BIR Tax Glossary: 50 BIR Terms Every Filipino Taxpayer Should Know
If you have ever read a BIR notice and felt like it was written in a different language, this BIR terms glossary Philippines guide is for you. The BIR terms glossary Philippines taxpayers need most covers everything from basic acronyms like TIN and COR to more specific concepts like EWT, alphalist, and substituted filing. Here is the thing: you do not need to be an accountant to understand how your taxes work. You just need someone to explain the BIR jargon explained Philippines style, in plain and friendly language. That is exactly what this glossary does.
Quick Answer: This BIR terms glossary Philippines covers 50 of the most common tax terms Filipino freelancers, online sellers, and small business owners encounter. Each definition is written in plain language with a practical example where helpful, so you can understand your BIR obligations without needing a CPA to translate every letter.
Table of Contents
- Registration and Identity Terms
- Tax Types and Rates
- Forms and Filing Terms
- Withholding Tax Terms
- VAT and Sales Tax Terms
- Compliance and Audit Terms
- Payment and Penalty Terms
- Quick Reference Deadlines Table
- How to Pay BIR Taxes via GCash
- Real Example: Paolo from Iloilo City
- Common Mistakes from Misunderstood Terms
- Final Thoughts
- Frequently Asked Questions
Registration and Identity Terms
These are the terms you encounter first, usually when registering your business or updating your tax status with the Bureau of Internal Revenue (BIR).
TIN (Tax Identification Number) — Your unique nine-digit number assigned by the BIR. Every registered taxpayer in the Philippines has one. You use it on every tax return, official receipt, and BIR form you file. You can only have one TIN for life.
RDO (Revenue District Office) — Your assigned local BIR office based on your home or business address. Your RDO handles your registration, updates, and in some cases your audits. You file based on your TIN’s assigned RDO, not the nearest BIR branch.
COR (Certificate of Registration) — Also called BIR Form 2303. This is your official proof of BIR registration. It lists your registered tax types, your RDO code, your TIN, and your registered business name. You need it to issue official receipts and to prove you are a registered taxpayer.
ARF (Annual Registration Fee) — The ₱500 fee every registered taxpayer pays to the BIR every year by January 31. You pay it using BIR Form 0605. Paying late triggers a ₱1,000 penalty plus interest.
RDO Code — The three-digit number identifying your specific Revenue District Office. You need this when paying taxes through GCash, Maya, or the BIR online payment portal.
BIR Form 1901 — The registration form for self-employed individuals, sole proprietors, and mixed-income earners. You fill this out when you register your business at your RDO for the first time.
BIR Form 1903 — The registration form for corporations, partnerships, and associations. If you register a company rather than a sole proprietorship, this is the form you use.
Books of Accounts — Your required business record books, including at minimum a General Journal and General Ledger. You must register these with your RDO before first use. The BIR requires you to keep them for ten years.
Official Receipt (OR) — A BIR-registered document you issue to customers when they pay for your services. For sellers of goods, the equivalent is a Sales Invoice. Handwritten or unregistered receipts do not count.
Accredited Printer — A BIR-approved printing company that produces your official receipts and sales invoices. You cannot print your own receipts without BIR accreditation.
Tax Types and Rates
Understanding which tax applies to you is one of the most important parts of the tax terms Filipino taxpayers need to know.
Income Tax — The tax you pay on your net income or gross receipts, depending on your chosen method. Self-employed individuals can choose between the graduated rate (0% to 35%) or the 8% flat rate on gross receipts.
8% Flat Rate — A simplified income tax option for self-employed individuals and professionals with annual gross receipts at or below ₱3,000,000. You pay 8% of gross receipts minus ₱250,000. No expense deductions are allowed under this method.
Graduated Income Tax — The standard income tax table with rates from 0% to 35% based on your net taxable income. Under this method, you can deduct allowable business expenses from your gross income before computing your tax.
Percentage Tax — A 3% tax on your gross quarterly receipts paid by non-VAT registered taxpayers. Filed using BIR Form 2551Q. If you chose the 8% flat rate, you are exempt from percentage tax.
VAT (Value Added Tax) — A 12% tax on the sale of goods and services charged by VAT-registered businesses. Once your annual gross receipts reach ₱3,000,000, you are required to register for VAT.
Corporate Income Tax (CIT) — The income tax paid by corporations. The rate is 25% for large corporations and 20% for qualifying small businesses with net taxable income not exceeding ₱5,000,000 and total assets not exceeding ₱100,000,000.
OSD (Optional Standard Deduction) — An alternative to itemized deductions under the graduated rate. OSD lets you deduct 40% of your gross sales or receipts without needing receipts to prove individual expenses. Simpler, but sometimes higher than actual expenses.
Forms and Filing Terms
These are the forms and processes you deal with every quarter and every April. Knowing which is which saves you from filing the wrong return.
BIR Form 1701Q — Quarterly Income Tax Return for self-employed individuals, professionals, and sole proprietors. Filed three times a year: May 15, August 15, and November 15.
BIR Form 1701A — Annual Income Tax Return for individuals earning purely from business or profession, using either the 8% flat rate or OSD. Filed by April 15 every year.
BIR Form 1701 — Annual Income Tax Return for individuals with mixed income (both employment and business income) or those using itemized deductions. Also filed by April 15.
BIR Form 2551Q — Quarterly Percentage Tax Return for non-VAT registered taxpayers not using the 8% flat rate. Due on the 25th day after each quarter ends.
BIR Form 0605 — Payment form used for the Annual Registration Fee and other BIR payments that do not have a dedicated return form. Used every January 31 for the ₱500 ARF.
eBIRForms — Free BIR software for filing tax returns offline. You fill in your return, submit it electronically to the BIR system, then pay separately through GCash, a bank, or the BIR online payment portal. Download it from the BIR eBIRForms page.
eFPS (Electronic Filing and Payment System) — The BIR’s online system for filing and paying taxes simultaneously. Required for large taxpayers and available to others. Different from eBIRForms, which only handles filing.
Substituted Filing — A system where qualified employees do not need to file their own Annual ITR because their employer does it on their behalf through BIR Form 2316. Not available to self-employed individuals or those with multiple employers.
Amended Return — A corrected version of a previously filed tax return. You file an amended return when you discover an error in your original return. Voluntary amendment before a BIR notice typically results in lower penalties.
Withholding Tax Terms
Withholding tax is one of the most misunderstood areas of BIR jargon explained Philippines side. Here is what each term actually means.
EWT (Expanded Withholding Tax) — Also called Creditable Withholding Tax (CWT). A portion of your professional fee or service payment that your client deducts and remits to the BIR on your behalf before paying you. Common rates are 5% or 10% depending on your income type.
BIR Form 2307 — The certificate your client gives you proving they withheld EWT on payments to you. You collect these throughout the year and use them as tax credits when filing your annual return. Never lose your 2307 certificates.
FWT (Final Withholding Tax) — A withholding tax that fully settles the tax obligation on certain types of income. Unlike EWT, FWT is not a credit against your income tax. It is the final tax on that specific payment. Examples include interest income from bank deposits.
WTC (Withholding Tax on Compensation) — The tax your employer deducts from your monthly salary and remits to the BIR on your behalf. If you are purely employed, this is the main tax withheld from your paycheck.
BIR Form 2316 — The Certificate of Compensation Payment and Tax Withheld. Your employer issues this to you every year, showing your total compensation and total withholding tax for the year. Employees who qualify for substituted filing use this as their annual tax return substitute.
Tax Credit — An amount that reduces your tax due directly. EWT credits from Form 2307 and quarterly income tax payments both function as credits against your annual income tax.
VAT and Sales Tax Terms
Output VAT — The 12% VAT you collect from your customers on your sales. This is a liability you hold temporarily until you remit it to the BIR.
Input VAT — The 12% VAT you paid on your business purchases from VAT-registered suppliers. You can deduct input VAT from your output VAT to compute your net VAT payable.
VAT Payable — Output VAT minus input VAT. If you collected ₱120,000 in output VAT and paid ₱85,000 in input VAT, your VAT payable is ₱35,000.
VAT-Exempt — Certain goods and services are exempt from VAT under Philippine law, including some agricultural products, educational services, and health services. VAT-exempt businesses do not charge VAT and cannot claim input VAT credits.
Zero-Rated VAT — Sales subject to 0% VAT, typically exports and services rendered to non-residents. Zero-rated sellers still file VAT returns and can still claim input VAT credits, unlike VAT-exempt sellers.
BIR Form 2550Q — Quarterly VAT Return filed by VAT-registered businesses. Due on the 25th day after each quarter ends.
Compliance and Audit Terms
LOA (Letter of Authority) — An official BIR document authorizing a revenue officer to examine your books and records for a specific taxable year. If you receive an LOA, you are being audited. Do not ignore it.
PAN (Preliminary Assessment Notice) — A BIR notice telling you that after examining your records, they believe you owe additional taxes. You have 15 days to respond before a formal assessment is issued.
FAN (Final Assessment Notice) — The formal BIR demand for payment of assessed taxes, penalties, and interest. This is more serious than a PAN and triggers the official assessment process.
Alphalist — A list submitted by employers to the BIR showing all employees, their compensation, and the withholding taxes deducted from each. Filed alongside BIR Form 1604C annually.
BIR Form 1604C — Annual Information Return of Income Taxes Withheld on Compensation. Filed by employers to report their full payroll withholding for the year.
Taxpayer Classification — The BIR category your business falls under: Large Taxpayer, non-Large Taxpayer, or individuals. Large Taxpayers have additional filing requirements and are handled by a dedicated BIR office.
CAS (Computerized Accounting System) — An accounting system accredited by the BIR. Businesses using computerized bookkeeping must apply for CAS accreditation at their RDO before the system can be used for official records.
POS (Point of Sale) Permit — The BIR permit required before you can use an electronic cash register or POS system for sales recording. Unaccredited POS systems are a BIR violation.
Payment and Penalty Terms
Tax Due — The total amount of tax you owe for a specific period before any credits or payments are applied.
Tax Payable — Tax due minus any tax credits (quarterly payments, EWT credits). This is the actual amount you pay when you file.
Surcharge — A penalty added to unpaid taxes for late filing or late payment. The standard surcharge is 25% of the tax due. Willful neglect or fraudulent returns can trigger a 50% surcharge.
Interest — An additional charge on unpaid taxes computed at 12% per year from the deadline until full payment. Interest accrues daily on the unpaid balance.
Compromise Penalty — A fixed penalty for specific BIR violations, such as failure to keep books of accounts or failure to file a return. The amount varies by violation type and is separate from surcharges and interest.
Tax Refund — Money returned to you when your total tax payments (quarterly payments plus EWT credits) exceed your actual annual tax due. You can also choose to carry the overpayment forward as a credit to the following year.
Tax Amnesty — A program that allows taxpayers to settle past unpaid taxes at a reduced rate or with waived penalties for a limited period. The BIR periodically announces tax amnesty programs through Revenue Regulations.
Return Period — The specific period covered by a tax return. For Q1 percentage tax, the return period is January 1 to March 31, entered as 03-31 when paying through GCash or the BIR portal.
Authorized Agent Bank (AAB) — A bank accredited by the BIR to accept tax payments. You can pay your BIR taxes at any AAB branch. Common AABs include BDO, BPI, Metrobank, and UnionBank.
Tax Type Code — A code used when paying taxes through GCash or the BIR payment portal to identify the type of tax being paid. Common codes: IT (Income Tax), PT (Percentage Tax), VT (VAT), RF (Registration Fee).
Quick Reference Deadlines Table
| Form | What It Covers | Deadline |
|---|---|---|
| BIR Form 0605 | Annual Registration Fee (₱500) | January 31 every year |
| BIR Form 2551Q | Quarterly Percentage Tax | 25th day after quarter ends |
| BIR Form 1701Q | Quarterly Income Tax | May 15, August 15, November 15 |
| BIR Form 1701A | Annual ITR (8% or OSD filers) | April 15 every year |
| BIR Form 1701 | Annual ITR (itemized deductions or mixed income) | April 15 every year |
| BIR Form 2550Q | Quarterly VAT Return | 25th day after quarter ends |
Verify all deadlines at the BIR official website before filing. The BIR may adjust dates through Revenue Memorandum Circulars, especially when deadlines fall on holidays.
How to Pay BIR Taxes via GCash
Now that you know what each term means, here is how to put that knowledge to use when paying your taxes through GCash.
- Open GCash and tap “Pay Bills” on the home screen.
- Tap “Government” and select “Bureau of Internal Revenue,” or search “BIR.”
- Enter your TIN (Tax Identification Number) exactly as registered at your RDO.
- Select the correct form number. For the ARF, use 0605. For percentage tax, use 2551Q. For quarterly income tax, use 1701Q.
- Enter the correct tax type code. PT for percentage tax, IT for income tax, RF for registration fee, VT for VAT.
- Enter the return period in MM-DD-YYYY format. For Q1, the last day is 03-31 of the relevant year.
- Enter the exact amount due from your filed return. For example, if your Q1 percentage tax is ₱7,200, enter ₱7,200.
- Review all fields, confirm, and screenshot your receipt immediately as proof of payment.
You can also use the BIR online payment portal for debit card, credit card, or online banking payments.
Real Example: Paolo from Iloilo City
Paolo is a freelance architect from Iloilo City earning around ₱65,000 per month from project fees. When he first registered with the BIR, he was confused by most of the terms on his Certificate of Registration. He did not know what his RDO code was for, could not find where his TIN Branch Code appeared, and was not sure whether he needed to file Form 2551Q or Form 1701Q first.
After reading through a BIR terms glossary Philippines guide, he understood that his COR listed all the tax types he was registered for, his RDO code was needed every time he paid through GCash, and as an 8% flat rate filer he only needed to file 1701Q quarterly, not 2551Q.
His annual gross receipts are ₱780,000. Under the 8% flat rate his annual tax is ₱42,400 (8% of ₱530,000 after the ₱250,000 deduction). He divides that across three quarterly 1701Q payments of about ₱10,400 each, with the remaining balance settled on his annual return due April 15. Understanding the tax terms Filipino taxpayers use every quarter made his filing routine clear and predictable from the start.
Common Mistakes from Misunderstood Terms
- Confusing eBIRForms with eFPS. eBIRForms is offline filing software that requires a separate payment step. eFPS is an online system that handles filing and payment together. Large taxpayers enrolled in eFPS cannot use eBIRForms. Make sure you know which system applies to you.
- Treating EWT deductions as income lost. Your client deducts EWT from your payment, but that amount is a credit against your income tax, not money gone. Collect your Form 2307 certificates and use them to reduce your annual tax bill.
- Filing 2551Q while on the 8% flat rate. The 8% option already covers percentage tax. If you chose 8%, you do not file 2551Q. Filing it anyway creates a payment history the BIR may treat as a separate obligation.
- Using the wrong return period when paying through GCash. The return period is the last day of the quarter or year being paid, not the filing deadline. Q3 2026 ends September 30, 2026. Enter 09-30-2026, not 10-25-2026.
- Ignoring BIR Form 2307 certificates from clients. Some freelancers do not realize their clients are withholding EWT on their payments. If your client withheld 10% and you have the Form 2307 to prove it, that reduces what you owe at filing time. Always request these certificates.
For the full list of forms and when to use each one, see our BIR forms guide. To check whether you are meeting all your obligations as a registered taxpayer, use our BIR compliance checklist.
Final Thoughts
This BIR terms glossary Philippines covers the 50 most important tax terms Filipino taxpayers encounter when registering, filing, and paying their taxes. Once you know what TIN, RDO, COR, EWT, and alphalist actually mean, BIR documents stop feeling like a foreign language and start making practical sense. The BIR jargon explained Philippines style in this guide applies whether you are a freelancer filing your first quarterly return, an online seller trying to understand your receipt requirements, or a small business owner navigating an LOA for the first time. Tax terms Filipino taxpayers need to know are not complicated once someone explains them without the bureaucratic wrapper. BB is available 24/7 in English and Filipino to answer any question about a specific term or how it applies to your situation. Understanding your taxes is the first step to managing them with confidence.
Frequently Asked Questions
- What does TIN stand for in BIR Philippines?
- TIN stands for Tax Identification Number. It is your unique nine-digit number assigned by the BIR when you first register as a taxpayer, whether as an employee, self-employed individual, or business entity. Your TIN stays with you for life and is used on every tax return, official receipt, and BIR transaction you make. You can only have one TIN. Having multiple TINs is a violation of BIR regulations.
- What is the difference between RDO and BIR main office?
- The BIR main office, also called the National Office, handles national-level policy, large taxpayer accounts, and administrative matters. Your RDO, or Revenue District Office, is your local BIR branch assigned based on your home or business address. Your RDO handles your registration, updates to your Certificate of Registration, books of accounts stamping, and in many cases your audits and compliance checks. When you need to transact with the BIR for personal or small business matters, you go to your assigned RDO, not the national office.
- What does COR mean in BIR registration?
- COR stands for Certificate of Registration, also known as BIR Form 2303. It is the official document the BIR issues after you complete your registration. Your COR lists your TIN, your registered business name, your RDO code, your registered address, and the specific tax types you are registered for (such as income tax, percentage tax, or VAT). You must display your COR at your place of business and present it when requested. You need your COR details every time you issue official receipts or pay taxes through GCash or a bank.
- What is the meaning of EWT in BIR Philippines?
- EWT stands for Expanded Withholding Tax, also called Creditable Withholding Tax (CWT). It is a portion of your professional or service fee that your client deducts and remits to the BIR on your behalf before paying you. Common EWT rates for professionals and freelancers are 5% or 10% depending on your income type. Your client gives you a BIR Form 2307 certificate as proof of the EWT deducted. You use these certificates as tax credits against your income tax when you file your quarterly and annual returns, reducing the amount you personally owe.
- What is an alphalist in BIR Philippines?
- An alphalist is a list submitted by employers to the BIR that contains the names of all employees, their total compensation for the year, and the total withholding taxes deducted from each employee. It is submitted alongside BIR Form 1604C, the Annual Information Return of Income Taxes Withheld on Compensation. The BIR uses the alphalist to cross-reference what employers report against what individual employees declare on their own returns. Employers are required to submit the alphalist annually, and the deadline is typically in January of the following year. Verify the exact current deadline with the BIR website or ask BB.
Still have questions? Chat with BB for free. BB is our AI tax assistant available 24 hours a day in English and Filipino. Just click the green BB button at the bottom right of this page.
Disclaimer: This guide is for informational purposes only and does not constitute legal or accounting advice. For complex tax situations, consult a licensed CPA.