Mark Your Calendar: Tax Deadlines Every Business Owner Should Remember

Avoid thousands of pesos or more in penalties by making tax payments on time. Bookmark this page so you don't forget those important BIR deadlines!

Minding your business’s tax obligations is as important as your day-to-day operations. In fact, if you fail to pay your taxes on the specified deadline, the Bureau of Internal Revenue (BIR) will require you to pay a surcharge plus interest and other penalties on top of the actual tax amount due. Even if you have zero income to declare, failing to declare it on time results in a penalty of P1,000.

For your business, that can mean losing tens of thousands of pesos, if not more.

According to EJ Arboleda, co-founder and chief executive officer of Taxumo, these penalties are applied as soon as April 16, or the day immediately following the annual income tax deadline of April 15.

Tax filing deadlines to take note of

April 15. That date is just around the corner.

If your business is registered as a sole proprietorship, or if you are self-employed, a freelancer, or an independent professional, you’ll need to pay your income tax on this date. The annual income tax payment you make on April 15 covers the period from January to December of the previous year.

But April 15 isn’t the only date you need to remember. You are also required to file your income tax quarterly, following these BIR deadlines with the corresponding coverage period:

Income Tax Deadlines

*October to December is covered in the April 15 filing.

If your business is not VAT-registered (meaning, you have an annual gross income of less than P3 million), then you are required to pay a percentage tax. BIR defines percentage tax as a business tax imposed on persons, entities, or transactions specified under the Tax Code. There is no option to pay for percentage annually, so the tax deadlines are spread out quarterly, or every 25th of the following months:

Percentage Tax Deadlines

VAT Deadlines

If your business earns more than P3 million, then it needs to be VAT-registered. This means that on top of the BIR form and the tax payment, you will also be required to provide an audited annual financial statement. The list of VAT deadlines runs longer, as these are set monthly:

Take note that requirements vary according to the type of tax you are paying. Check the BIR website for the list of accompanying documents which may be required in addition to the BIR forms specified above.

Beyond BIR deadlines

“In the Philippines, tax is a huge cost for businesses,” says Arboleda, who established Taxumo as a tax filing platform for freelancers, small business owners, and self-employed professionals.

This is why aside from remembering BIR deadlines, it’s also important for business owners to have a basic understanding of how taxes work. Adds Arboleda, “Applying or opting for certain tax options—that could save you a lot of money. Taxumo has an active educational aspect. We offer free seminars and talks, and engage clients in our Facebook groups.”

While you may rely on your accountant to maintain your accounting books and make sure that tax filing deadlines are met, Arboleda reminds that at the end of the day, you are ultimately accountable for your tax obligations as a business owner. In other words, being a responsible tax payer is key to smoothly operating a legitimate business.

Learn more about what every business owner should know, sign up to Globe myBusiness Academy.

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