Updated for the CREATE-era rules and recent BIR issuances as of 2024. This is general information, not legal advice.

I. What an OPC Is (and Why It Matters for Taxes)

A One Person Corporation (OPC) is a stock corporation with a single shareholder created under the Revised Corporation Code (R.A. 11232). For tax purposes, an OPC is treated like any domestic corporation: it has its own taxpayer identity, registers with the Bureau of Internal Revenue (BIR), and bears the usual corporate filing duties (income tax, withholding, VAT or percentage tax, etc.). Unlike a sole proprietorship, an OPC files corporate returns (the 1702-series), and corporate rates and rules apply.

II. Registration & Start-Up Tax Compliance

A. SEC to BIR on-boarding

SEC Registration: Articles of Incorporation for an OPC with the single stockholder’s details, primary/secondary purpose, principal office, and fiscal year.
BIR Registration (Form 1903)
- Secure a Certificate of Registration (COR/”Form 2303”) showing the tax types you’re liable for (e.g., Income Tax, Withholding, VAT or Percentage Tax, Documentary Stamp Tax (DST), etc.).
- Books of Accounts: Register manual, loose-leaf, or computerized books.
- Invoicing/Receipting: Apply for Authority to Print (ATP) or use an accredited Computerized Accounting System (CAS) or POS/ERP; issue BIR-registered invoices/official receipts as applicable.
- Annual Registration Fee (ARF): No longer required beginning 2024 under latest BIR rules.
DST on Original Issue of Shares: Pay DST on the original issuance of shares (via BIR Form 2000-OT) in the month of issuance.
Local Permits: Mayor’s/Business Permit and LGU taxes (separate from national taxes).
Social Agencies (on hiring): SSS, PhilHealth, Pag-IBIG enrollment and payroll compliance.

Tip: Make sure the COR reflects the correct tax types (VAT vs. Percentage Tax) based on projected turnover.

III. Core Tax Types & Rates Applicable to OPCs

A. Corporate Income Tax (CIT)

20% on net taxable income if the OPC’s net taxable income does not exceed ₱5,000,000 and total assets do not exceed ₱100,000,000 (excluding land) at year-end.
25% otherwise.
Minimum Corporate Income Tax (MCIT): 2% of gross income (applies starting on the 4th taxable year following the year of commencement of business); creditable against normal income tax within three years.
Improperly Accumulated Earnings Tax (IAET): Repealed for domestic corporations under CREATE.

B. Value-Added Tax (VAT) vs. Percentage Tax

VAT (12%) if annual gross sales/receipts exceed the ₱3,000,000 threshold (or if the OPC voluntarily registers).
Percentage Tax (3%) (if non-VAT). The temporary 1% rate lapsed mid-2023; default is 3% thereafter.

C. Withholding Taxes

Compensation: withhold on employees’ salaries.
Expanded (EWT): withhold on certain purchases of services/rent/professional fees, etc.
Final: on payments subject to final withholding (e.g., certain interest, royalties).

D. Fringe Benefits Tax (FBT)

35% on the grossed-up monetary value of fringe benefits to managerial/supervisory employees.

E. Documentary Stamp Tax (DST)

Applies to specific instruments (e.g., original issue of shares, leases, debt instruments, etc.).

F. Other Corporate Rules That Often Affect Taxes

Net Operating Loss Carry-Over (NOLCO): generally three (3) years (with special, time-bound extensions having existed for pandemic years).
Related Party Disclosures/1709: File the BIR Related Party Transactions Form if applicable (e.g., with RPTs and audit thresholds).
eInvoicing/EIS: Mandatory only for specifically covered taxpayers (e.g., certain large taxpayers/exporters); an OPC may be required if later classified/covered.

IV. Filing Calendars, Forms, and Deadlines

Below is the standard calendar for non-eFPS taxpayers (eFPS filers use their assigned staggered deadlines). When a due date falls on a weekend/holiday, file on the next business day. Always check your COR for the tax types you are required to file.

A. Income Tax (1702-series for Corporations)

Quarterly Income Tax Return – BIR Form 1702Q Due: Within 60 days after the close of each taxable quarter. Attachments (typical): Quarterly financials; if with NOLCO/MCIT credits, supporting schedules.
Annual Income Tax Return – BIR Form 1702 (RT/MX/EX) Due: On or before the 15th day of the 4th month following the close of the taxable year (e.g., April 15 for calendar-year OPCs). Attachments (typical): AFS (audited if audit threshold met), Certificate of Tax Withheld (2307/2306), RPT Form 1709 (if applicable), and other schedules.

B. VAT or Percentage Tax

VAT Quarterly Return – BIR Form 2550Q Due: Within 25 days after the close of each taxable quarter. Usual add-ons: Quarterly Summary List of Sales/Purchases (if required), Schedule of zero-rated/exempt sales.
Percentage Tax Quarterly – BIR Form 2551Q Due: Within 25 days after the close of each taxable quarter.

C. Withholding Taxes

Monthly Remittance – BIR Forms 0619-E / 0619-F Due: On or before the 10th day of the following month (non-eFPS).
Quarterly Returns – BIR Forms 1601-EQ / 1601-FQ Due: Last day of the month following the close of the quarter.
Annual Information Returns
- 1604-C (Compensation) – with Alphalist of Employees: January 31 following year-end.
- 1604-F (Final Withholding) – with Alphalist of Payees: January 31 following year-end.
- Expanded withholding alphalists accompany the quarterly/annual filings as required.

D. Fringe Benefits Tax (if any)

FBT is part of the withholding on fringe benefits: remitted via the appropriate final withholding forms (monthly 0619-F; quarterly 1601-FQ; annual 1604-F).

E. Documentary Stamp Tax (DST)

BIR Form 2000/2000-OT Due: On or before the 5th day after the month when the taxable document/transaction occurred (monthly filing for aggregations within the month).

F. Other Recurring Submissions

SLSP/e-SALES/e-Submission: Submit if required (e.g., VAT SLSP; POS/e-Sales reports).
Books of Accounts: Keep updated and ready for presentation. For loose-leaf/CAS users, observe the separate permit and periodic submission rules for printouts/data storage.

V. Invoicing, Receipts, and Substantiation

Issue BIR-registered invoices/receipts for every sale/collection. The document type (invoice vs. official receipt) depends on the nature of the supply (goods vs. services) and the current BIR rules; many service providers now issue sales invoices as the primary document—confirm what your COR and ATP/CAS permit specify.
Mandatory Content: TIN with branch code, business name and address, serial numbers, date, description, quantity, unit price, VAT details (if VAT-registered), and the buyer’s information when required.
Input VAT Claims: Must be supported by valid VAT invoices and official receipts compliant with BIR requirements.
Creditable Withholding: Secure BIR Form 2307 from customers who withheld EWT so you can claim credits against your income tax due.

VI. Choosing VAT or Percentage Tax (and When to Opt In)

Threshold Test: If you expect to exceed ₱3,000,000 in any rolling 12-month period, register as VAT (or voluntarily opt in to VAT for input VAT recovery).
Non-VAT: Pay 3% percentage tax quarterly; you cannot claim input VAT, but pricing may be simpler for small OPCs selling primarily to non-VAT clients/consumers.
Change in Status: If you cross the threshold mid-year, update registration promptly; VAT liabilities apply from the point of breach/registration effectivity.

VII. Payroll & Employer Taxes

Enroll as a withholding agent upon hiring employees.
Remit compensation tax via 0619-E monthly and 1601-EQ quarterly; file the 1604-C with alphalist by January 31.
Minimum Wage, 13th month, and statutory deductions: Observe labor standards; SSS, PhilHealth, Pag-IBIG contributions are separate from BIR taxes and follow their own e-payment cycles and electronic reporting.

VIII. Financial Statements & Audit Touchpoints

Annual Financial Statements (AFS) accompany the corporate AITR and SEC filings. An external audit is required once statutory audit thresholds are met (revenue/asset levels or other triggers).
Tax Mapping/Compliance Checks: Keep your COR, books, ATP/CAS permits, invoices/receipts, and payroll files organized; deficiencies often arise from invoicing or withholding lapses rather than income tax computations.

IX. Common Planning Points for OPCs

Rate Qualification: Monitor the 20% small-corporation rate thresholds (net income and asset cap).
MCIT vs. Normal Income Tax: Forecast early; if MCIT is likely, manage cost of sales classification and gross income.
NOLCO Utilization: Track carryover periods; lapses are common.
Withholding Alignment: Ensure the correct EWT rates with suppliers and issue 2307 to your vendors when you are the withholding agent.
VAT Recovery: If your suppliers are VAT-heavy and customers are VAT-registered, VAT registration may be beneficial.
Related Parties: If you transact with your shareholder or affiliates, maintain transfer-pricing documentation and be ready to file Form 1709 if required.

X. Penalties and Surcharges (Avoidable with Good Calendar Discipline)

Surcharge: 25% (or 50% in cases of willful neglect/false return).
Interest: Legal interest rate per annum on any deficiency.
Compromise: Applies where allowed under BIR schedules.
Administrative Findings: From tax mapping (e.g., using unregistered invoices, failure to register books, non-display of COR).
Employee Withholding: Failure to withhold/remit can disallow expenses and trigger penalties.

XI. Clean Year-End Checklist (OPC)

Reconcile sales vs. issued invoices/ORs; tie to VAT/percentage returns.
Match 2307s/2306s to your books and AITR credits.
Assess MCIT exposure and NOLCO carryovers.
Prepare AFS (and audit if you meet thresholds).
Determine if Form 1709 (RPT) applies.
File 1702 annual on time with complete attachments.
Prepare 1604-C/1604-F and alphalists for January filings.
Review if your tax type registration (VAT vs. non-VAT) needs updating for the new year.

XII. Quick Reference: Key Forms & Due Dates

Tax Type	Form	Frequency	Standard Due Date
Corporate Income Tax (Quarterly)	1702Q	Quarterly	Within 60 days after each quarter-end
Corporate Income Tax (Annual)	1702-RT/MX/EX	Annual	15th day of the 4th month after year-end
VAT (if VAT-registered)	2550Q	Quarterly	25 days after quarter-end
Percentage Tax (if non-VAT)	2551Q	Quarterly	25 days after quarter-end
Withholding – Monthly Remittance (EWT/Final)	0619-E / 0619-F	Monthly	10th day of following month (non-eFPS)
Withholding – Quarterly (EWT/Final)	1601-EQ / 1601-FQ	Quarterly	Last day of month after quarter-end
Annual Info Return – Compensation	1604-C + Alphalist	Annual	Jan 31 following year-end
Annual Info Return – Final Withholding	1604-F + Alphalist	Annual	Jan 31 following year-end
Documentary Stamp Tax	2000 / 2000-OT	Monthly	On or before the 5th day following the month of transaction
DST on Original Share Issue	2000-OT	Monthly	Same as above (file in month of issuance)

eFPS filers follow staggered deadlines; always check your assigned eFPS group.

XIII. Practical Compliance Tips for OPCs

Lock a compliance calendar the day you receive your COR; map every return you’re enrolled in.
Standardize billing (correct document type, serials, VAT legends); most VAT and expense disallowances begin with documentation defects.
Automate withholding (vendor masterfile with EWT codes/rates).
Quarterly close discipline: reconcile SLs (AR/AP), 2307s, and VAT before the next deadline rolls in.
Keep permits current (books/CAS/ATP, LGU renewals).
Document related-party dealings contemporaneously.

Final Word

An OPC enjoys the simplicity of single ownership without escaping corporate tax discipline. If you set the tax types correctly at registration, maintain clean invoicing and books, and follow the quarterly-annual cadence above, OPC tax compliance becomes predictable—and far less costly—over time.