How to Pay Business Tax (2551Q) for Home-based Tutors

Are you a home-based ESL tutor duly registered in BIR? The ESL School should also be registered for this to be applicable to you. In this page I will share with you what I did to settle my quarterly obligations with percentage tax without any accountants to do it for me. But of course for less hassle, you may commission someone such as an accountant to do it for you. First of all what is PERCENTAGE TAX?

Percentage tax is a business tax imposed on persons, entities, or transactions specified under Sections 116 to 127 of the National Internal Revenue Code of 1997 (also known as Tax Code), as amended, and as required under special laws.

First and foremost you must register with BIR as a home-based ESL Tutor to be able to do this. You must have claimed your Certificate of Registration that looks like this:

Bear in mind that  you need to settle your percentage tax on or before the 25th of the month after the applicable quarter. For example, if you are paying for the first quarter (Jan-Mar), then you are to settle it on or before April 25. 

Below are your guides of requirements that you are going to bring with you when you settle your percentage tax according to BIR website:

1. BIR Form 2551Q - Quarterly Percentage Tax Return Form
2. Duly issued Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable
3. Duly approved Tax Debit Memo, if applicable
4. For amended return, proof of payment and the return previously filed
5. Authorization letter, if filed by an authorized representative
6. Copy of Certificate of Registration issued by Cooperative Development Authority for cooperatives, and from the National Electrification Administration for electric cooperative.

In my case, I only secured 3 copies of the BIR form 2551Q and of my payslips for the quarter since my school cannot provide me yet BIR Form 2307.

Now here's the procedure according to BIR website using Offline eBIRForms Package V7.1 (as of this writing)

1. 1. Use the existing enhanced old BIR Form 2551Q in Offline eBIRForms Package V7, which contained all the alphanumeric tax codes (ATCs) enumerated in BIR Form 2551M in filing the return.
   2. Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for the quarter.
   3. In case percentage taxes for the first, second and/or third month of the quarter had been paid, payment/s made are to be reflected in BIR Form 2551Q in Item No. 20A-Creditable Percentage Tax Withheld per BIR Form 2307.
   4. Proceed to any AAB located within the territorial jurisdiction of the RDO where the taxpayer is registered and present the duly accomplished BIR Form 2551Q and other requirements. If there is payment that will be done manually, present the aforementioned documents together with BIR-prescribed deposit slip, and payment to the respective AAB. The Percentage Tax shall be paid at the time the return is filed by the taxpayer.
   5. In places where there are no AABs, the duly accomplished BIR Form 2551Q, together with the required attachments and payment, shall be filed/paid with the RCO, thru the MRCOS facility, or duly Authorized Treasurer of the city or municipality where said business or principal place of business / where the taxpayer is registered, who will issue an Electronic Revenue Official Receipt (eROR).
   6. eBIRForms Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).

In my case, these are the things I did.

1) Download the latest Offline eBIRForms Package v7.1, install and then open it.

2) Fill up the necessary details needed as per below:

3) After putting all the details, go to List of BIR Forms drop down and choose BIR Form 2551Q then click "Fill Up" and you'll be redirected to the form.

4) Fill up Part I, basically it's your own details:

1-Choose Calendar

3-Choose the quarter applied for

5-Put if how many sheets attached

6-Your TIN

7-RDO Number

8-Line of Business as indicated in your Certificate of Registration

9-Registered Name

10-Telephone Number

11-Registered Address

12-Zip Code

5) Fill Up Part II:

14B-Click it, you will be redirected to ATC List, choose PT010 (this is indicated when you applied for registration in form 1901), then click OK.

14C-Input your gross income for the first month of that quarter and 14E will automatically be computed as 3% of your gross income. Do it for the remaining two months as Section 15 and 16.

The total percentage tax is computed automatically based on the details you inputted. Click SAVE and then VALIDATE.

6) Print 3 Copies of this.

7) Now you're ready with your documents, you can settle this through paying in the accredited Bank or directly to BIR.

In my case I went to an accredited bank of my RDO. For my RDO, BPI FGU Ayala Cebu is an accredited bank and they will entertain BIR payments until 3PM everyday. I have to fill up the BIR-prescribed deposit slip, usually guard on duty can assist you on this. The personnel processing your payment should stamped received on your form. One copy will be returned to you as your copy and that's it. You're done. :)