XDT & Company provides Tax Outsourcing services to local and foreign companies in the Philippines. Our Tax Compliance Services are designed to assist corporations and individuals in mitigating their tax liabilities with the government. Our CPAs will aid companies in filing their monthly, quarterly, and annual tax returns to settle their tax obligations with the BIR.
We assist businesses and individuals in filing their tax returns on time to help them avoid incurring penalties and interest rates. We also help enterprises with the preservation of their accounting records for compliance and recordkeeping purposes. Our team of CPAs are committed to compute and prepare your tax figures before the prescribed deadlines.
what is the bir?
The Bureau of Internal Revenue (BIR) is the government agency tasked to enforce tax regulations on individuals and corporations to finance the government’s expenses for the development of infrastructures and improvement of social services in the Philippines.
Under Section 2 of the National Internal Revenue Code of 1997 (NIRC), the primary duties of the BIR are as follows:
- Assessment and collection of all national revenue taxes, fees, and charges; and
- Enforcement of all forfeitures, penalties, and fines.
types of taxes and tax returns for submission to bir
Corporate and individual taxpayers are required to submit their tax returns based on the types of national local taxes applicable to them. Individuals who work as a freelance worker file BIR Form 1701 and 1701Q while local and foreign enterprises submit Form 1702Q and 1604CF.
We provide access to the list of taxes applicable to enterprises and self-employed entities looking to identify the required tax returns for filing. BIR Forms related to the kinds of taxes paid are also included together with their filing periods.
Types of Taxes in the Philippines for Individuals and Business Entities
- Capital Gains Tax
- Donors Tax
- Documentary Stamp Tax
- Estate Tax
- Percentage Tax
- Withholding Tax on Income Payments
- Expanded Withholding Tax
- Withholding Tax on Compensation
- Final Withholding Tax
- Withholding Tax on Government Money Payments
- Value-Added Tax (VAT)
- Income Tax
- Others
bir compliance requirements
Taxpayers must observe the Compliance Requirements listed in “Title IX – Compliance Requirements” of the NIRC. Individuals or business entities must keep and preserve their accounting records and register their businesses to the appropriate Revenue District Officer of their place of business.
As an Accounting and Tax Service Provider in the Philippines, we provide two Special Services on taxation, such as Tax Compliance Review and Tax Planning and Advice. We extend our aid to assess the internal processes and tax structures of your business entity to help you conform with BIR’s requirements properly and with ease.
penalties for non-compliance
According to the Tax Code, the BIR will impose an additional 25% of the payable amount if the taxpayer fails to submit their tax returns or pay their outstanding balances due to any of the following reasons:
- Failure to file any tax returns or tax dues on the deadline or as required under the provisions of the Tax Code;
- Unless authorized by the BIR’s Commissioner, filing a tax return to an unauthorized person other than the Internal Revenue Officer;
- Failure to pay the deficiency tax within the prescribed date and time of payment in the Notice of Assessment; or
- The taxpayer doesn’t partially or fully pay the tax amount.
As prescribed under the NIRC, taxpayers with unpaid taxes are imposed with an interest rate of 20% per year or higher from the date prescribed until the business or individual has paid the amount due.
source: https://ahcaccounting.com/compliance-services/tax/
