OTHER PERCENTAGE TAX

 Business tax imposed on persons or entities who sell or lease goods, properties, or
services in the course of trade or business whose gross annual sale or receipts do not
exceed Php 1,919,500 (effective 2012), and are not value-added tax (VAT) registered.
 Characteristics of OPT that distinguishes it from VAT
1. OPT is a business tax like VAT.
o OPT is imposed upon those engaged in trade or business or practice of
profession. Non-registration does not mean non-liability, if you are
actually continuously engaged in business or profession. Non-registration
will only expose you to liability for penalties on non-registration, penalty
for non-filing and payment on non-registration, penalty for non-filing and
payment of business taxes. Worst, BIR may consider it as fraudulent, if
tax evasion is intended, so you might be prosecuted.
2. OPT is a direct tax based on gross sales or gross receipts.
o The seller is the one who shoulders the tax and not passed on to the
buyer. Seller may add it on to the selling price but still, the BIR looks at
the seller as the actual payor of the OPT. In computing the OPT, you
simply multiply the rate to the taxable base and the resulting amount is
the OPT due and payable to the BIR.
3. OPT is applicable to VATable activities below the VAT threshold
o First application of OPT. Activities that are VATable but whose gross sales
does not exceed the VAT registration threshold, and initially registered
with the BIR as OPT or non-VAT taxpayer.
4. OPT is applicable to specific business or transactions regardless of VAT threshold
o Second application of OP. If your business falls under the industries and
transactions covered, you will be subject to the applicable tax rate even if
your gross sales exceed the VAT registration threshold.
5. OPT is filed monthly or quarterly
o If filed monthly – use BIR Form No. 2551M or quarterly using BIR Form
No. 2551Q depending on the transaction or industry type. Generally, do it
on a monthly basis so if you made an error in one month, you may have
to amend the return for the corresponding month only.
6. Summary List of Sales or Purchases not required
o Unlike in VAT, OPT registered or non-VAT registered are not mandated to
submit a summary list of sales, summary list of purchases and summary
list of importation on a quarterly basis.

INDUSTRIES or BUSINESS COVERED BY OPT

1. Persons exempt from VAT;
2. Percentage Tax on Domestic Carriers and Keepers of Garages;
3. Percentage on Tax on international carriers;
4. Tax on franchises;
5. Tax on overseas dispatch, message or conversation originating from the Philippines;
6. Tax on banks and non-bank financial intermediaries performing quasi-banking functions;
7. Tax on other non-bank finance intermediaries;
8. Tax on life insurance premiums;
9. Tax on ages of foreign insurance companies;
10. Amusement taxes;
11. Tax on winnings; and
12. Tax on sale, barter or exchange of shares of stock listed and traded through the Local
Stock Exchange or through Initial Public Offering.