BIR Concerns

[Guest FL]

1. Income tax - if it's sole proprietorship, then compute the net income first then deduct personal and additional exemption (if there's any), then compute the tax based on the tax table. Tax table is also found at the BIR link posted by stiffmike. Teka, income tax yan ng company ha.

2. May tax table po. 35% ng net income pag Corporation but you also have to compute MCIT (Minimum Creditable Income Tax), pay whichever is higher. Yes, any form of income is taxable.

3. Cause you already earned. As I've indicated in number 2, any form of income is taxable, regardless if your present your TIN or not.

 

ok, thanks.

[Pussyboy]

PRE SINO ANG PUEDE MAG PA LOAN WITH MINIMUM INTEREST LANG PLANO KO KASI DAGDAGAN CONMPUTER SHOP KO.. HELP ME NAMAN,,,,

 

your business should be 3 years or more in operation. then you should have diligently filed your ITR. if your answer to both is yes, then banks can lend to you. try plantersbank, they are aggressive in giving out entrepreneural loans. but for your biz, its difficult to get with other banks, unless you have a land for collateral. for planters, kahit kotse pwede ata as collateral.

[jackbrng]

Gud PM!

 

I have an inquiry here... My wife gave birth last september and finile ko na sya sa BIR nung pumasok na ako. Dineclare ko na ako ang head of the family and sa akin yung dependent. Napansin ko na same pa rin yung dinededuct sa akin ng employer ko. Mairerefund pa ba sa akin yung binayad ko na tax na sobra? If ever na sabihin ng employer ko na di na yun marefund, kanino ako dapat magreklamo?

 

Salamat!

 

submit to your HR the form you filled up with the BIR regarding your Status Update, you refer to your partner as "wife" meaning you are married, so dapat status mo ay Married with dependent which is you child or children. dont worry kung di pa rin nagbabago withholding tax mo kasi at the end of the year, may year end adjustment na ginagawa, doon i-reconcile ang tax due mo base on your new status saka yung total withholding tax mo sa buong taon and definitely may tax refund ka! tax refund usually released by employer at last payroll of current year or january of the following year. kung wala kang tax refund na nakuha, reklamo mo sa bir at bir ang mag-audit sa kanila.

[sonyhpsony]

Need some advcie. I am thinking of going into one of 2 businesses. The first is rental of apartment units and second is buy and sell. What taxes are involved here? I appreciate all the help. Thanks!

[jackbrng]

Need some advcie. I am thinking of going into one of 2 businesses. The first is rental of apartment units and second is buy and sell. What taxes are involved here? I appreciate all the help. Thanks!

 

in regard to rental, tanong ko kung anong uri apartment mo, residential ba o commercial, yung rental fee mo ba ay lalagpas ng 10,000.00 monthly?

 

Kaya ko natanong, kasi kung residential ang unit mo, karamihan ay di na niririhestro ito at wala ng tax, ganun lang ka-simple,

 

pero kung commercial, may income tax kang babayaran, percentage tax or VAT, business license from local government unit that has jurisdiction on your place of business, annual registration fee sa bir na P500.00. and one more thing, yung tenant mo ay babawasan ang rental fee na ibabayad sa yo ng 5% as withholding tax. Yung tenant mo na ang mag-remit nito sa authorized agent bank ng bir. itong withholding tax naman ay ibabawas sa income tax due mo kung meron, kung wala kang income tax due, i-carry over to sa next quarter.

 

Sa buy and sell business naman, parehas din ang taxes sa mga binanggit ko sa itaas, except for withholding tax on rental. Unless magkaroon ka ng client for example large company that belong to top 10,000 corporation, nagkakaltas din ito ng withholding tax sa payment nila, i think mga 2% ata ng payment.

[jackbrng]

Need some advcie. I am thinking of going into one of 2 businesses. The first is rental of apartment units and second is buy and sell. What taxes are involved here? I appreciate all the help. Thanks!

 

in regard to rental, tanong ko kung anong uri apartment mo, residential ba o commercial, yung rental fee mo ba ay lalagpas ng 10,000.00 monthly?

 

Kaya ko natanong, kasi kung residential ang unit mo, karamihan ay di na niririhestro ito at wala ng tax, ganun lang ka-simple,

 

pero kung commercial, may income tax kang babayaran, percentage tax or VAT, business license from local government unit that has jurisdiction on your place of business, annual registration fee sa bir na P500.00. and one more thing, yung tenant mo ay babawasan ang rental fee na ibabayad sa yo ng 5% as withholding tax. Yung tenant mo na ang mag-remit nito sa authorized agent bank ng bir. itong withholding tax naman ay ibabawas sa income tax due mo kung meron, kung wala kang income tax due, i-carry over to sa next quarter.

 

Sa buy and sell business naman, parehas din ang taxes sa mga binanggit ko sa itaas, except for withholding tax on rental. Unless magkaroon ka ng client for example large company that belong to top 10,000 corporation, nagkakaltas din ito ng withholding tax sa payment nila, i think mga 2% ata ng payment.

[vader2007]

Hi there. Hope you can help. My father in law died in 1994 with 3 properties in his name. After 13 years, my brother in law discovers the land titles. If he and my wife execute an extrajudicial settlement, what kind of taxes and how much back taxes are we looking at?

 

Thanks for your help.

[G.I.]

Hi there. Hope you can help. My father in law died in 1994 with 3 properties in his name. After 13 years, my brother in law discovers the land titles. If he and my wife execute an extrajudicial settlement, what kind of taxes and how much back taxes are we looking at?

 

Thanks for your help.

 

for sure annual real estate tax plus penalties

 

it depends on the value of the property. you may check with ROD on the value of the back taxes.

[G.I.]

for sure annual real estate tax plus penalties

 

it depends on the value of the property. you may check with City Registrar on the value of the back taxes.

[Rabbit305]

for sure annual real estate tax plus penalties

 

it depends on the value of the property. you may check with ROD on the value of the back taxes.

 

You will also have to pay ESTATE TAX and medyo malaki yun because its already 13 years that your father died. Regarding real estate tax, in some municipalities or cities, they offer amnesty program and prior years taxes are sometimes waived. Check the town/city where the property was located and asked the Assessors's office or Treasurer's office if they have amnesty.

[loafer]

in regard to rental, tanong ko kung anong uri apartment mo, residential ba o commercial, yung rental fee mo ba ay lalagpas ng 10,000.00 monthly?

 

Kaya ko natanong, kasi kung residential ang unit mo, karamihan ay di na niririhestro ito at wala ng tax, ganun lang ka-simple,

 

pero kung commercial, may income tax kang babayaran, percentage tax or VAT, business license from local government unit that has jurisdiction on your place of business, annual registration fee sa bir na P500.00. and one more thing, yung tenant mo ay babawasan ang rental fee na ibabayad sa yo ng 5% as withholding tax. Yung tenant mo na ang mag-remit nito sa authorized agent bank ng bir. itong withholding tax naman ay ibabawas sa income tax due mo kung meron, kung wala kang income tax due, i-carry over to sa next quarter.

 

Sa buy and sell business naman, parehas din ang taxes sa mga binanggit ko sa itaas, except for withholding tax on rental. Unless magkaroon ka ng client for example large company that belong to top 10,000 corporation, nagkakaltas din ito ng withholding tax sa payment nila, i think mga 2% ata ng payment.

 

Jackbrng,

 

Correct me if I'm wrong but recently BIR have become strict in implementing VAT na 12% rather than being satisfied with the regular 6% capital gains Tax. As long as a property is use for business or just use by the owner to conduct his business, they would require you to pay VAT when you try to dispose your property.

[jackbrng]

Jackbrng,

 

Correct me if I'm wrong but recently BIR have become strict in implementing VAT na 12% rather than being satisfied with the regular 6% capital gains Tax. As long as a property is use for business or just use by the owner to conduct his business, they would require you to pay VAT when you try to dispose your property.

 

yes, tama ka, they would required you to pay VAT kasi ang presumption nila ay yung buyer gagamitin din ito sa business.

[adriane888]

yes, tama ka, they would required you to pay VAT kasi ang presumption nila ay yung buyer gagamitin din ito sa business.

That is why you have to show proof that these assets are capital assets.. you can refer to the tax code for the definition of the capital assets one of which is that the asset is not used in business as well as it is not depreciable.

[jackbrng]

calling all members of mtc who had business.

 

the government offer an amnesty to all taxpayer for tax period December 31, 2005 and prior years. Basis of amnesty fee to be paid is the net worth of the taxpayer, meaning you must declare all your assets and liabilities because there are penalties to be imposed who will understate their networth by 30%.

 

If you are not tax compliant during these period, you must avail these amnesty because BIR will no longer examine your books and records from these periods, meaning, WALA KA NG KASO SA BIR!

 

This is a good offer especially to those who has a pending case or assessment from BIR. Instead of negotiating with those examiner, avail this one and you will be sure that your payment will go to the government and not in the pocket of the examiners. Also you help the government establish an effective tax system in the future.

[yellowjacket]

calling all members of mtc who had business.

 

the government offer an amnesty to all taxpayer for tax period December 31, 2005 and prior years. Basis of amnesty fee to be paid is the net worth of the taxpayer, meaning you must declare all your assets and liabilities because there are penalties to be imposed who will understate their networth by 30%.

 

If you are not tax compliant during these period, you must avail these amnesty because BIR will no longer examine your books and records from these periods, meaning, WALA KA NG KASO SA BIR!

 

This is a good offer especially to those who has a pending case or assessment from BIR. Instead of negotiating with those examiner, avail this one and you will be sure that your payment will go to the government and not in the pocket of the examiners. Also you help the government establish an effective tax system in the future.

 

my deadline ba to Bro?

[tombone]

If I'm not mistaken duration of Tax Amnesty is 6 month from the start of the program but the implementing guideline is stil not available, This is the best for those people with ill gotten wealth or unexplain wealth since now that those undeclare or corrupted asset from the past may be legalize and can see the light and become legitimate asset. by paying only 5% of the total net worth declare.

[tombone]

If I'm not mistaken duration of Tax Amnesty is 6 month from the start of the program but the implementing guideline is stil not available, This is the best for those people with ill gotten wealth or unexplain wealth since now that those undeclare or corrupted asset from the past may be legalize and can see the light and become legitimate asset. by paying only 5% of the total net worth declare.

[id6230]

yes, tama ka, they would required you to pay VAT kasi ang presumption nila ay yung buyer gagamitin din ito sa business.

 

Ang ibig sabihin na nito ay kahit noong binili ko nag bayad na ako nang VAT, pagbenta ko babayad pa rin ako uli nang VAT?

[juniperxxx]

How much is the Estate Tax for a property worth 6M (zonal) in the name of the deceased? How much time is given to the heirs to pay this tax and what are the penalties for delaying payment?

[jackbrng]

my deadline ba to Bro?

 

six months upon implementation or until february, 2008. start na kasi sila sa monday, 9/3/07

[jackbrng]

Ang ibig sabihin na nito ay kahit noong binili ko nag bayad na ako nang VAT, pagbenta ko babayad pa rin ako uli nang VAT?

 

NO, hindi ganon, yung VAT sa pagbenta mo ay add-on sa selling price mo, bale yung buyer ang magshoulder nito. Just like sa buy and sell, yung binili mo may VAT at ikaw ang nagshoulder nun kasi ikaw bumili, kapag nabenta mo na yung nabili mo, syempre yung selling price mo ay papatungan mo ng VAT, at yung makakabili o nakabili ang mag-shoulder ng VAT.

 

Hanggat binibenta at binibili ang isang bagay na VATABLE, palipat-lipat lang ito at ang bumibili ang nag-shoulder nito dahil nakasama na ito sa SELLING PRICE except kung ang isang bagay na binibenta ay VATABLE pero ang nag-bebenta ay NON VATABLE PERSON, yung binibenta nya ay WALANG VAT.

[jackbrng]

How much is the Estate Tax for a property worth 6M (zonal) in the name of the deceased? How much time is given to the heirs to pay this tax and what are the penalties for delaying payment?

 

since kulang information na ibinigay mo, assume ko na lang na 6M ang tax base at 9/1/07 namatay yung mayari.

 

Estate tax niya ay P615,000.00. Maari pa itong bumaba kung ibawas yung mga nagastos nya in related to sa pagkamatay nya tulad ng funeral, hospitalization, standard deductions, unpaid mortgage of said property, at marami pang iba. Itong mga deductions ay ibabawas sa halaga ng gross estate, which is 6M in your case.

 

Tax code requires you to file an estate tax return within 6 months upon decedent's death, pero maari rin kayo bigyan ng hanggang 30 days extension. Estate tax shall be filed upon filing of estate tax return, pero kung mahihirapan kayong magbayad, maari kayong mabigyan ng extension na hindi hahaba ng 5 taon. Kung ang estate ay naayos sa korte kayo ay bibigyan ng 5 taon at kung naayos ito sa labas ng korte, bibigyan kayo ng 2 taon na extension sa pagbayad.

[juniperxxx]

since kulang information na ibinigay mo, assume ko na lang na 6M ang tax base at 9/1/07 namatay yung mayari.

 

Estate tax niya ay P615,000.00. Maari pa itong bumaba kung ibawas yung mga nagastos nya in related to sa pagkamatay nya tulad ng funeral, hospitalization, standard deductions, unpaid mortgage of said property, at marami pang iba. Itong mga deductions ay ibabawas sa halaga ng gross estate, which is 6M in your case.

 

Tax code requires you to file an estate tax return within 6 months upon decedent's death, pero maari rin kayo bigyan ng hanggang 30 days extension. Estate tax shall be filed upon filing of estate tax return, pero kung mahihirapan kayong magbayad, maari kayong mabigyan ng extension na hindi hahaba ng 5 taon. Kung ang estate ay naayos sa korte kayo ay bibigyan ng 5 taon at kung naayos ito sa labas ng korte, bibigyan kayo ng 2 taon na extension sa pagbayad.

Thanks, jackbrng. In a case of impending death, the terminally ill patient executes a deed of assignment (transfer ownership) to his children, how much would be the taxes paid? Any other scheme to reduce legally the tax expenses in transferring ownership of property to children?

[jackbrng]

Thanks, jackbrng. In a case of impending death, the terminally ill patient executes a deed of assignment (transfer ownership) to his children, how much would be the taxes paid? Any other scheme to reduce legally the tax expenses in transferring ownership of property to children?

 

mas mababa compare kung namatay na yung mayari. Bale Donor's tax ang gagamitin dito. Using the same example of 6M, donors tax will be P524,000.00 na maari pang bumaba depende sa mga deductions. Yung deductions i-apply sa value ng asset na i-transfer

[vader2007]

mas mababa compare kung namatay na yung mayari. Bale Donor's tax ang gagamitin dito. Using the same example of 6M, donors tax will be P524,000.00 na maari pang bumaba depende sa mga deductions. Yung deductions i-apply sa value ng asset na i-transfer

 

very informative posts...i have a question, what if the family discovers that their late father had properties after 13 years? they have paid the municipal real estate taxes but are unsure how to proceed in transferring the ownership of the properties given the huge tax implications. what are the family's options to lessen the tax burden? the properties value range from Php 100 to 500k.

 

thanks for your advise.