Jump to content


Photo

BIR Concerns


  • Please log in to reply
629 replies to this topic

#1 in_style

in_style

    **DA ULTIMATE**

  • Ambassador
  • 19371 posts
  • Location:Central Business District
  • Interests:reading... shopping... good conversations... feel good movies... playing with my mac...

Posted 08 June 2005 - 11:53 AM

i'm not sure if there is a thread about tax concerns (i looked and there seems to be none),
so i am opening this one. i hope there are members who either work for BIR or there
are finance people who are experts about the much controversial topic of taxes.

it's always in the news... vat, wht, e-vat, entertainment tax and all. once in awhile,
BIR comes out with news articles in the dailies explaining lengthily what these taxes are.
i personally wish the explanation is brought down to simple words that can be understood
by the common people. what are these taxes for? why does the rates keep on moving up?
more importantly, how do we compute these taxes? before, vat was computed as 10%
of the total amount. is it still the same? what about the entertainment tax? the people from
television and movies pay wht and entertainment tax?

i am opening this thread hoping that some good souls there can shed light to simple
tax questions that we have.

thanks.

#2 in_style

in_style

    **DA ULTIMATE**

  • Ambassador
  • 19371 posts
  • Location:Central Business District
  • Interests:reading... shopping... good conversations... feel good movies... playing with my mac...

Posted 08 June 2005 - 11:55 AM

my first question or request....

WHAT ARE THE DIFFERENT TAXES THAT IS BEING APPLIED
TO THE PEOPLE?

#3 Flamingbullet®

Flamingbullet®

    waktu!

  • (12) Mega Poster
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 16715 posts
  • Location:jan jan lang...

Posted 11 June 2005 - 02:30 PM

lahat na yata ng klaseng tax meron na.... haaaaay

#4 Wallstreet

Wallstreet

    Experienced

  • (03) Newbie
  • PipPipPip
  • 29 posts

Posted 13 June 2005 - 10:00 AM

exacto!

#5 jeckyl

jeckyl

    Looker

  • (03) Newbie
  • PipPipPipPipPip
  • 156 posts

Posted 29 June 2005 - 03:47 PM

Death and taxes are the two things certain in our life, according to B. Franklin. Our tax system is so much simpler than most others. While we have less than 300 articles, that of U.S. at one time had over 10,000.

The major tax is on income and the next big one, on the other hand is a tax on the consumption, VAT. Then, there are percentage taxes on various articles of commerce from fuel, beer, telephones, transport among others. Then there's the stamp tax on documents.

Taxes are paid here in self-assessment basis which means you do your own comp*tation of your own liability with the government reserving its right to audit you later. BIR is going towards advance collection of the tax due through withholding taxes. Withholding taxes may be final or creditable. For final withholding, no additional taxes need to be paid. While in case of creditable you may either add payment or even refund the taxes you have already paid.

That's not even all the taxes collected by BIR and yet it is not only the BIR that collects taxes, the Bureau of Customs, the local government units from the barangays to the big cities get to have their piece of the pie.

As in many other countries, most Filipinos resort to evasion in reducing tax liabilities but with the seemingly relentless efforts of the BIR and DOF against tax evasion and corruption, would be tax evaders should have a serious rethink.

#6 JhoyLkTian

JhoyLkTian

    Ocho8 Ocho8

  • (09) Manic Poster
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 3792 posts

Posted 01 July 2005 - 04:28 PM

Death and taxes are the two things certain in our life, according to B. Franklin. Our tax system is so much simpler than most others. While we have less than 300 articles, that of U.S. at one time had over 10,000.

The major tax is on income and the next big one,  on the other hand is a tax on the consumption, VAT. Then, there are percentage taxes on various articles of commerce from fuel, beer, telephones, transport among others. Then there's the stamp tax on documents.

Taxes are paid here in self-assessment basis which means you do your own comp*tation of your own  liability with the government reserving its right to audit you later. BIR is going towards advance collection of the tax due through withholding taxes. Withholding taxes may be final or creditable. For final withholding, no additional taxes need to be paid. While in case of creditable you may either add payment or even refund the taxes you have already paid.

That's not even all the taxes collected by BIR and yet it is not only the BIR that collects taxes, the Bureau of Customs, the local government units from the barangays to the big cities get to have their piece of the pie.

As in many other countries, most Filipinos resort to evasion in reducing tax liabilities but with the seemingly relentless efforts of the BIR and DOF against tax evasion and corruption, would be tax evaders should have a serious rethink.

<{POST_SNAPBACK}>


Yes I agree! But BIR and DOF should be more serious in their efforts and not only run after the low key persons but also the high profiles who have over the years been running away from their obligations.

To add on, we also have Transfer Taxes such as Estates and Donors Taxes. These are levied on the transfers of properties from one person to another. A person in this case may either be juridical or natural.


#7 centrino

centrino

    Lover

  • (07) Avid Member
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 1995 posts

Posted 16 July 2005 - 10:10 AM

Ako talagang naiiyak tuwing maikita ko kung gano kalaking tax ang kinakaltas sakin tuwing payroll. Tapos ang laging bukang bibig ngayon eh MASA MASA MASA!!! :grr: MASA na kahit singko eh hindi nagbababayad ng Tax!!! :grr: :grr:

Tapos kikikilan ka pa ng mga ganid na pulis at MMDA na Tax mo din ang nagpapasweldo :grr: :grr: :grr: Tax nang buhay 'to oh! :grr: :grr: :grr: :grr:

#8 shmilyso

shmilyso

    masungit na malupit!!!

  • (05) Regular
  • PipPipPipPipPipPipPip
  • 332 posts
  • Location:manila

Posted 18 July 2005 - 11:49 PM

grabe! ang hirap mag-negosyo...ang EWT now is 15% na, Expanded Withholding Tax ata...imagine mo gano kalaki ang binabayaran ng mga negosyante sa BIR...bukod sa EWT na 'to, meron pang VAT, monthly, quarterly at annual...anong pang matitira nyan...

#9 JhoyLkTian

JhoyLkTian

    Ocho8 Ocho8

  • (09) Manic Poster
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 3792 posts

Posted 19 July 2005 - 07:39 PM

grabe! ang hirap mag-negosyo...ang EWT now is 15% na, Expanded Withholding Tax ata...imagine mo gano kalaki ang binabayaran ng mga negosyante sa BIR...bukod sa EWT na 'to, meron pang VAT, monthly, quarterly at annual...anong pang matitira nyan...

<{POST_SNAPBACK}>


EWT of 15-% are for professionals whose annual income exceeds P720,000. EWT is an advance form of tax payment on the part of self-employed individuals, professionals, brokers, and corporations falling under certain categories.

#10 RollsRoyce

RollsRoyce

    Looker

  • (04) Casual
  • PipPipPipPipPip
  • 128 posts

Posted 22 July 2005 - 08:53 PM

True, baka wala talagang maiwan sa atin kung nagnenegosyo tayo. But let's look at the cummulative effect of taxes in our wages/bottom line:

(this is a very rough estimate)

Income taxes - 32% (which is being ammended to 35%) - gov't takes its cut before we ever get hold of it
VAT - 10% (whenever we buy goods/services, we actually pay it especially with EVAT)
Realty Taxes/ Licenses / Permits / etc. - say total from 5 to 8% of our salaries.

This means that we pay almost half of our salaries to taxes.... and yet we have no decent gov't service what so ever to talk about.

No wonder a lot of our kababayans are going to Canada eventhough taxes there are high. They see the results of the taxes.

but there is a way in avoiding taxes in the Philippines. You just have to look at the industries which are not that heavily taxed.

One is agriculture in its basic form. So there are a lot of fishpen owners, hog raisers, farmers etc. who get rich because taxes don't affect them that much.

Are there any other industries not affected?

#11 Fî$hKęŊ

Fî$hKęŊ

    TopAKen

  • (07) Avid Member
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 3969 posts
  • Gender:Male
  • Location:Equator

Posted 29 July 2005 - 04:50 AM

RollsRoyce, you got it right....


we pay taxes...wala naman tayo napapala...

#12 vent536

vent536

    malakas din kay BizMan!

  • (05) Regular
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 1645 posts
  • Interests:sex

Posted 29 July 2005 - 11:55 AM

True, baka wala talagang maiwan sa atin kung nagnenegosyo tayo. But let's look at the cummulative effect of taxes in our wages/bottom line:

(this is a very rough estimate)

Income taxes - 32% (which is being ammended to 35%) - gov't takes its cut before we ever get hold of  it
VAT              - 10% (whenever we buy goods/services, we actually pay it especially with EVAT)
Realty Taxes/ Licenses / Permits / etc. - say total from 5 to 8% of our salaries.

This means that we pay almost half of our salaries to taxes.... and yet we have no decent gov't service what so ever to talk about.

No wonder a lot of our kababayans are going to Canada eventhough taxes there are high. They see the results of the taxes.

but there is a way in avoiding taxes in the Philippines. You just have to look at the industries which are not that heavily taxed.

One is agriculture in its basic form. So there are a lot of fishpen owners, hog raisers, farmers etc. who get rich because taxes don't affect them that much.

Are there any other industries not affected?

<{POST_SNAPBACK}>


i agree on you... sa canada mataas ang mga taxes, at least they have free health care and other...

#13 shmilyso

shmilyso

    masungit na malupit!!!

  • (05) Regular
  • PipPipPipPipPipPipPip
  • 332 posts
  • Location:manila

Posted 31 July 2005 - 12:16 PM

EWT of 15-% are for professionals whose annual income exceeds P720,000. EWT is an advance form of tax payment on the part of self-employed individuals, professionals, brokers, and corporations falling under certain categories.

<{POST_SNAPBACK}>


question po ulit...ano ba itong annual income na 720,000, net or gross? what if hindi naman accurate ang kinikita namin every month...we are engage in management service, minsan walang kita, minsan naman meron pero kung average mo, mga less than 20t a month, profit sharing kse ng isang convenience store, we manage & all the expenses are deducted to us, sa kanila 60% lang ng electric bill & 100% ng rent.

thanks in advance :blush:

#14 gabriel64

gabriel64

    Chaser

  • (04) Casual
  • PipPipPipPip
  • 73 posts

Posted 02 August 2005 - 06:06 PM

Generally speaking, withholding taxes are like "advances" - i.e. they are collectible during the year and are intended to approximate the income tax of a person or corporation for that year. So, on April 15, when you file your ITR, you are supposed to indicate how much taxes were withheld from your income. If the taxes withheld from your income is higher than your income tax for the year, you are entitled to a refund. If the taxes withheld are less than the tax due, you have to pay the balance when you file the ITR.

Of course, getting a refund is difficult. You have to make sure your books are in order - you see, when you claim it, the BIR will audit you - so if you have loose ends, patay ka. However, refunds do happen - I know someone who has a tax credit certificate for P40,000,000.00 (fully transferrable).

If you work in a company, usually your accounting department takes care of the reporting. If you are a business owner, just make sure you get the Certificates of Creditable Tax Withheld at Source from your suppliers when they withhold from their payments to you. You will need to submit these to the BIR if you claim for a refund. You also have to attach these to your ITR.

#15 hemera

hemera

    Virgin

  • (02) Sinless
  • Pip
  • 10 posts

Posted 04 August 2005 - 02:29 AM

<_< Question ko lang about Meal allowances. Nagtataka lang ako kasi sa dati kong company, taxable cya dahil nga I computed yung nasa payslip ko. But then, they are also requiring us to submit a quarterly report which they submit to BIR. Hmmm...Di kaya nla submit ito as company expense as part of corporate expense? Is this legal? Or are we cheated? Kasi with my company before them and the company I work for now, Meal/Transpo allowance are NON-TAXABLE. I find it fishy na why do they have to make us submit a MATA report (which they submit to BIR) when they deducted the tax already..

#16 James Richard

James Richard

    TEAM KAPAMILYA- the No 1 & the Largest Tv Network in the Ph

  • (07) Avid Member
  • PipPipPipPipPipPipPipPipPipPipPipPipPipPipPip
  • 2138 posts
  • Location:Quezon City
  • Interests:internett surfing, taping/shooting tv/commercials ( esp po Kapamilya shows), singing, playing keyboard, watching dvd, like shooting laughable scenes on my videocam, travelling alot- bora, puerto, baguio, fuga island, pag may pera sa Hongkong.. ( astig ang Ocean Park) swimming, wall climbing, GOTCHA...

Posted 04 August 2005 - 07:33 AM

Hey peeps, gusto ko lang inform you and especially ppl form BIR QC area na ang BURGER MACHINE ay HINDI NAGBIIGAY NG RECIBO pagkatapos mong kumain. Pag hihingi ka ng receipts sasabihin nila naubos na. Dati kumakain ako don pero ngayon hindi ko na patronize ang BURGER MACHINE kc nga malamang TAX EVADER ito...


PAGING BIR PEEPS FROM QC, PLS INVESTIGATE BURGER MACHINE ( near SM Fairviev, Delacosa branch ) :evil:

#17 gabriel64

gabriel64

    Chaser

  • (04) Casual
  • PipPipPipPip
  • 73 posts

Posted 04 August 2005 - 09:10 AM

<_< Question ko lang about Meal allowances. Nagtataka lang ako kasi sa dati kong company, taxable cya dahil nga I computed yung nasa payslip ko. But then, they are also requiring us to submit a quarterly report which they submit to BIR. Hmmm...Di kaya nla submit ito as company expense as part of corporate expense? Is this legal? Or are we cheated? Kasi with my company before them and the company I work for now, Meal/Transpo allowance are NON-TAXABLE. I find it fishy na why do they have to make us submit a MATA report (which they submit to BIR) when they deducted the tax already..

<{POST_SNAPBACK}>



It is legal to deduct salaries and wages as part of corporate expenses. What is important for the company is that the expense is substantiated by documents - probably this is the reason why they require you to submit a quarterly report.

FYI: 13th month pay and other benefits (e.g. x'mas bonus, meal allowance, etc.) are excluded from gross income before computing your taxes (meaning, hindi sila taxed). Pero, may maximum limit ito, hanggang 30,000 lang. So, if your total beneifts exceed 30,000, the excess will be considered as part of your salary when computing your yearly income.

Regardless of whether your benefits are taxable or not - pwedeng i-deduct 'yan as part of company expenses.

#18 shmilyso

shmilyso

    masungit na malupit!!!

  • (05) Regular
  • PipPipPipPipPipPipPip
  • 332 posts
  • Location:manila

Posted 05 August 2005 - 10:59 PM

question ko lang...we are engage in a manangement service agreement sa isang convenience store, so monthly management fee namin binabawasan nila ng 15% EWT pero wala silang binibigay na Certficate o resibo from BIR na binabayad nga nila ung tax namin, we are engage in this company for 8 months pero until now walang proof ng EWT namin...despite of repeated requests and complains di nila kme ma-provide ng ewt payment form...ano kaya ang magandang gawin?

tnx :)


#19 gabriel64

gabriel64

    Chaser

  • (04) Casual
  • PipPipPipPip
  • 73 posts

Posted 09 August 2005 - 06:31 PM

question ko lang...we are engage in a manangement service agreement sa isang convenience store, so monthly management fee namin binabawasan nila ng 15% EWT  pero wala silang binibigay na Certficate o resibo from BIR na binabayad nga nila ung tax namin, we are engage in this company for 8 months pero until now walang proof ng EWT namin...despite of repeated requests and complains di nila kme ma-provide ng ewt payment form...ano kaya ang magandang gawin?

tnx  :)

<{POST_SNAPBACK}>



Under the BIR regulations, the person withholding taxes (payor) is required to furnish the receipient of the payment (payee) with the withholding tax statement (BIR Form 2307). In fact, upon request of the payee, the payor must give the withholding tax statement simultaneously with payment.

(BIR Revenue Regulations 2-98 as amended, Section 2.58 (B))

The withholding tax statements are monthly statements, btw.

If the payor refuses to furnish you with the statements, he can be subjected to mandatory audit by the BIR for all his income tax liabilities. To do this, you can report the payor to the BIR through a verified complaint (i.e. sworn/notarized complaint).

So, you can threaten to report him to the BIR, and say that the penalty is the mandatory audit of his (payor's) books.


Of course - this might ruin your relationship with the owners of the convenience store.

In the meantime, you should require the payor to furnish you with the withholding tax statement when they pay you.

#20 butirog

butirog

    Everyday Is A POPI day!

  • (05) Regular
  • PipPipPipPipPipPip
  • 256 posts
  • Location:Philippines

Posted 10 August 2005 - 08:06 AM

Sweldo ko napunta na lahat sa taxes,
and mga corrupt na government officials lang ang nakikinabang.

:thumbsupsmiley:




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users