Transcript BUREAU OF INTERNAL REVENUE REVENEAU DISTRICT …

BUREAU OF INTERNAL REVENUE
Revenue District Office No. 113
Davao City
Orientation
Seminar
for
New
Registrants
Do you want to start your own
business?
APPLY FOR BUSINESS REGISTRATION
APPLY FOR REGISTRATION OF BOOKS
APPLY FOR AUTHORITY TO PRINT
YOU ARE NOW READY START YOUR BUSINESS
FILE AND PAY YOUR TAXES
UPDATE YOUR REGISTRATION
RETIREMENT OF BUSINESS
APPLICATION FOR
BUSINESS REGISTRATION
TYPES OF BUSINESS REGISTRATION
• VAT
• NON-VAT
VAT REGISTRATION
Sale of goods, properties, or services in the
ordinary course of trade or business,
Sells, barters, exchanges, leases, or imports
Gross sales/receipts exceed P1.5-M in a
calendar year
NON-VAT REGISTRATION
Exempt transactions under Sec. 109 of NIRC
VAT taxable transactions but gross sales/
receipts did not exceed P1.5-M
Marginal Income Earners
Associations, Foundations and similar
organizations NOT engaged in business.
REQUIRED TO REGISTER
• Every separate and distinct establishment
•Principal place of business
•Branch
•Storage places/Place of Production
Registration Fee
 Annual Registration Fee is to be paid upon
registration and every January 31 of the year
thereafter except for the following:
- Marginal Income Earners – Gross
Receipts does not exceed P100,00
during any 12-month period
- Cooperatives
- Storage places where no economic
activity is undertaken on the premises
Payment of Doc. Stamps
(on shares of Stocks)
 On the subscription of capital stock equivalent
to P1.00 per P200 worth.
 Any of the contracting parties
 In case of a cooperative, the same shall be
collected from the members
 Use BIR Form 2000
 Pay directly to the Accredited Agent bank or to
the Collection Agent
When to register?
 New Registrants:
- NON-VAT
=> within 10 days from date
of commencement of
business
- VAT
=> within 30 days before the
-
the start of such business
 Becoming Liable to VAT
- Within 30 days after the end of the last month of
that period that exceeded the P1.5-M threshold
Optional Registration
 The following may apply for optional VAT Registration:
- Those VAT exempt under Sec. 4.109-1 (B) (1) (V) –
whose gross sales/receipt do not
exceed
threshold;
the
-Any person who is VAT-reg. but eneters into
transactions
which are exempt from VAT (mixed
transactions) may
opt that the VAT apply to his
transaction which would
have been exempt under Sec. 109 (1);
- Franchise grantees of radio and/or television
But once registered it’s irrevocable.
broadcasting.
When to register?
(optional registration)
May apply for registration not
later than 10 days before
the beginning of the
calendar quarter.
REGISTRATION OF
BOOKS OF ACCOUNTS
Registration of Books
 Persons required to pay internal revenue taxes shall
keep and maintain the following books of accounts.
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General Journal
General Ledger
Subsidiary Sales and Purchase books (for VAT Taxpayers)
Subsidiary Ledger for the Acquisition, Purchase,
Importation of Depreciable Assets or Capital Goods (Ref:
RR 16-2005)
 Register Books to be Kept by Professionals (RR 7-87)
Registration of Books
 Subsidiary Books
(depending on the needs
of the taxpayer)
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
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
Sales Book
Purchase Book
Cash Receipts Book
Disbursements Book
Registration of Books
 Taxpayers whose quarterly
gross sales/receipts do not
exceed P50,000 shall keep
and use Simplified set of
Bookkeeping Records.
 Books of Accounts shall first
be registered before use.
Books of Accounts
• TP whose quarterly
gross sales/receipts
exceed P150,000 shall
have their books
audited and examined
yearly by independent
CPA.
Deadline for Registration of
Books of Accounts (RMC 82-2008)
• For new registrants
– Before commencement of business
• For old registrants
– Manual Books previously registered but whose pages are
not fully exhausted can still be used without need of reregistering
– Registration of new sets shall only be at the time when the
pages of the previously registered books have all been
exhausted
Deadline for Registration of
Books of Accounts (RMC 82-2008)
• Computerized books of accounts
– Jan. 30 of the following year
• Loose-leaf bound books
– 15th day after the end of the calendar year
Preservation of
Books of Accounts
• Books of Accounts and
other accounting
records shall be
preserved within three
(3) years from the last
day prescribed by law
for the filing of return.
Loose Leaf Books of
Accounts (RMC 13-82)
• Loose leaf books of accounts should secure
prior approval before use.
• It is required to be bound and registered
within fifteen (15) days after the end of his
taxable year.
COMPUTERIZED BOOKS OF ACCOUNTS
(RMO 21-2000)
• Computerized
accounting system
and/or components
thereof need to apply
for permit before using
the same.
INVOICING REQUIREMENTS
Application for ATP
 Application for Authority to Print (ATP) shall be
submitted to TSS using BIR Form 1906.
 Attachments:
- Photocopy of COR (BIR Form 1556)/
1901/1903
- Business Permit
- DTI Registration, if available already
- Annual Registration Fee
- Sample Invoice
- Job Order
Invoicing Requirements
• For sale of goods
– Issue Sales Invoice
• For sale of services
– Issue Official Receipt
• Non-VAT Acknowledgement
Receipt (ex: for security
agencies)
Invoicing Requirement
• For Non-VAT Seller
– 25.00 or more
– When the customer demands for it
– Issue single receipt at the end of the day for those
sales below P25.00 not covered with receipt
Invoicing Requirement
• For VAT Seller
– Issue Invoice or Receipt
regardless of amount
– Output tax should be
billed separately
CRM / POS Machines
• CRM / POS Machines
should be registered
with the BIR prior to its
use.
BUSINESS PROPER
Reminders:
 Display Certificate of
Registration (COR) at
the establishment (BIR
Form 1556)
 Display “Ask For
Receipt Poster”
which shall be issued
upon release of COR
• Always issue invoices /
receipts
 Proper maintenance of
books of accounts
REGISTER YOUR EMPLOYEES
 Register employees
within 10 days from
date of employment.
Register Your Employees
• Fill-up BIR Form 1902 completely and attached the
following:
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Birth Certificate of Employee
Birth Certificate of Dependents
Marriage Contract
Photocopy of TIN Card, if already issued
Certificate of Employment
Waiver of husband (3 copies)
If legally separated, court decision
Employees Registration Update
• Employee to fill-up BIR Form 2305 and submit to Employer
within 10 days from date of such change.
• Attach document that will support any claim for registration
update
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Marriage Contract
Birth Certificate of dependent
Death Certificate
Waiver
Certificate of Employment Abroad
• Employer to submit the filled-up 2305 and attachment to the
BIR within 30 days from date of employee’s submission of
complete documents.
Tax Compliance Verification Drive
• Revenue Officers are tasked to regularly
conduct Tax Mapping Operation to check on
the taxpayers’ compliance of the ff:
B - Books of Accounts
I - Invoicing Requirements
R - Registration Requirements
Inventory List
• Inventory list of goods intended for sale shall
be submitted within ten days after starting the
business and the subsequent inventories shall
be submitted not later than 30 days after the
close of the accounting period.
FILE AND PAY YOUR TAXES
CORRECTLY AND PROMPTLY
Filing of Returns
Know your
taxability and
their deadlines
to avoid
penalties!
Filing and Payment of Taxes
• Income Tax Return
– For Individual
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•
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First Quarter - April 15 of the current year
Second Quarter - August 15
-doThird Quarter - November 15 -doAnnual Return - April 15 of the following year
– Forms to be used:
• Quarterly returns - BIR Form 1701Q
• Annual Return - BIR Form 1701
Filing and Payment of Taxes
• Income Tax Return
– For Taxable Juridical Entities
•
•
•
•
1st qtr
2nd qtr
3rd qtr
Final Return
within 60 days after the
close the quarter
- on or before the 15th day of the
fourth month following the close
of the accounting period.
– Tax Rate 35% effective Nov. 1, 2005 (RA 9337) and 30%
effective Jan. 1, 2009.
Value-Added Tax
• Monthly VAT Declaration
– 1st two months of the quarter
– Use BIR for 2550M
– Due every 20th day of the following month
• Quarterly VAT Return
– Every end of the quarter
– Use BIR Form 2550Q
– Due every 25th day after end of quarter
Percentage Tax Return
• Applicable to all manufacturers, traders,
contractors and brokers whose gross annual
sales/receipts do not exceed P1.5-M.
• Persons subject to Percentage Tax under Title V
of the NIRC
• Due date – every 20th day after end of each
month.
Withholding Tax on Wages
• Employees are subject to Withholding Tax on Wages
except:
– Those whose salary do not exceed the minimum wage or
P5,000/mo or P60,000/year.
– Those compensation income of employees of the gov’t.
with salary grades 1 to 3.
• The aforementioned individuals shall remain liable to
Income Taxes and shall continue to file Income Tax
Returns.
Expanded Withholding Tax
• The following Income Payments are subject to
Withholding Tax at Source:
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Rental
Professional fees
Contractors
Etc.
– 5%
– 10% / 15%
- 2%
Due Dates:
• Jan. to Nov. • Dec.
10th day of the following
month
- 15th day of Jan. of the
following year
Forms to be prepared:
• Remittance (together with MAP)
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1601C – for withholding tax on wages
1601E – for expanded withholding tax *
1601F - For final taxes withheld *
1603 - For Fringe Benefit Tax
1600 - For government money payments *
* To be filed with Monthly Alphalist of Payees (MAP) under
RR 2-2006
Forms to be prepared:
• Certificate to be issued to payees:
• Form 2316 – for withholding tax on wages to be
issued not later than Jan. 31 of the
following year
• Form 2304 – For income payment not subject to
withholding tax
• Form 2307 – for creditable withholding tax at
source
• Form 2306 – for final withholding tax
Forms to be prepared:
• Annual Return (with diskette reporting)
– Form 1604CF – For withholding tax on wages
and final withholding tax and
to be submitted not later than
Jan. 31 of the succeeding year
– Form 1604E - For expanded withholding tax
and to be submitted not later
than March 1 f the following
year.
UPDATING OF REGISTRATION
Business Registration Updates
•
•
•
•
•
Change in registered address
Change in business trade name
Change in tax type
Additional line of activity
Cancellation of Registration/Retirement of
business/transfer of registration
• Other changes in registration information
Business Registration Updates
• What to do….?
– Fill-up BIR Form 1905 and check appropriate
boxes
– Attached documents to support the change/s in
the application
– Submit to TSS-Business Registration Unit within 15
days from date of such change
– Receive triplicate copy of “Received” 1905
– Claim new BIR Form 155 (COR)
RETIREMENT OF BUSINESS
Retirement of Business
• Should you decide to cease from business
operation, please inform our office
immediately by submitting BIR Form 2305.
• Taxpayers who are temporarily suspending
their business operations are still required to
file tax returns on time. They may indicate the
phrase “No transaction”.
Cancellation / Retirement
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Attach Retired Business Permit
Surrender Original Certificate of Registration
Submit inventory of unused invoices for destruction
Submit Income Tax Return, VAT/Percentage Tax
Returns, and other returns required under your type
of registration
• Letter of Application
For more information…
Taxpayer Service Section
Revenue District Office No.113
RDL Bldg., F. Torres St., Davao City
Tel. Nos. 222-3318 to 19
Website: www.bir.gov.ph