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 October 16, 2026

Written by the TaxCalculator.com.ph Editorial Team, led by , Founder
Cherry De Vega, Bookkeeping and Compliance ReviewerEditorial reviewer: Cherry De Vega, Bookkeeping and Compliance ReviewerBookkeeping and BIR filings for small businesses since 2018

The short answer

Domestic corporations generally pay 25% of net taxable income, or 20% if both the qualifying income and asset conditions are met. MCIT can apply separately. Annual filing is due on the 15th day of the fourth month after year-end; VAT and withholding obligations depend on the business.

Open the Annual Income Tax Calculator

Key takeaways

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

  1. 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.

  2. 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.

  3. 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).

  4. 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.

  5. 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.

  6. 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

    Estimate Philippine compensation withholding or creditable tax on professional fees and other payments. Check the transaction type, exclusions and applicable rate.

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 domestic corporate rate is 25%. Qualifying domestic corporations use 20% when net taxable income is at most ₱5 million and assets are at most ₱100 million, excluding the land on which the office, plant and equipment are situated. MCIT and registered-project incentives have separate rules.

When do corporations file tax returns?

Quarterly income-tax returns cover the first three quarters and are due within 60 days after each quarter. The annual return is due on the 15th day of the fourth month after year-end, usually April 15 for calendar-year corporations.

Can a corporation get tax refunds?

Excess income-tax credits may qualify for refund or carry-over under the applicable rules; choosing carry-over affects later refund entitlement. Excess input VAT is generally carried forward. A VAT refund requires a qualifying basis, such as input VAT attributable to eligible zero-rated sales; it is not available simply because input VAT exceeds output VAT.

What's the difference between corporate tax and shareholder tax?

The corporation pays tax on its income. A dividend distribution is a separate event for the shareholder. Its treatment depends on whether the recipient is an individual or corporation, residence and any applicable exemption or treaty; there is no single dividend rate for every shareholder.

Do corporations pay percentage tax or VAT?

Check VAT registration, the nature of the transactions and the sales threshold. Section116 percentage tax applies to qualifying non-VAT sales; being a corporation does not automatically mean every sale is subject to 12% VAT. Cooperatives and other exempt transactions need their own exemption analysis.

What was the corporate income tax rate in 2023?

The regular rate was 25%; qualifying domestic corporations used 20% when net taxable income did not exceed ₱5 million and assets did not exceed ₱100 million, excluding the land on which the office, plant and equipment are situated. These are regular corporate income-tax rates, not the minimum corporate income tax.

For calendar-year 2023, the MCIT rate was 1.5% because the temporary 1% rate ended on June 30 and 2% resumed on July 1. Fiscal-year taxpayers must use the applicable blended rate in RMC 36-2024. See RR 5-2021 for the regular-rate conditions.

Registered-project incentives

CREATE MORE incentives depend on the approved project and its entitlement, not just the company name or registration agency. Check the FIRB incentive guidance before applying an income tax holiday, special corporate income tax or enhanced deductions.

For registration timing, RMC 91-2024 counts commencement from the first sale or the lapse of 30 days after the relevant permit or registration is issued, whichever comes first.

Sources & References (4)

Primary sources and the laws, regulations, and official issuances this page relies on. Links open the recorded source documents or references.

  1. 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). Source checked .
  2. 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. Source checked .
  3. Bureau of Internal Revenue. “BIR RR No. 5-2021: implementing CREATE corporate income tax provisions.” bir.gov.ph. BIR Revenue Regulations No. 5-2021. Source checked .
  4. 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). Source checked .

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