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#AskTheTaxWhiz: BIR Deadlines, etc.

The Philippine Tax Whiz reminds all businesses and professionals of a number of BIR deadlines this January and other requirements for renewal of business permit.

I have a startup company which was registered last year. Is it true that even if I have not fully operated my business I will comply with all the BIR requirements? If yes, what are the documentary requirements and deadline I need to know to avoid paying penalties and compromises?

Unfortunately, yes. Once you have registered with the Bureau of Internal Revenue (BIR), you have to do monthly and quarterly compliance including annual renewal and filing of ITR. Here are the deadlines for this month of January 2017:

*14 – Monthly Withholding Tax on Compensation (1601C)

*14 – Monthly Expanded Withholding Tax (1601E)

Required Attachment: Monthly Alphalist of Payees (MAP) with Validation

25 – Quarterly Value-Added Tax (2550Q)

Required Attachment: Quarterly Summary List of Sales & Purchases with Validation

25 – Refund of Excess Tax Withheld on Compensation by Employer to its Employees

30 – Annual Inventory List

31 – Annual Registration Fee (using BIR Form 0605)

31 – Distribution of Certificates of Income Payment/Tax Withheld (2316) to Employees

31 – Annual Information of Income Tax Withheld on Compensation (1604CF)

Required Attachment: Annual Alphalist of Employees with Validation

 

*Note that deadlines falling on weekends, holidays and non-working days will be moved to the next working day. In this case, monthly withholding tax returns (1601C & 1601E) is due on Monday, January 16, 2017.

Aside from BIR, are there other government agencies I need to deal with at the start of the year? How do I renew my business permit? Is it true that drug test results are required before they release my permit? When is the deadline for the renewal of business permit?

Yes. Aside from BIR, you need to deal with the barangay for barangay clearance, city hall or municipal office for your business permit (or Mayor’s permit) and if your business is a corporation, you also have to deal with the Securities and Exchange Commission.

Unfortunately, there are some barangay like Brgy. Laging Handa in Quezon City, which requires drug test results before the release of barangay clearance. Although I find it unconstitutional, baseless and irrational as it has no relevance to doing business in the area, our office complied anyway to avoid unnecessary penalties since barangay clearance is also requirement in securing business permit.

January 20 is the deadline for the renewal of business permit. For more information, read:http://www.rappler.com/business/governance/119341-askthetaxwhiz-business-permit-renewal

Am I still required to file my annual income tax return if I did not make any income last year? When is the deadline? Can I file early if I have nothing to declare?

Yes. Again, once you have registered with BIR, you are required to comply with the monthly, quarterly and even annual compliance.

April 15 is the deadline for the filing of annual income tax return.

Yes. You can file as early as now especially if you have nothing to declare and pay.

For tax compliance review and assistance, you may email us at consult@acg.ph or call (02) 6227720.

ABOUT THE AUTHOR

Mon Abrea, or popularly known as the “Philippine Tax Whiz” is one of the 2016 Outstanding Persons of the World and Move Awards 2016 Digital Mover, 2015 The Outstanding Young Men of the Philippines (TOYM), Asia CEO Young Leader of the Year and founder of the Abrea Consulting Group and Center for Strategic Reforms of the Philippines (CSR Philippines). He currently serves as Adviser to the Commissioner of Internal Revenue of the Philippine Government on tax administration reform in promoting inclusive growth. Follow Mon on Twitter: @askthetaxwhiz or visit his Facebook page. You may also email him at consult@acg.ph.

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