BIR Concerns

[leroynoval]

Gud day sir,

 

Tanong ko lang sana kung ano talaga ang right computation of the withholding tax...

 

meron kz me 2 friends na same ang sahod 20,000.00 both are married with no qualified dependents, ung isa is more than 60 yrs. old so wala na sya deduction sa SSS, Philhealth and Pag-Ibig while the other has deductions.

 

I've talked to a CPA, she said that I don't need to deduct the SSS, Philhealth and Pag-Ibig (Employee part Only) sa basic pay nya dahil obligation daw un ng employee. but per Alpha list and 1601-E form, SSS, Pag-Ibig and Philhealth nakalagay sa non-taxable compensation which is also deductible sa basic salary nla...

 

 

meron naman me kilala na hindi CPA pero nagsasabi na dapat ibabawas ung SSS, Pag-Ibig and Philhealth....

naguguluhan na me kung ano talaga ang sundin ko...

 

Thanks for the reply, hope you can also gave me an sample computation.

[basiliatan]

CAN A PERSON HAVE 2 TINs ?? IS IT AGAINST THE LAW IF YOU HAVE 2 TINs ??

[ianlone81]

ah eh.....ang alam ko, bawal yan. I think it's written at the back of your TIN card.

Yup bawal talaga yan and i think it's punishable

[Mango Man]

angelbyday,

 

good news, that newfangled SALN thing is now "optional", meaning no one will file it! hahahaha.

 

personally, its not a bad idea in principle, although i think they should increase the income threshold from P500K to P3 million, since they're targeting high net worth individuals. Pero implementation is bad, dapat they give enough time for everyone (including accountants, etc.) to know all the details.

[rxv]

Optional na ba talaga o hindi? CAn anyone clarify this?

[jacuzzi]

One thing about the present pressure to TAX Filipinos is the absence of specific government programs that can justify government revenues.

 

Each administration need programs to resolve issues on revenues. A lot of these programs expire or need reprogramming in order to stay relevant or updated. For example, power plants got a lifespan and they sometimes miss their maximum life because of poor maintenance or if they are overworked beyond acceptable capacities as dictated by engineering designs. Aging power plants normally deteriorate and got more downtime than new ones. I think the government is putting so much emphasis on collection of taxes without focusing on the revenue generators that programs provide.

 

 

 

 

 

Please show an integrated national economic program. Private firms and individuals that participate on these programs cannot escape taxation, and tax revenues would rise because of the value added activities.

 

 

 

 

In the absence of a sustainable program, taxation is going to be very oppressive because not only is government not doing its business of leadership but the private sector is not able to secure activities that can make income for both their private companies and source of tax for government.

 

 

[guest1979]

Hello Masters,

 

Tanong ko lang po if anong process ang gagawin pag mag close ng business? magkano kaya ang gagastosin?

 

Thanks for the help...

[scalpelsexpert]

Please help me in filing quarterly income tax (1701Q)

 

Kelangan ba babayaran ko na ang 2551M ng March (which is due in April 20) to inculde sa quarterly?

[kokomonster]

Hello Masters,

 

Tanong ko lang po if anong process ang gagawin pag mag close ng business? magkano kaya ang gagastosin?

 

Thanks for the help...

 

 

you'll need to submit the ff:

 

Letter request for closure of business

Duly filled up BIR form 1905

Original COR

CMS (case monitoring system. to be processed with the collection section of your rdo. this will check if there are tax returns that you did mot file.)

List of unused receipts.

 

Your taxes for the past 3 years will be audited. If you have any deficiencies, you'll have to pay that.

[kokomonster]

Please help me in filing quarterly income tax (1701Q)

 

Kelangan ba babayaran ko na ang 2551M ng March (which is due in April 20) to inculde sa quarterly?

 

income tax and value added tax/percentage tax are treated separately so you still must file your 2551M ahead of your quarterly income tax otherwise you'll pay additional penalties ie. 25% surcharge, 20% interest per annum, and compromise penalty. even if one day ka lang late, halos doble na ang babayaran mo kya masakit rin. take note magkaiba ang deadline ng quarterly income tax and percentage tax. quarterly income tax deadline is 60days after the close of the quarter. your monthly percentage tax the deadline is 20days after the close of the month.

[kokomonster]

Optional na ba talaga o hindi? CAn anyone clarify this?

 

 

yes, ang implementation ng RR 2-11 (Annual Information Return) is optional this year.

[kokomonster]

Yup bawal talaga yan and i think it's punishable

 

bawal po multiple tin kasi pwede po gamitin for tax evasion. kulong po yan though wala pa ako nababalitaan nakulong for multiple tins.

[kokomonster]

another question to our kind BIR experts here ---

 

 

i am registered in BIR as a private physician, but i have always been employed ever since (training and post-training work), thus i always had to put zero (0) on my 1701 form, indicating that i have never held any private clinic in the past.

 

This 2011 though, i am about to start a small clinic inside the mall, similar to Healthway. But the clinic space is theirs. They will be charging tax on my professional fees. Does that mean that i can still put zero on my 1701 form, since the clinic is not mine, anyway? They will be the one, i think, to subtract VAT from my PF, so tama ba na hindi na ko magbabayad ng VAT as a private MD using the 1701?

 

 

 

ganito po yan, separate po ang computation natin ng income tax and vat. from what i understand, you are earning professional fees. subject po yan both sa income tax and vat. ang clinic mo magwiwithhold ng 10%/15% on your PF for income tax or 12% vat depending on your annual earnings in PF. ang withholding tax na yan is advanced payment ng tax nyo. meaning when you compute your taxes, you will deduct the amount deducted by the clinic from the amount you are liable for. the clinic will be the one to remit your withholding tax to the BIR on a monthly basis. when they withhold taxes from your PF, they will issue a BIR form 2307 indicating the amount of PF and the amount deducted. this for 2307 must be attached to your tax return in order for the amount withheld to be deducted from your amount payable.

 

in general, income tax po ang binabawas ng employer ninyo kya deductible sya from your income tax and this has to be attached to your income tax returns. (the rate is 10% or 15%). please check nalang if meron ring vat na binawas (the rate is 12%) in which case, deductible rin po sya sa vat returns ninyo. in sum, ang withhlding tax is advanced payment lang po ng tax ninyo. di po sya additional tax type.

[magnus]

1. what if you just close the business at matagal na and di ka nakapag formally submit ng forms to close the business?

 

2. totoo po ba na if close na business mo and you just keep on submitting the forms sa bir you usually submit every month and zero parati ang ilagay mo, after 3 years or so automatic na i close nila ang business mo?

 

thanks sa info

 

you'll need to submit the ff:

 

Letter request for closure of business

Duly filled up BIR form 1905

Original COR

CMS (case monitoring system. to be processed with the collection section of your rdo. this will check if there are tax returns that you did mot file.)

List of unused receipts.

 

Your taxes for the past 3 years will be audited. If you have any deficiencies, you'll have to pay that.

[-wet-]

1. what if you just close the business at matagal na and di ka nakapag formally submit ng forms to close the business?

 

2. totoo po ba na if close na business mo and you just keep on submitting the forms sa bir you usually submit every month and zero parati ang ilagay mo, after 3 years or so automatic na i close nila ang business mo?

 

thanks sa info

answer to no. 1 - May charge for non-filing of returns kahit non-operational. 1k max per return.

 

answer to no. 2 - Yes, but the closure is not automatic (nor after 3 years). You will still apply for clearance from them.

[8th.traitor.legion]

What if your business does not make money in a course of a fiscal year and but is still operating, do you still have to pay taxes? If so, how much and what taxes would it be?

[rigibuy]

What if your business does not make money in a course of a fiscal year and but is still operating, do you still have to pay taxes? If so, how much and what taxes would it be?

 

you don't have to pay. you just need to file the necessary forms indicating "no operation" for the period and have it received by your bank where you pay BIR payments. You have to do this regularly whether you have sales or not.

[-wet-]

you don't have to pay. you just need to file the necessary forms indicating "no operation" for the period and have it received by your bank where you pay BIR payments. You have to do this regularly whether you have sales or not.

Sir correction po. "no payment" tax returns should be filed directly to the rdo office having jurisdiction over the business.

[otitismedia]

just a dumb question....pag self-employed, ano ba ang ilalagay sa "3 books" or ledger ng BIR ? example book 1 income ba with dates etc??? how about book 2 and book 3 ??? ano ba tawag doon ? salamat !!!!!!

[magnus]

thanks for the reply. how about if 3 years nako di nag operate and i want to formally close the business. i may not have much of the receipts and other things sa requirements. i may have the business permit or dti papers. do i still need to submit the requirements below or is there another simplier process?

 

 

Letter request for closure of business

Duly filled up BIR form 1905

Original COR

CMS (case monitoring system. to be processed with the collection section of your rdo. this will check if there are tax returns that you did mot file.)

List of unused receipts.

 

follow up lang po sa #2 question. you mean after three years they will treat your business as closed? you don't need to submit the necessary forms every month? but you still need to apply for business closure?

 

answer to no. 1 - May charge for non-filing of returns kahit non-operational. 1k max per return.

 

answer to no. 2 - Yes, but the closure is not automatic (nor after 3 years). You will still apply for clearance from them.

[8th.traitor.legion]

Sir correction po. "no payment" tax returns should be filed directly to the rdo office having jurisdiction over the business.

 

Oic... I have been wondering about that... Thnxs for the info! BTW, I have a few follow-up questions:

 

1. When a company does not earn anything in one fiscal year, can they file a "no payment" on their tax returns?

2. If a company still pays their employees in a span of that year, what taxes would the company still pay?

3. If a company earns Php 250,000 in one year but expenses are Php 1,000,000, what taxes would the company need to pay?

4. When a company applies for "no operation" to BIR, how much time is needed to process this action?

 

Thnxs again!

 

 

[Defiant]

I just started working as a "Professional" for project based jobs in the Film and TV industry... And have never filed my ITR eeeevvvveeerrr, on my own.

 

I once worked for a company that filed these kind of things for me but that was 2008. And haven't been working as a regular employee since. I've only started working project based jobs last october 2010, didn't work because I had to go back to school and only worked small rackets designing to keep me afloat.

 

What the hell is the process of filing the ITR? I don't know s@%t about the BIR or filing ITRs. And the deadline is Friday.

 

Is there any consequence to not filing your ITR? I've tried asking the people in my line of work, and their no help, the one's I have asked have not file for ITR ever. I just don't want to get into any hassles in the future if there are any. Still i feel f#&ked. Hehe

[Defiant]

And MUST I FILE for ITR? What do people who get project based earning do with these kind of things... I really don't know what I'm talking about.

[cbotc]

Anyone familiar with BIR ruling on eFPS (online payment of taxes via authorized bank's website) for business establishments? Would appreciate to get a copy of the BIR Circular ruling on this. Thanks.

[xrocka24]

umm.. i know this is a dumb question and i havent back read, but... bakit walang tax refund pag naka 1 year ka na sa isang kumpanya? ang laki laki ng kinakaltas nila sa sahod ko and i was kinda expecting something pero wala man lang dumating ngayong december.