This document outlines the registration and tax compliance requirements for individuals providing services under job order or service contract agreements with government agencies in the Philippines. It covers professionals and non-professionals with different levels of gross receipts: 1) Those with receipts up to PHP250,000 only need to register for a tax identification number but have minimal other requirements. 2) Those with receipts from PHP250,000 to PHP3 million must register fully, may need to file taxes quarterly, and are subject to creditable withholding rates. 3) Those with over PHP3 million in receipts must register fully, file audited financials with tax returns, and are always subject to the 10%

1. IGACOS,
REVENUE DISTRICT 112 – TAGUM CITY

2. Registration and Compliance
Requirements of Individuals under Job
Order or Service Contract Agreement with
the Departments and Agencies of the
Government, Instrumentalities, LGUs,
State Colleges and Universities including
GOCCs and GFIs

3. Professionals –individuals engaged in the practice of
professions or callings, who render services for a
fee, as enumerated under Sec. 2.57.2 (A)(1) of RR
2-98, as amended
Those individually engaged in the practice of professions or
callings: lawyers; certified public accountants; doctors of
medicine; architects, engineers; marine surveyors; doctors
of veterinary science; dentist; professional appraisers;
connoisseurs of tobacco; actuaries; and interior decorators;
designers and all other profession requiring government
licensure examinations and/or regulated by the Professional
Regulations Commission, Supreme Court, etc.

4. Other Service Providers or Supplier of services
– Non- Professionals – individuals
not identified in Sec. 2.57.2 (A)(1) of RR
2-98
> not registered with and regulated by the
PRC, Supreme Court, IBP, etc.
> who render services or labor-only for a
fee or under a contract of service

5. *A. Professionals and Other Supplier of Services under a contract
for service with gross receipts of P250,000.00 and below in any
12-month period from a LONE PAYOR and with no other source of
income.
*B. Professionals and Other Supplier of Services under a contract
for service with gross receipts above P250,000.00 and not
exceeding P 3,000,000.00 in any 12-month period from a LONE
PAYOR and with no other source of income.
*C. Professionals and Other Supplier of Services under a contract
for service with gross receipts above P 3,000,000.00 in any 12-
month period from a LONE PAYOR and with no other source of
income.
*D. Professionals and Other Supplier of Services under a contract
for service with MULTIPLE PAYOR and/or other source of income.

6. A.
REGISTRATION REQUIREMENTS:
a. register using BIR Form No. 1901 for TIN (Tax
Identification Number)
• copy of service contract showing the amount of income payment
• any identification issued by an authorized govt body (e.g. Birth Cert., Passport,
License etc)
b. Pay Annual Registration Fee (ARF)
c. Exempted from issuance of Certificate of Registration (COR)
d. Tax type: Income Tax, Percentage Tax, Reg. Fee (RF)

7. A.
BOOKKEEPING AND INVOICING REQUIREMENTS:
e. Exempted from Compliance with the issuance of registered
receipts/invoices
f. Exempted from the requirement of maintenance of Books of
Accounts

8. A.
TAX COMPLIANCE REQUIREMENTS:
g. Filing of Annual Income Tax Return (BIR Form 1701) and
payment, if applicable
h. Exempted from filing of Quarterly Income Tax Return (BIR Form
1701Q)
i. Not Subject to Creditable Withholding Tax Rates
j. Filing and payment of Percentage Tax (BIR Form 2551Q)

9. A.
TAX COMPLIANCE REQUIREMENTS:
*Exempted from filing and payment of percentage tax if opted
to avail of the 8% income tax rate and submits an income
payee’s Sworn Declaration (ANNEX A1) to the LONE PAYOR,
together with a copy of duly received BIR Form 1901.
*professionals and other supplier of services under this category
shall signify the intention to elect the 8% income tax rate in
filing of BIR Form No. 1905 (application for registration
information update) or filing of 1st Quarterly Percentage Tax
Return.

12. *INCOME PAYEE’S
SWORN DECLARATION
OF GROSS
RECEIPTS/SALES
* (For Self-Employed
and/or Engaged in the
Practice of Profession
with Lone Income
Payor)
*To be submitted by JO
to the agency.

13. *To be submitted by the
agency to BIR. Attach
received copies of
1901 of JO.
*Submit annually.

14. B.
REGISTRATION REQUIREMENTS:
a. register using BIR Form No. 1901 for TIN (Tax
Identification Number) and COR (Certificate of Registration )
• copy of service contract showing the amount of income payment
• any identification issued by an authorized govt body (e.g. Birth Cert.,
Passport, License etc)
b. Pay Annual Registration Fee (ARF)
c. Tax type: Income Tax, VAT or Percentage Tax, Reg. Fee
(RF)

15. B.
BOOKKEEPING AND INVOICING REQUIREMENTS:
d. Approval of Authority to Print (ATP) for the issuance of
registered principal receipts/invoices (except if qualified
under the substituted receipts)
e. Registration and maintenance of Books of Accounts

16. B.
TAX COMPLIANCE REQUIREMENTS:
f. Filing of Annual Income Tax Return (BIR Form 1701) and
payment, if applicable
g. Filing and payment of Quarterly Income Tax Return (BIR Form
1701Q)
h. Attaching Financial Statements to the Filed Income Tax
Return, except if availed of the option to be taxed at 8% income
tax rate.

17. B.
TAX COMPLIANCE REQUIREMENTS:
i. Subject to Creditable Withholding Tax Rates
Professional-
 Five Percent (5%)- if the payee submits an Income Payee’s Sworn Declaration of his/her Gross
Receipts/Sales (ANNEX A2) to the lone payor/withholding agent with a copy of COR
 Ten Percent (10%)- if the payee failed to provide the lone income payor/withholding agent of
Income Payee’s Sworn Declaration of his/her Gross Receipts/Sales; or if the payee is VAT-
registered regardless of amount of Gross Receipts/Sales.
For other supplier of services-
 Two Percent (2%) –if the payee submits an Income Payee’s Sworn Declaration of his/her Gross
Receipts/Sales to the lone payor/withholding agent with a copy of COR
 Ten Percent (10%)- if the payee failed to provide the lone income payor/withholding agent of
Income Payee’s Sworn Declaration of his/her Gross Receipts/Sales; or if the payee is VAT-
registered regardless of amount of Gross Receipts/Sales.

19. B.
TAX COMPLIANCE REQUIREMENTS:
j. Subject to Withholding of Percentage Tax or VAT
-The government agency-payor is required to withhold:
 Three percent (3%) percentage tax under section 5.116(A)(1) of RR 2-98 or
five percent (5%) final VAT withholding rate under Section 4.114-2 of RR 16-
2005 as amended; or
 Twelve percent (12%) VAT, if the payee will avail of the substituted filing of
VAT Return under RR 14-2003.
 No withholding of percentage tax if the payee is qualified and availed of the
option to be taxed at 8% income tax rate.

20. B.
TAX COMPLIANCE REQUIREMENTS:
k. Filing and Payment of VAT, except if the payee availed of the
substituted VAT Return; or Percentage Tax , except if availed of the
option to be taxed at 8% income tax rate, or availed of the substituted
percentage tax return.
l. Professionals and other supplier of services under this category shall
signify the intention to elect the 8% income tax rate in filing of any of the
following:
 BIR Form No. 1905 (application for registration information update) or filing of 1st
Quarterly Income Tax Return or
 1st Quarterly Percentage Tax Return and 1st Quarterly Income Tax Return; or
 1st Quarterly Income Tax Return Only

21. B.
SUBSTITUTED PERCENTAGE TAX/VAT RETURN AND SUBSTITUTED
OFFICIAL RECEIPT (for those who are under the graduated income tax
rate and are therefore subject to business tax)
optional
Pursuant to RR 14-2003, taxpayer-payee hired under contract of
service or job order with only ONE PAYOR may opt to remit his
percentage tax/VAT through the withholding and remittance of the
same by the withholding agent-payor.

22. B.
SUBSTITUTED PERCENTAGE TAX/VAT RETURN AND SUBSTITUTED
OFFICIAL RECEIPT (for those who are under the graduated income tax
rate and are therefore subject to business tax)
Option is manifested by filing the ff:
 WAIVER OF THE PRIVILEGE TO CLAIM INPUT TAX CREDITS (ANNEX D) for VAT
Taxpayer,
NOTICE OF AVAILMENT ON THE OPTION TO PAY THE TAX THROUGH THE
WITHHOLDING PROCESS (ANNEX F) and
NOTICE OF AVAILMENT ON THE SUBSTITUTED FILING OF PERCENTAGE
TAX/VAT RETURN (ANNEX B/C),
* Above waivers and notices are copy-furnished the withholding agent-payor and the RDO
of both the payor and payee.

25. B.
SUBSTITUTED PERCENTAGE TAX/VAT RETURN AND SUBSTITUTED OFFICIAL
RECEIPT (for those who are under the graduated income tax rate and are
therefore subject to business tax)
the taxpayer-payee shall no longer be required to file VAT and
percentage tax returns.
The BIR Form No. 1600 duly filed by the payor shall serve as the
substituted percentage/VAT return of the payee provided that BIR Form
No. 2306 (Certificate of Final Tax Withheld at Source) duly executed and
signed by both the payor and payee is attached to the filed BIR Form
1600.
The issued BIR Form 2306 for the payee shall be constituted and treated
as the substituted official receipt.

26. B.
SUBSTITUTED PERCENTAGE TAX/VAT RETURN AND SUBSTITUTED OFFICIAL
RECEIPT (for those who are under the graduated income tax rate and are
therefore subject to business tax)
BIR Form 2306 duly filed or stamped “received” shall serve as the
same purpose as the percentage tax/VAT return
(2551Q/2550M/2550Q)
If the taxpayer –payee shall have additional clients within the
taxable year, he/she shall immediately file the NOTICE OF
CANCELLATION ON THE AVAILMENT OFTHE SUBSTITUTED FILING
OF PERCENTAGE TAX/VAT RETURN (ANNEX E).

28. C.
REGISTRATION REQUIREMENTS:
a. register using BIR Form No. 1901 for TIN (Tax
Identification Number) and COR (Certificate of
Registration )
• copy of service contract showing the amount of income payment
• any identification issued by an authorized govt body (e.g. Birth Cert.,
Passport, License etc)
b. Pay Annual Registration Fee (ARF)
c. Tax type: Income Tax, VAT, Reg. Fee (RF)

29. C.
BOOKKEEPING AND INVOICING REQUIREMENTS:
d. Approval of Authority to Print (ATP) for the issuance of
registered principal receipts/invoices (except if qualified
under the substituted receipts)
e. Registration and maintenance of Books of Accounts

30. C.
TAX COMPLIANCE REQUIREMENTS:
f. Filing of Annual Income Tax Return (BIR Form 1701) and
payment, if applicable
g. Filing and payment of Quarterly Income Tax Return (BIR Form
1701Q)
h. Attaching Audited Financial Statements to the Filed Income
Tax Return.
* Cannot avail of 8% income tax rate
i. Subject to Creditable Withholding Tax Rates - 10%

31. C.
TAX COMPLIANCE REQUIREMENTS:
j. Subject to Withholding of VAT
-The government agency-payor is required to withhold:
Five percent (5%) final VAT withholding rate under Section
4.114-2 of RR 16-2005 as amended; or
Twelve percent (12%) VAT, if the payee will avail of the
substituted filing of VAT Return under RR 14-2003.
k. Filing and Payment of VAT, except if the payee availed of the
substituted VAT Return.

32. D.
REGISTRATION REQUIREMENTS:
a. register using BIR Form No. 1901 for TIN (Tax Identification
Number) and COR (Certificate of Registration )
• Copy of service contract showing the amount of income payment
• Checklist of requirements under Annex A1 of RMC 30-2018
b. Pay Annual Registration Fee (ARF)
c. Tax type: Income Tax, VAT or Percentage Tax, Reg. Fee (RF)

33. D.
Checklist of Requirements under
Annex A1 of RMC 30-2018
1. BIR Form 1901
2. Any identification issued by
authorized government body (e.g.
Birth Cert., passport, driver’s license,
Community Tax Certificate) that
shows the name, address and
birthdate of applicant
3. Photocopy of Mayor’s Business Permit
or Duly received Application for
Mayor/s Business Permit, if the
former is still in process with the LGU
and/or Professional Tax
Receipt/Occupational Tax Receipt
issued by the LGU or DTI Certificate
4. Proof of payment of Annual
Registration Fee
5. BIR Form 1906
6. Final and clear sample of principal
receipts/invoices

34. D.
Checklist of Requirements under
Annex A1 of RMC 30-2018
Additional Documents, if applicable:
1. SPA and ID of authorized person,
in case in case of representative
who will transact with the Bureau
2. Franchise documents (e.g.
Certificate of Public Convenience
– for common carrier)
3. Photocopy of Trust Agreement
(for trusts)
4. Photocopy of Death Certificate of
the Deceased (for Estate under
judicial settlement)
5. Certificate of Authority, if
Barangay Micro- Business
Enterprise (BMBE) registered
entity
6. Proof of Registration/Permit to
Operate BOI/BOI-ARMM, PEZA,
BCDA and SBMA

35. D.
BOOKKEEPING AND INVOICING REQUIREMENTS:
d. Approval of Authority to Print (ATP) for the issuance of
registered principal receipts/invoices
e. Registration and maintenance of Books of Accounts

36. D.
TAX COMPLIANCE REQUIREMENTS:
f. Filing of Annual Income Tax Return (BIR Form 1701) and
payment, if applicable
g. Filing and payment of Quarterly Income Tax Return (BIR Form
1701Q)
h. Attaching Financial Statements to the Filed Income Tax
Return, except if qualified and availed of the option to be taxed
at 8% income tax rate or Audited FS, if the gross sales/receipts
and other non-operating income of more than the VAT threshold;

37. D.
TAX COMPLIANCE REQUIREMENTS:
i. Subject to Creditable Withholding Tax Rates
Professional-
 Five Percent (5%)- if the payee’s gross income shall not exceed P 3,000,000.00 and
submits an Income Payee’s Sworn Declaration of his/her Gross Receipts/Sales
(ANNEX A2) to the income payor/withholding agent with a copy of COR
 Ten Percent (10%)- if the payee’s gross income shall exceed P 3,000,000.00 or VAT-
registered regardless of amount; or if failed to provide the income
payor/withholding agent of Income Payee’s Sworn Declaration of his/her Gross
Receipts/Sales;
For other supplier of services-
 Two Percent (2%) –if the payee submits an Income Payee’s Sworn Declaration of
his/her Gross Receipts/Sales to the income payor/withholding agent with a copy of
COR
 Ten Percent (10%)- if the payee’s gross income shall exceed P 3,000,000.00 or VAT-
registered regardless of amount;

38. D.
TAX COMPLIANCE REQUIREMENTS:
j. Subject to Creditable Withholding of Percentage Tax or VAT
-The government agency-payor is required to withhold:
 Three percent (3%) percentage tax under section 5.116(A)(1) of RR 2-98, as
amended, except if the payee is qualified and availed the option to be taxed at 8%
income tax rate; or
 or five percent (5%) final VAT withholding rate under Section 4.114-2 of RR 16-
2005 as amended.
k. Filing and Payment of VAT or
l. Percentage Tax except if qualified and availed of the option to be taxed
at 8% income tax rate.
m. Quarterly submission of Summary List of Sales and Summary List of
Purchases for VAT Taxpayers.

39. D.
TAX COMPLIANCE REQUIREMENTS:
n. Professionals and other supplier of services deriving gross receipts
above P 250,000.00 and not exceeding P 3,000,000.00 with MULTIPLE
PAYORS and/or OTHER SOURCE OF INCOME shall signify the intention to
elect the 8% income tax rate in filing of any of the following:
 BIR Form No. 1905 (application for registration information update) or filing of
1st Quarterly Income Tax Return or
 1st Quarterly Percentage Tax Return and 1st Quarterly Income Tax Return; or
 1st Quarterly Income Tax Return Only

40. or 2%**

42. *
 A certificate (BIR
Form 2303) will be
issued confirming
registration of
business
 COR must be
conspicuously
displayed in the
taxpayer's place of
business.

43. *Payment Form
BIR 0605 on Annual
Registration Fee
On or before January 31
ANNUAL REGISTRATION FEE

44. *
*QUARTERLY INCOME
TAX
*First Quarter (Jan-
Mar) -
May 15 (TRAIN Law)
*Second Quarter (Apr
– June) -
August 15
*Third Quarter (July
– Sept) -
Nov 15

45. *ANNUAL INCOME
TAX
- April 15
*

46.  Every 25th
day of the
following
month after
the end of
each
quarter

47. *To be issued to the
payee on or before
January 31 of the year
following the year in
which income payment
was made. However
upon request of the
payee the payor must
furnish such statement
to the payee
simultaneously with
the income payment
ALREADY SUSPENDED

48. *EWT- Should be
attached to
1701Q/1701
*Percentage Tax WT-
Should be attached to
2551Q
*VAT WT- Should be
attached to
2550M/2550Q

49. *Monthly VAT
*every 20th day of the
following month

50. *Quarterly VAT
*every 25th day of the
following month
after the end of the
quarter

51. Revenue Memorandum Circular (RMC) 28-2017 dtd 03.29.2017
1.Manual Filing
2.EFPS Facility
3.eBIR Form Package

52. Click the icon

53. Extract:

54. Choose destination folder:

55. Look for saved eBIRForms Package and click:

56. Click next:

57. Select destination folder:

58. Look for the eBIRForms icon on the destination folder
or on the start menu:

59.  Profile- input TIN, RDO Code, email
 Gross Receipts (page 5)
 Creditable Tax withheld (page 9)

60. *

61. Page 1

62. Page 1

63. PAGE 5

64. PAGE 9

65. PAGE 2
Page 2

66. Page 3

67. THANK YOU
FOR YOUR TIME