The taxpayers who are qualified for the option to be taxed at 8% income tax rate can avail of the 8% income tax rate by signifying his intention to avail of the same as soon as possible through the filing of any of the following:
l. For New Business Registrant (Individual)
1.a – BIR Form No. 1901 (Percentage Tax type shall still be registered but shall be suspended or end-dated in the BIR tax system) or
1.b – Initial quarterly percentage or income tax return after the commencement of a new business/’practice of profession.
2. For Existing Individual Business Taxpayers
2.a – BIR Form No.
2.b – 1st Quarterly Percentage Tax Return; and/or
2.c – 1st Quarterly Income Tax Return;
The option to avail of the 8% income tax rate must be signified annually, on or before Mav 5. Such election shall be irrevocable and no amendment of option shall he made for the said taxable year, unless the gross sales/receipts and other non-operating income exceeded the VAT threshold of P3,000,000.00. In which case taxpayer shall automatically be subject to the graduated income tax rate.
when they are checking whether your business is complying with its Tax obligations,