Tax season is coming.
Some of you may have your own accountants, but for the rest who wishes to compute their own taxes this blog post is for you.
First of all note that tax filing is a personal obligation, meaning it is your obligation to compute for your own taxes and pay them to the government as a citizen of the Philippines. It is your responsibility not your accountant's, not your business partner's, not BIR's. Unless you're employed. When you're employed then your employer would bear this responsibility.
Once you've accepted that you, the business owner need to know how to compute for your own tax, your mind will be less resistant to learning taxation and it will get easier.
So, how to do this? Read on.
Step 1: Use our free resource to create your customized tax calendar.
Step 2: You tax calendar should look like the below. A BIR Return form No should be listed on the days these are due. These are the tax returns you should fill up and pay for or just submit. On the right side is a brief description for each deadline, such as if the deadline is for submission, issuance or filing and payment.
For example, on January 15 BIR return forms 1601C and 1601E is listed. this means you will need to remit the taxes you've withheld from your employees and vendors using BIR Return 1601C and 1601E.
Knowing the return codes of the taxes you need to pay is very important. You can use this code to easily search in the BIR website, you'll be better understood by BIR personnel if you mention the code and if you're using the eBIRForms app, you won't make the mistake of filing the wrong BIR return.
Step 3: Download eBIRForms. Input and save your profile. Select the BIR form under "list of BIR forms" and fill up. There are guidelines along the way for you to check if you're doing the right thing and the application won't submit until all the data input are validated. I suggest to work on your taxes at least a week before it is due so that you will still have time to ask around if there are items not clear. You can also save the form as a draft while you ask around.
Step 4: Use the BIR website to learn about the taxes you need to pay, the base, rates and any exemption. Just type the BIR Return No in the search pane of the BIR website.
Step 5: Ask for confirmation. You may show your BIR return drafts and ask questions at our Facebook Support Group. We typically respond to each question late in the afternoon.
Finally, start early. You have more than 100 days after year end to compute and file your annual income tax before it becomes due. Act on it early, I'll be expecting your questions next year.