How to fill out BIR Form 2551Q (quarterly percentage tax)
This is for a small non-VAT business: a sari-sari store, an online seller, a freelancer or a professional who pays percentage tax instead of VAT. By the end you will know whether you file 2551Q, which quarter's return is next, and what goes in each part of the form.
Who files 2551Q, and who does not
BIR's own instructions say the return is filed by "persons whose gross annual sales and/or receipts do not exceed P3,000,000 and who are not VAT-registered" (2551Q guidelines). The same page lists other percentage-tax payers (carriers, some franchise holders, cockpits, banks and so on). This guide is about the first group.
You do not file it for the same business if you chose the 8% income tax rate. The 8% option is "in lieu of the graduated income tax rates and percentage tax under Section 116" (2551Q guidelines). Cooperatives are exempt from the 3% tax (same guidelines). If you are VAT-registered, you file a VAT return, not this.
If you are on the graduated income tax rates, you pay percentage tax and file 1701Q for income tax. They are two different returns.
The rate in force now
The law sets the percentage tax for non-VAT persons at "three percent (3%) of his gross quarterly sales or receipts". The CREATE Act lowered it to 1% only for a fixed period: "effective July 1, 2020 until June 30, 2023, the rates shall be one percent (1%)" (RA 11534, section 13). BIR's circular on the 1% period gives the same dates (RMC 65-2021).
So for any quarter after 30 June 2023, the rate in the law is 3%, and the form's own table lists 3% for ATC PT 010, persons exempt from VAT (BIR Form 2551Q). Returns for quarters up to 30 June 2023 used 1%. If you are filing late for an old quarter, use the rate for that quarter.
When to file
"The return shall be filed and the tax paid within twenty-five (25) days after the end of each taxable quarter" (2551Q guidelines). For a calendar-year taxpayer that works out as follows.
Quarter · Ends · Due (25 days later); 1st · 31 March · 25 April; 2nd · 30 June · 25 July; 3rd · 30 September · 25 October; 4th · 31 December · 25 January
Filers on eFPS follow the deadlines set by BIR's current issuances instead (2551Q guidelines). Check the next dates on /deadlines.
What to bring
- Your TIN and RDO code (on your Certificate of Registration). - Your gross sales or receipts for the quarter. The basis is gross, not net (2551Q guidelines). - Any Form 2307 certificates for percentage tax withheld on you. These are a listed attachment (2551Q guidelines). - For an amended return, proof of the payment and the return you filed before (same guidelines).
Step by step
Open BIR Form 2551Q. The form asks for capital letters in black ink and two copies filed with the BIR, one kept by you (BIR Form 2551Q).
1. Items 1 to 5. Calendar or fiscal year, the year-end month, the quarter, and whether this is an amended return. 2. Part I, items 6 to 11. TIN, RDO code, your name exactly as registered, the registered address, contact number and email. If your address changed, the form tells you to update it first with BIR Form 1905. 3. Item 12. Tick Yes only if you claim relief under a special law or tax treaty, and say which. 4. Item 13. Only for individuals, and only on the first quarter of the year: tick graduated income tax rates or 8%. If you tick 8%, you are not a percentage tax payer for that business. 5. Schedule 1 (page 2). Write the ATC, the taxable amount (your gross receipts for the quarter), the rate, and the tax due. For a non-VAT seller, the ATC is PT 010 at 3%. 6. Part II. Item 14 carries the total from Schedule 1. Item 15 is percentage tax withheld per Form 2307, item 16 is tax paid on an earlier return if you are amending, and item 17 is any other credit. Item 19 is tax still payable. Items 20 to 22 are surcharge, interest and compromise, and item 24 is the total to pay. 7. Sign the declaration, then fill Part III with how you paid.
If you overpaid in a quarter and want to carry it forward, BIR says to write "To be Carried Over" on a manual return and not tick refund or tax credit certificate (RMC 65-2021).
PDFPhile fills the form for you to print or file; it does not file for you. The micro business on graduated tax plus percentage tax pack puts 2551Q beside the other returns this kind of business files.
Mistakes that send it back
- Filing 2551Q while on 8%. Owners on r/taxPH often ask whether 3% still applies after choosing 8%. Per the instructions above, 8% replaces the percentage tax. - Not filing a quarter with no sales. The return is due each quarter, and late filing carries a 25% surcharge, interest at double the legal rate and a compromise penalty (2551Q guidelines). - Wrong rate for an old quarter. Using 3% on a quarter that fell in the 1% window, or the other way round. - Using net instead of gross. Expenses are not deducted from the tax base. - Forgetting the 2307. If a platform or client withheld percentage tax, enter it at item 15 and attach the certificate. - Paying at the wrong place. Pay at an authorized agent bank of the RDO where you are registered (2551Q guidelines).
Questions
Is the percentage tax 1% or 3% in 2026?
3%. The 1% rate applied only from 1 July 2020 to 30 June 2023 under RA 11534, and the law's base rate is 3% (RA 11534).
Do I still file 2551Q if I chose the 8% rate?
No. The 8% rate is in lieu of the graduated rates and the percentage tax (2551Q guidelines). You file 1701Q instead.
Is the percentage tax deductible from my income?
This guide does not answer that; it is an income tax question. Ask your RDO or a CPA.
Kailan ang deadline ng 2551Q?
Within 25 days after the end of each quarter, so 25 April, 25 July, 25 October and 25 January for a calendar-year filer (2551Q guidelines).
Do I file if I had no sales this quarter?
The instructions make the return due each quarter and set penalties for failure to file. Ask your RDO how to report a quarter with nothing to report.
Last checked 2026-10-12. Not affiliated with BIR, SSS, PhilHealth, Pag-IBIG or any government agency.