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#41 in_style

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Posted 26 August 2005 - 01:17 AM

Your welcome  :)  moderator-sensei.

I think your avatar and signature are cool btw.

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thanks! :blush:

m paying my income tax on the 3rd quarter.
wasnt able to meet the 2nd quarter deadline.

my accountant said their is a type in income tax
where you show various receipts/expenses.
i was just wondering, what kind of receipts are
acceptable to BIR?

thanks, bro! ;)

#42 gabriel64

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Posted 26 August 2005 - 06:25 PM

thanks!  :blush:

m paying my income tax on the 3rd quarter.
wasnt able to meet the 2nd quarter deadline.

my accountant said their is a type in income tax
where you show various receipts/expenses. 
i was just wondering, what kind of receipts are
acceptable to BIR?

thanks, bro!  ;)

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If its your personal income tax - that usually means expenses for business. Did your accountant say what this is for?

Anyway, you need official receipts - not cash vouchers or acknowledgement receipts - ORs. If the receipt has the TIN of the establishment plus the address, that's usually good enough.

If you are using the receipts for proving your input VAT - it has to be a VAT receipt.

Also, the BIR prefers the receipts that have "BIR authority to print" - or something like that printed on the receipt.

#43 don_cruzer

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Posted 30 August 2005 - 11:35 AM

Question - Witholding Tax On Leaves Encashments, why? Technically, you've paid the taxes during the months you earned your SL or VL so why is it when you encash, it gets taxed again?

#44 gabriel64

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Posted 30 August 2005 - 04:25 PM

Question - Witholding Tax On Leaves Encashments, why? Technically, you've paid the taxes during the months you earned your SL or VL so why is it when you encash, it gets taxed again?

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I am assuming based on your statement that you are a salaried employee and are just earning compensation income.

While you are taxed for a period of time (e.g. for your yearly income tax) the basis of the tax is your income. So, if you encash your SL and VL - it comes out like additional income subject to tax.

However, withholding taxes are just advances on your yearly income tax based on your salary for the year. Ideally, your income tax due for the year should equal all the withholding taxes remitted during the year. If not, you will either pay the excess or be entitled to a refund - depending on whether the withholding taxes remitted are less or more than the tax due on your Income Tax Return.


Also, the reason why companies are so diligent in withholding taxes is that VL and SL encashments like yours are classified in the company's ITR as "expenses". However, the BIR will not allow a deduction for an expense if: (1) the expense is not supported by a receipt or other document and (2) if the withholding taxes on the expense were not remitted and paid.


You should clarify with your HR to see if the VL and SL days are already computed in determining your daily rate.

#45 in_style

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Posted 01 September 2005 - 02:22 AM

If its your personal income tax - that usually means expenses for business.  Did your accountant say what this is for?

Anyway, you need official receipts - not cash vouchers or acknowledgement receipts - ORs.  If the receipt has the TIN of the establishment plus the address, that's usually good enough.

If you are using the receipts for proving your input VAT - it has to be a VAT receipt.

Also, the BIR prefers the receipts that have "BIR authority to print" - or something like that printed on the receipt.

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thanks for the reply, gabriel.

big help! at least now i will be more detailed
when i ask receipts. at the moment, i am just
keeping all my receipts, my accountant will
take care of sorting which ones are adaptable
and which ones go to waste.

super thanks, again.

#46 don_cruzer

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Posted 02 September 2005 - 10:41 AM

Thanks Gabriel,

Income is Income and there's just no escaping the tax man. I just hope they use it properly, it takes hard work (blood, sweat, tears) to earn that income tax for them.

Am just thinking of going to the basics, if I'm sick or in need of a vacation, i'll use it. If not, its extra cash for me and big brother.

#47 Guest_kicx_*

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Posted 02 September 2005 - 04:17 PM

i heard that bir are now only accepting 70% of the total input vat as your input vat? remaining 30% you can claim the year after. so on and so forth.

malabo ba? ako rin kasi nalalabuan sa bagong policy ng bir. so is this true?

#48 in_style

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Posted 03 September 2005 - 01:27 AM

Income is Income and there's just no escaping the tax man. I just hope they use it properly, it takes hard work (blood, sweat, tears) to earn that income tax for them.

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i second and third the motion!
its just but right that we see the fruits of our labor!

#49 redax

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Posted 04 September 2005 - 06:43 AM

After liquidation of a corporation, would the real property distributed to its shareholders as their share in the assets of the corporation be considered as capital assets of the shareholders if the shareholders getting the real property sell it right away?

#50 j_s_j99

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Posted 06 September 2005 - 03:11 AM

i have one house which i want to rent it out. Do I need to get business permit and print official receipt or a contract of lease will suffice?

thanks

jj

#51 j_s_j99

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Posted 06 September 2005 - 03:19 AM

i have one house which i want to rent it out. Do I need to get business permit and print official receipt or a contract of lease will suffice?

thanks

jj

#52 kalboako

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Posted 08 September 2005 - 06:35 PM

question po regarding withholding tax ng employee na hindi niremit ng employer for a year...
san po puede idulog toh ng anonymity?? kasi i just found out na etong punyetang kumpanya kong pinagtatrabahuan eh hindi niremit yung witholding tax namin last year pero kinakaltas samin yun every payday, eto pa ang masaklap, yung accountant namin na nagresign last june eh sinabi samin na nag file daw etong mga gunggong kong boss ng stop operation, PUEDE ba YUN!! :grr: :grr:
help naman po kung san pwede isumbong to pero anonymity lang ang source... baka kasi matanggal ako pag nalaman eh... :hypocritesmiley: :hypocritesmiley:

#53 in_style

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Posted 13 September 2005 - 05:32 PM

hope someone can answer my questions:

1. WHAT ARE THE STUFF COVERED BY E-VAT?

2. WITH E-VAT BEING IMPLEMENTED, HOW DO YOU
THEN COMPUTE THE TOTAL AMOUNT OF THE MERCHANDISE
OR SERVICE?

big thanks po.

#54 jackl

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Posted 15 September 2005 - 02:49 PM

kalboako - you can earn a few bucks by squealing on your tax evading employer by collecting enough documents as evidence and attachment to an affidavit to be filed with BIR Law Division, National Office. If your anonymous report (BIR is legally bound to protect your identity) results into a tax collection (possibly with criminal conviction) BIR will give you 15% of the collection or P 1 million whichever is lower.

in style - bir.gov.ph can be a good start to learn tax laws and issuances.
VAT applies to all sales of goods and services in the the regular course of business except those expressly exempted under Sec 109 of the Tax Code.

As to the comp*tation of VAT under the new law, the BIR people are as confused as most taxpayers. They came up with an implementing rules but before even implementing is now ready with another one correcting the the first.

Malabo talaga ang tax system sa Pilipinas, kaya iilan lang ang nagbabayad ng tamang tax at sila pa malimit ang iniibestigahan. Sabi nga ng World Bank tayo na ang may isa sa pinakamabigat na tax burden (mga 47%) ngunit tayo rin ang may pinakamababang tax effort (tax collection as a percentage of GDP).

Dapat talaga ibaba at pasimplehan ang sistema ng sa gayon ay maging madali, hassle free, maliwanag at sigurado ang babayaran mong tax. Maganda ito para sa taxpayers (di na makikipagtalo sa BIR) at gobyerno (mas murang cost of collection at madaling mahuli ang tax evaders)

#55 jackl

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Posted 15 September 2005 - 03:05 PM

After liquidation of a corporation, would the real property distributed to its shareholders as their share in the assets of the corporation be considered as capital assets of the shareholders if the shareholders getting the real property sell it right away?

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Mostly likely yes, since liquidating dividends whether in the form of personal or real property since this is just a conversion of one form of capital asset (shares of stocks) to another. However, even if it is recorded as capital asset in the receiving shareholder's book if it the shareholder immediately dispose of the same there is no guarantee that any gain derived from it will be subjected to capital gains tax on sale of real property. BIR will consider the following in determining what tax will apply: 1. type of taxpayer, business of taxpayer and whether or not the real property is being leased.

#56 jackl

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Posted 15 September 2005 - 03:35 PM

i have  one house which i want to rent it out. Do I need to get business permit and print official receipt or a contract of lease will  suffice?

thanks

jj

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As mentioned in today's papers a WB report said that RP is one of the least business friendly countries in Asia with so many steps and documents you need before finally being allowed to operate. This explains why we have such a huge underground or informal economy.

However, to start as even a simple business of renting a single unit residential property you must first start with the Barangay for the clearance - there you will be required to submit proof of ownership and authorization if you will be represented. Then armed with the Barangay clearance you will need to get Mayor's/business permit - this will be issued only after getting a Community Tax Certificate, payment of numerous inspection fees, fire department inspection and fees, insurance, among others. Then you go to the BIR to get your TIN, if you have none yet, register by paying P 500, you have to know if you'll be VAT or exempt (depends on the amount of rent). You or your printer will have to file an application for print official receipts. If you are going to use computer, there is an application for permit to use computerized accounting system.

And when you have a tenant alreay, you should pay documentary stamp tax on the lease contract. Then you need to pay and file monthly, quarterly and annual returns for income, withholding, percentage or VAT. You may even be required to hire an accountant depending on the amount of revenue you will generate. Of course, you should record and keep track of all your expense related to the business. Make sure these are ordinary and necessary and with proper BIR approved receipts.

This is just to rent out a single unit house.

#57 shadowfang

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Posted 15 September 2005 - 05:32 PM

At last, a thread that I can call home,,, :goatee:

I work in the Tax Division of a prominent Auditing Firm along Ayala Ave.,,,

Bring it on!,,,





alorica?? :headsetsmiley:

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client namin itoh, ah?... :blush:

#58 shadowfang

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Posted 15 September 2005 - 05:42 PM

kalboako - you can earn a few bucks by squealing on your tax evading employer by collecting enough documents as evidence and attachment to an affidavit to be filed with BIR Law Division, National Office. If your anonymous report (BIR is legally bound to protect your identity) results into a tax collection (possibly with criminal conviction) BIR will give you 15% of the collection or P 1 million whichever is lower.

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huh,,, :blush: nabago nba?

Correct me if I'm wrong pero alam ko kasi 10% pa rin,,,
Sec. 282, National Internal Revenue Code,,, :goatee:

Informer's Reward tawag natin diyan mga Peeps,,,

#59 in_style

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Posted 16 September 2005 - 01:07 AM

sorry for being makulit but i really want to
understand/appreciate/be educated how tax
is computed. i'm thinking perhaps we can set
an example or a specific problem. for example...

a person who's suppose to earn P 20,000 a month
without taxes. how much of that amount will
go to tax? what kind of tax is that adoptable?

hope the tax experts can help. thanks.

#60 redax

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Posted 16 September 2005 - 04:41 AM

Mostly likely yes, since liquidating dividends whether in the form of personal or real property since this is just a conversion of one form of capital asset (shares of stocks) to another. However, even if it is recorded as capital asset in the receiving shareholder's book if it the shareholder immediately dispose of the same there is no guarantee that any gain derived from it will be subjected to capital gains tax on sale of real property. BIR will consider the following in determining what tax will apply: 1. type of taxpayer, business of taxpayer  and whether or not the real property is being leased.

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Thanks for the reply. Appreciate it.




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