Transcript Slide 1

Presented by:
Susan D. Tusoy, CPA, MPS
Asst. Chief, Assessment Division
Revenue Region 19, Davao City
It is impossible to begin to learn that which
one thinks one already knows.
- Epictetus
Things to consider
In the conduct
of your Business
On Registration
Register your business
 On or before the commencement of
business
 Before payment of any tax due
 Upon filing of a return, statement or
declaration as required by the NIRC.
On Registration
• Pay Annual Registration Fee of P500.00 upon
registration and every year thereafter on or
before Jan. 31
• for every separate or distinct establishment
or place of business, including facility types
where sales transactions occur
On Registration
Register your employee/s
 within 10 days from date of employment
On Registration
 Secure Taxpayer Identification Number
 Multiple TIN is punishable by law.
Registration Procedures
PRIMARY
REGISTRATION
STAGE 1
Application &
Issuance of TIN
SECONDARY
REGISTRATION
STAGE 2
Registration of
Business/Practice of
Profession/Employment
Registration of books,
Issuance of ATP, CAS
and Loose-leaf
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On Invoicing Requirements
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Apply for Authority to Print (ATP)
After printing, register ORs/Invoices thru Printer’s
Certificate of Delivery (PCD)
Invoicing Requirements
 Issue sequentially an OR for fees received or
Sales Invoice for sale of goods.
 Each SI shall show the name, address of client,
date of transaction, qty, selling price per unit,
description of merchandise sold and total amount.
 The OR/SI shall be accomplished in duplicate, the
duplicate retained & preserved in place of
business for 3 years from close of taxable year.
On Bookkeeping Requirements
 Apply for registration of books of accounts,
basically a Journal, Ledger, and applicable
subsidiary books
 The BIR records your latest volume in your reg’n
database.
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All of the above to be done within 30 days
from date of registration
ON BOOKKEEPING REQUIREMENTS
 Preserved within the prescriptive period of 3 yrs
 Gross receipts exceeding P150k in any given
quarter must be audited by a CPA
 If using Computerized Accounting System
 Must be approved by the BIR before its use
ON BOOKKEEPING REQUIREMENTS
 Transactions for the day must be entered in books
on or before 12nn the following day. Balances
transferred to the Ledger on day following the end
of month
 It’s not required to register new set of books
every year; only before the pages of current book
is almost used up.
Contractor’s Usual Tax Types
 Registration Fee (RF)
 P500.00 due – Jan. 31
 Income Tax
 Individual (5% - 32%)
 Corporation
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Normal Income Tax – 30%
Minimum Corporate Income Tax – 2%
Improperly Accumulated Earnings Tax – 10%
Contractor’s Usual Tax Types
Income Tax Due Dates
Income Tax
Period
Due Date
Individual
1st Quarter
April 15
2nd Quarter
Aug. 15
3rd Quarter
Nov. 15
Annual
Return
April 15
Improperly Accumulated
Earnings Tax
Due Date
Corporation
60 days after the end of
the quarter
15th day of the 4th month
after the end of the
accounting period
15th day after the end of
the year following the
close of the taxable year
Contractor’s Usual Tax Types
 Business Tax
 VAT – 12% if gross annual revenue exceed 1.5M
Return Period
Due Date
Monthly Return
20th day ff taxable month
Quarterly Return
25th day after end of quarter
 Formula :
Output Tax (Sales x 12%)
Less Input Tax (purchases x 12%)
VAT Payable
-
Pxxx
xxx
Pxxx
VAT on Gov’t. Transactions
Output Tax (12%)
Less: Standard Input (7%)
VAT Payable
Less: Withholding Tax (5%)
VAT Payable
-
P 12,000
7,000
P 5,000
5,000
P
-0-
Contractor’s Usual Tax Types
 Business Tax
 Percentage tax – 3% on the gross, if gross annual
revenue is below 1.5M
Return Period
Due Date
Monthly Percentage Tax
2oth day ff taxable month
Contractor’s Usual Tax Types
 Withholding Taxes
Kind of Withholding Tax
Withholding Tax on Wages
Expanded Withholding Tax
On Gov’t. Money Payments
- 3% for Non-VAT
- 5% for VAT
Due Date
10th day of the ff month exempt
for the month of Dec. which is
due on the 15th day of Jan.
10th day of the following
month
Contractor’s Usual Tax Types
 Submission of Annual Information Returns
Annual Info
Return
Form
Due Date
(With soft copy)
On Compensation
1604 CF
Jan. 31
On Expanded WT
1604 E
March 1
Common Transaction of Expanded
Withholding Tax
 Rentals of Real /Personal Property
 Payment to Certain Contractors
 Professional fees
5%
2%
- 10%/15%
 Income payments made by top
20k corp and 5k individual taxpayers
1% /2%
 Income payments on purchases of
mineral products/quarry resources
10%
 Etc… please refer to BIR form 1601E (back portion)
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Important!
TP needs to file a return even when
there’s no tax due to pay for every
tax type he registered.
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Excise Tax on Sand and Gravel
 Rate - 2% based on the actual market value of the
gross output thereof
 Due Date - at the time of removal
Electronic Filing and Payment System (eFPS)
 Mandatory Enrollment to and availment of eFPS
facility (RR 69-2009)
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Large Taxpayers
All government Bidders
Corporation with complete computerized system
Taxpayers belonging to the list of Top 20,000 Private
Corporations
Taxpayers belonging to the Top 5,000 individual taxpayers
TCVD: Tax Compliance Verification
Drive (Tax mapping)
Original COR and the ARN must be
conspicuously displayed in the place of
busines
TCVD: Tax Compliance Verification
Drive (Tax mapping)
Original COR and the ARN must be
conspicuously displayed in the place of
business and/or office
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UPDATE REGISTRATION DATA
Accomplish Form 1905 and submit
to your home RDO for:
 Change of registered address
 Change of registered activity
 Change of tax types (cancellation or addition)
 Additional personal exemption
MOST COMMON VIOLATIONS
 failure to register (often captured thru TCVD)
 failure to file return & pay tax due thereon or
supply information at times required by law
 filing a return w/ an RDO other
than those w/ whom return is
required to be filed.
Stop-filer Cases
 When a taxpayer fails to file a tax return on the
tax types he registered, the Integrated Tax
System (ITS) will detect such failure, thus
creating a stop-filer case for every failure in
returns compliance.
 Such stop-filer case shall remain open until the
corresponding return is duly filed and paid
including penalties.
BIR’s CAPABILITY ENHANCEMENT
RELIEF – Reconciliation of Listings for
Enforcement resulting to Letter
Notices
TRS – Tax Reconciliation System using 1604-E
resulting to letter notices (LNs)
Tax Compliance Verification Drive (TCVD) - Tax
Mapping Operations
Compliance Enhancement – eFPS, e-REG, ecomplaints, e-DST, e-submission, e-TIS, etc.
It's what you learn after
you know it all that
counts.
- John Wooden
The end....