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Author Topic: Official Receipt for Taxi Business? Help please!  (Read 4450 times)

abigosi

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Official Receipt for Taxi Business? Help please!
« on: June 06, 2009, 02:27:30 PM »
We recently started a taxi business. We registered with the BIR in March and we are paying our taxes using form 2551M - percentage tax. The LTFRB has recently required all taxi operators to start issuing official receipts to passengers - for those who have not yet installed the receipt issuing taxi meters we are required to issue manual receipts.

Since we have not yet installed the new taxi meter I am trying to figure out how to go about applying for manual receipts. I have tried researching and calling up the BIR for more information on it and I have found some literature on the procedures but I find it confusing since everything I have read on the matter doesn't seem to apply to the transport sector. I need someone to explain the procedure in simple, easy to understand steps that directly relate to the taxi or transport business.

But my biggest concern is that taxi operators rely on a boundary system on which we base our tax remittance. I am wondering how the issuance of official receipts by our drivers will affect our payment of taxes. I mean the whole reason for issuing official receipts is so you know how much tax you owe right? But since operators only collect the boundary and the rest is left up to the driver, who pays? Is there a change or an update on the BIR policies on the collection of taxes from taxi businesses?

While I am resigned to the fact that the requirement for the issuance of official receipts by taxi drivers will be implemented, I cannot reconcile myself to the idea that we, as operators, would essentially be required to pay tax on something that we do not owe.

If anyone has any clarification or explanation on this matter I would dearly love to hear from you.
« Last Edit: June 06, 2009, 06:11:49 PM by abigosi »

sting ray

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Re: Official Receipt for Taxi Business? Help please!
« Reply #1 on: June 13, 2009, 10:14:20 PM »
you have very good points there. what i know is that there are recommended percentage tax brackets for the different types of transport like taxi, jeepney, tricycles, bus, etc.
i wonder why the taxi meter is being imposed in the Philippines when there are other important areas that the government can look into and tax.
i remember that there was an order freezing the implementation of this measure.
my take on this is that there is money involved in the supply of the taxi meters. the same is true with the calibration thing everytime there is an increase in taxi fare.
just order manual printing of OR and issue receipts based on the average income (boundary)  that you get from the drivers.

stingray
 

jhaypatts

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Re: Official Receipt for Taxi Business? Help please!
« Reply #2 on: June 20, 2009, 11:17:17 AM »
thanks for this topic.

well to start with, the problem here is the system on LTFRB / LTO. the main problem here is income declaration of taxi operators and also taxi drivers. honeslty po, kawawa mga drivers dito...

Ang dapat po, wala po sana boundary systems, it should be declared on Compensation and/or Commission System. Kaso ang problema naman dito is pano naman ang mga operators.

@Abigosi

I know, medyo mahirap sa part nyo, lalo na po sa declaration ng income and also the declaration of expenses. at kahit po ako medyo nalilito ng konti

Taxi receipts is quite a bit a "NONO" for us. Kasi system itself may mali na. tapos my anomalya pa pagdating sa presyo ng taxi meter with Official Receipts, they intend to sell it for more / less 50-100k pero ang price nito is 10-20k lang. Im hoping nga na sana buhay pa ang nagbunyag ng anomalya na yan.

For you to continue with your business, i advice na, secure a OR then give it to taxi drivers for them to use. tapos po, kung sino lang ang gusto magpa OR, then un lang po ang bibigyan. then the total of your receipts used for the month is your monthly sales.

then for expenses, you have to declare repairs and maintenance, taxi registration expenses, insurance, and lastly contractual drivers the amount you give each a day per driver. but before you have to declare this, you mnust withhold 2% for contractual drivers, and declare it using EWT form 1601E. or you may use 10% for professional fee evidence with EWT form 1601E kasi po mga professional drivers yan.

if you chose contractual 2% x boundary payment x day
then if professional 10% x boundary payment x day.

hire an accountant for more explanation.

also po please note the should be of the gov't.
 
The BIR / LTFRB should create a taxi meter system same features like POS, Cash Register Machines (CRM), BIR wherein they can examine if the their sale will tally with what was declared.

Also, if they want to impose this, there must be a separate gov't body to examine all of our transportaion requirements considering the numbers of operators and drivers

thanks

jhaypatts

 
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abigosi

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Re: Official Receipt for Taxi Business? Help please!
« Reply #3 on: June 25, 2009, 03:17:06 PM »
Thank you very much for your replies and for your advice. I was, with a little advice from someone in the BIR, able to apply for manual receipts.

I still don't know how the implementation of this system will turn out but hopefully the BIR and the LTFRB will be able to coordinate their systems to benefit all parties involved.

It's my opinion that it's this type of disorganization and red tape that discourages a lot of people from doing business in the Philippines. Pahirapan talaga.

But still, as entrepreneurs, we have to be a little optimistic and have a little faith right?

Anyway, thanks again.  :)

aldrich89

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Re: Official Receipt for Taxi Business? Help please!
« Reply #4 on: September 21, 2009, 06:52:53 AM »
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