George Mikhail R. Aurelio, CPA

July 2019 BIR Tax Calendar Compliance

George Mikhail Aurelio — Thu, 31 May 2018 08:04:34 +0000

Check in your BIR Certificate of Registration on what taxes you are required to file.

BIR Forms

July 5, 2019 – BIR Form 2000 Documentary Stamp Tax Declaration
July 10, 2019 – BIR Form 1601-C Monthly Remittance Return of Income Taxes Withheld on Compensation
July 10, 2019 – BIR Form 0619-F Monthly Remittance Form for Final Income Taxes Withheld
July 25, 2019 – BIR Form 2550Q Quarterly Value-Added Tax Return
July 30, 2019 – BIR Form 1601EQ Quarterly Remittance Return of Creditable Income Taxes Withheld (Expanded)

Other compliance required by the BIR

2nd Quarter 2019: Online submission of Summary List of Sales and Purchase (VAT Relief).
2nd Quarter 2019: Online submission of Quarterly Alphalist of Payees.

Freelancers and Professionals Tax Planning

George Mikhail Aurelio — Wed, 07 Mar 2018 14:08:37 +0000

If you are a Freelancer or a Professional whose annual income is less than P3,000,000. You should be aware of this new Tax Law.

One of the highlights in the new Tax Law under the Tax Reform for Acceleration and Inclusion (TRAIN) is the ease of compliance of Self-Employed Individuals and Professionals. Under the old law, you file your monthly income/sales using the BIR Form – 2551M (Monthly Percentage Tax Return). Under the TRAIN. No more filing of BIR Form – 2551M. Instead, you have to file BIR Form – 2551Q (Quarterly Percentage Tax Return).

IMPORTANT.

As a Freelancer and Professional, you have two options:

Option A

File Quartelry:

– BIR Form 2551Q

– BIR Form 1701Q Quarterly (Quarterly Income Tax Return).

Option B

File 1701Q Only – 8% Tax on gross sales or gross receipts and other non-operating income in excess of Two hundred fifty thousand pesos (P250,000).

Take note that your option on the first quarter will be irreversible for the taxable year. You have to make sure that you will choose the option where you save more.

No time for tax compliance? We can help you! We have a special rate for Freelancers and Professionals. Request for proposal.

Disclaimer: All data and information provided on this site is for informational purposes only. The writer makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.

How To Pay Your Tax Using Globe GCash

George Mikhail Aurelio — Wed, 14 Jun 2017 12:31:45 +0000

No time to visit your bank to pay your taxes? Use your smartphone via Globe GCash Application. Paying your taxes via Globe GCash is very convenient and easy to do. Please be cautious in filling up the needed data, as it is easy to commit errors if done hastily.

Steps in paying your tax via Globe GCash Application:

Download the GCash Application in Google Play Store or Apple App Store.

Assume the following data for presentation purposes only:

1. Non-VAT Taxpayer
2. Quarterly Percentage Tax Return - BIR Form 2551Q
3. Taxable Period: January 2018 - March 2018
4. Gross Receipts / Income - P150.000
5. Tax Due: P4,500.00 (3% x P150,000)
6. TIN: 123-456-789-000

1. On your Globe GCash App choose Pay Bills > Government > BIR

2. Form Series > 2500 (Percentage Tax and VAT)

3. Form Number > 2551Q

4. Tax Type > PT

5. Return Period > March 31, 2018 (Important, double check before confirming)

6. Branch Code, for an individual taxpayer with no other business/branch put five zero (00000)

7. Amount (Important, double check before confirming)

8. Select Next

Before confirming , double check all the data.

8. Do not exit. Save the payment reference in your phone gallery. Check the upper portion for the option to save in your gallery.

Make a backup copy of your payment reference for your future reference.

You will receive a text message for your Payment Reference. Make a backup copy for future reference. You can request your previous transactions in your GCash. It will be emailed to you in PDF form. Make a backup copy for future reference.

The above example is only for Quarterly Percentage Tax Return – BIR Form 2551Q. You can also use the Globe GCash Application to pay the following Tax Returns:

Note: Pay only your tax after you’re done in filing it online via eBIRForms.

Also, If you are a Freelancer or a Professional whose annual income is less than P3,000,000. You should be aware of this new Tax Law.

Other References:

PAYING BIR TAXES THROUGH MOBILE MONEY: FREQUENTLY ASKED QUESTIONS (FAQs) FOR TAXPAYERS – Knowyourtaxes.ph

Thank you for reading!

You may reach out to me on Facebook if you have an urgent question about paying your tax via GCash

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2 Ways to File and Pay Your Taxes in The Philippines

George Mikhail Aurelio — Sat, 11 Feb 2017 11:19:48 +0000

After you are done in the registration of your business in the Bureau of Internal Revenue (BIR), your next dilemma is how to file and pay your taxes. You have 2 ways to file and pay your taxes in the Philippines. The first is via eFiling and Payment System (eFPS) and the second is via eBIRForms.

eFPS

eFPS: As its name suggests, its main feature is an online filing and payment system. You need an internet connection in using the eFPS. The online payment feature of eFPS, makes it more convenient than eBIRForms.

The following taxpayers are required to use eFPS:
– Large Taxpayers
– Top Twenty Thousand (20,000) Private Corporations
– Local Government Units
– Government Bidders
– Bank Borrowers
– Stock Brokers
– Corporations with Paid-Up Capital Stock of P10 Million Pesos and above
– Taxpayers with Computerized Accounting System (CAS)
– Enterprises Enjoying Fiscal Incentives (i.e. PEZA, BOI Certified, etc.)
– Top Five Thousand (5,000) Individuals
– National Government Agencies

Lately the BIR refuse to accept eFPS application who is not included in the list of taxpayers above. If you want to register in eFPS, you may still try to contact the BIR Revenue District Office (RDO) in your area.

eBIRForms v6.2

eBIRForms: A software that allows taxpayers to fill up tax forms even without an internet connection. You need an internet connection to file it online. As you have noticed, eFPS and eBIRForms can both file tax forms online. The big difference is in the payment step. In eBIRForms you have to print the tax forms and pay it to the Authorized Agent Bank (AAB) assigned in your RDO.

Tax returns that you filed via eBIRForms can also be paid via Globe GCash Application (See link for reference).

SSS, Pag-IBIG & PhilHealth 2018 Contribution Table

George Mikhail Aurelio — Thu, 02 Feb 2017 07:13:05 +0000

Are you contributing the correct amount for your SSS, Pag-IBIG and PhilHealth contribution?

For Employer, Employee, Self-employed, Overseas Filipino Workers, Freelancers. Below are the latest contribution table for SSS, Pag-IBIG and PhilHealth contribution.

Updated SSS Contribution Table as of March 2018

Updated PhilHeath Premium Contribution Table as of March 2018

Updated Pag-IBIG Contribution Table as of March 2018

References: SSS, PhilHeath and Pag-IBIG.

Filipino Freelancers Tax Deadline 2017

George Mikhail Aurelio — Thu, 19 Jan 2017 15:16:24 +0000

File and pay your taxes before the deadline to avoid penalties. You can check in your BIR Certificate of Registration (COR) if your BIR registration is a Non-VAT or a VAT. Near the middle of the COR, under registered activities/tax type.

Non-VAT Freelancer Registered Activities:
1. Income Tax
2. Percentage Tax - Monthly
3. Registration Fee

For Non-VAT Filipino Freelancers

VAT Freelancer Registered Activities:
1. Income Tax
2. Value-Added Tax - Monthly
3. Registration Fee

For VAT Filipino Freelancers

Filipino Freelancer: Application for Authority to Print Receipts and Invoices

George Mikhail Aurelio — Mon, 16 Jan 2017 11:47:49 +0000

Normally, a freelancer only needs an Official Receipt. But you may also have a sales/billing invoice if you needed it.

You should not burden yourself on the confusing procedure on application for Authority to Print Receipts & Invoices.

Almost all BIR Revenue District Offices have an Accredited Printers near them. 
You may ask the BIR officers, they're happy to suggest you one.

You should hire an accredited printer that will do all the procedure required in 
printing your receipts. 

You only need to provide:
     1. Photocopy of BIR Certificate of Registration
     2. Photocopy of BIR Form 0605 - Annual Registration Fee

The average cost for 10 booklet is Php1,500.00 - Php2,500.00. 
Each booklet consist of 50pcs receipts in duplicate or triplicate
copy depending on your choice. You may only deposit a down payment 
(Usually Php500.00 for 10 booklets) and pay the balance when the
receipts are printed. The accredited printer will take one to two
weeks to finish the receipts.

You should receive the following:

1. 10 Official Receipt Booklets
2. BIR Form 1921 Authority to Print with BIR Stamp (You will need
   this ATP when you will print another receipts afterward)
3. BIR Form 1906 with BIR received stamp
4. Printer Certificate of Delivery of Receipts and/or Invoice

You may now issue an Official Receipts to your customers!

Filipino Freelancer: BIR Books of Account Registration

George Mikhail Aurelio — Mon, 16 Jan 2017 05:52:47 +0000

Requirements:
1. Duly fill up 2 copies of BIR Form-1905 (see sample)
2. Photocopy of BIR Certificate of Registration
3. Duly Fill up Books of Account:
       A. General Journal
       B. General Ledger
       C. Cash Disbursement Journal
       D. Cash Receipt Journal

Steps

1. The BIR policy is stamped and fill up your own books.

A. Ask the guard on where to borrow the stamp for BIR Books of Accounts Registration:

B. Fill up the information needed

C. Sample for BIR RDO 028

2. Get a number for the counter assigned for Books of Accounts

3. Give the all the requirements

4. You should receive the following:

A. Books of Accounts with BIR officer signature (see sample)

B. Copy of BIR Form 1905 with received stamp (see sample)

Congratulations! You’re done in the Books of Account registration.

Filipino Freelancers Tax Compliance

George Mikhail Aurelio — Sat, 10 Dec 2016 04:59:26 +0000

Image Source: Shaun Quarton in Tips & Tricks

Freelancer, a person who works as a writer, designer, performer, or the like, selling work or services by the hour, day, job, etc., rather than working on a regular salary basis for one employer. source:http://www.dictionary.com/browse/freelance

A person who works online as a:

-Admin Support
-Customer Service
-Sales & Marketing
-Design & Creative
-Transcription
-Proofreading
-Email Marketing
-Web Development
-Consulting
-Etc.

Many Filipinos today are in the freelancing industry. As a freelancer, you are not excused in your obligation to pay taxes. In order to be a law-abiding citizen and if you are serious in pursuing a freelancing career, it is a good decision to make the source of your income legal and compliant with the BIR.

Requirements:
1. Duly fill up 2 copies of BIR Form 1901 (see sample)
2. Duly fill up 3 copies of BIR Form 0605 - Registration Fee
   (see sample) (Note: You will use this form to pay the BIR
   Registration Fee amounting to Php500.00)  
3. Photocopy of PSA Birth Certificate*
4. Photocopy of of 2 valid ID's**
   Note: Make sure that the address in your valid ID's
   are the same with the address that you indicate in
   your BIR Application Form.
5. Professional Tax Receipt, if applicable
6. Occupational Tax Receipt, if applicable
7. Project/Work Contract, if applicable
8. Marriage Contract, if the applicant is a married woman

Note: BIR Forms are also available in hard copies in the BIR.
      * To be sure you may bring the original in case they need
        but they will only get the photocopy.
      ** Please bring your ID's in case they need to verify.

BIR registration steps as a freelancer:

A. Primary BIR Registration

Step 1:

I. Go to the BIR Revenue District Office (RDO) assigned in your area. (You may check the BIR website to check which RDO your address belong)

II. For those who do not have a TIN you may obtain online at BIR eRegistration system assigned in your area.

Step 2: Get a number for the counter assigned to BIR Certificate of Registration (COR).

Step 3: Submit all the requirements to the BIR officer.

Step 4: The BIR officer will ask you to pay the BIR Form 0605 – Registration Fee. You should only pay it at the Authorized Agent Banks assigned in your RDO.

Step 5: After payment, photocopy at least 3 copies of BIR Form 0605 and payment receipt.

Step 6: Submit 1 photocopy of the paid BIR Form & payment reference.

Step 7: The BIR officer will request you to purchase 1 documentary stamp tax. (You can buy it within the BIR office and it normally cost Php15.00)

Step 8: The BIR officer will advise you on when you can get the BIR COR. There are few RDO’s who can process your registration within the day, but normally they will give you a date on when you will return to get your BIR COR.

Step 9: You should received the following:

BIR Certificate of Registration
BIR Ask for Receipt signage
BIR Form – 1901 with received stamp

B. Secondary BIR Registration:

After you receive the BIR Certificate of Registration you will need to accomplish within 30 days from the date of your BIR registration:

1. Registration of Books of Account:
2. Application for Authority to Print Receipts & Invoices

After BIR registration, you should file and pay your taxes to
avoid the corresponding penalties.
Also, you need to update your books of account.

Normally a freelancer will need to file:
1. BIR Form 2551Q - Quarterly Percentage Tax Return
2. BIR Form 1701Q - Quarterly Income Tax Return
3. BIR Form 1701 - Annual Income Tax Return
4. BIR Form 0605 - Annual Registration Fee

Note: There is an option for self-employed / freelancers / professional to avail the eight (8%) tax on gross income in excess of P250,000.
When you choose this option, you will only need to file BIR 1701Q quarterly, no more BIR Form 2551Q.

You're all set! Best wishes in your chosen career!

No time for tax compliance? We can help you! We have a special rate for Freelancers and Professionals. Request for proposal.