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Author Topic: HELP: REGARDING BIR  (Read 29610 times)

rprondina

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HELP: REGARDING BIR
« on: March 01, 2007, 11:32:28 pm »
Can anyone give me a sample on how to file the following tax form and with explanation:

2551M
1701/1701Q
1601E/1604E

Hindi ko kasi naintindihan ang explanation ng taga bIR nung umattend ako ng seminar nila last two weeks ako.

According dun sa BIR officer i have to file 1601E this month for my february rental since nagstart ako magrent last January 22,2007. Expanded tax something daw.

1604E para sa san naman to? Monthly rin ba to?

2551M- this is the monthly prescentage tax return depende sa monthly sales ko and tax due is 3% ng reported monthly ross sales ko? tama po ba?

1701-medyo kumplikado. Hindi ko sya maintindihan. Ang haba kasi eh.

My background:

Internet cafe ang business ko.

I started my dry run last Feb. 20, 2007. Promo rate ang bigay ko. Does this counts for filing the 2551M and 1701? Or pwede ako magstart magfile for the march sales instead. halos wala rin naman kita yung February eh.

please dont give advice na i need to hire an acounting. cant afford pa ako eh. kaya ako na lang muna.


thanks.

GerelRoa

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Re: HELP: REGARDING BIR
« Reply #1 on: March 02, 2007, 10:30:52 pm »
Hello ricardorondina,

From the list of forms, I gather that you are registered as a Single Propreitor business.   I'm no expert in the matter, but I'll share with you my personal experience in running my businesses and the results of my querries during a BIR tax seminar.

Form 2551M: Monthly Percentage Tax Return
When to File: On or before the 20th of the month for the previous month
When to start filing: Look at your BIR Certificate of Registration (Form 2303) and the month reflected there is the first month for you to start.  If your 2303 is dated January, you file on or before February 20th and so on and so forth.  If you have no sales for the period covered, just file it and put NO INCOME or NO SALES.
What happens if you don't file: BIR will give you a fine for late filing.   If you don't have income for the period and you don't file, you are still given a penalty.

Form 2551Q: Quarterly Percentage Tax Return
When to File: within 20 days from the end of the quarter
What happens if you don't file: BIR will impose a penalty.  If you don't have income for the period and you don't file, you are still given a penalty.

Form 1701: Annual Income Tax Return
When to File: On or before April 15th of the year
Note: The expenses are really itemized, but you have the entire year to learn how to fill it up.  Basically, what makes it hard is that ALL of your expenses are itemized and it may take some getting used to before you are able to file it well.   The critical part is for you to maintain ALL of your records well so that this part is not too hard to do anymore when the time comes.   A good accounting book will usually help you through this.

Form 1701Q: Quarterly Income Tax Return
When to File: On or before the 15th of the quarter
Note: If you are required to file this, it usually means that you are currently employed AND is running your business at the same time. This form is almost as complicated as the 1701, but you must file this every quarter.   The fourth quarter 1701Q is no longer necessary since you will be filing the 1701 anyway.

Form 1601E: Monthly Remittances Return of Creditable Income Taxes Withheld
When to File: On or before the 10th of the month
Note: This is usually required for businesses that rents their business space.   The taxes paid in this manner will either be shouldered by you or by your landlord, depending on your arrangements with the rent.

Form 1604E: Annual Information Return...
When to File: On or Before March 1 for the previous year
Note: This is more or less just summarizing the content of the 1601E.

As for your question, I think you will need to file 2551M and 1601E for the moment.   Very useful tip: Each BIR offices are required to have an "Officer of the Day" that is tasked to handle ALL the inquiries for a first timer.  They are meant to be harassed, asked from, etc and they are tasked to answer everything slowly and courteously no matter what.   Anything less is a violation of the Civil Service Code.  Be polite with them, but also do not be intimidated by them.  This is the best way to learn how to do the taxes yourself.

I hope this helps.

Cheers!

Gerel

rprondina

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Re: HELP: REGARDING BIR
« Reply #2 on: March 03, 2007, 12:15:59 am »
Hello ricardorondina,

From the list of forms, I gather that you are registered as a Single Propreitor business.   I'm no expert in the matter, but I'll share with you my personal experience in running my businesses and the results of my querries during a BIR tax seminar.

Form 2551M: Monthly Percentage Tax Return
When to File: On or before the 20th of the month for the previous month
When to start filing: Look at your BIR Certificate of Registration (Form 2303) and the month reflected there is the first month for you to start.  If your 2303 is dated January, you file on or before February 20th and so on and so forth.  If you have no sales for the period covered, just file it and put NO INCOME or NO SALES.
What happens if you don't file: BIR will give you a fine for late filing.   If you don't have income for the period and you don't file, you are still given a penalty.

Form 2551Q: Quarterly Percentage Tax Return
When to File: within 20 days from the end of the quarter
What happens if you don't file: BIR will impose a penalty.  If you don't have income for the period and you don't file, you are still given a penalty.

Form 1701: Annual Income Tax Return
When to File: On or before April 15th of the year
Note: The expenses are really itemized, but you have the entire year to learn how to fill it up.  Basically, what makes it hard is that ALL of your expenses are itemized and it may take some getting used to before you are able to file it well.   The critical part is for you to maintain ALL of your records well so that this part is not too hard to do anymore when the time comes.   A good accounting book will usually help you through this.

Form 1701Q: Quarterly Income Tax Return
When to File: On or before the 15th of the quarter
Note: If you are required to file this, it usually means that you are currently employed AND is running your business at the same time. This form is almost as complicated as the 1701, but you must file this every quarter.   The fourth quarter 1701Q is no longer necessary since you will be filing the 1701 anyway.

Form 1601E: Monthly Remittances Return of Creditable Income Taxes Withheld
When to File: On or before the 10th of the month
Note: This is usually required for businesses that rents their business space.   The taxes paid in this manner will either be shouldered by you or by your landlord, depending on your arrangements with the rent.

Form 1604E: Annual Information Return...
When to File: On or Before March 1 for the previous year
Note: This is more or less just summarizing the content of the 1601E.

As for your question, I think you will need to file 2551M and 1601E for the moment.   Very useful tip: Each BIR offices are required to have an "Officer of the Day" that is tasked to handle ALL the inquiries for a first timer.  They are meant to be harassed, asked from, etc and they are tasked to answer everything slowly and courteously no matter what.   Anything less is a violation of the Civil Service Code.  Be polite with them, but also do not be intimidated by them.  This is the best way to learn how to do the taxes yourself.

I hope this helps.

Cheers!

Gerel



Thank you po. laking tulong. Hirap pala magbusiness daming kuskus balungos. 1601E at 2551M lang ang ipa-file ko for this month. I still have to delcaena no sales pa ang february ko. hehehe. 1601E sa contract namin ng lanlord wala ang tungkol sa taxpayment, oes this mean that the landlord will shoulder the tax but i doubt it, mga landlord pa...panu ba to? hmmm...

1701 meaning for employed being that are running their businesses but how about in my case, wala me work eto lang business ko ngayon, so i fall for a selfemployed catgeory meaning still have to file 1701? Tama po ba?


One more:

How to use the follwing books of account and what are they for?


Columnar book
Journal Notebook
Ledger Notebook


they all look the same to me, so what are their differences and what are their uses?

kailangan ko pa ata magaral ng accounting basics.


Hehehe....

Thank you po talaga....

I so love this forum....it really helps alot.




rprondina

GerelRoa

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Re: HELP: REGARDING BIR
« Reply #3 on: March 03, 2007, 09:37:47 am »
Hello,

If this is your only business, you will not need to file the 1701Q.   You will need to file the 1701 next year.

The journal notebook basically records all the transactions that are also recorded in your receipts.
The columnar notebook basically records all the disbursements (expenses) that you incurred in your business.
The ledger notebook basically creates the monthly summaries of the journal and the columnar notebooks.

Cheers!

Gerel

rprondina

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Re: HELP: REGARDING BIR
« Reply #4 on: March 03, 2007, 03:42:58 pm »
thanks yo, ms. gerel.


greenapple

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Re: HELP: REGARDING BIR
« Reply #5 on: March 03, 2007, 04:40:22 pm »
@recardorondina,

Medyo complicated na talaga ang books of accounts sa katulad mong walang background sa accounting, i suggest na kuha ka ng part-time / retainer accountant na gagawa nito para sa business mo. 

About BIR returns naman matutulungan ka rin ng accountant don, sa kanya mo na ipagawa coz magbabayad ka rin lang ng retainer fee, sulitin mo na yon para wala ka ng sakit ng ulo.

rprondina

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Re: HELP: REGARDING BIR
« Reply #6 on: March 03, 2007, 07:22:47 pm »
@recardorondina,

Medyo complicated na talaga ang books of accounts sa katulad mong walang background sa accounting, i suggest na kuha ka ng part-time / retainer accountant na g@g@wa nito para sa business mo. 

About BIR returns naman matutulungan ka rin ng accountant don, sa kanya mo na ipagawa coz magbabayad ka rin lang ng retainer fee, sulitin mo na yon para wala ka ng sakit ng ulo.



Thank you greenapple for the advise, but for now jidi ko pa kaya. magkano ba ang retainer's fee ng isang accountant?

alyssamarie

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Re: HELP: REGARDING BIR
« Reply #7 on: March 08, 2007, 12:39:01 pm »
 :)sana masagot ito ni sir gerel....nabasa ko kc sa ibanng forum na once na member k ng BMBE or Barangay
Micro Business E ay 1000 lang ang tax mo for the whole year and this applies sa mge  biz na 3M and below ang capital...pakiexplain naman.would this mean na monthly ang filing ko but one lang ako pay ng 1K and that's it!

pls sana maligaw si sir gerel d2 hehehehe

rprondina

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Re: HELP: REGARDING BIR
« Reply #8 on: March 08, 2007, 02:00:17 pm »
:)sana masagot ito ni sir gerel....nabasa ko kc sa ibanng forum na once na member k ng BMBE or Barangay
Micro Business E ay 1000 lang ang tax mo for the whole year and this applies sa mge  biz na 3M and below ang capital...pakiexplain naman.would this mean na monthly ang filing ko but one lang ako pay ng 1K and that's it!

pls sana maligaw si sir gerel d2 hehehehe

Anu ba ang scope ng BMBE? How to aply for this one?

GerelRoa

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Re: HELP: REGARDING BIR
« Reply #9 on: March 09, 2007, 12:29:00 pm »
Hello,

The BMBE stands for the Barangay Micro Business Enterprise Law.  It is supposed to help businesses primarily engaged in manufacturing to become competitive in its first two years.

I am no expert on the subject, but I think Gabs, one of the moderators of this forum started a thread on this one already: https://www.entrepreneur.com.ph/board/index.php?topic=13597.0

The application process is handled by the different LGUs.

Cheers!

Gerel

butangera

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Re: HELP: REGARDING BIR
« Reply #10 on: March 09, 2007, 04:59:27 pm »
mahaba na ang discussion dito tungkol sa BMBE na yan... last na napag-usapan, kelangan approved ka ng BIR legal office sa QC before ka maconsider na BMBE ka nga... ung mga BIR RDO daw ay walang karapatan mag-approve ng BMBE... I suggest you have to call BIR Legal Office sa Main Office nila to find out kung ano ba talaga... hanapin mo na lang ung number sa telephone directory or kung may time ka halughugin mo lahat ng threads tungkol sa BMBE...

be patient lang kasi napaka-inefficient talaga ng mga taong gobyerno... ako nga BMBE rin pero nawalan na 'ko ng ganang ayusin... nagbabayad pa rin ako ng income tax at percentage tax... what the heck! i might as well pay na lang kesa naman makipagdiskusyon pa 'ko sa mga taong BIR eh conflicting naman mga pinagsasabi nila. hayzzzz

:)sana masagot ito ni sir gerel....nabasa ko kc sa ibanng forum na once na member k ng BMBE or Barangay
Micro Business E ay 1000 lang ang tax mo for the whole year and this applies sa mge  biz na 3M and below ang capital...pakiexplain naman.would this mean na monthly ang filing ko but one lang ako pay ng 1K and that's it!

pls sana maligaw si sir gerel d2 hehehehe

butangera

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Re: HELP: REGARDING BIR
« Reply #11 on: March 09, 2007, 05:03:19 pm »
2551M is 3% of your total sales based on invoice. kahit na wala kang transaction for the month, you still have to pay at ilagay mo lang NO TRANSACTION. pag wala ka kasing transaction at di ka nagfile, penalty mo is 200 pesos. nangyari na yan sa tita ko kasi...

Quarterly Income Tax... di nagfile ang tita ko ng 3rd quarter kasi kakastart lang nya pero hinahanap pa rin sya ng BIR... di pa yata nya naaayos yun.

Yearly Income Tax is due in April. May problema ako dito kasi I searched sa BIR website, parang may kelangan document na signed ng accountant. anyway, matagal pa naman un. hehehe!

tama nga ung observation ng tita ko. sabi nya: eh baket nagbabayad na nga ako ng monthly percentage tax na 3% of my total sales tapos kelangan ko pa rin magbayad ng income tax?! double taxation nga raw. grabeh 'no?!

rprondina

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Re: HELP: REGARDING BIR
« Reply #12 on: March 09, 2007, 07:32:36 pm »
Hello,

The BMBE stands for the Barangay Micro Business Enterprise Law.  It is supposed to help businesses primarily engaged in manufacturing to become compet1t1ve in its first two years.

I am no expert on the subject, but I think Gabs, one of the moderators of this forum started a thread on this one already: https://www.entrepreneur.com.ph/board/index.php?topic=13597.0

The application process is handled by the different LGUs.

Cheers!

Gerel

I see...sounded like im not qualified for ths, learning that one should be in manufacturing sector whileim on service part sector. tha's how i view it. anyway,thank youfr the info, but i would still try, there's no ham on trying hehehe....malay baka pede.

GerelRoa

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Re: HELP: REGARDING BIR
« Reply #13 on: March 10, 2007, 12:28:53 am »
Hello,

As far as I know, the BMBE is not yet 100% fully implemented because of the inability of certain LGUs to implement it.  This being an election year, entreps can really force the issue on the candidates for Mayorship to fully implement it.  This will not only create more jobs because it will stimulate industries, but it will also result to cheaper supplies of manufactured materials.   Do not be surprised that BMBE is not yet implemented in your area.  You should ask your local business licensing offices to be sure and not the BIR since the BIR RDO is also dependent on what the LGU is implementing.   BIR is not the implementing body, but the LGU.

In reality, there is really no taxation in paying a 3% Gross tax and then paying an income tax.   In the first place, the 3% Gross tax is deducted before you even pay the income tax.   This means that you can be paying the 3% tax and end up not paying any income tax at all!   I do not think that this is unreasonable also since it is a lot easier to cheat on the income tax, but not on the percentage tax since the percentage tax can easily be traced using your receipts.

Although it eats up profit, is a big hassle and the money may be used in corrupt acts, it is still our civic duty to report and pay the proper taxes.   If we are not going to do the RIGHT thing for our country NOW, who will?

Cheers!

Gerel

rprondina

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Re: HELP: REGARDING BIR
« Reply #14 on: March 10, 2007, 03:52:42 pm »
i agree..rather than complaining how much we pay for tax, it is much better to do our part dutifully, and report those who are not paying or remitting taxes at all, if happens we know one.

 

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