Bookkeeper with Reasonable Service/Retainer's Fee?

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Any company, business, or organization operating in the Philippines will have the requirements for bookkeeping and monitoring services. After registering your business in the Philippines, and filing for a Mayor's/Business Permit companies are required to register with their nearest Bureau of Internal Revenue BIR office usually referred to as an RDO (Regional District Office). Then it will receive a Certificate of Registration (COR), depending on what business entity you have setup in the Philippine will determine the applicable taxes and reporting to your company. All businesses however will have monthly, quarterly, and annual filings with the BIR regardless of your structure.

So if you need a bookkeeper for all these matters, contact us!

Our Bookkeeping Services include but not limited to:
1. Monthly preparation of Expanded Withholding Tax Return (BIR Form 1601E) with related Alphalist/Attachment
2. Monthly preparation of Final Withholding Tax Return (BIR Form 1601F) with related Alphalist/Attachment, if applicable
3. Monthly preparation of Value Added Tax Declaration (BIR Form 2550M)
4. Quarterly preparation of Value Added Tax Return (BIR Form 2550Q)
5. Quarterly preparation of Income Tax Return (BIR Form 1702Q)
6. Quarterly preparation of Certificate of Creditable Tax Withheld at Source (BIR Form 2307) to be distributed by Client, to its suppliers
7. Preparation and submission of diskette files, if applicable
8. Filing of Returns
9. Recording of the transactions to the Accounting system
10. Registration of new businesses and document processing for DTI, SEC, BIR and etc.

We can meet any time for discussions about your concerns. Please contact us at 0905 563 1022 and look for Joseph.

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up for this morning

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good morning. up for today...

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up for this weekend...

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up for this Tuesday

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Commissioner issued a WARNING to business establishment that are not complying with the registration, invoicing and bookkeeping requirements.

ftp://ftp.bir.gov.ph/webadmin1/pdf/218openlettercir.pdf

Let us remember this always and not to defer until BIR examinations come.

[BatmanBeyond]

20 Tips to Avoid BIR Tax Penalties

Mar 6, 2011 by Victorino Abrugar at Tax Tips, Taxation
20 Tips to Avoid BIR Tax Penalties

Taxes are burden imposed to persons and entities who earn income, engage in business, transfer personal or real properties, and other taxpayers who are required to pay taxes by the National Internal Revenue Code (NIRC) and other applicable laws. If a tax means cash outlay, penalties means additional expenses that can give you more financial, personal and entrepreneurial troubles.

Penalty includes interest, surcharge and compromise which can be imposed to taxpayers who violate certain NIRC offenses. While some violations can be compromise, others like willful acts to commit fraud, may not be compromised and may be subjected to criminal charges. To put yourself away from those charges and assure that you can have goodnight sleeps, you may want to consider the following 20 tips to avoid BIR tax penalties.

1. Register your business before starting operation. Obtain proper registration whether as a VAT registered or a non-VAT registered taxpayer. Read our articles on Value Added Tax and Percentage Taxes to know who are required to register as VAT or non-VAT taxpayers.

2. Pay and display your Annual Registration return (BIR Form 0605). Failure to do this may cause you a fine of not more than 1,000 or imprisonment of not more than 6 months (sec 275, NIRC)

3. Display your Certificate of Registration (BIR Form 2303). Failure to do this will also cause you a criminal penalty the same as with the #2.

4. Display the poster “Ask for BIR Receipt” or “Notice to the Public to demand receipts/invoice. Failure to do this will also cause you a criminal penalty the same as with the #2.

5. Attach or paste authorized sticker/DECAL authorizing the use of CRM/POS/CAS. Failure to do this will cause a compromise penalty of P1,000 per unit of the machine.

6. Present application form (BIR Form 1900 and 1905) to use registered sales books/permit to use loose leaf sales books. A P 1,000 compromise penalty is imposed upon failure to do this.

7. Do not attempt to evade or defeat any imposed tax by the National Internal Revenue Code. This violation cannot be compromised because it involves fraud (Sec 204 NIRC).

8. Pay your tax and or file your tax return on time. Late filing will cause you penalties: interest, surcharge and compromise. You should also file tax declaration on time, whether there is no tax to pay or you are exempt but is required to file the return.

9. File your tax returns with the complete and correct documentary requirements or attachments. For example, by attaching the required certificates of creditable taxes when claiming them or by attaching Monthly Alphalist of Payees (MAP) to Monthly Remittance Of Income Taxes Withheld (Expanded) – BIR Form 1601E.

10. Keep and preserve the records required by law or regulations (books, journals, etc).

11. Withhold and remit withholding taxes on compensation, expanded, final income or on business taxes (VAT or Percentage taxes), if applicable.

12. Refund excess taxes you withheld on the compensation of your employees.

13. Do not misrepresent as to actual filing of return or statement or withdrawal of return or statement already filed.

14. Do not commit any acts of omission.

15. Make correct and faithful entry in the books of accounts

16. Do not keep two or more sets of records or books of accounts

17. Keep books of accounts or records in a native language, English or Spanish or make a true and complete translation

18. Do not use fake or falsified Revenue Official Receipts, Letters of Authority, Certificates Authorizing Registration, Tax Credit Certificates, Tax Debit Memoranda and other Accountable Forms.

19. Have your books of accounts audited and have the financial statements attached to the income tax return certified by an independent CPA duly accredited by the BIR.

20. Do not refuse to issue receipts or sales or commercial invoices; do not issue receipts or invoices not truly reflecting and/or containing all information required therein or use multiple or double receipts or invoices. This violation is subject to criminal penalty of fine of not less than P1,000 but not more than P50,000 and imprisonment of not less than 2 years but not more than 4 years.


Taken from:
20 Tips to Avoid BIR Tax Penalties | Business Tips Philippines

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COMPROMISE PENALITIES

by Marietta B. Saludaga

The Bureau of Internal Revenue (BIR) has been continuously introducing new measures or improving those in place in its attempt to reduce if not eradicate tax evasion. One of the more recent measures issued to realize this objective and ensure uniform application of the penalties is Revenue Memorandum Order (RMO) No. 19-2007 which implements changes on compromise penalties that a taxpayer may pay in cases of criminal violations under the National Internal Revenue Code (NIRC).

But what is compromise penalty and why is it imposed?

Compromise penalty is a certain amount of money which the taxpayer pays to compromise a tax violation. This is paid in lieu of criminal prosecution.
However, it must be emphasized that the essence of compromise penalty is mutuality and its unilateral imposition is without legal basis. As such, compromise penalties cannot be imposed or collected without the agreement and conformity of the taxpayer. In the event that a taxpayer refuses to pay the suggested compromise penalty, a criminal action may be filed against him for tax violation. This is clear from the provisions of the said RMO. Thus, to expedite the settlement of tax violations and for peace of mind, taxpayers normally agree to pay the suggested compromise penalties especially in assessment cases.

Some of the violations which can now be subject of compromise penalty under RMO 19-2007 are:

failure to register with the BIR;
failure to pay and display the annual registration fee;
no certificate of registration displayed, failure to display the poster “ Ask for BIR Receipt” or “Notice to the Public to demand receipts/invoice”;
failure to attach or paste authorized sticker/DECAL authorizing the use of CRM/POS/CAS;
failure to present application form (BIR Form 1900 and 1905) to use registered sales books/permit to use loose leaf sales books; and
failure to refund excess taxes withheld on compensation.

These violations were previously not in the list of violations that can be compromised under the old schedule of compromise penalties.

Interestingly, the failure to obey summons; to testify; or to appear and produce books of accounts, records, etc. or to furnish information required under the NIRC is likewise now allowed to be compromised up to the second offense. Previously, this violation is not allowed to be compromised. Under the revised rules, the violator is required to pay as compromise penalty an amount of P10,000 for the first offense and P 20,000 for second offense.

The inclusion of this violation in RMO 19-2007 may provide positive relief to those taxpayers who failed to produce their accounting records during tax investigation, have received subpoena duces tecum for presentation of documents and are in danger of being criminally prosecuted. It is not clear, however, up to what stage a compromise penalty be allowed for this violation to avoid criminal prosecution. Should it be allowed before the filing of the complaint with the prosecutor’s office or even after such filing? What is clear though is that the agreement of the taxpayer to pay the suggested compromise penalty may not liberate him from complying with the summons.

On other violations which were already subject of compromise penalty, the change is only on the amount of compromise which has increased significantly from the original rates. Among the revised rates is the compromise penalty in case of failure to file and/or pay any internal revenue tax at the required time if the unpaid tax exceeds P5 Million, it increased from P25,000 to P50,000. In certain instances, specific amounts are now provided where previously, the same may be compromised only at the discretion of the Commissioner and on a case to case basis.

Although the tax authorities has prescribed a sche dule of compromise penalties for different violations of NIRC, these are merely suggested amounts in lieu of criminal prosecution that may not be imposed upon the taxpayer without his consent. Accordingly, a taxpayer may offer a compromise penalty lower than the prescribed amount but which may only be accepted under the said RMO upon approval by the Commissioner of Internal Revenue or his duly authorized representative. In the same way, such schedule of compromise penalties shall not prevent these BIR officers from accepting a compromise amount higher than what is prescribed.
With the expansion on the coverage of compromise penalty, taxpayer has more room to settle right away the criminal liability for tax violations. Though payment of the compromise penalty involves cash outlay, availment of this facility should be encouraged among taxpayers. Any program which provides relief on the taxpayer’s burden should be seriously considered.
(The author is a senior tax manager at Punongbayan & Araullo, member of Grant Thornton International. For comments and inquiries, please e-mail the author at the author or call 886-5511.)

Lifted from: Punongbayan & Araullo - Compromise penalties

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contact nako at 09234593759 i need a bookkeeper

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Hassle-Free Business Registration

If you have transacted before with Government Agencies in the Philippines it’s quite far-fetched to describe the Business Registration process as hassle-free, right? Or probably you’ve heard rants from your friends regarding the legendary bureaucratic red tape that they went through. Well I have some good news for you, the Department of Trade and Industry’s “one-stop shop” project, Philippine Business Registry (PBR), promises to make weeks-long process a thing of the past and speed it up to as short as 30 minutes.

Their plan is to install a few hundred workstations offering real-time and hassle-free business registration in the offices of Department of Trade and Industry, Securities and Exchange Commission and some Local Government Units. The PBR will accept applications from Sole Proprietorships, Partnerships and Corporations. Applicants can get their Tax Identification Number (TIN) from Bureau of Internal Revenue, Employer Registration Numbers from Social Security System (SSS), Home Development Mutual Fund (Pag-ibig) and Philippine Health Insurance Corporation (Philhealth) through the PBR. Currently they are still finding ways to link the LGU’s business permit processing system because it is still not interlinked with the PBR.

Procedure for Sole Proprietorships

Fill out the Application Form and submit to DTI Teller
Teller secures TIN. (Validate against records if there’s an existing TIN)
Business Name (BN) Certificate and Employer’s Registration Numbers (ERN) are processed. Get the Transaction Reference Number (TRN).
Present the TRN to Cashier for payment of BN Fee. And secure the Official Receipt.
Present the Official Receipt to the Releasing Officer for the BN Certificate.
Get the SSS, Pag-ibig and Philhealth Employer Registration Numbers (ERN) from the Teller.
Present the PBR-generated Employer Registration Number to the agencies to secure the corresponding Certificates

Procedure for Partnerships and Corporations

Fill out the Application form and submit to the teller
Submit photocopies of complete SEC registration documents (SEC Registration Certificate, articles of partnership/corporation and by-laws). Bring along the original copies for verification.
Teller will transmit the application for Employer Registration Numbers to SSS, Pag-IBIG and Philhealth and get the PBR-generated ERNs.
Then secure the Certificate of Registration or Employer ID from offices of SSS, Pag-IBIG and Philhealth.

DTI Secretary Gregory Domingo said the government will now turn its attention to implement other reforms to make it easier for businessmen to do business in this country.

Sounds a relief? I think so.

Source: Inquirer

But if you want to focus on the operating side of your business, you may contact me to do these for you at 0922-9410412.