BAIVI Guide to Tax Compliance and Consultancy Services in the Philippines
What is a Tax Consultant?
A tax consultant is someone that can help manage your tax situation, capitalize on tax deductions, and minimize your tax liability.
They’re considered experts in the field who can manage charitable giving, inheritance issues, tax planning, and other complex tax needs for you.
What does a Tax Consultant do?
Business owners secure a connection with professional tax consultants because they offer financial-related counseling and specialize in tax law.
With their expertise, you’ll learn about income tax returns and other financial matters like estate and trust taxes.
Hiring one would mean they’d do all the hard work for you — they’d stay informed on the latest law changes and tax requirements.
Tax Consultants in the Philippines offer the following services:
- Business registration with BIR, LGU, and other registration services
- BIR open cases assistance services
- Incorporation with SEC services
- Real property tax services
- Corporate tax compliance services
- Business permit registration and renewal services
- Sole proprietor and individual tax compliance services
- Transfer of shares services
- Income tax preparation and filing services
- Dissolution services
- Tax assessment/audit assistance services
- Business closure services
- Tax health check services/Tax compliance review services
3 Steps on Tax Compliance in the Philippines
Do you want to comply with taxes on your own? Or just wanted to get an idea on how tax consulting services do it?
The Bureau of Internal Revenue (BIR) has offered a 3-step approach called “Register, File, Pay” to help business owners comply with taxation.
Here’s a quick breakdown:
Step #1: Register
Registering your business is important, otherwise, you’ll be doomed for closure.
If you’re planning to start a business, your first step should be to head over to a Revenue District Office near you.
Make sure you’ve prepared the following documents for registration:
- Philippine Statistics Authority Birth Certificate
- Mayor’s Permit from the LGU where you plan to operate
- Department of Trade (DTI) Certificate of Business Name
- Professional Regulation Commission (PRC) ID
- Receipt of Professional Tax Payment
At the BIR office, you’ll be asked to accomplish the BIR Form 1901 or the Tax Treaty Relief Application Form and pay P500.00 for the registration fee.
Step #2: File
Filing tax returns is mandatory.
There are three different types of tax filing returns for entrepreneurs. It can be confusing, but you should be well-aware of the deadlines to avoid penalties.
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Percentage Tax
This is imposed on transactions, persons, or entities and filed every 20th of the month.
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Income Tax (IT)
Filing income tax is required for real estate, trusts, self-employed individuals, and for those with business or compensation income. You should be filing this every 20th of the month and submit it quarterly.
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Value Added Tax (VAT)
It’s done every 20th of the following month. If you prefer quarterly filing, the schedule is every 25th of April, August, and November.
Step #3: Pay
Now that you’re done with filing tax returns, the final step is to pay for it.
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Income Tax (IT)
The rates for income tax are from 5% to 32%. Take note that the amount isn’t fixed as it’ll depend on your net taxable income. You can refer to your ITR for additional guidance.
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Allowable deductions
Entities and individuals can choose between optional or itemized deductions.
Optional Standard Deduction (OSD) trims 40% of your total amount of gross sales and receipts. While itemized deductions list all expenses incurred and paid during the taxable year, and then it’s deducted from your gross income.
If you’re having a hard time keeping up with tax compliance, you can always look for services offering tax compliance and consultancy Philippines. After all, it’s always better to have someone who is an expert on the ins and outs of taxation, so you can focus on other aspects of your business.
We provide back-office operations, accounting, bookkeeping, payroll, human resources, business registration, tax compliance services and more.
Feel free to contact us with any questions.
Suite 9D, 9th Floor, 122 The Valero Tower, Salcedo Village, Makati
City, Philippines, 1227
(02) 8403-8063
0917 713 9681
WORK HOURS
Monday to Friday
9:00 A.M. to 6:00 P.M.
Feel free to contact us with any questions.
Suite 9D, 9th Floor, 122 The Valero Tower, Salcedo Village, Makati
City, Philippines, 1227
(02) 8403-8063
0917 713 9681
WORK HOURS
Monday to Friday
9:00 A.M. to 6:00 P.M.
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All Rights Reserved. © 2023 BAIVI Group