On top of a busy entrepreneur’s to do list is to properly schedule their tax requirements with the Bureau of Internal Revenue (BIR). In the effort of the current administration to simplify the tax system with the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which aims to simplify the previous tax system. It was implemented on April 25th of this year and had caused some confusions and submissions of wrong forms. Fret not, in this post, all you will need is to take note of the dates and mark your calendars appropriately, for this is an updated tax schedule to guide you accordingly. But first, here are some things that you will definitely need:
The software that businesses (those who are not registered in the EFPS) should be using is the eBIR Forms Package 7.1. It is a software that allows taxpayers to fill out forms online or offline.
How to avail of this service:
- Go to https://www.bir.gov.ph/and click the To download Offline eBIRForms Package v7.1
- During the download, you will receive a ZIP file containing the installer for the application.
- Currently, this version only works with Windows OS users, so make sure that you have a computer compatible with this.
EFPS (Electronic Filing and Payment System)
It is used for filing tax returns, including attachments, if any, and paying taxes due thereon, specifically through the internet. However, this service is only available to a certain type of taxpayers. If your company falls into any of the categories below, then, you may submit the requirements which will be mentioned shortly.
How to avail of this service:
- Taxpayer Account Management Program (TAMP) taxpayers;
- Those required to secure the BIR-Importer’s Clearance Certificate (ICC) and BIR’s Broker’s Clearance Certificate (BCC);
- National Government Agencies;
- Licensed Local Contractors;
- Enterprises enjoying fiscal incentives (PEZA, BOI, etc.);
- Top 5,000 Individual Taxpayers;*
- Corporations with paid-up capital stock of P10 million and above;
- Corporations with complete Computerized Accounting System;
- Procuring Government Agencies withholding VAT and Percentage taxes;
- Government Bidders;
- Large Taxpayers;
- Top 20,000 Private Corporations;* and
- Insurance companies and stockbrokers
Submit the following to the corresponding Revenue District Office (RDO) in which the company is registered:
- Secretary’s Certificate authorizing at least 3 users of EFPS signed by the company’s president/vice president/corporate secretary.
- SEC registration (photocopy).
- BIR form 2303 (Photocopy)
- Registration fee for BIR form 0605
- Application for tax clearance.
Now that we have that all cleared out, here are the necessary forms that you need to file to BIR on or before the mentioned deadlines to avoid penalties:
BIR Form 0619E
Monthly Remittance Form for Creditable Income Taxes Withheld (Expanded)
A remittance form that is used for remittance of expanded withholding taxes.
What is it for your business?
This remittance form covers the rentals for real property used in business, rental of personal properties in excess of Php 10,000 annually, rentals of poles, satellites and transmission lines and billboard rentals.
- Every 10th of the following month for Non-eFPS filers
- Every 15th of the following month for eFPS filers
How to calculate:
For example, you are paying a monthly rent of Php10,000 to your landlord for office rental, the computation would be like this:
EWT = Income payments x tax rate
= Php10,000 x 5%
= Php 500 will be you Monthly Withholding Tax
- Submit BIR form 0619E through e-BIR forms found on their website.
- Input all the necessary information.
- Provide a valid email in which you will receive a confirmation email.
- Print forms in triplicate.
- Proceed to an accredited bank for payment
BIR FORM 1702Q
Quarterly Income Tax Return
A tax on a person’s income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income.
What is it for your business?
Every corporation (except foreign corporations not engaged in trade or business in the country and joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations) are required to file an accurate income tax return in accordance with the provisions of the tax code.
On or before the 15th day following the close of each of the quarters of the taxable year (Jan, April, July, Oct).
For eFPS Filer
- Fill-up applicable fields in the BIR Form No. 1702Q
- Pay electronically by clicking the “Proceed to Payment” button and fill-up the required fields in the “eFPS Payment Form” then click “Submit” button.
- Receive payment confirmation from eFPS-AABs for successful e-filing and e-payment.
For Non-eFPS Filer
- Print the duly accomplished BIR Form No. 1702Q
- Proceed to the nearest Authorized Agent Bank (AAB) under the jurisdiction of the Revenue District Office where you are registered and present the duly accomplished BIR Form No. 1702Q, together with the required attachments and your payment.
- Receive your copy of the duly stamped and validated tax return and BIR prescribed deposit slip from the teller of the AABs or Electronic Revenue Official Receipt (eROR) from the Revenue Collection Officer/duly Authorized City or Municipal Treasurer.
For Manual Filer
- Fill-up the BIR Form No. 1702Q in triplicate copies.
- Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form No. 1702Q, together with the required attachments.
- Receive your copy of the duly stamped and validated form from the RDO.
BIR FORM 2251Q
Quarterly Percentage Tax Return
Taxes imposed on individuals/businesses who sell/lease goods or services which are exempted from Value Added Tax (VAT) with annual sales not exceeding Php3,000,000.
What is it for your business?
If your business falls into one of the following categories, then you are required to file this form:
- Businesses who are not VAT-registered, who sell goods, properties or services, whose annual gross sales and/or receipts do not exceed three million pesos (Php3,000,000.00) and are exempt from value-added tax (VAT).
- Businesses who lease residential units where the monthly rental per unit exceeds fifteen thousand pesos (Php15,000.00) but the aggregate of such rentals of the lessor during the year does not exceed three million pesos (Php3,000,000.00).
- Cars for rent or hire driven by the lessee, transportation contractors, including persons who transport passengers for hire, and other domestic carriers by land for the transport of passengers (except owners of bancas and owners of an animal-drawn two-wheeled vehicle) and keepers of garages.
- International air/shipping carriers doing business in the Philippines on their gross receipts derived from transport of cargo from the Philippines to another country
On or before the 25th day following the close of each of the quarters of the taxable year ((January, April, July, and October).
For Manual filing and/or payment:
- Properly fill-up BIR Form No. 2251Q in triplicate copies.
- Proceed to any Authorized Agent Bank (AAB)located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.
- Received copy of BIR Form No. 2251Q duly validated/stamp-received by the AAB/RCO/authorized City or Municipal Treasurer.
- Manual Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
For eFPS filing and/or payment:
- Fill-out BIR Form 2551Q in the eFPS system.
- Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for the quarter.
- In case percentage taxes for the first, second and/or third month of the quarter had been paid, payment/s made are to be reflected in BIR Form 2551Q in Item No. 20A-Creditable Percentage Tax Withheld per BIR Form 2307.
- After e-filing, proceed to online payment by clicking the proceed to payment button and pay the quarterly percentage tax due.
For eBIRForms filing and/or payment:
1. Fill out BIR Form 2551Q in Offline eBIRForms Package V7.
2. Taxable amount to be indicated in the quarterly percentage return shall be the total gross sales/receipts for the quarter.
3. In case percentage taxes for the first, second and/or third month of the quarter had been paid, payment/s made are to be reflected in BIR Form 2551Q in Item No. 20A-Creditable Percentage Tax Withheld per BIR Form 2307.
4. If there is a payment, proceed to any AAB located within the territorial jurisdiction of the RDO where the taxpayer is registered and present the duly accomplished BIR Form 2551Q and other requirements.
5. eBIRForms Filers who want to pay online can pay through GCash Mobile Payment, LandBank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit Card).
6. In case of no operations, just submit the aforementioned form via Offline eBIRForms Package V7 on or before the deadline. Make sure that you receive a confirmation email afterward.
How to calculate:
If your business is earning less than Php 3,000,000 annually, and you have a quarterly income of Php 50,000 for example, the computation would be like this:
Quarterly Percentage Tax Due = Gross Receipts x 3%
= Php50,000 x 3%
= Php1,500 will be your Quarterly percentage tax payable
- A surcharge of 25% for each of the following violations:
- Failure to file any return and pay the amount of tax or installment due on or before the due date.
- Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed.
- Failure to pay the full or part of the amount of tax shown on the return, or the full amount of tax date for which no return is required to be filled on or before the due date.
- Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment.
- A surcharge of 50% of the tax or of the deficiency tax, in case any payment has been made on the basis of such return before the discovery of the falsity or fraud such as willful neglect to file a return and in case a false or fraudulent return is willfully made.
- Interest at the rate of 20% per annum on any unpaid amount of tax from the date prescribed until the amount has been fully paid.
- Compromise penalty.
There is still a long way to go before this country can finally streamline the tax filing and services for the benefit of the taxpayers. When in doubt, it is always better to visit the Revenue District Office assigned in your area. However, there are times that you will receive different replies, depending on whom you ask. Bring a lot of patience and when in doubt, always ask the officer of the day.
If you want to be spared with the headaches and extra work with your tax responsibilities, get in touch with our consulting team now and we’ll be glad to discuss and handle your BIR related concerns efficiently.
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