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• Income Tax
• Value-Added Tax (VAT), 12%
• Percentage Tax, 3% for non-VAT taxpayers
• Withholding Tax
• Excise Tax

A micro taxpayer has gross sales not exceeding PHP 3 million. Micro taxpayers are exempt from VAT and subject to the 3% percentage tax, with the option to choose VAT. Under the EOPT classification: Micro is below ₱3M, Small is ₱3M to below ₱20M, Medium is ₱20M to below ₱1B, and Large is ₱1B and above.

If your gross sales are below PHP 3 million, you may pay 8% on gross sales or receipts instead of the graduated income tax rates. It is beneficial when your business has minimal expenses.

1. Register your business name or entity: DTI for sole proprietors, SEC for corporations and partnerships, CDA for cooperatives
2. Secure your Barangay Business Clearance and Mayor’s Permit
3. Apply for BIR registration at your RDO or online (ORUS): file Form 1901 (sole proprietors, freelancers) or Form 1903 (corporations, partnerships, cooperatives). If you already have a TIN, use it
4. Pay the ₱30 documentary stamp tax and receive your Certificate of Registration (COR, Form 2303). The ₱500 annual registration fee no longer applies
5. Apply for an Authority to Print (Form 1906) for your invoices, register your books of accounts, and display your COR

Requirements vary by business type.

Need help with business registration? Contact us for hassle-free assistance!

• Monthly or quarterly income tax returns
• Percentage tax or VAT returns
• Annual Income Tax Return (ITR)
• Books of accounts and financial statements
• Withholding taxes

Late payment carries a 25% surcharge, 12% annual interest, and other penalties.

If your gross sales exceed PHP 3 million, you must register as a VAT taxpayer. Contact us if you need help with the transition.

Businesses must keep books of accounts, manual or computerized, registered with the BIR. Contact us if you need help setting them up.

• DTI (sole proprietor) or SEC (corporation, partnership) registration
• Barangay clearance and Mayor’s permit, or proof you have applied
• Valid government IDs of the owner or officers
• Proof of business address, such as a lease contract or land title
• Your Taxpayer Identification Number (TIN), if you already have one
• A short description of what the business sells or does

• Summary of sales and official receipts or invoices for the year
• Purchase and expense receipts
• Quarterly returns filed and proof of payment
• BIR Form 2307 certificates you received from customers
• Last year’s income tax return and financial statements
• Bank statements for the year

• List of sales and purchases for the period
• Official receipts and invoices issued and received
• BIR Form 2307 received or issued
• Payroll summary, for withholding tax on compensation
• Proof of previous payments and returns

• Bank statements for every account
• Sales and purchase invoices
• Expense receipts and petty cash records
• Loan and lease documents
• Inventory count, if you sell goods
• Last period’s books or trial balance

• Employee list with TIN, SSS, PhilHealth and Pag-IBIG numbers
• Attendance or timekeeping records
• Pay rates, allowances and other benefits
• Loan and other deductions
• Hire and separation dates