BIR Concerns

[duralife]

Tax credits...

 

pano po mapatunay na nagbigay ka ng donation sa mga institution na walang resibo? or let's say, bumili ka ng mga items po, then gave it to charity? pano po un make-credit?

 

 

thnx. :-)

 

 

go to: www.bir.gov.ph/taxcode/24615.htm

 

hope you will be clarified with the laws on allowable deduction on Charitable contributions.

[charmingcindy26]

Just wanna ask what are the requirements to be submitted para sa remittance for 1601C bukod sa BIR form & payment? Thanks!

[i_am]

any idea how i can retrieve my TIN?

[manager63]

TAXES:

 

1. VAT - 12%. Pero yung income from overseas at dollar denominated zero-rated ito, meaning walang syang output tax. Yung income earn locally lang ang may output tax. VAT Due = Output Tax - Input Tax. Output Tax ay galing sa Sales o Revenue. Yung Input Tax ay galing sa VAT Expense. Mga Expense na walang resibo o nakuha sa NON-VAT entity, walang input tax ang mga ito.

 

2. INCOME TAX - 35%. Kung ang income from overseas ay galing sa bansa na may treaty sa Philippines regarding tax exemption, exempted ito. Kung ang income from overseas ay na-tax na ng bansa na pinanggalingan ng income, wala na itong tax dito sa Philippines. Kung ang income from overseas ay wala sa mga nabanggit, included ito sa taxable income dito sa Philippines.

 

3. WITHHOLDING TAX EXPANDED - Kung umuupa ng opisina - 5% ng rental fee net of VAT. Kung nagpa-pa-subcontract - 2% ng income payment sa subcontractor.

 

4. WITHHOLDING TAX COMPENSATION - Para sa sahod ng mga empleyado. Pakitignan na lang sa www.bir.gov.ph ang tax table.

 

5. WITHHOLDING TAX FINAL - para sa dividend ng mga partners - 10%

 

Yung VAT at Income Tax ay ang Partnership ang may obligasyon. Yung Withholding Taxes ay ang mga Income recipient ang may obligasyon pero ang Partnership ang magre-remit sa BIR bilang Withholding Tax Agent.

 

BOOKS OF ACCOUNTS:

 

Kailangan mong magpa-rehistro ng Books of Accounts. Nabibili ito sa bookstore o office supplies stores. Kung VAT register ka, 6 na libro kailangan mo tulad ng Journal Book, Ledger Book, Cash Receipt Book, Cash Disbursement Book, Subsidiary Sales Book at Subsidiary Purchase Book. Kung NON- VAT ka naman ay 4 na libro lang ang kailangan katulad din ng nabanggit sa itaas, tanggalin mo lang yung Subsidiary Sales at Subsidiary Purchase Book. Maaring isulat kamay o computer printout ang pag-record sa libro. Maaring i-encode muna sa computer, i-print at idikit sa libro ang recording sa libro.

 

Kung ang Sales o Revenue mo ay lalagpas ng P1.5 million, VAT register ka, kung mababa sa P1.5 million NON-VAT ka.

 

TAX MINIMIZATION:

 

1. Dapat lahat ng Income Payment na ni-require ng BIR na mag-withheld, i-withheld ninyo dahil kung hindi kayo nag-withheld hindi ninyo magagamit ang income payment as your expense at lalaki taxable income ninyo. May client ako na hindi nagwi-withheld sa income payments sa directors dahil family corporation at sila-sila ang nagde-desisyon, kaya nang ma-audit sila, nadis-allow yung mga expenses na binayad sa mga directors at lumaki ang taxable income.

 

2. Sa VAT, mayroon kayong advantage dahil sa zero rated sales o revenue nyo na galing sa ibang bansa. Kung mas malaking porsento ng income ninyo ay dollar denominated, maaring maliit na VAT na lang ang bayaran ninyo na manga-galing sa Peso denominated income.

 

ACCOUNTANT SERVICES:

 

Madami namang accountant na nagpa-praktis. Baka sa kapitbahay nyo meron naman. Lalayo ka pa. Mas maganda kasi kung malapit lang para kumbinyente sa inyong dalawa. Kung wala naman, check mo www.picpa.com.ph (di ko lang alam kung tama ito, kung hindi search mo na lang ang keyword "picpa"). Kung hindi naman, kami nagpa-practice din, pm mo na lang contact number at contact person.

 

 

Tanong ko lang from our accountant members, how to put up or register a local representative office. Foreign based yung company and they are thinking of putting up a rep office sa Pilipinas. Any suggestions on how to get started, government agencies to visit, permits, taxes, requirements, etc. Thanks, gentlemen.

[adriane888]

Tanong ko lang from our accountant members, how to put up or register a local representative office. Foreign based yung company and they are thinking of putting up a rep office sa Pilipinas. Any suggestions on how to get started, government agencies to visit, permits, taxes, requirements, etc. Thanks, gentlemen.

Well it is like your registering a corporation to SEc. You need to secure permit to operate to the SEC.. There are some requirements such as certificate of bank deposit and remittance, i think the minimum remittance from is about USD25k or USD50K. Go to SEC and get the necessary requirements..

 

FYI.. Representative office is considered resident foreign corporation..

[manager63]

Well it is like your registering a corporation to SEc. You need to secure permit to operate to the SEC.. There are some requirements such as certificate of bank deposit and remittance, i think the minimum remittance from is about USD25k or USD50K. Go to SEC and get the necessary requirements..

 

FYI.. Representative office is considered resident foreign corporation..

 

Additional questions, adriane888. Do we have to secure also mayor's permit from where we will rent an office? Do we need to retain an accountant to take care of our sales invoices, books, salesmen allowances and commissions, taxes to be paid, SSS, etc? As a resident foreign company, should we use local invoices or still use the invoices issued from our home country (Cyprus)?

 

Thanks for your advice. I appreciate it. I would visit SEC and inquire further. More power to you!

[hitomi]

hi tax experts!

 

can a minor get a TIN? my bro needs it for a driver's license application.

i read in the BIR website that there's a provision for people to obtain a TIN so they can transact with the government.

 

but i've been hearing that people going to the BIR to get a TIN for their license application get turned down.

according to the people there "di ka puwede kumuha ng TIN kung pang lisensiya lang"

 

i don't get it

[adriane888]

Additional questions, adriane888. Do we have to secure also mayor's permit from where we will rent an office? Do we need to retain an accountant to take care of our sales invoices, books, salesmen allowances and commissions, taxes to be paid, SSS, etc? As a resident foreign company, should we use local invoices or still use the invoices issued from our home country (Cyprus)?

 

Thanks for your advice. I appreciate it. I would visit SEC and inquire further. More power to you!

Yes.. it is like you are regular company that doing business in the pHIlippines, it is just your capability to do business is limited but the government requirements for regular company is the same..

 

Well, yes, normally you accountant but nor a requirement.. and as far as i know you don't need to issue invoice since your transaction is limited to marketing and other things but not to sell here..

 

You should use invoices by your home company since as i told ealier your transaction is limiteed only to marketing..

 

Let me know it you need further clarifications..

[manager63]

Yes.. it is like you are regular company that doing business in the pHIlippines, it is just your capability to do business is limited but the government requirements for regular company is the same..

 

Well, yes, normally you accountant but nor a requirement.. and as far as i know you don't need to issue invoice since your transaction is limited to marketing and other things but not to sell here..

 

You should use invoices by your home company since as i told ealier your transaction is limiteed only to marketing..

 

Let me know it you need further clarifications..

 

Thanks for your advice, adriane888.

 

It looks like, from your advice, the rep office is not what my boss intends it to do. His intentions to establish the rep office is to sell our machines locally. If we are limited to sell as a rep office, then maybe I should suggest to him that we establish a corporation or branch office. Is this correct? What do you suggest if we plan to sell our machines locally, not just marketing?

[adriane888]

Thanks for your advice, adriane888.

 

It looks like, from your advice, the rep office is not what my boss intends it to do. His intentions to establish the rep office is to sell our machines locally. If we are limited to sell as a rep office, then maybe I should suggest to him that we establish a corporation or branch office. Is this correct? What do you suggest if we plan to sell our machines locally, not just marketing?

Its either you register a domestic corporation or branch i think that will do.

[manager63]

Its either you register a domestic corporation or branch i think that will do.

 

 

Thanks, again, adriane888. Hope I can still consult you if I have more questions.

[LYCHEE]

mr. adrianne888...question po: what is the effect of deferring the payment of an estate tax on real property even after the deceased parent has died already for years? updated naman ang property taxes.

[jackbrng]

mr. adrianne888...question po: what is the effect of deferring the payment of an estate tax on real property even after the deceased parent has died already for years? updated naman ang property taxes.

 

penalties o maaring kunin ng BIR ang mga properties.

 

insignificant sa situation na ito ang property tax dahil sa local government ito binabayaran at hindi sa BIR.

[LYCHEE]

penalties o maaring kunin ng BIR ang mga properties.

 

insignificant sa situation na ito ang property tax dahil sa local government ito binabayaran at hindi sa BIR.

 

that was helpful...thanks, bro. mabuti na lang at na extend ang deadline ng tax amnesty sa May 2008.

 

would you know the sanctions/penalties? any links would help...salamas. :thumbsupsmiley:

[lestat41]

mga sirs/ma'ams!

inquiry po..for the employees.have you received your form 2316 for last year? ung parang ITR po...this was supposed to be issued at the start of the year right??hanggang ngayon di pa po binibigay ng HR toh...need it to apply for a credit card..

 

Thanx!

[jackbrng]

mga sirs/ma'ams!

inquiry po..for the employees.have you received your form 2316 for last year? ung parang ITR po...this was supposed to be issued at the start of the year right??hanggang ngayon di pa po binibigay ng HR toh...need it to apply for a credit card..

 

Thanx!

 

di naman pag start ng year release ang 2316, basta wag lang lalampas ng April 15 which is the filing of ITR. Parang ITR? maari, kung ang withholding tax mo sa loob ng isang taon ay equal sa income tax due mo, yung 2316 ay pupwede ng maging ITR, ang tawag dito ay substituted filing, kung hindi naman equal ang withholding tax at income tax due, kailangan mo pa ring mag-file ng ITR.

[Schnyder1980]

Ano po ba ang requirements para makakuha ng TIN?

[jackbrng]

Ano po ba ang requirements para makakuha ng TIN?

 

kung empleyado ka, birth certificate. Kung married ka, marriage certificate. Kung may dependent ka birth certificate ng dependent mo.

 

kung nasa business ka, DTI (kung single proprietor), SEC (kung corporation), Mayors Permit, Contract of Lease (kung nangungupahan), Real Property tax (o amilyar, kung sarili mo yung lugar ng business).

 

sa empleyado, walang bayad. Sa business, may registration fee na P500.00 plus register ka ng books of accounts plus pa-print ka resibo.

[wizard23]

i'm a professional given the nature of my job (insurance, real estate) so i'm filing my VAT monthly and quarterly. even if there are lean months, i have to file. my question is, if i quit this profession, what should i do so that i won't have to file anymore? tnx

[azayco]

i'm a professional given the nature of my job (insurance, real estate) so i'm filing my VAT monthly and quarterly. even if there are lean months, i have to file. my question is, if i quit this profession, what should i do so that i won't have to file anymore? tnx

 

Hi wizard23

 

It is more prudent if you file an application for cessation of or retirement from business using BIR Form 1905. If you have substantial input tax credits, you can then ask for a refund or tax credit certificate (TCC) from the BIR. Refunds or TCCs though take a long time. Most likely, you will have to go to the Court of Tax Appeals before you can get one.

 

Good luck.

[azayco]

i'm a professional given the nature of my job (insurance, real estate) so i'm filing my VAT monthly and quarterly. even if there are lean months, i have to file. my question is, if i quit this profession, what should i do so that i won't have to file anymore? tnx

 

Hi wizard23

 

It is more prudent if you file an application for cessation of or retirement from business using BIR Form 1905. If you have substantial input tax credits, you can then ask for a refund or tax credit certificate (TCC) from the BIR. Refunds or TCCs though take a long time. Most likely, you will have to go to the Court of Tax Appeals before you can get one.

 

Good luck.

[muffin]

Hello! I need advice po from you BIR experts...

 

I want to start my video arcade business...

I'm an employee of a bank at the same time...

 

What do I need to do to get my Business TIN? I already have my TIN as an employee?

Newbie lang po ako sa business. please help. Basically my income would come from the rental revenue from the machines.

[jackbrng]

Hello! I need advice po from you BIR experts...

 

I want to start my video arcade business...

I'm an employee of a bank at the same time...

 

What do I need to do to get my Business TIN? I already have my TIN as an employee?

Newbie lang po ako sa business. please help. Basically my income would come from the rental revenue from the machines.

 

kailangan mo muna mag-apply ng Business Name sa DTI (kung single proprietorship ang business mo) o sa SEC (kung corporation ang business mo) then, kuha ka ng Barangay Clearance kung saang barangay naka-locate yung business mo, then kuha ka ng Mayors Permit kung saang City o Municipality naka-locate yung business mo. Kapag may Mayor's Permit ka na, pwede mo ng i-parehistro yung business mo sa BIR. Kung nangungupahan ka ng pwesto ng business mo, kailangan ang Contract of Lease. Kung sarili mo yung lugar, kailangan ang huling pinagbayaran ng amilyar. Kung Single Proprietorship ang business mo, yung existing TIN mo na rin ang gagamitin pero magbabayad ka pa rin ng Registration Fee na P500.00. Kung Corporation ang business mo, bibigyan ka ng BIR ng bagong TIN na para sa corporation.

[muffin]

kailangan mo muna mag-apply ng Business Name sa DTI (kung single proprietorship ang business mo) o sa SEC (kung corporation ang business mo) then, kuha ka ng Barangay Clearance kung saang barangay naka-locate yung business mo, then kuha ka ng Mayors Permit kung saang City o Municipality naka-locate yung business mo. Kapag may Mayor's Permit ka na, pwede mo ng i-parehistro yung business mo sa BIR. Kung nangungupahan ka ng pwesto ng business mo, kailangan ang Contract of Lease. Kung sarili mo yung lugar, kailangan ang huling pinagbayaran ng amilyar. Kung Single Proprietorship ang business mo, yung existing TIN mo na rin ang gagamitin pero magbabayad ka pa rin ng Registration Fee na P500.00. Kung Corporation ang business mo, bibigyan ka ng BIR ng bagong TIN na para sa corporation.

 

Wow! thanks! bro, what if my machines are located in various places and the owners of those places are the ones renting machines from me?

Do i need to get permit for each of those places pa? or just a permit para sa pinaka homebase/headquarters ko?

 

Yung lease contract ko kasi is with those who are renting my machines. I'm the lessor and they are the lessee renting the machines.

 

What I'm thinking is that pwede ba na yung Headquarters ko na lang ang ikukuha ko ng barangay clearance at mayor's permit tapos bigyan ko nalang ng xerox copy yung mga tao na nagrerent sa akin ng machines para may ilalagay sila dun sa mga lugar nila even if it's in another city na?

[jackbrng]

Wow! thanks! bro, what if my machines are located in various places and the owners of those places are the ones renting machines from me?

Do i need to get permit for each of those places pa? or just a permit para sa pinaka homebase/headquarters ko?

 

Yung lease contract ko kasi is with those who are renting my machines. I'm the lessor and they are the lessee renting the machines.

 

What I'm thinking is that pwede ba na yung Headquarters ko na lang ang ikukuha ko ng barangay clearance at mayor's permit tapos bigyan ko nalang ng xerox copy yung mga tao na nagrerent sa akin ng machines para may ilalagay sila dun sa mga lugar nila even if it's in another city na?

 

no bro, wala ka ng kinalaman sa mga umuupa ng machine mo, bale yung sa yo lang ang kukuhanan mo ng permit. and one more thing, what i mean sa contract of lease ay yung pwesto ng business mo or what you called your headquarters. Kung inuupahan mo yung place, kailangan ng BIR ng Contract of lease, pero kung sarili mo yung place, yung tax declaration lang ng real property ang ipapakita mo sa BIR. Kung yung place ay pagaari ng parents mo o ng ibang tao pero wala ka namang upa, mag-execute ka na lang ng affidavit of no rent. Lastly, dapat yung umuupa sa iyo ng machine ay kaltasan ka ng withholding tax sa mga ibinabayad sa iyo