Complete tax guide for Corporations
Complete tax compliance guide for corporations, partnerships, and juridical entities operating in the Philippines, covering registration, filing, and payment obligations.
Updated June 13, 2026
Reviewed by Cherry De Vega, Bookkeeping and Compliance ReviewerBookkeeping and BIR filings for small businesses since 2018The short answer
Philippine corporations pay 25% corporate income tax on net taxable income under the CREATE Law, or a preferential 20% if net income is ₱5M or less and total assets are ₱100M or less. They file quarterly returns (Form 1702-Q) and an annual return (Form 1702-RT/MX/EX) by April 15, plus 12% VAT (Form 2550Q) and withholding taxes.
Open the Annual Income Tax CalculatorKey takeaways
- Domestic corporations are taxed at 25% on net taxable income (CREATE Law); small corporations with net taxable income ≤ ₱5M and total assets ≤ ₱100M may opt for the preferential 20% rate.
- File quarterly income tax returns (Form 1702-Q) within 60 days after each quarter; the annual return (Form 1702-RT, 1702-MX, or 1702-EX) is due on the 15th day of the 4th month after year-end (April 15 for calendar-year corporations).
- Register with the BIR within 30 days of incorporation; obtain Certificate of Registration before commencing business.
- VAT-registered corporations must charge 12% VAT, file quarterly returns (Form 2550Q), and maintain detailed sales and purchase records.
- Withhold and remit income tax from employee compensation monthly; comply with Expanded Withholding Tax on business payments.
- Maintain complete books of accounts and supporting documents for at least five years to support tax positions.
Tax obligations
- Annual Corporate Income Tax Return
- Domestic and resident foreign corporations must file the annual corporate income tax return (Form 1702-RT for regular-rate corporations, 1702-MX for mixed-income/special-rate corporations, or 1702-EX for exempt corporations) reporting gross income, deductions, and net taxable income. Covers the entire taxable year and determines final corporate income tax liability. Required for all corporations regardless of profitability.
Deadline: 15th day of the fourth month following close of taxable year (typically April 15)
Form: 1702-RT / 1702-MX / 1702-EX
- Quarterly Income Tax Return
- Corporations file Form 1702-Q each quarter reporting cumulative income tax liability based on quarterly income. Used to remit income tax in installments through the year. Required even if no income earned in the quarter.
Deadline: Within 60 days after the close of each of the first three quarters
Form: 1702-Q
- Quarterly VAT Return
- VAT-registered corporations file Form 2550Q reporting sales, purchases, input VAT, and output VAT. Determines VAT payable or refundable. Filed quarterly for all VAT-registered entities; monthly VAT declarations (Form 2550M) were discontinued effective 2023 in favor of quarterly filing.
Deadline: 25th day of the month following the close of each taxable quarter
Form: 2550Q
- Annual Information Return of Tax Withheld on Compensation
- BIR Form 1604-C is the Annual Information Return of Income Taxes Withheld on Compensation. It summarizes all compensation paid to employees and the tax withheld during the year (the corresponding monthly remittances are filed on Form 1601-C). Required for employers with employees.
Deadline: On or before January 31 of the following year
Form: 1604-C
- Annual Information Return of Creditable Income Taxes Withheld (Expanded)
- BIR Form 1604-E is the Annual Information Return of Creditable Income Taxes Withheld (Expanded). It reports income payments subject to expanded/creditable withholding tax made to suppliers and service providers during the year (the corresponding monthly/quarterly remittances are on Forms 0619-E and 1601-EQ). Required if the corporation made such payments.
Deadline: On or before March 1 of the following year
Form: 1604-E
Registration process
Step 1: Secure Certificate of Incorporation from SEC
For domestic corporations, file Articles of Incorporation and By-Laws with the Securities and Exchange Commission (SEC). The SEC will issue a Certificate of Incorporation confirming the corporation's legal existence. For foreign corporations, obtain a Certificate of Authority from the SEC. This is the first legal step before BIR registration.
Step 2: Prepare BIR Registration Documents
Gather the Certificate of Incorporation, certified true copies of Articles of Incorporation and By-Laws, Board Resolution authorizing BIR registration, and identification documents of authorized representatives. Ensure all documents are notarized and certified by the SEC.
Step 3: Apply for BIR Certificate of Registration
Submit the complete registration package to the BIR Revenue District Office (RDO) having jurisdiction over the corporation's principal place of business. The application must be filed within 30 days of incorporation or commencement of business, whichever is earlier. The BIR will issue a Certificate of Registration (COR) and assign a Tax Identification Number (TIN).
Step 4: Register with SSS, PhilHealth, and Pag-IBIG
If the corporation has employees, register with the Social Security System (SSS) for employee social security contributions, Philippine Health Insurance Corporation (PhilHealth) for health insurance, and Home Development Mutual Fund (Pag-IBIG) for housing benefits. Obtain employer registration numbers from each agency.
Step 5: Register with Bureau of Customs (if applicable)
If the corporation engages in importation of goods, register with the Bureau of Customs and obtain a Customs Broker's License or Importer's Registration Number. This is required before importing goods into the Philippines.
Step 6: Register as VAT Taxpayer (if applicable)
If the corporation's annual gross sales or receipts exceed ₱3 million, apply for VAT registration with the BIR by updating its registration (Form 1905) with supporting documents. The BIR will issue a VAT Certificate of Registration.
Calculators for Corporations
- Annual Income Tax Calculator
Compute your 2026 Philippine income tax on salary or business income under the TRAIN graduated rates, with a step-by-step breakdown of every bracket.
- VAT Calculator
Add or extract 12% VAT on any price, and see when annual gross sales above ₱3,000,000 require VAT registration in the Philippines.
- Withholding Tax Calculator
Calculate withholding tax for employee compensation and professional fees. Get accurate tax withholding amounts based on BIR withholding tables.
Taxes that apply
- Income Tax
Income tax in the Philippines is a progressive annual tax on individual and corporate income, with individual rates from 0% to 35% under the TRAIN Law and a 25% corporate rate under CREATE. Individuals file BIR Form 1700, 1701, or 1701A; corporations file Form 1702.
- Withholding Tax
Tax deducted at source by employers and payors, remitted to BIR on your behalf.
Common questions
What is the corporate tax rate in the Philippines?
The regular corporate income tax rate is 25% under the CREATE Law. Small corporations (net income ≤₱5M, assets ≤₱100M) can opt for 20%. From the 4th taxable year, corporations pay the 2% Minimum Corporate Income Tax on gross income instead if it exceeds regular income tax (the rate was 1% only from July 1, 2020 to June 30, 2023).
When do corporations file tax returns?
Corporations file quarterly income tax returns within 60 days after each quarter, and annual returns on the 15th day of the 4th month after the fiscal year-end (usually April 15 for calendar year companies).
Can a corporation get tax refunds?
Yes. If total tax credits (quarterly payments, withholding taxes) exceed final tax liability, the corporation can file for a refund or apply it as credit to next year's tax. VAT refunds are also possible for zero-rated sales or excess input VAT.
What's the difference between corporate tax and shareholder tax?
Corporate tax (25% or 20%) is paid by the corporation on its income. When the corporation distributes dividends to shareholders, shareholders pay final withholding tax (10% for individuals, 25% for non-resident foreigners). This is double taxation.
Do corporations pay percentage tax or VAT?
Most corporations must register for VAT (12%). Percentage tax is for non-VAT businesses with sales below ₱3M. Some corporations may be VAT-exempt (e.g., certain cooperatives, government agencies) and pay percentage tax instead.
Sources & References (5)
Primary sources and the laws, regulations, and official issuances this page relies on. Each citation links directly to the issuing authority’s document.
- LawPhil Project (Arellano Law Foundation). “NIRC Sec. 27: Rates of Income Tax on Domestic Corporations (25%/20%, MCIT).” lawphil.net. National Internal Revenue Code of 1997, Section 27, as amended by RA 11534 (CREATE). Accessed .
- Official Gazette of the Philippines. “RA 11534 (CREATE Act): corporate income tax rate reduction to 25%/20%.” officialgazette.gov.ph. Republic Act No. 11534 (CREATE), as enacted. Accessed .
- Bureau of Internal Revenue. “BIR RR No. 5-2021: implementing CREATE corporate income tax provisions.” bir.gov.ph. BIR Revenue Regulations No. 5-2021. Accessed .
- Bureau of Internal Revenue. “BIR VAT: quarterly filing (Form 2550Q) under EOPT/RR.” bir.gov.ph. National Internal Revenue Code, Sections 106-114; RA 11976 (EOPT Act). Accessed .