Checklist for April 15

We summarized below the general documents required by the SEC and BIR from a stock corporation in relation to the submission of annual audited financial statements (FS) and corporate income tax returns (ITR): Cover sheet; Company title page; Statement of Management Report on FS; Statement of Management Report on ITR; Certificate of Compilation Services of Company’s CPA; Independent Auditor’s Report on FS (opinion, basis of opinion, responsibilities of Management, and auditor’s responsibilities); Face (SFP, SCI, SCE, and SCF); Notes to the FS; RR 15-2010 and RR 19-2011; Independent Auditor’s Report on SRC Rule No. 68; Independent Auditor’s Report on Supplementary … Continue reading Checklist for April 15

BIR accreditation requirements

Since we are currently registering our Firm in the regulatory agencies, one of the first things we need to secure is our BIR accreditation. For guidance, following are the full texts of the BIR regulations pertaining to BIR accreditation requirements for individual, GPPs, and incorporated entities: BIR Revenue Regulation No. 11-2006 BIR Revenue Regulation No. 14-2010 Continue reading BIR accreditation requirements

How to compute withholding taxes on compensation under the TRAIN Law

The TRAIN Law provides new personal income tax rates but this table is useful in computing annual income tax. In order to determine the daily/weekly/semi-monthly/monthly withholding taxes on compensation, the BIR has issued RMC 105-2017. Following is an example on how to compute monthly withholding tax: Sample Monthly rate = Php 40,000 Step 1: Compensation Level (CL) – The Php 40,000 monthly salary will fall under column 3 because it is higher than Php 33,333 but lower than Php 66,667. Hence, we will use column 3 in computing for the withholding taxes. Step 2: Prescribed Minimum Withholding Tax – The fixed … Continue reading How to compute withholding taxes on compensation under the TRAIN Law

January 2018 Tax Reminders

It’s that time of the year again when the wind blows of busy accounting season is starting to form into drizzle and eventually turn into storms before April 15 comes. Perhaps every accountant or auditor knows the #busyseasonfeels. As the season is finally approaching, let us not forget these reminders after closing the books and opening the books for 2018: 1. Registration of Manual Books of Accounts or Books for Computerized Accounting System; 2. Renewal of Business Permit; 3. Submission of Summary of Accountable Forms; 4. Annual BIR registration; 5. List of Regular Suppliers; and 6. Summary List of Sales … Continue reading January 2018 Tax Reminders

TRAIN (Simplified version)

The TRAIN or The Tax Reform for Acceleration and Inclusion (RA 10963) has been effective in the Philippines since January 1, 2018. Its primary objective is to shift the levied taxes from the lower-income generating public into the high-income earners of the country. Much have been said about the new tax rules and summaries of the RA have already been circulating, but the real question is, how will this reform really affect each stakeholder and how will they understand each tax law given its vast data? Sometimes, we ignore details due to varied constraints. One of the best advices given … Continue reading TRAIN (Simplified version)