What is this new law?
You may have heard of the recently approved Comprehensive Recovery and Tax Incentives for Enterprises (CREATE) Act (Republic Act 11354) that was officially active last April 11, 2021. This is a bill that seeks to assist businesses as a response to the pandemic situation, with retroactive provisions and lower tax rates.
How can I take advantage of this?
One of the tax forms affected by the CREATE Act is the Percentage Tax Type (submitted via the 2551Q). From the usual 3% tax rate, taxpayers can now use the new 1% rate for their taxes. This new retroactive tax rate can be applied for all due taxes starting from July (Q3) 2020.
Taxumo is CREATE-ready
The great thing about this is that for Taxumo users, this 1% tax code change has been applied to our 2551Q forms and your due taxes will be computed using this new tax code. We've also fixed this to be the default now so even new Taxumo subscribers can utilize the 1% rate with our 2551Q forms. There's no need to worry about re-calculating stuff to take advantage of this!
Even better, though, is if you filed your Quarterly Percentage Tax forms for 2020 Q3 and Q4 in Taxumo, Taxumo will compute the excess you paid and then use those as credits starting 2021 Q1. To do that, simply file your Quarterly Percentage Tax form (2551Q) for 2021 Q1, due this coming April 23, and Taxumo will automatically compute it for you.
If you've already filed your 2551Q form for 2021 Q1 thru Taxumo, simply file an amendment filing by clicking either of the links below:
Pretty neat, right? Our aim has always been to make tax filing easier for Filipinos, which is why we make sure that we are always updated with BIR's changes (such as this) so you can maximize the service that we give you.
To take advantage of this new rate, head on over to your Taxumo account and file your 2551Q on or before April 23, 2021 11:59PM (PHT). If you don't have a Taxumo account yet, now's a good time to sign-up and subscribe for a hassle-free tax filing experience!