BIR Concerns

[azayco]

matagal nang na-i-publish sa dyaryo yung guidelines ng RA 9504. BIR Revenue Regulation NO. 10-2008 yun. Sa Philippine Star ko ito nabasa pero nakalimutan ko na yung petsa. Mga 3 to 5 pages din ata nasakop nito.

 

Parang bale wala na yung status dahil lahat ng status, single, head of the family at married ay iisa na lang ang basic exemption at P50,000.00. IMHO, ok na to kasi nga nadagdagan yung halaga ng exemption pati na yung additional exemption sa dependent at P25,000 each from P8,000, so meaning liliit talaga yung taxes ng mga empleyado.

 

Pero, what really bugging me is the date of effectivity. Ito talaga yung issue dito. I heard, may pending petition sa Supreme Court laban dito sa guidelines ng BIR dahil yung effectivity ng guidelines ay nagsimula sa July 6, 2008, so kalahati lang ang ma-a-avail ng mga empleyado na benepisyo sa bagong batas na ito which is contrary to legislative intent of RA 9504. Sen . Escudero and a certain Congressman which I forgot the name, even wrote to DOF explaining that RA 9504 should have a retroactive effect or its effective date was on Jan 1, 2008 so that employees particularly the minimum wage earner should fully enjoy the benefits of the said law. Eh ang kaso, naikasa na ni Hefti yung BIR RR 10-2008, so sa ngayon, yung guidelines ang masusunod at waiting na lang muna sa resolusyong ng Supreme Court.

 

My comments:

 

1. The distinctions among head of family, single and married individuals have been erased. This will be more beneficial to the HOF and single taxpayers. Tax students will also benefit. They have less stuff to memorize.

 

2. On the date of effectivity, the law itself states that it will be effective 15 days from publication in the Official Gazette or in two newspapers. The Civil Code provides that laws will generally have no retroactive effect. Additionally, tax exemptions are interpreted strictly against the taxpayer claiming them. Add to that the lifeblood theory (and especially now that the BIR has to meet collection targets) and it is clear that this will be an uphill battle by Escudero and company. I would like to see their arguments though.

[jackbrng]

2. On the date of effectivity, the law itself states that it will be effective 15 days from publication in the Official Gazette or in two newspapers. The Civil Code provides that laws will generally have no retroactive effect. Additionally, tax exemptions are interpreted strictly against the taxpayer claiming them. Add to that the lifeblood theory (and especially now that the BIR has to meet collection targets) and it is clear that this will be an uphill battle by Escudero and company. I would like to see their arguments though.

 

yes sir, RA 9504 become effective after 15 days from publication and since this was become effective this year, said Tax exemptions will become available on filing of personal income tax on April 15, 2009 in respect of compensation income earned or received during the calendar year 2008.

 

sir, binase ko pala ito sa Supreme Court ruling GR No. 104037 and 104069.

[azayco]

jackbrng: Thanks. I will look those up.

[Protoculture]

hello, question lang po, yung kaibigan ko kakagrad lang, wala pa din siya TIN, pero gusto niya magtayo ng small business kasama mga ka-sosyo niya... ano dapat niyang gawin at i-register sa BIR? sabi ko kuha siya mixed income, tama po ba?

[jackbrng]

hello, question lang po, yung kaibigan ko kakagrad lang, wala pa din siya TIN, pero gusto niya magtayo ng small business kasama mga ka-sosyo niya... ano dapat niyang gawin at i-register sa BIR? sabi ko kuha siya mixed income, tama po ba?

 

kung employed sya at may planong magtayo ng business, magiging mixed income earner nga sya at the time magkaroon sya ng business. anyway, pakuhanin mo na lang sya ng TIN para sa business nya at wag na para sa employment nya, in case may work nga sya, para isang lakaran na lang sa BIR.

 

Para magka-TIN yung business nya, kailangan ng DTI, mayors permit, at Contract of Lease kung inuupahan yung pwesto o Latest Real Property Tax kung sa kanya yung puwesto.

 

Yung makukuha nyang TIN dito ay pwede nyang gamitin sa employement nya. Ngunit para lamang ito sa single proprietorship. In case ang itayo nya ay corporation, iba ang TIN ng corporation at iba ang TIN nya as individual, at isa pa, hindi DTI ang kukunin mo kung hindi ay SEC.

[Protoculture]

salamat po sir! I'll forward that to him, ako din nalinawagan

[culpritmooncake]

hi,i hav a stupid question(hehe)

is it posible 2 retrieve d tax id number? how?

kc nwla ung record ng frnd ko nung umuwi xa prov.

ngwork xa d2,den umuwi xa s knla. e d nya man lng sinulat o tinandaan ung TIN nya,filing dw kc nya d ganun kaimportante un nun.

tnx

[G.I.]

pahingi naman tax ruling na pwede ideduct and disallowed input vat sa gross income. ty

[jackbrng]

hi,i hav a stupid question(hehe)

is it posible 2 retrieve d tax id number? how?

kc nwla ung record ng frnd ko nung umuwi xa prov.

ngwork xa d2,den umuwi xa s knla. e d nya man lng sinulat o tinandaan ung TIN nya,filing dw kc nya d ganun kaimportante un nun.

tnx

 

advise mo friend mo na pumunta sa BIR office kung saan sya nagpareghistro. magdala lang sya ng affidavit of loss.

[Immortal666]

I have a question, is the 13th month pay taxable? I seem to remember that only 13th month pay that is in excess of 30k is taxable. And I know that in the previous years, employees in our companies who earned 30k and below did not have their 13th month pay taxed. Now, our payroll is saying that the 30k exemption covers all bonuses for the year not only 13th month pay. We have a quarterly bonus kasi with our company which is up to 25% of your salary depending on your performance. But when that was paid out, we were already taxed for it. So my questions are:

 

1) Is 13th month pay considered a bonus? Isn't this mandated by law and thus should not be considered a bonus?

2) Is our company's payroll correct in adding our quarterly bonuses along with the 13th month pay for the 30k non-taxable exemption? Why should it still be added when we were already taxed for it when it was paid out?

[jackbrng]

I have a question, is the 13th month pay taxable? I seem to remember that only 13th month pay that is in excess of 30k is taxable. And I know that in the previous years, employees in our companies who earned 30k and below did not have their 13th month pay taxed. Now, our payroll is saying that the 30k exemption covers all bonuses for the year not only 13th month pay. We have a quarterly bonus kasi with our company which is up to 25% of your salary depending on your performance. But when that was paid out, we were already taxed for it. So my questions are:

 

1) Is 13th month pay considered a bonus? Isn't this mandated by law and thus should not be considered a bonus?

2) Is our company's payroll correct in adding our quarterly bonuses along with the 13th month pay for the 30k non-taxable exemption? Why should it still be added when we were already taxed for it when it was paid out?

 

tama na magkasama ang 13th month at bonus sa ceiling na 30,000. Section 32 B (7)(e) ng Tax code ay nagsasabi na magkasama sa ceiling na 30,000 ang 13th month at bonus.

 

Since, siguro, nag-exceed ka na ng ceiling na 30k, itong mga benepisyo na ito ay magiging taxable income mo na at idadagdag ito sa compensation income mo sa pagkwenta ng iyong buwis. Yung mga tax na iyong nabangit tuwing ibibigay ang bonus ninyo ay mga withholding tax iyon at ibabawas ito sa annual income tax due mo.

Edited November 29, 2008 by jackbrng

[jackbrng]

pahabol ko lang pala, yung excess lang sa 30K ang taxable at idadagdag ito sa taxable income mo i.e. yung compensation income mo para sa pagcompute ng annual tax due mo.

[teban]

mga sirs and mams ask ko lang po sana. My dad just died and we have an insurance from an insurance company. Do we need to apply for taxes in the BIR? According to our agent, we have the choice to either file it or not so I am not sure which is the way to go.

 

THanks!

[rapturousone]

mga sirs and mams ask ko lang po sana. My dad just died and we have an insurance from an insurance company. Do we need to apply for taxes in the BIR? According to our agent, we have the choice to either file it or not so I am not sure which is the way to go.

 

THanks!

 

teban, first of all, my sincere condolences to you and your family.

 

i assume that the insurance that you refer to is life insurance. by law, proceeds of life insurance where the beneficiary is irrevocably appointed is not included in the gross estate of the decedent (i.e., your dad) for purposes of computing estate tax.

 

that being said, you may still have to deal with the BIR if your dad left behind properties for distribution among his heirs. here is a starting point for you: http://www.bir.gov.ph/taxinfo/tax_estate.htm

[teban]

thanks po sir

[mackyboy]

Stupid question po. Pano magbayad ng tax ang isang self employed, home based na software developer? Hindi po fixed ang monthly income.

[teban]

i think it is the same way as we employed personnel will be taxed. you file it by filling up a form provided for income tax and then you pay in accredited banks.

 

kahit hindi monthly ang income mo, the form itself only allows you to fillup the annual income so regardless kung ilang beses ka lang sa isang taon nagkaroon ng kita pwede mo ideclare dun.

 

Sana lang tama ako eheheh

[mackyboy]

iba ata computation ng tax ng employed at ng self employed. pano po computation pag self employed?

[pektojr]

+1 kay mackyboy, additionally what if I missed a year or two sa pagfile ng ITR? gusto ko lng makaiwas sa mga ripoffs BIR agents

[jackbrng]

iba ata computation ng tax ng employed at ng self employed. pano po computation pag self employed?

 

almost the same lang computation ng employed at self employed. Both have their exemptions based on their status. The only difference is may deductions ang mga self-employed para sa mga expenses nila in relation to conducting their business.

[jackbrng]

+1 kay mackyboy, additionally what if I missed a year or two sa pagfile ng ITR? gusto ko lng makaiwas sa mga ripoffs BIR agents

 

first thing to do, go to BIR office and ask for Case Monitoring of your account. Makikita doon kung ano mga BIR returns na hindi mo na-i-file. At ang tawag doon ay Open Cases. So, kailangang i-Close mo lahat yun by filing / paying said BIR Returns. May Penalties na ang mga yon dahil late filing na. Mas maganda kung may kilala kang accountant na sanay sa paglakad ng mga BIR para hindi gaano malaki mabayaran mo.

[sWORD_fISH]

first thing to do, go to BIR office and ask for Case Monitoring of your account. Makikita doon kung ano mga BIR returns na hindi mo na-i-file. At ang tawag doon ay Open Cases. So, kailangang i-Close mo lahat yun by filing / paying said BIR Returns. May Penalties na ang mga yon dahil late filing na. Mas maganda kung may kilala kang accountant na sanay sa paglakad ng mga BIR para hindi gaano malaki mabayaran mo.

 

kuya jack, meron ba professional offices that can help sa personal BIR returns ko? i'd like to try if you can recommend any na credible ako din kc 3 years walang ITR and have been working freelance, gusto ko sana magloan ng bahay hehehe

[mackyboy]

Pano kung nareceive na yung BIR form 2316 from the previous company na nagsara na. Is it still considered an open case?

Edited December 31, 2008 by mackyboy

[jackbrng]

Pano kung nareceive na yung BIR form 2316 from the previous company na nagsara na. Is it still considered an open case?

 

nope, hindi kinu-consider na open case ang BIR Form No. 2316. Attachment lang kasi ito sa BIR Form no. 1700 or 1701 which is the Individual Income Tax Return.

[mackyboy]

nope, hindi kinu-consider na open case ang BIR Form No. 2316. Attachment lang kasi ito sa BIR Form no. 1700 or 1701 which is the Individual Income Tax Return.

 

Ah which means I'm cleared from any penalties for 2008? Nagsara na kasi yung company nung year 2008 eh. Binigay lang sakin yung 2316. Hanggang ngayon hindi pa ako nakakahanap ng mapaglilipatan.

Edited January 5, 2009 by mackyboy