# BIR Form 2551Q: Quarterly percentage tax

> A 3% tax on gross receipts for non-VAT taxpayers on graduated rates. Choose the 8% option and this one disappears.

Source: https://taxkaya.com/forms/2551q
Last checked: 2026-08-06

TAXKAYA is independent software, not affiliated with the Bureau of Internal Revenue. This document is general information, not tax advice.

## Why this exists, and why it covers you

Section 116 of the Tax Code taxes the business activity itself, separate from the income tax on your profit. Businesses above 3 million pesos pay VAT for this; percentage tax is the lighter substitute for everyone below the threshold, 3% of gross instead of 12% with input crediting.

The 8% option was created precisely to fold this tax and income tax into one payment, which is why electing it makes the 2551Q disappear.

## Who this is for

- Non-VAT freelancers and sole proprietors on graduated income tax rates
- Not you, if you validly elected the 8% option. The 8% replaces this entirely

## When

- **Every quarter** Within 25 days after each quarter ends: April 25, July 25, October 25, January 25.

## How to do it

1. Multiply the quarter's gross receipts by 3%. No deductions, no brackets.
2. File via eBIRForms or eFPS and pay through any channel, same as income tax.
3. If your 2303 lists percentage tax and you did not elect 8%, file every quarter, including zero quarters.

## What bites beginners

- This is on top of income tax, not instead of it. Graduated-rate freelancers file both 2551Q and 1701Q.
- Percentage tax is the reason the 8% option usually wins for service freelancers with few expenses: one tax instead of two.
- Cross 3,000,000 pesos in gross receipts and you exit this regime into VAT. Watch your running total.

## Official form PDFs

- **BIR Form 2551Q** Quarterly Percentage Tax Return, January 2018 (ENCS): https://taxkaya.com/bir-forms/2551q.pdf

## Sources

- [NIRC Sec. 116 on percentage tax, consolidated text (NTRC)](https://ntrc.gov.ph/images/quicklinks/NIRC%20of%201997,%20as%20Amended%20by%20RA%2010963%20-%20updated.pdf)
- [Bureau of Internal Revenue](https://www.bir.gov.ph)

## Related guides

- [BIR Form 1701Q: Quarterly income tax return](https://taxkaya.com/d/forms/1701q.md)
- [BIR Form 2550Q: Quarterly VAT return](https://taxkaya.com/d/forms/2550q.md)
- [BIR Form 1901: Registration for the self-employed](https://taxkaya.com/d/forms/1901.md)