How to File BIR Form 2551Q: Quarterly Percentage Tax Return Step-by-Step
BIR Form 2551Q is the Quarterly Percentage Tax Return filed by non-VAT-registered businesses under Section 116 of the National Internal Revenue Code (NIRC). It applies to persons or entities whose annual gross sales or receipts do not exceed the P3,000,000 VAT threshold and who have not opted to register as VAT taxpayers, at a rate of 3% of quarterly gross sales or receipts.
Keep the Rest of Your BIR Filings Organized FREE →Who is required to file BIR Form 2551Q? #
BIR Form 2551Q applies to non-VAT-registered persons and businesses taxed under NIRC Sec. 116 — those below the P3,000,000 annual gross sales/receipts threshold that separates VAT registration from percentage tax. It does not apply to VAT-registered businesses, who instead file BIR Form 2550Q, or to individuals who elected the 8% flat income tax rate, whose election already substitutes for percentage tax.
Sari-sari stores, small service providers, tricycle and jeepney operators, and other small non-VAT businesses typically fall under this return. The 3% rate has been in place since July 1, 2023 — it was temporarily reduced to 1% from July 1, 2020 through June 30, 2023 as pandemic relief under the CREATE Act, then reverted to the standard 3% rate, where it remains for 2026.
Does the 8% income tax election change this? #
Self-employed individuals and professionals who elected the 8% flat income tax rate (see 8% Income Tax Rate vs Graduated Rates) do not separately file BIR Form 2551Q. The 8% election is explicitly “in lieu of” both the graduated income tax rates and the Sec. 116 percentage tax — filing both would mean paying percentage tax twice on the same gross receipts, which the election is designed to avoid.
How do you compute and file BIR Form 2551Q? #
Filing BIR Form 2551Q follows the same quarterly cycle as other percentage-based returns, computed on gross sales or receipts for the quarter rather than net income, with no deduction for cost of goods or expenses.
- Total gross sales or receipts for the quarter — before any deductions for cost of sales or operating expenses.
- Multiply by 3% to get the percentage tax due under NIRC Sec. 116.
- Subtract any percentage tax already paid for the same quarter (e.g., through prior monthly filings, if applicable to the taxpayer’s filing frequency).
- File through eBIRForms or eFPS, as required under the Ease of Paying Taxes (EOPT) Act’s mandatory electronic filing rules.
- Pay the tax due through an Authorized Agent Bank, Revenue Collection Officer, or an accredited electronic payment channel.
When is BIR Form 2551Q due? #
BIR Form 2551Q is due on or before the 25th day after the close of each taxable quarter:
| Quarter | Period covered | Deadline |
|---|---|---|
| Q1 | January – March | April 25 |
| Q2 | April – June | July 25 |
| Q3 | July – September | October 25 |
| Q4 | October – December | January 25 (following year) |
A worked example #
A sari-sari store owner, registered as a non-VAT taxpayer under NIRC Sec. 116, records P400,000 in gross sales for the second quarter (April–June). Percentage tax due is 3% of P400,000, or P12,000, filed via BIR Form 2551Q on or before July 25. Because the owner has not elected the 8% income tax option, this percentage tax return is filed separately from — and in addition to — the owner’s quarterly and annual income tax returns.
Summary #
BIR Form 2551Q is the non-VAT counterpart to the VAT return, taxing quarterly gross sales at 3% under NIRC Sec. 116 for businesses below the VAT threshold, due the 25th day after each quarter — except for taxpayers who elected the 8% flat rate, who skip it entirely. See VAT vs. Percentage Tax for how to determine which applies to your business, How to File BIR Form 2550Q for the VAT-registered equivalent, and 8% Income Tax Rate vs Graduated Rates for the election that replaces this return.