// auto render

Avoid BIR Penalties – Hiring an Accounting Firm for Comprehensive Tax Services

In line with the season for filing income tax returns (ITR) for most businesses, it is important to be reminded of your tax responsibilities. It also counts to be aware of those common, unnoticeable mistakes that often lead to unwanted penalties. The Philippine’s Bureau of Internal Revenue (BIR) plays a significant role in successfully running your business in Davao. In fact, the BIR plays a major, superlative role. Abiding by its rules and regulations will not only save your business from its imposed penalties, it will also spare you from possible criminal charges that are a major hindrance to a good night’s sleep. This is basically the reason why businesses or any other legal taxpayer (group or individual) should consider hiring a reputable accounting firm in Davao which offers tax services, and more. Here is a list of the things to look forward to in this article: Functions of the BIR Common Mistakes to Observe when Filing Tax Returns 10 Tips to Avoid BIR Tax Penalties   Understanding the BIR BIR is an attached agency of the Department of Finance. It collects more than half of the total revenue of the Philippines and it is the primary entity that controls the Philippine taxation. Among its powers and duties are: Assessment and collection of all internal revenue taxes, fees and charges; and Enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts; and Administers supervisory and police powers conferred to it by the National Internal Revenue Code and special laws. So why do we really need to pay taxes? The answer is a no-brainer: Taxes are the soul of our government, without which, it cannot possibly subsist.   Common Mistakes to Observe Instead of wasting your profits on some ridiculous penalties, many promising undertakings could have been made. In few cases, it may take them a whole night to scrutinize those bills and taxes, but still, something just seems to really go out of the right track.     Tax penalties could be imposed to entities who either failed to file their ITR on the scheduled date or they may have committed errors even...

Learn More

EFPS to include NGAs

In a revenue regulation (RR no. 1-2013)  issued by BIR last January 23, 2013, National Government Agencies (NGAs) are required to use Electronic Tax Remittance Advice (eTRA) which is a sub system of Electronic Filing and Payment System (eFPS). Currently, BIR mandates the following taxpayers to file their returns using EFPS: a. Large Taxpayers duly notified by the Bureau of Internal Revenue (BIR); b. Top 20,000 Private Corporations duly notified by the BIR; c. Top 5,000 Individual Taxpayers duly notified by the BIR; d. Taxpayers who wishes to enter into contract with government offices; e. Corporations with paid-up capital stock of Ten Million Pesos; f. PEZA-registered entities and those located within Special Economic Zones; and g. Government Offices, in so far as remittance of withheld VAT and business tax is concerned. According to an excerpt from the RR, “Now that eTRA System, a sub-system of the eFPS, has been developed, the base of taxpayers mandated to use eFPS is expanded to include all NGAs since the latter make use of the TRA in settlement of their withholding tax liabilities arising from the use of funds being released by the Department of Budget and Management (DBM). Through the eTRA System, the NGAs can access the eFPS, file their tax return electronically and accomplish the eTRA on-line, provided the prescribed enrollment to the eFPS has already been complied with.” With the implementation of this system, NGAs can conveniently remit and pay their taxes.  It saves the taxpayer the hassle of falling in line to file and pay their tax returns. It’s fast and convenient since everything can be done through a click in their computers with an Internet connection. EFPS to include NGAs  ...

Learn More
Follow

Get every new post delivered to your Inbox

Join other followers: