1. BIR and Enterprise Entrepreneur Class – Prof. Saguinsin Special Report By: Karla A. Milan
2. TAXATION Defined Is the process or act of imposing a charge by governmental authority on property, individuals or transactions to raise money for public purposes. A symbolic relationship whereby in exchange for the protection that the citizens get from the government, taxes are paid.
3. Application for Taxpayer Identification Number DESCRIPTIONAny person, whether natural or juridical, required under the authority of the Internal Revenue Code to make, render or file a return, statement or other documents, shall be supplied with or assigned a Taxpayer Identification Number (TIN) to be indicated in the return, statement or document to be filed with the Bureau of Internal Revenue, for his proper identification for tax purposes (Sec. 236 (j) of the Tax Code).
4. Application for Taxpayer Identification Number Deadline- All individuals engaged in trade or business shall accomplish and file the application before the commencement of their business operation.
5. Monthly Filing of BIR Remittances Monthly Remittance Return of Income Taxes Withheld on Compensation This return is filed by every Withholding Agent (WA)/payor who is either an individual or non-individual, required to deduct and withhold taxes on compensation paid to employees. BIR Form No. 1601C Deadline: every 10th day of the succeeding month.
6. Monthly Filing of BIR Remittances Example: Employee 1 has a basic salary of Php 8,000. Basic Salary ---------------------- Php 8,000 Less: SSS -------------------------- 1,500 Philhealth ------------------------ 500 Mutual Fund -------------------- 100 Tax --------------------------------- 1,000 Net Pay Php 5,900
7. Monthly Filing of BIR Remittances 2. Monthly Remittance Return of Creditable Income Taxes Withheld (Expanded) This return is filed by every Withholding Agent (WA)/payor who is either an individual or non-individual, required to deduct and withhold taxes on income payments subject to Expanded / Creditable Withholding Taxes. BIR Form No. 1601E Deadline: every 10th day of the succeeding month.
8. Monthly Filing of BIR Remittances Example: ABC Company has a monthly rental of Php10,000. Rentals of real properties are subject to 5% Expanded Withholding Tax is computed as: Php 10,000 x 5% = Php 500
9. Monthly Filing of BIR Remittances 3A. Monthly Percentage Tax Return Persons whose gross annual sales and/or receipt do not exceed P1,500,000 and who are not VAT-registered persons. BIR Form No. 2551M Deadline: every 20th day of the succeeding month.
10. Monthly Filing of BIR Remittances Example: ABC Company earned Php 100,000 monthly gross sales. Percentage Tax is: 100,000 x 3% Php 3,000
11. Monthly Filing of BIR Remittances 3B. Monthly Value-Added Tax Declaration A VAT-registered person BIR Form No. 2550M Deadline: every 20th day of the succeeding month
12. Monthly Filing of BIR Remittances Example: ABC Company earned Php 100,000 gross sales and incurred Php 80,000 purchases. Output Tax: Php 100,000 x 12% = Php 12,000 Input Tax: Php 80,000 x 12% = 9,600 VAT Payable = Php 2,400
