered principal place of business as per the BIR Certificate of Registration (BIR Form 2303).
Return Period: Specify the quarter — Q1 (January–March), Q2 (April–June), Q3 (July–September), or Q4 (October–December) — and the calendar year. The due date is the 25th day after the end of the quarter under BIR Revenue Regulations No. 8-2018.
ATC (Alphanumeric Tax Code): Indicate the correct ATC corresponding to the type of income subject to percentage tax — e.g., PT 010 for sale of goods and services under Section 116 of the NIRC. Incorrect ATC codes cause BIR processing errors.
Gross Sales or Receipts: Total gross sales (for goods sellers) or gross receipts (for service providers and professionals) for the quarter, before any deductions. Do not reduce by cost of sales or business expenses — percentage tax is computed on gross amounts.
Percentage Tax Due: Apply 3% to the quarterly gross sales or receipts under Section 116 of the NIRC. No exemptions apply for the first PHP 250,000 of gross income — the PHP 250,000 zero-bracket applies only to income tax under Section 24(A) of the NIRC, not to percentage tax.
Surcharges and Interest (if late): Late filing is subject to a 25% surcharge on the unpaid tax under Section 248(A) of the NIRC plus 12% annual interest under Section 249 of the NIRC, computed from the due date to the payment date, plus a compromise penalty under BIR Revenue Memorandum Order No. 7-2015.
Mode of Payment: Payment accompanies the filing at the Authorized Agent Bank (AAB), through the BIR Electronic Filing and Payment System (eFPS), or via eBIRForms with payment through GCash, Maya, Land Bank, DBP, or other BIR-accredited payment channels.
Additional compliance elements for a BIR Form 2551Q – Quarterly Percentage Tax Return used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
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Forms Legal. (2026). BIR Form 2551Q – Quarterly Percentage Tax Return (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/government/tax-forms/bir-form-2551q-philippines
"BIR Form 2551Q – Quarterly Percentage Tax Return (Philippines)." Forms Legal, 2026, https://forms-legal.com/philippines/government/tax-forms/bir-form-2551q-philippines.
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}Frequently Asked Questions
BIR Form 2551Q (Quarterly Percentage Tax Return) is required from non-VAT registered taxpayers in the Philippines whose business activities are subject to percentage tax under Section 116 of the National Internal Revenue Code (NIRC). This includes: self-employed individuals (sole proprietors, online sellers, freelancers) with annual gross receipts below the PHP 3,000,000 VAT threshold who chose the graduated income tax rates rather than the 8% flat rate option; licensed professionals (doctors, lawyers, CPAs, engineers) in private practice below the VAT threshold who did not elect the 8% option; and lessors of residential units with monthly rent below PHP 15,000 per unit. Taxpayers NOT required to file BIR Form 2551Q include: those who elected the 8% flat income tax rate under Section 24(A)(2)(b) of the NIRC (the 8% rate is in lieu of both income tax and percentage tax); VAT-registered taxpayers who file BIR Form 2550M/2550Q instead; corporations and partnerships (not subject to Section 116 percentage tax); and taxpayers with income types subject to other specific percentage tax provisions (Sections 117-128 of the NIRC) who file applicable separate returns.
The percentage tax rate on BIR Form 2551Q is 3% of quarterly gross sales or gross receipts under Section 116 of the National Internal Revenue Code as amended by the TRAIN Law (Republic Act No. 10963, 2017). The TRAIN Law maintained the 3% rate while simplifying the filing from monthly (old BIR Form 2551M) to quarterly (new BIR Form 2551Q) under BIR Revenue Regulations No. 8-2018. The percentage tax is computed on the GROSS amount — before deducting cost of goods sold, business expenses, or personal deductions. There is no zero-bracket or exemption threshold for percentage tax purposes — the PHP 250,000 zero-income-tax bracket under the TRAIN Law applies only to income tax and does not reduce the percentage tax base. Percentage tax is a separate and additional tax from income tax — a non-VAT professional paying graduated income tax also pays 3% percentage tax on gross receipts quarterly, unless on the 8% flat rate option which covers both taxes.
The deadlines for BIR Form 2551Q in the Philippines are the 25th day after the end of each calendar quarter under BIR Revenue Regulations No. 8-2018: Q1 (January–March) — due April 25; Q2 (April–June) — due July 25; Q3 (July–September) — due October 25; Q4 (October–December) — due January 25 of the following year. The return and payment are submitted simultaneously — there is no separate assessment process. For eFPS-enrolled taxpayers, the deadline for electronic filing follows the eFPS Filing Group schedule (Groups A through E) staggered by industry under BIR Revenue Regulations No. 26-2002. Non-eFPS filers submit BIR Form 2551Q via the eBIRForms offline package with payment at an Authorized Agent Bank or via BIR-accredited online payment channels. Late filing subjects the taxpayer to a 25% surcharge on unpaid tax under Section 248(A) of the NIRC and 12% annual interest under Section 249, plus a compromise penalty under RMO No. 7-2015 ranging from PHP 200 to PHP 50,000 depending on the unpaid amount.
When a non-VAT registered taxpayer's cumulative gross sales or receipts for any 12-month period exceed PHP 3,000,000 — the VAT registration threshold under Section 109 of the National Internal Revenue Code — the taxpayer becomes mandatorily VAT-registered and must stop filing BIR Form 2551Q. Under Section 236(G) of the NIRC, the taxpayer must register for VAT within 30 days from the end of the quarter when the threshold was exceeded, by filing BIR Form 1905 (Application for Registration Information Update) at the Revenue District Office. After VAT registration, the taxpayer files BIR Form 2550M (monthly VAT declaration) and BIR Form 2550Q (quarterly VAT return). The transition has an overlap period: the taxpayer is liable for VAT on all transactions from the date the threshold was crossed — even before formal VAT registration — and may also be liable for the period when percentage tax was under-reported. The BIR may assess the taxpayer for the 12% output VAT on transactions from the threshold breach date under BIR Revenue Memorandum Circular No. 62-2012.
A BIR Form 2551Q – Quarterly Percentage Tax Return does not legally require a lawyer in Philippines, and individuals and businesses may draft and execute the document independently. The National Internal Revenue Code (RA 8424) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Philippines lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of the Philippines has jurisdiction over disputes arising from this type of document, and Securities and Exchange Commission (SEC Philippines) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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