BIR Concerns

[johnbmikael]

Is there a way to avoid vat?

[daclown]

question: i have secured a 3-month contract as a worker (labelled as subcontractor by the company). Since I'm not a full-time employee, I have to pay my taxes on my own. I have never done this before since I've always been a full-time employee before. Paano ba?

[danielwtf]

nahanapan nyo na po ba ng kasagutan ang inyong mga katanungan? if not, let me know. baka makatulong ako.

[danielwtf]

Basically you need to accomplish the BIR Form No. 1701 (since i assume in lieu of your profession yung service na nirerender mo sa company). Make sure you have secured also a copy of BIR Form 2307 from your client, if any. otherwise, yung reason for not withholding.

 

and lastly.. if i may ask sir, how much yung range nung payment sayo nung company?

[Irog]

I like to know about Creditable Witholding Tax, it there a website

where I can look into.

 

Thanks for your help.

[danielwtf]

you can check out Section 57 B of the National Internal Revenue Code as a starting point. Here's the link for the NIRC: http://www.bir.gov.ph/index.php/tax-code.html#tIIcXIII

Edited January 26, 2015 by danielwtf

[danielwtf]

Hirap naman ng tanong.

[CardingTigas]

Hi! If enrolled ang eFPS under branch, then nairetire ang main business, then ginawang main business si branch, pero you need to file cancellation and request for your branch to be main d ba? Meaning deleted yung eFPS enrollment? If i dont re-enroll, loophole ba yun na I can go back to bank payment? Kase according to them, once eFPS ka forever na yun until you retire the business.

 

mag secure ka ng tax clearance para dun sa main business na niretire, tsaka may chance na malipat ng RDO since gagawin mo na main business un branch...pag hindi mo na retire totally un old business, magkakaron ka ng mga open cases, hindi din basta basta nag cease un eFPS enrollment since hindi ka na pwede maging manual filer

[Irog]

you can check out Section 57 B of the National Internal Revenue Code as a starting point. Here's the link for the NIRC: http://www.bir.gov.ph/index.php/tax-code.html#tIIcXIII

 

Thanks danielwtf

[danielwtf]

no prob..

[Viola]

i hope this is the correct thread. how do you compute for taxes on bonuses? i thought that for bonuses and 13th month, the in excess of 30k would be taxed. but someone from our company said that since what is being given to us is not a year end bonus, then everything will be taxed?

 

i have more questions, i hope someone can PM me and help me with my tax questions.

 

thanks.

[danielwtf]

For companies kasi, practice po is to spread the 30K (now 82K pending PNoy's signature unless he has signed that already) into the tax computation of your salary every cutoff kaya more or less ubos na yung 30K na exemptions which is the reason why yung 13th month and other bonus mas malaki yung tax.

[DDL]

Hindi ako expert sa tax, pero i think mali yung sinabi sa yo. Anything outside the basic is part of the computation of 30K threshold. In excess saka lang ita-tax. Depende pa ung tax nyan sa status mo (i.e. head of family, # of dependents, etc). May exception pa sa 30K na threshold called de minimis benefits, if the "benefits" is used to promote welfare, health, contenment or effeciency ng employee, di rin kasama sa 30K na threshold, meaning hindi taxable, basta it falls under the following examples:

 

1. Monetized unused vacation leave credits of private employees not exceeding 10 days during the year
2. Monetized value of vacation and sick leave credits paid to government officialsand employees
3. Medical cash allowance to dependents of employees not exceeding P750 ($16.82) per employee per semester or P125 ($280) per month
4. Rice subsidy of P1500 ($33.65) or one sack of 50-kg rice per month amounting to not more than P1500 ($33.65)
5. Uniforms and clothing allowance not exceeding P4000 ($89.73) per annum
6. Actual medical assistance, ex: medical allowance to cover medical and health care needs, annual medical / executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 ($224.32) per annum
7. Laundry allowance not exceeding P300 ($6.73) per month
8. Employees achievement awards, ex: for length of service or safety achievement, which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000.00 ($224.32) received by the employee under an established written plan which does not discriminate in favor of highly paid employees
9. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 ($112.16) per employee per annum
10. Daily meal allowance for overtime work and night. Graveyard shift not exceeding 25% of the basic minimum wage

[danielwtf]

 

Hindi ako expert sa tax, pero i think mali yung sinabi sa yo. Anything outside the basic is part of the computation of 30K threshold. In excess saka lang ita-tax. Depende pa ung tax nyan sa status mo (i.e. head of family, # of dependents, etc). May exception pa sa 30K na threshold called de minimis benefits, if the "benefits" is used to promote welfare, health, contenment or effeciency ng employee, di rin kasama sa 30K na threshold, meaning hindi taxable, basta it falls under the following examples:

 

1. Monetized unused vacation leave credits of private employees not exceeding 10 days during the year
2. Monetized value of vacation and sick leave credits paid to government officialsand employees
3. Medical cash allowance to dependents of employees not exceeding P750 ($16.82) per employee per semester or P125 ($280) per month
4. Rice subsidy of P1500 ($33.65) or one sack of 50-kg rice per month amounting to not more than P1500 ($33.65)
5. Uniforms and clothing allowance not exceeding P4000 ($89.73) per annum
6. Actual medical assistance, ex: medical allowance to cover medical and health care needs, annual medical / executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 ($224.32) per annum
7. Laundry allowance not exceeding P300 ($6.73) per month
8. Employees achievement awards, ex: for length of service or safety achievement, which must be in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000.00 ($224.32) received by the employee under an established written plan which does not discriminate in favor of highly paid employees
9. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 ($112.16) per employee per annum
10. Daily meal allowance for overtime work and night. Graveyard shift not exceeding 25% of the basic minimum wage

 

for better understanding din po siguro, better if you ask for the computation baka kasi ginagawa nila yung namention ko earlier. isa din reason bakit malaki padin tax nung bonuses is yung tax rate na ginamit since based on graduated rates sya.

[danielwtf]

THE GOOD NEWS?

 

http://newsinfo.inquirer.net/672533/higher-tax-exemption-cap-on-bonuses-now-a-law?utm_source=dlvr.it&utm_medium=twitter