BIR Concerns

[earthlyken]

yup. ok lang.. haha! we got absorbed by the company after 6 mos.  ayus naman yung sa account. asar lang talaga yung sa agency na pinapaikot ikot kami...  i did try to speak with the same accountant the other day... hindi naman kasi ma-explain kung san napunta yung iba. gusto ko lang rin kasi malaman... there might be some other things that i dont understand correctly.... but we do, together with my colleagues deserve an explanation, ayt?!

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AYT :thumbsupsmiley:

[gabriel64]

guys, i just wanted to clear out how does the tax refund goes. i work in a call center company, but was under a manpower agency before for 6-7 months. i just got absorbed last april......

 

........just want to know if i am thinking the right thing, any reactions/advice? help naman po. thanks! =)

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I might be able to help you, but I need to clarify your story and need some additional info.

 

What kind of taxes are you claiming for refund? Is this expanded withholding tax? Also, who were you claiming the refund from? Its not clear whether you were claiming from the company or the BIR.

 

Assuming you are referring to withholding taxes, I have an earlier post here where I explained how withholding taxes work. Your withholding taxes are advances on your income tax for the year. Your April 15 Income Tax Return shows how much tax you should pay for the year - so if the company withheld more, you get a refund. If your ITR shows a higher amount than your withholding tax certificates - you have to pay the deficiency. The number of months is not necessarily an indicaotr.

 

Please let me know the other details so I can get a better idea of your situation.

[in_style]

gabriel 64... thank you very much for answering

all out queries in this thread. it's much appreciated.

[pinksmack]

I might be able to help you, but I need to clarify your story and need some additional info.

 

What kind of taxes are you claiming for refund?  Is this expanded withholding tax?  Also, who were you claiming the refund from?  Its not clear whether you were claiming from the company or the BIR.

 

Assuming you are referring to withholding taxes, I have an earlier post here where I explained how withholding taxes work.  Your withholding taxes are advances on your income tax for the year.  Your April 15 Income Tax Return shows how much tax you should pay for the year - so if the company  withheld more, you get a refund.  If your ITR shows a higher amount than your withholding tax certificates - you have to pay the deficiency.  The number of months is not necessarily an indicaotr.

 

Please let me know the other details so I can get a better idea of your situation.

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hi, thanks gabriel... the one that's being deducted are itw, sss, pag-ibig and philhealth. i just not sure if it;s the exoanded withholdibg tax. and i was claiming it from the agency where i was employed before. but now we got absorbed.

 

the thing is, they have not even showed me a W2 form. sabi they'll just forward it to our HR (and of course, it hasnt come yet up to now). they also didn't let me sign any forms, i didnt see any ITR forms yet coming from the agency. the only deficiency that i got was nearly 900Php, this is the one that was not deducted to me on one particular month.

 

"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." .... i quoted this from ur previous post. here's a stupid question... how do i exactly compute my income tax for the year???

 

again, thanks for ur concern. u really are a big help. :cool:

[gabriel64]

hi, thanks gabriel... the one that's being deducted are itw, sss, pag-ibig and philhealth. i just not sure if it;s the exoanded withholdibg tax. and i was claiming it from the agency where i was employed before. but now we got absorbed.

 

the thing is, they have not even showed me a W2 form.  sabi they'll just forward it to our HR (and of course, it hasnt come yet up to now). they also didn't let  me sign any forms, i didnt see any ITR forms yet coming from the agency.  the only deficiency that i got was nearly 900Php, this is the one that was not deducted to me on one particular month.

 

"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." .... i quoted this from ur previous post.  here's a stupid question...  how do i exactly compute my income tax for the year??? 

 

again, thanks for ur concern. u really are a big help. :cool:

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Your income tax is computed as: (gross taxable income - personal exemptions) * tax rate depending on salary

 

I can't tell you your tax rate because I don't know your salary (and I don't think you should post that).

Your tax rate is based on a graduated scale, for example if your annual salary is between 10,000 to 30,000, your tax rate is:

 

P500 + 10% of the excess over P10,000

 

Personal exemptions refer to your civil status. If you are single, you have a personal exemption of P20,000 which is deducted from your gross (annual) compensation income before computing the tax. So if you make P200,000/year, you deduct 20,000 first and compute the tax based on P180,000.

 

Your benefits (like bonus, 13th month pay), SSS, Philhealth, Pag-Ibig is exempt - so not included in computing your annual income.

 

What I am confused about is what exactly you are refunding. sss, pag-ibig and philhealth are dedcuted from your salary but you cannot refund those because they are remitted to the government. That's how you get SSS loans (maybe you can check the SSS thread).

 

If taxes were withheld from you every quarter, you have to compare how much was withheld for the year to your income tax in your April 15 ITR.

 

For example, the company deducted 20,000 from your salary as withholding taxes. In your April 15 ITR, the comp*tation shows that your income tax due for the year is only 18,000. You can ask for a refund of 2,000. If your ITR instead shows that your income tax for the year is 23,000, you have to pay an additional 3,000 to the BIR.

 

By the way: All your tax forms must be signed by you, not the company - so if you did not sign anything, maybe the manpower company did not prepare any tax documents.

 

 

 

To all: Sorry if this post is very long.

[gabriel64]

gabriel 64... thank you very much for answering

all out queries in this thread.  it's much appreciated.

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Your welcome moderator-sensei.

 

I think your avatar and signature are cool btw.

[jigger_horny]

very informative... hope you can help me on my problem on my real estate business on apartment lease ...

 

thanks bro

[mark_456]

question lng, pg mg resign k b sa work mo before dec tpos d nla dneclare, bgay sa yo ung tax n binayaran mo ksma ng backpay?

[gabriel64]

very informative... hope you can help me on my problem on my real estate business on apartment lease ...

 

thanks bro

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Dude, this is just one apartment right? How much do you intend to rent it for and where is it located?

[gabriel64]

question lng, pg mg resign k b sa work mo before dec tpos d nla dneclare, bgay sa yo ung tax n binayaran mo ksma ng backpay?

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No. If you resign you have to get your Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) from HR/Accounting. You will file this together with your ITR on April 15.

 

If you get another job during the year. You will be considered to have 2 employers for the year. So you have to submit the certificates from your former and current employer. You then add the total taxes withheld from both employers to see if you still owe the BIR income tax for the year.

 

But what do you mean "tpos d nla dneclare" - your former employer did not remit the taxes withheld? Bawal 'yan ha. You should make sure they remitted the taxes - otherwise, on Apirl 15 you will pay the taxes that were supposed to be withheld by the company.

[in_style]

Your welcome    moderator-sensei.

 

I think your avatar and signature are cool btw.

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thanks!

 

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!

[gabriel64]

thanks! 

 

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.

[don_cruzer]

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?

[gabriel64]

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.

[in_style]

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.