BIR Concerns

[jackbrng]

Year 2006

 

All year round i have a 17-year old dependent who turned 18 last December 31, 2006

 

Tama ba na she was a dependent under my ITR for that year 2006?

 

matagal mo na ba syang ginagamit na dependent? kasi kung matagal na at issue ay ang age, no problem with that, you can use it as long as dependent mo sya in a sense na ginagastusan mo sya like food, education, etc. pero kung ngayon mo lang gagamitin, dapat update mo muna record mo sa bir by declaring her as your dependent. dalhin mo lang birth certificate ng dependent mo kahit photocopy lang sa bir tapos fill up ka ng form

[jackbrng]

Thanks, Adriane888. I appreciate the advice.

 

You are right. I'm not an employee of the said company. Just a commission salesman. No benefits either, no SSS, just the withholding 10% and allowance for transpo and cellcards.

 

Just to ask some more questions if ok lang? 2 years (2004 to 2005) ago, hindi ako umabot ng P60K in a year. In those years, hindi rin ako nagfile ng ITR. Will I be penalized for not filing my ITRs? Commissions for '04 was P0.00 and '05 was P50K. Can I file late returns for '04 and '05?

 

For last year '06, I got involved with a foreign company selling hardware again. This pertains to your last paragraph below. There were no withholding tax withheld, because they are a foreign based company. They give allowances for transpo and cellcards, also. I received P151K in commissions last year remitted to my bank account. Following your advice, I will file and pay my ITR by the 15th April.

 

Thanks to this forum, correct advice needed by small businessmen are attended to by fellow members. Thanks, again, Adriane888.

 

dapat file mo na itr mo ng 2004 and 2005, bale penalty mo sa 2004 ay P200.00 lang naman at tawag dito ay compromise penalty, lagay mo lang sa itr na "no sales transaction" therefore no tax due. sa 2005, your tax due will depend regarding your status. Kasi, lets say, single ka, commission mo ay P50K, exemption mo ay P20K so tax base mo ay P30K. From your tax base, bir will compute surcharge of 25% + interest of 20% per annum + compromise based on commission income at hindi na P200.00 na tulad sa "no sales transaction". Kagandahan kasi pag inasikaso mo agad obligasyon mo sa bir ay (1) maayos record mo, kasi baka balang araw ay magkaroon ka ng business at sole proprietor ang form ng business mo, ang gagamitin na TIN ng business mo ay yung TIN mo bilang proprietor, kapag may atraso ka sa BIR di mo marerehistro business mo, hindi ka magkakaroon ng resibo so illegitimate business mo (2) kapag inaantay mo mahuli ka pa pero napaka-slim ng chance, lalaki surcharge mo, magiging 50% na ito, interest mo ay lalaki rin kasi time-dependent ang computation, habang tumatagal lalong sumasarap, este, lumalaki

 

For this year 2006, gawa ka ng itr at file mo on or before april 15, 2007. kung fixed ang traspo and cellcard allowance mo, theoretically dapat ay declare mo yan as income, kung hindi naman, at connected itong transpo and cellcard allowance sa company na pinapasukan mo, wag mo nang isama yan. Pero advise ko sa yo, wag mo ng isama ang transpo at cellcard allowance as addition to your commission income, di na nila papatulan yan, yung commission income lang ang declare mo.

 

kung gusto mo lumiit ang tax due mo, (1) contribute ka sa SSS, Philhealth, Pagibig kahit self-employed kasi itong mga gastos ay ibabawas sa income mo at liliit ang tax base mo at may benepisyo ka pang mapapala balang araw, kaysa ibuhos mo lahat sa pagbayad ng tax, wala ka naman mapapala! (2) update mo status mo. kung single ka, kung may kapatid ka declare mong dependent yon, at magiging head of the family ka with dependent (max of 4 dependent only). isang dependent ay P8,000.00 each, exemption ng single ay P20,000.00 at head of the family ay P25,000.00 so lets say isa dependent mo, from P20,000.00 as single, magiging P33,000.00 ang exemption mo, meaning P13,000.00 less from your tax base (take note tax base not tax due) (3) lastly, magasawa ka at anak ka ng apat para makuha mo maximum exemption of P64,000.00, hehehe, joke.

[jackbrng]

Just wish to ask regarding ITR form to use if you are a commission salesman. Is it the 1701 for self employed persons? Kindly advice also on penalties imposed by the BIR if you failed to file your ITR for the past years. If you' ve seen my earlier post, I was not able to file my ITR for the taxable years '04 and "05. There was P0.00 commissions for '04 and P50K commissions for '05. Would appreciate your advice. Thanks.

 

yep, BIR FORM 1701 ang gamitin mo, pagcompute ng tax due mo ay ibawas mo sa commission income mo lahat ng gastos mo tulad ng TRANSPORTATION EXPENSE, COMMUNICATION EXPENSE (kahit pinapalitan ng kumpanya mo ito, isama mo na kasi di naman malalaman ng bir yan), CLOTHING EXPENSE o gastos mo sa damit na sinusuot mo kasi bilang salesman kailangang presentable ka para ka makasara ng benta so connected sa trabaho mo yan, REPRESENTATION EXPENSE - ito ang mga gastos sa pagharap sa kliente mo tulad ng libre mo sa sa labas tulad ng pakain, painom, pabeerhouse, pambayad sa psp (pero may limit ang REPRESENTATION EXPENSE, 1% lang ng income), MISCELLENEOUS EXPENSE - ito ang mga gastos na maliliit lang at bihira mangyari, tulad ng paxerox, parking fee kung may kotse ka, etc., OFFICE SUPPLIES - ito ang mga gastos tulad ng papel, ballpen, lapis, scotch tape, thumbtacks, paper clip, fax paper, ink catridge, carbon paper. Kung may sasakyan kang ginagamit mas maganda dahil pwede mo isama ang gasto mo sa gasolina o FUEL EXPENSE, DEPRECIATION EXPENSE, at REPAIR and MAINTENANCE ng sasakyan mo. Kung may computer ka sa bahay, pwede mo rin isama ang gastos ng LIGHT EXPENSE dahil sa paggamit ng computer, DEPRECIATION EXPENSE - OFFICE EQUIPMENT. Ang DEPRECIATION EXPENSE (sa tangible asset tulad ng example sa itaas, sasakyan at computer) ay mga gastos na parang prepaid expense, ibig sabihin nagastos mo na, i-amortize mo lang depende sa tantya mong buhay ng asset mo. Deduction din ito sa income.

 

Sa tingin mo kung pagsama-samahin ng mga gastos na binanggit ko na malamang na meron ka plus yung exemption mo, may babayaran ka pa kayang buwis??? malamang wala na, kaya dapat ngayon pa lang gawin mo na yan, GOOD LUCK!

 

kung may tanong post mo lang dito, o pm mo ako, o email mo ako sa link sa ibaba

[lomex32]

Yes matagal na

 

my question perhaps should be kelan siya matatanggal as my dependent?

 

matagal mo na ba syang ginagamit na dependent? kasi kung matagal na at issue ay ang age, no problem with that, you can use it as long as dependent mo sya in a sense na ginagastusan mo sya like food, education, etc. pero kung ngayon mo lang gagamitin, dapat update mo muna record mo sa bir by declaring her as your dependent. dalhin mo lang birth certificate ng dependent mo kahit photocopy lang sa bir tapos fill up ka ng form

[manager63]

Thanks, jackbrng, sa advice mo.

 

Question uli, do I need to get an accountant to certify my deductions such as transpo, communication, clothing, etc at stamp nya? Kailangan ba na i-attach mga receipts as proof? Would appreciate the advice uli. Thanks.

 

 

yep, BIR FORM 1701 ang gamitin mo, pagcompute ng tax due mo ay ibawas mo sa commission income mo lahat ng gastos mo tulad ng TRANSPORTATION EXPENSE, COMMUNICATION EXPENSE (kahit pinapalitan ng kumpanya mo ito, isama mo na kasi di naman malalaman ng bir yan), CLOTHING EXPENSE o gastos mo sa damit na sinusuot mo kasi bilang salesman kailangang presentable ka para ka makasara ng benta so connected sa trabaho mo yan, REPRESENTATION EXPENSE - ito ang mga gastos sa pagharap sa kliente mo tulad ng libre mo sa sa labas tulad ng pakain, painom, pabeerhouse, pambayad sa psp (pero may limit ang REPRESENTATION EXPENSE, 1% lang ng income), MISCELLENEOUS EXPENSE - ito ang mga gastos na maliliit lang at bihira mangyari, tulad ng paxerox, parking fee kung may kotse ka, etc., OFFICE SUPPLIES - ito ang mga gastos tulad ng papel, ballpen, lapis, scotch tape, thumbtacks, paper clip, fax paper, ink catridge, carbon paper. Kung may sasakyan kang ginagamit mas maganda dahil pwede mo isama ang gasto mo sa gasolina o FUEL EXPENSE, DEPRECIATION EXPENSE, at REPAIR and MAINTENANCE ng sasakyan mo. Kung may computer ka sa bahay, pwede mo rin isama ang gastos ng LIGHT EXPENSE dahil sa paggamit ng computer, DEPRECIATION EXPENSE - OFFICE EQUIPMENT. Ang DEPRECIATION EXPENSE (sa tangible asset tulad ng example sa itaas, sasakyan at computer) ay mga gastos na parang prepaid expense, ibig sabihin nagastos mo na, i-amortize mo lang depende sa tantya mong buhay ng asset mo. Deduction din ito sa income.

 

Sa tingin mo kung pagsama-samahin ng mga gastos na binanggit ko na malamang na meron ka plus yung exemption mo, may babayaran ka pa kayang buwis??? malamang wala na, kaya dapat ngayon pa lang gawin mo na yan, GOOD LUCK!

 

kung may tanong post mo lang dito, o pm mo ako, o email mo ako sa link sa ibaba

[manager63]

Salamat uli sa advice mo, jackbrng!

 

Actually, I'm living in with my partner. We still have no children dahil sa liit ng income ko. Pwede ba exemption ko ma-consider as "married"?? Dati, head of the family ako with my disabled sister as dependent. 26 years old na sya ngayon.

 

Regarding late filing ng ITR, kung sa Manila home address ako, san ako pwede mag file ng ITR at magbayad ng penalties? Before, I used to work sa isang office sa Ortigas (2002), and they filed our ITRs for us. This is with the withholding tax. Do I need to see the BIR officer regarding this late filing for the penalties to be assessed?

 

For year 2006, definitely, I will file my ITR this year. I'll follow your advice on itemized deductions (please see my other post regarding this) but need your advice further. Thanks sa advise tungkol sa cell and transpo allowance, pero, guilty ako dahil, di maiwasan, nagagamit ko ng personal paminsan minsan = madalas!

 

I visited the BIR website with the forms and tried a sample calculation before seeing your post on itemized deductions. I used the 10% deductions and my tax due is about Php 15,000.00. I used the married exemptions. Wala akong contributions sa SSS or Philhealth o Pag-Ibig. Now I see the wisdom in your advice.

 

Lastly, can one use the online forms to file your ITR? I mean download, fill up, print and file/pay your ITR??

 

Look forward to your advice. Thanks again!

 

 

 

 

 

dapat file mo na itr mo ng 2004 and 2005, bale penalty mo sa 2004 ay P200.00 lang naman at tawag dito ay compromise penalty, lagay mo lang sa itr na "no sales transaction" therefore no tax due. sa 2005, your tax due will depend regarding your status. Kasi, lets say, single ka, commission mo ay P50K, exemption mo ay P20K so tax base mo ay P30K. From your tax base, bir will compute surcharge of 25% + interest of 20% per annum + compromise based on commission income at hindi na P200.00 na tulad sa "no sales transaction". Kagandahan kasi pag inasikaso mo agad obligasyon mo sa bir ay (1) maayos record mo, kasi baka balang araw ay magkaroon ka ng business at sole proprietor ang form ng business mo, ang gagamitin na TIN ng business mo ay yung TIN mo bilang proprietor, kapag may atraso ka sa BIR di mo marerehistro business mo, hindi ka magkakaroon ng resibo so illegitimate business mo (2) kapag inaantay mo mahuli ka pa pero napaka-slim ng chance, lalaki surcharge mo, magiging 50% na ito, interest mo ay lalaki rin kasi time-dependent ang computation, habang tumatagal lalong sumasarap, este, lumalaki

 

For this year 2006, gawa ka ng itr at file mo on or before april 15, 2007. kung fixed ang traspo and cellcard allowance mo, theoretically dapat ay declare mo yan as income, kung hindi naman, at connected itong transpo and cellcard allowance sa company na pinapasukan mo, wag mo nang isama yan. Pero advise ko sa yo, wag mo ng isama ang transpo at cellcard allowance as addition to your commission income, di na nila papatulan yan, yung commission income lang ang declare mo.

 

kung gusto mo lumiit ang tax due mo, (1) contribute ka sa SSS, Philhealth, Pagibig kahit self-employed kasi itong mga gastos ay ibabawas sa income mo at liliit ang tax base mo at may benepisyo ka pang mapapala balang araw, kaysa ibuhos mo lahat sa pagbayad ng tax, wala ka naman mapapala! (2) update mo status mo. kung single ka, kung may kapatid ka declare mong dependent yon, at magiging head of the family ka with dependent (max of 4 dependent only). isang dependent ay P8,000.00 each, exemption ng single ay P20,000.00 at head of the family ay P25,000.00 so lets say isa dependent mo, from P20,000.00 as single, magiging P33,000.00 ang exemption mo, meaning P13,000.00 less from your tax base (take note tax base not tax due) (3) lastly, magasawa ka at anak ka ng apat para makuha mo maximum exemption of P64,000.00, hehehe, joke.

[jackbrng]

Yes matagal na

 

my question perhaps should be kelan siya matatanggal as my dependent?

 

kapag may sarili na syang kita or kung nagtatrabaho na sya doon lang hihinto ang paggamit mo sa kanya as dependent, pero as long na wala syang source of income at ginagastusan mo, dependent mo pa rin sya

[jackbrng]

Thanks, jackbrng, sa advice mo.

 

Question uli, do I need to get an accountant to certify my deductions such as transpo, communication, clothing, etc at stamp nya? Kailangan ba na i-attach mga receipts as proof? Would appreciate the advice uli. Thanks.

 

may limit sa sales/receipts ang bir kung saan required ang auditors report, di ko lang kabisado ang amount limit, pero i think sa sales/receipt mo na P151K last year, kailangan talaga yung financial statement, i.e. balance sheet, income statement, pero yung auditors report, hindi na ata kailangan sa case mo. check ko uli muna, post ko na lang later

 

pero kung di mo gamay ang accounting, ang paggawa ng financial statement, kailangan mo ng service ng accountant kahit ngayong pa file lang ng itr.

 

hindi mo na kailangan i-attach ang mga receipt as proof. tago mo lang yan para in case ma-audit ka ng bir yan ang mga ipapakita mo sa kanila

[jackbrng]

Salamat uli sa advice mo, jackbrng!

 

Actually, I'm living in with my partner. We still have no children dahil sa liit ng income ko. Pwede ba exemption ko ma-consider as "married"?? Dati, head of the family ako with my disabled sister as dependent. 26 years old na sya ngayon.

 

Regarding late filing ng ITR, kung sa Manila home address ako, san ako pwede mag file ng ITR at magbayad ng penalties? Before, I used to work sa isang office sa Ortigas (2002), and they filed our ITRs for us. This is with the withholding tax. Do I need to see the BIR officer regarding this late filing for the penalties to be assessed?

 

For year 2006, definitely, I will file my ITR this year. I'll follow your advice on itemized deductions (please see my other post regarding this) but need your advice further. Thanks sa advise tungkol sa cell and transpo allowance, pero, guilty ako dahil, di maiwasan, nagagamit ko ng personal paminsan minsan = madalas!

 

I visited the BIR website with the forms and tried a sample calculation before seeing your post on itemized deductions. I used the 10% deductions and my tax due is about Php 15,000.00. I used the married exemptions. Wala akong contributions sa SSS or Philhealth o Pag-Ibig. Now I see the wisdom in your advice.

 

Lastly, can one use the online forms to file your ITR? I mean download, fill up, print and file/pay your ITR??

 

sad to say, you can consider yourself as married kasi kailangan ng bir para sa update ng status particularly sa married status ay ang marriage certificate. continue using your sister as your dependent and remain as head of the family.

 

regarding the location of filing of return, kung saang RDO ka nag-register ng TIN doon ka magpapafile ng return dahil andoon ang record mo. bago ka magfile, lapit ka muna sa officer of the day ng RDO mo para sila ang magcompute ng penalty na babayaran mo.

 

i suggest you should use itemized deductions instead of optinal deductions because you will pay lesser tax with the former by using all your expenditures (even personal) and this will lessen your net income/taxable income compare to optional deductions that they had set a percentage of your tax due. the only advantage of optional deduction is you save a lot of paperwork in preparing financial statement.

 

yes, you can use form that are downloaded from bir website.

 

 

 

Salamat uli sa advice mo, jackbrng!

 

Actually, I'm living in with my partner. We still have no children dahil sa liit ng income ko. Pwede ba exemption ko ma-consider as "married"?? Dati, head of the family ako with my disabled sister as dependent. 26 years old na sya ngayon.

 

Regarding late filing ng ITR, kung sa Manila home address ako, san ako pwede mag file ng ITR at magbayad ng penalties? Before, I used to work sa isang office sa Ortigas (2002), and they filed our ITRs for us. This is with the withholding tax. Do I need to see the BIR officer regarding this late filing for the penalties to be assessed?

 

For year 2006, definitely, I will file my ITR this year. I'll follow your advice on itemized deductions (please see my other post regarding this) but need your advice further. Thanks sa advise tungkol sa cell and transpo allowance, pero, guilty ako dahil, di maiwasan, nagagamit ko ng personal paminsan minsan = madalas!

 

I visited the BIR website with the forms and tried a sample calculation before seeing your post on itemized deductions. I used the 10% deductions and my tax due is about Php 15,000.00. I used the married exemptions. Wala akong contributions sa SSS or Philhealth o Pag-Ibig. Now I see the wisdom in your advice.

 

Lastly, can one use the online forms to file your ITR? I mean download, fill up, print and file/pay your ITR??

 

Look forward to your advice. Thanks again!

 

sad to say, you can consider yourself as married kasi kailangan ng bir para sa update ng status particularly sa married status ay ang marriage certificate. continue using your sister as your dependent and remain as head of the family.

 

regarding the location of filing of return, kung saang RDO ka nag-register ng TIN doon ka magpapafile ng return dahil andoon ang record mo. bago ka magfile, lapit ka muna sa officer of the day ng RDO mo para sila ang magcompute ng penalty na babayaran mo.

 

i suggest you should use itemized deductions instead of optinal deductions because you will pay lesser tax with the former by using all your expenditures (even personal) and this will lessen your net income/taxable income compare to optional deductions that they had set a percentage of your tax due. the only advantage of optional deduction is you save a lot of paperwork in preparing financial statement.

 

yes, you can use form that are downloaded from bir website.

[adriane888]

I need Opinions...

 

Company A is a Domestic Corporation

Company B is a Non-Resident Foreign Corporation

Company C is another Domestic Corporation

 

Company A engaged Company B's services to construct a special security device within Company A's premises.

Company B provided the materials needed, whereas Company A properly paid the necessary import duties.

Company B contracted Company C to do the construction work.

Company B never went to the Philippines.

Company B billed Company A for all the costs incurred in constructing the security device.

 

Question:

 

Should Company A withhold 35% from the income payments earned by Company B and report it under ATC Code 230 under BIR Form 1601F?

Tama po.. that is final withholding tax...

[lomex32]

Is that so.... I though dependent ends @ age of 18

 

Thanks

 

 

May pakinabang din pala ung mga bums sa pinas (not my anak schooling naman sya) sa mga working parents

 

kapag may sarili na syang kita or kung nagtatrabaho na sya doon lang hihinto ang paggamit mo sa kanya as dependent, pero as long na wala syang source of income at ginagastusan mo, dependent mo pa rin sya

[manager63]

Magkano kaya charges ng isang CPA to do this financial statement for me?

 

 

 

may limit sa sales/receipts ang bir kung saan required ang auditors report, di ko lang kabisado ang amount limit, pero i think sa sales/receipt mo na P151K last year, kailangan talaga yung financial statement, i.e. balance sheet, income statement, pero yung auditors report, hindi na ata kailangan sa case mo. check ko uli muna, post ko na lang later

 

pero kung di mo gamay ang accounting, ang paggawa ng financial statement, kailangan mo ng service ng accountant kahit ngayong pa file lang ng itr.

 

hindi mo na kailangan i-attach ang mga receipt as proof. tago mo lang yan para in case ma-audit ka ng bir yan ang mga ipapakita mo sa kanila

[adriane888]

Magkano kaya charges ng isang CPA to do this financial statement for me?

depende sa risk, dami ng transactions at laki ng company mo...

[manager63]

How about in my specific case? Commission salesman lang ako. I have no company. only myself as a salesman. No sales = no commissions or money. Would appreciate the advice on estimated charges. Can I just prepare this on my own?

 

depende sa risk, dami ng transactions at laki ng company mo...

[manager63]

Regarding deductions, can you put in sa bad debts yong credit card debts mo? Malaki laki din nautang ko "to make ends meet". Hirap talaga!

 

 

sad to say, you can consider yourself as married kasi kailangan ng bir para sa update ng status particularly sa married status ay ang marriage certificate. continue using your sister as your dependent and remain as head of the family.

 

regarding the location of filing of return, kung saang RDO ka nag-register ng TIN doon ka magpapafile ng return dahil andoon ang record mo. bago ka magfile, lapit ka muna sa officer of the day ng RDO mo para sila ang magcompute ng penalty na babayaran mo.

 

i suggest you should use itemized deductions instead of optinal deductions because you will pay lesser tax with the former by using all your expenditures (even personal) and this will lessen your net income/taxable income compare to optional deductions that they had set a percentage of your tax due. the only advantage of optional deduction is you save a lot of paperwork in preparing financial statement.

 

yes, you can use form that are downloaded from bir website.