Quarterly Tax Estimate Worksheet

What's Included

A quarterly tax estimation worksheet covering the three main taxes Philippine SMEs file during the year:

1. Quarterly Income Tax (BIR Form 1701Q)

• Year-to-date gross income
• Deductible expenses (actual or OSD)
• Taxable income computation
• TRAIN Law tax bracket application
• Prior quarter tax payments
• Estimated tax due this quarter

2. VAT Estimate (BIR Form 2550Q)

• Output VAT from sales
• Input VAT from purchases
• VAT payable or creditable excess

3. Expanded Withholding Tax (BIR Form 1601-EQ)

• Summary of EWT withheld per ATC code
• Total remittable to BIR

Why Estimate Before Filing?

The BIR imposes surcharges and interest on late or underpaid taxes:

• 25% surcharge for late filing
• 50% surcharge if found deficient during audit
• 12% annual interest on the unpaid tax amount

By estimating your quarterly tax before the deadline, you can:

• Budget cash for the tax payment
• Catch errors in your books before they appear on a return
• Avoid surprise assessments during a BIR audit

Philippine Quarterly Filing Calendar

Quarter	Period	Income Tax Deadline
Q1	January–March	May 15
Q2	April–June	August 15
Q3	July–September	November 15
Q4 (Annual)	January–December	April 15 of next year

VAT and percentage tax are filed monthly or quarterly depending on your registration type.

OSD vs. Itemized Deductions

Self-employed individuals and corporations may choose:

• Itemized deductions: Actual allowable expenses backed by receipts and invoices
• Optional Standard Deduction (OSD): 40% of gross receipts or sales, no documentation required

The OSD is simpler but may result in higher tax if your actual expenses exceed 40% of revenue. This worksheet lets you compute both to see which results in lower tax.

How to Use

1. Enter your gross income and expenses per quarter (cumulative year-to-date).
2. The worksheet computes taxable income and tax due under each method.
3. Subtract prior quarter payments to get the net amount payable.
4. Transfer the amounts to your BIR eFPS or eBIRForms filing.