BIR Concerns

[jackbrng]

If the lease is 4000 a month, you need to withhold 5% because the annual rental amounts to 48000, which is greater than the 10000 threshold set by BIR regulations. To facilitate the withholding process, you prepare the proper BIR form, have it signed by your lessee and then file it with the BIR together with the payment.

 

Hope that helps.

 

Sir jackbrng, I found a provision in RR 2-98 on rental of personal properties under an operating lease scheme. It's Section 2.57.2©(2). My opinion is this covers arcade machines. Please let me know if you agree.

 

thanks sir azayco for clarification. but its not on BIR Revenue Regulation No. 2-98 anymore, its on BIR Revenue Regulation No. 14-2002, amending BIR RR No. 2-98. In my opinion, arcade machine will fall under "all other computer machines/equipment" and subject to 5% Creditable Withholding Tax.

[muffin]

You could also get the services of an accounting firm to take care of all your BIR requirements. My accountant takes care of filing all my ITRs, VAT reports, registration, etc. It will cost more but in my experience, the convenience is well worth it. This also saves you from seeing all those BIR SOBs taking away your hard earned money personally.

 

can you pm me your number sir? i'd like to ask how much and who do you get for your accounting? thanks

[muffin]

thanks sir azayco for clarification. but its not on BIR Revenue Regulation No. 2-98 anymore, its on BIR Revenue Regulation No. 14-2002, amending BIR RR No. 2-98. In my opinion, arcade machine will fall under "all other computer machines/equipment" and subject to 5% Creditable Withholding Tax.

 

Okay I see. so i have to file my income tax and withholding tax 5% as well....?

[azayco]

Sir Jackbrng - Thank you. I meant RR 2-98, as amended by RR 14-02. Just forgot to qualify. He he

 

Sir Muffin - Yes. you have to file income tax return and also pay withholding tax. Withholding tax is essentially paying your income tax in advance or a prepayment. At the end of the year, or more specifically on April 15 of the following year, you will compute your income tax and deduct all prepayments in the form of withholding tax. So on April 15, you only need to pay the balance (total income tax payable less withholding payments.) It is therefore very important that you keep the Certificates of Tax Withheld because these will constitute proof of withholding tax payments. Good luck bro.

[jackbrng]

Sir Jackbrng - Thank you. I meant RR 2-98, as amended by RR 14-02. Just forgot to qualify. He he

 

no problem sir, thank you din, medyo O.T. sino ba mas pogi sa avatar natin, hehehhe

 

anyway, at least naging active na naman itong thread na ito.

 

:thumbsupsmiley: :thumbsupsmiley: :thumbsupsmiley:

[azayco]

Jackbrng - Yours has a more winning smile. Haha!

 

Anyway, to remain on topic, I'll post RA 9178 or the Barangay MicroBusiness Enterprise Act which gives incentives to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities whose total assets (excluding the land on which the particular business entity's office, plant and equipment are situated) shall not be more than 3 million Pesos.

 

The incentives are:

 

1. income tax exemption

2. exemption from Minimum Wage Law

3. Credit lines from government financial institutions

4. technology training from the DTI

 

For SME entrepreneurs in the qualified industries, you may check the law here.

[jackbrng]

good news!

 

kakapirma lang ni pres. gma ng RA 9504 exempting minimum wage earner from income tax. so wala na ring withholding tax ang mga minimum wage earner. concern ko lang kung ano mangyayari sa withholding tax remitted prior to enactment of RA 9504. in my opinion kasi, magiging tax refund ito. basahin ko muna RA 9504 tapos update ako dito.

[tio_pot]

good news!

 

kakapirma lang ni pres. gma ng RA 9504 exempting minimum wage earner from income tax. so wala na ring withholding tax ang mga minimum wage earner. concern ko lang kung ano mangyayari sa withholding tax remitted prior to enactment of RA 9504. in my opinion kasi, magiging tax refund ito. basahin ko muna RA 9504 tapos update ako dito.

 

Kailan na kaya ang implementation nito? Kasi kung 2008, naku ang dami ng irerefund nyan. Sana sa January 2009 na lang para mapaghandaan at hindi masyado magulo. Kung irerefund man, katakot-takot na kayamanan ang ibabalik at paghihintay ng employers sa BIR sa pagrefund. Hay!

[jackbrng]

Kailan na kaya ang implementation nito? Kasi kung 2008, naku ang dami ng irerefund nyan. Sana sa January 2009 na lang para mapaghandaan at hindi masyado magulo. Kung irerefund man, katakot-takot na kayamanan ang ibabalik at paghihintay ng employers sa BIR sa pagrefund. Hay!

 

napirmahan na kahapon eh, so i-publish pa ito tapos gawan pa ng guidelines, siguro sa july or august na implementation nito.

 

malamang dami ng tax refund nito, kaya ako di na ako magwithheld sa katapusan, para maliit na lang atraso ng bir sa amin. hirap din kaya magpa-tax refund. hehehe

[tio_pot]

napirmahan na kahapon eh, so i-publish pa ito tapos gawan pa ng guidelines, siguro sa july or august na implementation nito.

 

malamang dami ng tax refund nito, kaya ako di na ako magwithheld sa katapusan, para maliit na lang atraso ng bir sa amin. hirap din kaya magpa-tax refund. hehehe

 

Question lang... Kung ang minimum wage ay 382.00 na, then we follow the computation sa table nila at ang exemption ay 50k lang, meron pa rin ikakaltas na around 8k/year. ang labo naman! Sana 2009 na lang ang implementation para wala masyado adjustment for 2008. Wrong timing kasi mid year na tsaka implement

 

Kainis pa yung ibang nagtatanong... Sasabihin pa na pinublish na sa dyaryo at papakita pa yung picture ni madam gloria na pumipirma. kaya dapat wala na kaltas. Minsan mahirap paliwanagan pero nakakatawa lang din naman sila. hehehe...

[jackbrng]

Question lang... Kung ang minimum wage ay 382.00 na, then we follow the computation sa table nila at ang exemption ay 50k lang, meron pa rin ikakaltas na around 8k/year. ang labo naman! Sana 2009 na lang ang implementation para wala masyado adjustment for 2008. Wrong timing kasi mid year na tsaka implement

 

Kainis pa yung ibang nagtatanong... Sasabihin pa na pinublish na sa dyaryo at papakita pa yung picture ni madam gloria na pumipirma. kaya dapat wala na kaltas. Minsan mahirap paliwanagan pero nakakatawa lang din naman sila. hehehe...

 

imho, this is not in a wrong timing. nagtataasan na po lahat ng bilihin, kawawa naman mga minimum wage earner. Asan naman po yung social responsilibility ng mga employer kung iisipin nila yung hirap ng adjustments vs. sa benefits ng mga employee.

 

i think, kahit na kamo may ikakaltas na around 8k/year, bale wala na ito dahil sa exemption sa income tax na ibinigay sa minimum wage earner ng bagong batas, or, better wait for the dof or bir guidelines sa implementation ng RA 9504 para mas malinaw. Siguro, may bagong lalabas din na Withholding Tax table at Income Tax table bungsod ng pagbago ng exemptions.

[in_style]

wow... nice to see this thread has been helpful to alot of people.

keep it coming, guys!

 

god bless those who share their knowledge and expertise!

rock on...

[tio_pot]

Kahapon yung public hearing ng BIR on the proposed revenue regulations implementing pertinent provisions of Republic Act No. 9504 relative to the withholding of income tax on compensation.

 

Meron bang may update dito?

[black cat]

^Draft pa din ang meron ako.. effective July 6, 2008.. though usually yun draft yun na rin ang naiimplement eh. If you need a copy, pm me your email and I'll send you. 50k na ang personal exemption regardless kung single, head of the family or married. 25k for each qualified dependent.

[black cat]

sorry sir sobrang newbie ako sa taxation when it comes to business.

1. how does witholding tax work?

2. how much percent ang kaltas sa rent na binabayad nila sa akin? how do i remit the witholding tax?

3. is that the only tax i have to pay? what about income tax?

4. so if my headquarters is my home which my mom is renting (she's the one in the leasecontract) then i can execute affidavit of no rent?

 

sorry bro ang daming tanong. I just want to start out my business on the right foot and everything to be legal.

by the way, if i need someone to maintain my books do you offer such services? simple lang naman accounting ng business ko. rent income, transpo expense, salaries ng helper, repairs, acquisition of new machines. interest payments, loan acquisition, depreciation expense. Puro basic bro. I can do it in the long run pero i just need someone to teach me during the first few months or so until i can get the hang of it. Then come january, do you also certify books?

 

1. withholding tax - problema to ng nagbabayad sa yo, hindi ikaw

2. 5% (on net of VAT amount) ..yun nagkaltas po ang magreremit nun, hindi ikaw :thumbsupsmiley:

3. hindi nga ikaw ang magbabayad neto.. income tax lang ang babayaran mo.. deadline April 15.. tska VAT if you're VAT Registered

4. di wala ka lang Rent Expense

 

Kung wala ka pang nakuhang accountant, I can refer someone.