BIR Concerns

[don_cruzer]

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.

[Guest kicx]

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?

[in_style]

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.

 

<{POST_SNAPBACK}>

 

i second and third the motion!

its just but right that we see the fruits of our labor!

[redax]

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?

[j_s_j99]

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

[j_s_j99]

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

[kalboako]

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:

[in_style]

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.

[jackl]

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)

[jackl]

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?

<{POST_SNAPBACK}>

 

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.

[jackl]

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

<{POST_SNAPBACK}>

 

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.

[in_style]

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.

[redax]

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.

<{POST_SNAPBACK}>

Thanks for the reply. Appreciate it.

[jackl]

Shadowfang is correct informer's reward now stands at 10% of tax collected and it is now taxable. Before 1998 it was 15% tax free.

 

Many have made a career of reporting tax evaders. Kaya lang pag-natiklo ka delikado ka rin.

 

In style asked: 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?

 

I'm no tax expert but just needed to learn more about taxes sometime ago. But to answer the questions we need to go down to more specifics like the ff:

 

Type of taxpayer: Individual or corporation, resident or non resident, salaried or business, trade

 

type of income: compensation, business or mixed, gross or net or passive

 

Total income for the year: over P 720,000

 

VAT or non-VAT registered

 

These are just the initial questions.

 

It's easy why very few actually pay the right tax, even if they wanted to.

[in_style]

jackl, thanks for taking time to answer my query.

it's good to read about these details.

i dont want to just depend on my finance person.

now i'm re-learning these things.

thanks again.