money Financial Planning

[JohannBeckham]

The Position of f#&k You https://youtu.be/eikbQPldhPY

 

How's your "F U" money my friends?

 

Yan isa sa pinaka paborito kong finance blogger, JLCollins

[MRROUGHSEX]

The Position of f#&k You https://youtu.be/eikbQPldhPY

 

How's your "F U" money my friends?

 

Yan isa sa pinaka paborito kong finance blogger, JLCollins

 

He actually portrayed it better than the original.

 

My FU money is Moderate pa compared to US upper-middle social class standards in my age group hehe. But since I plan to retire sa Pinas, that changes the moderate savings to an "FU" advantage.

 

Suddenly, my savings get multiplied by 3x due to lower cost there.

[neville]

Making a list of all my financial goals and expected expenses from 2021 and beyond.

 

I'm following what Wealth Arki taught in its YouTube Channel.

 

The list includes a realignment of my bugeting and sources of funding for my big goals and expensess.

 

Sakit sa ulo. 😆

[neville]

Okay...since I finally had the sense to personally take care of my government obligations (aka taxes and contributions), I stayed up late looking for answers online.

 

To my surprise, a site called Taxumo offers taxation services to freelance professionals and businesses. Philippine-based. Not bad. I'll still study and pass through the tax maze, though. I don't want to let go of my hard-earned moolah to careless payments.

 

PAG-IBIG, SSS, PHILHEALTH were easily figured out. it's now a matter of going to their offices to sort out my membership and payment.

 

BIR is a more complicated mess for me, though. The forms, the classifications, the options. The lack of tax registration for possible deductions.

 

[JohannBeckham]

Making a list of all my financial goals and expected expenses from 2021 and beyond.

 

I'm following what Wealth Arki taught in its YouTube Channel.

 

The list includes a realignment of my bugeting and sources of funding for my big goals and expensess.

 

Sakit sa ulo. 😆

Speaking of goals, it looks like we're break our savings rate record this year. The highest savings rate is 54% in 2018 and this year we are looking at possibly 58%

[G00dman]

Meron pala ganto room dito mtc. Nice to meet all, just backred 2 pages back and I know this is a productive room.

 

I also took the RFP course pero did not proceed with defense. I wanted to have real world application first

[MRROUGHSEX]

 

 

BIR is a more complicated mess for me, though. The forms, the classifications, the options. The lack of tax registration for possible deductions.

 

 

What do you mean tax registration Donya M? Alam ko Business Registration.

[neville]

 

What do you mean tax registration Donya M? Alam ko Business Registration.

 

 

Iba kasi ang requirements at bayad kapag registered as business kung ikukumpara mo ang BIR registration ng mga professionals (doktor, writers, lawyers, photographers) na nagpa-practice ng profession nila.

 

Wala kasing clear cut guidelines ang BIR sa mga freelancers, di tulad ng guidelines para sa mga empleyado.

 

Kung di ko lang kailangan ang proof of income kapag nag-apply ako ng visa at bibili ng property, and daling takbuhan ang buwis. Hehehehehehe

[theoneandonlymistressmia]

⚠️ ONLINE SELLER OR FREELANCER/PROFESSIONAL KABA?! YES. MAY TAX KANA!

Financial Advisor?

Real Estate Broker/Agent?

Freelance Medical Practitioner? (Private Nurse, Doctor, Dentist, etc)

Freelance Graphic Designer, Web Designer, Video Editor?

Freelance Content Creator, Copywriter?

Freelance Digital Marketer

Freelance IT Expert, Support, Consultant

Online Virtual Assistants

Online Recruiters/Human Resource Specialist

Online English Teacher

And many more! This is for you!

Why? According to BIR RMC 60-2020 Obligations of Persons Conducting Business Transactions Through Any Forms of Electronic Media, and Notice to Unregistered Businesses last June 10, 2020

All persons doing business and earning income in any manner (lahat daw ng kumikita sa anumang paraan), especially those who are into digital transactions SHOULD BE COMPLIANT with the tax code

How to be compliant?

1. Should be registered with the BIR

2. Should issue proper receipts/invoices

3. Should maintain proper accounting records

4. Should file and pay tax returns on time.

‼️ GOOD NEWS! If you registered before July 31, 2020, there will be no penalty imposed for late registration and late filing for past transactions.

Common Questions we received are:

1. Why do I need to register my business?

2. What do I need to prepare?

3. How much do I need to prepare?

4. Where is the process for Business Registration?

5. What will I get after I finished the process?

6. What are my Tax Obligations after I register?

7. How do I know what kind of Tax, Forms, and required attachments do I need to file?

8. When is the deadline for these taxes?

9. What are the penalties if you don't comply?

10. Best Practices to have good accounting and tax record

------

Before I answer all these, let's start with the basics.

is a

 

Edited October 28, 2020 by theoneandonlymistressmia

[JohannBeckham]

May tax refund ba sa Pinas or tax offset lng?

[neville]

May tax refund ba sa Pinas or tax offset lng?

 

 

Parang wala na yatang refund kasi mas maayos na ang tax brackets. Hindi na taga ang singil sa mga empleyado.

[theoneandonlymistressmia]

May tax refund ba sa Pinas or tax offset lng?

Hi!

 

Tax refunds are the excess payments made by employees and remitted by the employer to the Bureau of Internal Revenue. It is the excess tax withheld from the annual gross income.

 

This usually occurs if the employee was hired in the middle of the year and the resulting annual gross income is less than the taxable ceiling of 250,000.00. The previous year’s taxes are computed, and the employers give back the refunds to employees by crediting the money back to their monthly salary.

 

Since employers are the ones withholding the taxes, they are responsible for processing and adjusting their eligible employees’ salaries accordingly. The employers are required to give the tax refunds due to their employees no later than January 25 of the present year. Employees will then be given the BIR Form 2316 showing the employee’s tax payments from the last BIR fiscal year.

 

Meanwhile, the Tax Reform for Acceleration and Inclusion Act (TRAIN Law) made effective January 2018 brought down the cut-off for taxable income to P250,000, meaning those earning P250,000 and below are exempt from income taxes.

 

 

------------------

 

Tax offsets are for Australians. Since their government have perks they are entitled to tax offset. Tax offset is sometimes referred to as rebates to directly reduce the amount of tax payable on your taxable income. ... Depending on your circumstances, you may be entitled to a tax offset. If you are:

 

1. a Senior Australian or pensioner.

2. a low income earner.

3. maintaining certain dependents or career.

4. receiving certain government allowances or payments.

 

 

Tax Offsetting and Netting here in the Philippines have a different meaning but to be at par with the thoughts of Tax offset in Australia, there are also benefits for the following.

 

1. Income tax exemption for Senior Citizens.

2. PWD value added tax (VAT) exemption and 25% off in different establishments.

3. People taking care of PWD also enjoys 25,000 tax deduction. It can be claimed by relatives up to 4th civil degree of consanguinity or affinity taking care of a handicapped.

 

I hope this answers your questions.

Edited October 29, 2020 by theoneandonlymistressmia

[neville]

 

⚠️ ONLINE SELLER OR FREELANCER/PROFESSIONAL KABA?! YES. MAY TAX KANA!

 

Financial Advisor?

 

Real Estate Broker/Agent?

 

Freelance Medical Practitioner? (Private Nurse, Doctor, Dentist, etc)

 

Freelance Graphic Designer, Web Designer, Video Editor?

 

Freelance Content Creator, Copywriter?

 

Freelance Digital Marketer

 

Freelance IT Expert, Support, Consultant

 

Online Virtual Assistants

 

Online Recruiters/Human Resource Specialist

 

Online English Teacher

 

And many more! This is for you!

 

Why? According to BIR RMC 60-2020 Obligations of Persons Conducting Business Transactions Through Any Forms of Electronic Media, and Notice to Unregistered Businesses last June 10, 2020

 

All persons doing business and earning income in any manner (lahat daw ng kumikita sa anumang paraan), especially those who are into digital transactions SHOULD BE COMPLIANT with the tax code

 

How to be compliant?

 

1. Should be registered with the BIR

 

2. Should issue proper receipts/invoices

 

3. Should maintain proper accounting records

 

4. Should file and pay tax returns on time.

 

‼️ GOOD NEWS! If you registered before July 31, 2020, there will be no penalty imposed for late registration and late filing for past transactions.

 

Common Questions we received are:

 

1. Why do I need to register my business?

2. What do I need to prepare?

3. How much do I need to prepare?

4. Where is the process for Business Registration?

5. What will I get after I finished the process?

6. What are my Tax Obligations after I register?

7. How do I know what kind of Tax, Forms, and required attachments do I need to file?

8. When is the deadline for these taxes?

9. What are the penalties if you don't comply?

10. Best Practices to have good accounting and tax record

 

------

 

Before I answer all these, let's start with the basics.

 

 

 

Screenshot_20201028_134835.jpgis a Screenshot_20201028_134854.jpg Screenshot_20201028_134908.jpg

 

 

 

Okay, I get the why's and when of paying taxes.

 

It is my obligation as citizen of the country.

 

So how do you pay your taxes? Anong category mo, as business owner? As licensed professional or as a professional in general? As employee?

 

Paano ka nagbabayad? Sa mismong BIR ba o sa accredited banks or portals?

 

Anong forms Ang gamit mo? Kung may overseas client ka, paano diskarte mo sa official receipt rule?

 

May inaarkila ka bang bookkeeper o lahat ikaw ang ginagawa?

[theoneandonlymistressmia]

Okay, I get the why's and when of paying taxes.

 

It is my obligation as citizen of the country.

 

So how do you pay your taxes? Anong category mo, as business owner? As licensed professional or as a professional in general? As employee?

 

Paano ka nagbabayad? Sa mismong BIR ba o sa accredited banks or portals?

 

Anong forms Ang gamit mo? Kung may overseas client ka, paano diskarte mo sa official receipt rule?

 

May inaarkila ka bang bookkeeper o lahat ikaw ang ginagawa?

Hi,

 

I partly own an a accounting firm. Hehehehe. In putting up a business, always have an accountant. Your role as a business owner is focus in growing your business. You should hire a professional when transacting with things like this. Tendencies are, if you made the wrong move, you will suffer and I mean it. You won't like it when you see how much penalties will cost you.

 

For the others, I'll answer them in a bit. Usually, it takes 3 hours webinar to explain those. Hahahaahahhaa

Edited October 29, 2020 by theoneandonlymistressmia

[neville]

Hi,

 

I partly own an a accounting firm. Hehehehe. In putting up a business, always have an accountant. Your role as a business owner is focus in growing your business. You should hire a professional when transacting with things like this. Tendencies are, if you made the wrong move, you will suffer and I mean it. You won't like it when you see how much penalties will cost you.

 

For the others, I'll answer them in a bit. Usually, it takes 3 hours webinar to explain those. Hahahaahahhaa

 

 

Oh, okay. That explains the tax explanations.

 

Most of the folks here actively discussing personal finance are based abroad. I'm in the Philippines. Tax payments became part of my concern because I'm no longer employed. Instead, I do freelancing work online with clients based out of the country.

 

I've been catching up on reading tax basics for freelancers because I need a good proof of income when I apply for a visa or when I finally purchase my own piece of property.

 

I tried watching videos, even that of Taxumo. Pasok sa isang tainga, labas sa kabila ang mga sinasabi. Back to reading muna ako.

Edited October 29, 2020 by neville

[JohannBeckham]

 

 

Oh, okay. That explains the tax explanations.

 

Most of the folks here actively discussing personal finance are based abroad. I'm in the Philippines. Tax payments became part of my concern because I'm no longer employed. Instead, I do freelancing work online with clients based out of the country.

 

I've been catching up on reading tax basics for freelancers because I need a good proof of income when I apply for a visa or when I finally purchase my own piece of property.

 

I tried watching videos, even that of Taxumo. Pasok sa isang tainga, labas sa kabila ang mga sinasabi. Back to reading muna ako.

I agree Kay throne, mukang kelangan mo nga ng accountant to advice you in tax matters

 

 

Oh, okay. That explains the tax explanations.

 

Most of the folks here actively discussing personal finance are based abroad. I'm in the Philippines. Tax payments became part of my concern because I'm no longer employed. Instead, I do freelancing work online with clients based out of the country.

 

I've been catching up on reading tax basics for freelancers because I need a good proof of income when I apply for a visa or when I finally purchase my own piece of property.

 

I tried watching videos, even that of Taxumo. Pasok sa isang tainga, labas sa kabila ang mga sinasabi. Back to reading muna ako.

I agree Kay throne, mukang kelangan mo nga ng accountant to advice you in tax matters

[raffyraffy]

Anyone here well versed with diversifiying mutual funds? Or should I start day trading say for ex i have ample time naman..real noob here but willing to learn and invest.

[JohannBeckham]

Anyone here well versed with diversifiying mutual funds? Or should I start day trading say for ex i have ample time naman..real noob here but willing to learn and invest.

It depends sa risk tolerance mo and investment vehicle you're comfortable putting time and money in.

 

Personally I invest in exchange traded index funds, specifically in U.S., Australia and International excluding U.S. funds.

 

Naan k b ngayon, Pinas o abroad? Anong goals mo? For investing? What's you current financial picture look like? Do you have debt? In this thread we usually ask you these questions before we give opinions kasi personal finance is indeed personal. What's best for me is not necessary best for you

[neville]

I agree Kay throne, mukang kelangan mo nga ng accountant to advice you in tax matters

 

I agree Kay throne, mukang kelangan mo nga ng accountant to advice you in tax matters

 

 

Hinay muna ako sa paglabas ng pera para ipambayad sa professional fee. May bad experiences sa bookkeeper/accountant ang Ate at pinsan ko kaya kung kaya kong gawin mag-isa, ako na lang.

 

Kung clear-cut ang BIR sa tax guidelines sa mga online freelancers, hindi masyadong nakakalito.

 

Alam mo naman ako, kapag math na ang usapan, lumilipad na ang diwa ko. Hehehehe

[neville]

It depends sa risk tolerance mo and investment vehicle you're comfortable putting time and money in.

 

Personally I invest in exchange traded index funds, specifically in U.S., Australia and International excluding U.S. funds.

 

Naan k b ngayon, Pinas o abroad? Anong goals mo? For investing? What's you current financial picture look like? Do you have debt? In this thread we usually ask you these questions before we give opinions kasi personal finance is indeed personal. What's best for me is not necessary best for you

 

 

Dagdag sa sagot ni sir JB, newbie ka sa investing, sir raffy? Kung gusto mong magtapon ng pera at gayahin ang mga medyo ewan dumiskarte sa stock market, plunge into day trading.

 

Pero kung gusto mong lumago ang pera mo, yung mga tanong ni sir JB muna ang sagutin mo. Doon namin makukuha ang isasagot sa iyo.

 

[theoneandonlymistressmia]

 

 

Oh, okay. That explains the tax explanations.

 

Most of the folks here actively discussing personal finance are based abroad. I'm in the Philippines. Tax payments became part of my concern because I'm no longer employed. Instead, I do freelancing work online with clients based out of the country.

 

I've been catching up on reading tax basics for freelancers because I need a good proof of income when I apply for a visa or when I finally purchase my own piece of property.

 

I tried watching videos, even that of Taxumo. Pasok sa isang tainga, labas sa kabila ang mga sinasabi. Back to reading muna ako.

Hi,

 

Bookkeepers are different from accountants. You can always do your bookkeeping but for professional jobs, it is recommended that you hire a an accountant.

 

Later, I will discuss a lot of things.

[JohannBeckham]

Hi,

 

Bookkeepers are different from accountants. You can always do your bookkeeping but for professional jobs, it is recommended that you hire a an accountant.

 

Later, I will discuss a lot of things.

Your right theoneand, bookkeeper is different from accountant for I married an accountant and I can tell you accountants do more than bookkeeping. They're more of a trusted advisors in all things related to finance and the business.

 

Tells about your story naman, how did you get interested in financial topics and where are you in your financial journey?

[theoneandonlymistressmia]

To begin with our topic for today, let us define Business Registration first.

1. What is business registration

- It is the process of getting your trade name, business licenses, permits and tax registration to formally legalize your business. Honestly, it would take from 2 weeks to as far as 9 weeks to process and complete all these.

I know it may sound too much but in of the most cases we encounter, the registration takes time because of the "repeat" errands and/or the "lacking of documents".

Morever, in registering a business, the City Hall will send someone for an onsite inspection to your address and this would take time. Scheduling them to check on the sanitation, fire exit and many more is something that eats time. Sometime, if they find a flaw in that area, they will have you correct it and they re-schedule their visit.

There was one time that one of my branches had a door. It's actually one big room, with 4 cubicles inside. They even instructed me to remove the door knob and they would come back after 2-3 weeks for it.

I know it's too much. You might say "baka masita" na kami sa tagal wala pa kaming permits. If this happens, all you just need to do is atleast show them your proof that you are working on your permits. It isn't your fault that the government is slow in process it. You just need to be patient. DTI and Barangay permit is the easiest to get. If you can show them some documents, they will apologize for disturbing your business.

I will give you a scenario:

1. For all who doesn't know, I used to own multiple spa branches. One thing I do is that, all my spa branches are not registered in one name.

Example: Kings Sanctuary Spa, Touch of Paradise, The Secret Have, Wildwood, Leisure Haven, Tantra Philippines

I usually go over again and again when registering my business because I do not want all branches to go down in any case something happens. You know what I mean.

Despite the complete documents, sometimes the workers from the registration department will find a way even if it is unnecessary already to not finish your registration. They will ask you for another set of copies and etc. This is how "lagay" and "palakad" takes place.

I'm not against the government nor I have any means of raising a spark against them (my dad is a public servant) but I am pretty sure you know that these scenarios happens from time to time.

Since my brother is an accountant and we run an accounting firm, on instances like this, we usually assign our liaison officer to work on it or else the registration will not be finished.

There was even a time when I was asked to pay for P300,000.00 for them to process my business permit. The reason behind this is that, my parents used to have a business registered 30 years ago but they forgot to file a business closure to our business. Even if they were not filing for any income anymore, it is still needed "pala" that they file a business closure. So every time I try to register my business, their penalties for 30 years would show but this only happens for one city.

They want me to pay for it so I had to sell my first branch and transfer to Quezon City. Back then, we have no accounting firm since my brother was still studying back then. Then after 3 years, I decided to put a branch near our house and same issue happened. Since my brother has become very knowledgeable in things like this, he had to speak with the mayor to have the issue corrected. And horey! we were now able to register our business.

"Hindi po utang ng anak ang utang ng magulang."

So, Why do we need to register our business?

- It is required by law

- For OR purposes

- For legitimacy

- Serves as your proof of income for mostly travel and loan purposes.

(To be continued)

[MRROUGHSEX]

Cool share Donya MistressMia (or MM for short)

 

Hindi pa ako nakapunta dyan sa mga spas ninyo. Something I need to rectify ASAP. Ang malapit kasi sa akin are Makati spas like Spa Nara. Kaya dun napunta lahat pocket money ko for vacation.

Edited October 30, 2020 by MRROUGHSEX

[pinktounge]

I enjoy the discussion here pero napapanosebleed na ako lalo na sa taxation dito sa pinas. I think ok na rin investment ang kumuha ng accountant but make sure maganda record nung accountant and trusted talaga.