2014 Annual Income Tax Return Reminders Philippines

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Annual income tax return filing not later than April 2015 for 2014 calendar is fast approaching. Early preparation is best encouraged for a better tax compliance and management. As the saying in the movie, “The Mechanic” goes: “Victory loves preparation.” Listed below are some items we suggest you to take into account for the April 2015 filing of income tax return and audited financial statements in the Philippines: Use of new Income Tax Returns in Philippines For April 2015, June 2013 2011 versions of income tax returns are required to be used, both for manual filing, eBIR Forms filing (eBIR Forms) and electronic filing and payment system (EFPS). Please note of the following new things  on said forms: BIR Form No. 1701 for self-employed individuals, professionals and freelancers Required information in all capital letters using black ink; A 12-page annual income tax return requiring more information; Details on external auditor/tax

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Features of Tax Mapping or Compliance Verification Drive Philippines

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By: Garry S. Pagaspas, CPA In an effort to expand the tax base, enhance tax compliance in the Philippines, and consequently boost tax collection tax mapping or tax compliance verification drive in the Philippines has been instituted as early as 2003. Under these, the assigned revenue officers would make actual visitation of taxpayer’s premises for purposes of tax compliance verification. For some taxpayers, presence of assigned revenue officers at their premises is an awkward situation especially when it ends up with penalties for non-compliance. At times, they would avoid such inconvenience in a way or another such as closing the day’s operation. For better appreciation, let us take up the features of tax mapping or tax compliance verification drive in the Philippines as follows: Mission Orders of revenue officers A mission order shall be issued by the Regional Director authorizing specific revenue officers to specific area of operation (not necessarily

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BIR Tax Compliance Seminar with Philippine College of Physicians

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Tax and Accounting Center, Inc. has been honored to partner with the Philippine College of Physicians (PCP) in its advocacy towards 100% tax compliance of its medical doctors members in the recently held “BIR Compliance and Taxation Workshop” held at Astoria Plaza, Ortigas, Pasig City last 12 October 2014. The program was initiated by the Philippine College of Physician (PCP) National Head Office with the representatives and participants from the PCP branches nationwide. It has been a continuing objective of the PCP for its members to be well equipped with a technical working knowledge on how tax compliance would operate on its practice of professions with varying revenues from their respective clinics, affiliations with hospitals, health maintenance organizations, medical schools, and other institutions of involvement. The following are the major learning sessions that the PCP settled for discussion and it was a fun of learning with our young and experienced

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First Laiya, Batangas Philippines Beach Outing

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By: Pagaspas Mini Transport As the long weekend unfolds, the team decided for a scouting trip to Laiya, Sun Juan, Batangas, Philippines, a reknowned nearby-the-Metro place to go for weekend beach outing and get-away for a groups of friends, office team, or family.  Laiya, San Juan, Batangas Philippines Beaches is a less white sand compared to other white sand beaches in the Philippines such as in Boracay, Bohol, Palawan, and other parts. However, its a place we strongly suggest to include in your annual itinerary. How to go to Laiya, San Juan, Batangas, Philippines From Metro Manila, going to Laiya, San Juan, Batangas is an approximately a three-hour drive. You may take the South Luzon Expressway (SLEX) all the way to Southern Tagalog Artillery Road (STAR). You may exit either at Ibaan, Batangas taking the road passing through Rosario, Batangas, or taking STAR Toll exit at Batangas City then driving

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How to Register Regional Operating Headquarters (ROHQ) Philippines?

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By: Tax and Accounting Center Philippines A Regional Operating Headquarters (ROHQ) in Philippine branch office is form of a resident foreign corporation in the Philippines where the legal entity of a foreign corporation is being brought into the Philippines to engage in qualifying services allowed by law only to its branches, subsidiaries, or affiliate. Below is the list of those qualifying services allowed by Philippine law to be rendered by a regional operating headquarter in Philippines to its branches, subsidiaries, or affiliates in the Asia Pacific Region or abroad: general administrative and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel development; logistics services; research and development service and product development; technical support and maintenance; data processing and communication; and,  business development. For the purpose, a foreign corporation is required to secure a License

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How to Register a Philippine BPO using a Foreign Corporation as Branch Office in Philippines?

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By: Tax and Accounting Center Philippines Business process outsourcing (BPO), knowledge process outsourcing (KPO) or back support operations in Philippines is a stronghold industry in the Philippines taking into account the qualifications of Filipino manpower, the English speaking, work quality, the culture, and the work environment, among others. For the purpose, there could be some options on the type of legal entity to set-up for the purpose and one of which is the Philippine Branch where the legal entity of the foreign company abroad (e.g. Australia, Singapore, United States of America, etc.) is secured a License to Do Business in the Philippines as a Branch Office. Taxation of BPO under Branch Office set-up in Philippines A Philippine branch office is by nature a profit oriented entity that could operate similar to a local company in the Philippines.  For tax purposes, it is subject to the following:  30% income tax based

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New Rules on Preservation of Books of Accounts Philippines under RR No. 5-2014

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By: Tax and Accounting Center Philippines Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 5-2014 dated 30 July 2014 entitled “Amending Revenue Regulations No. 17-2013 dealing with “Preservation of Books of Accounts and Other Accounting Records” Under Revenue Regulations No. 17-2013, books of accounts and other accounting records in the Philippines are required to be preserved within ten (10) years reckoned from the day following the deadline in filing a return, or if filed after the deadline, from the date of filing the return, for the taxable when the last entry was made in the books of accounts in the Philippines. Under this regulations, the ten-year period refers to preserving hard copies of the books of accounts and other accounting records. Under Revenue Regulations No. 5-2014 (RR No. 5-2014), the ten-year period of preservation of books of accounts and other accounting records in the Philippines has been modified and

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Withholding Tax of Government on Job Order Personnel under EO No. 782

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By: Garry S. Pagaspas Under Executive Order No. 782 series of 2009 (EO No. 782) entitled “Instituting Measures to Assist Workers Affected by Global Financial Crisis and Temporary Filling Up of Vacant Positions in the Government”, all departments and agencies of the government are authorized to set-aside 1.5% of their Maintenance and Other Operating Expenses (MOOE) for temporary hiring of qualified Department of Labor and Employment (DOLE) registered displaced workers and their dependents on a job order basis. As I browse the internet, tax compliance of job order basis personnel had been a common topic for discussion both by the personnel involved and the government agency employee in charge for withholding. Accordingly, this article is an attempt to reach them out and guide them on their tax compliance, though; this is neither equivalent to an expert opinion, nor, a formal ruling on the matter. The author strongly suggest that the

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List of 2015 Philippines Holidays Under Proclamation No. 831

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By: Tax and Accounting Center Philippines The President of the Philippines issued Proclamation No. 831 dated July 17, 2014 declaring the regular holidays, special (non-working) days, and special holidays for calendar year 2015. Luckily, there are at least twelve (12) long weekends that each of us could maximize such as going for a land travel, tour overseas, make family vacations, and more. Below are the list of 2015 holidays in the Philippines: 2015 Regular Holidays Philippines    January 1, 2014 (Thursday) – New Year’s Day April 2, 2015 (Thursday) – Maundy Thursday April 3, 2015 (Friday) – Good friday April 9, 2015 (Thursday) – Araw ng Kagitingan May 1, 2015 (Friday) – Labor Day June 12, 2015 (Thursday) – Philippine Independence Day August 31, 2015 (Last Monday of August) – National Heroes Day November 30, 2015 (Monday) – Bonifacio Day December 25, 2015 (Friday) – Christmas Day December 30, 2015 (Wednesday) – Rizal

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Knowing Basic Business Accounting for Non-Accountants Philippines

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By: Tax and Accounting Center Philippines In the present day business, basic business accounting for non-accountants in the Philippines is a must learn topic as a root for compliance. Non-accountants in the Philippines maintain the belief that learning basic business accounting would take much time and effort, if not resources, and would just leave it all to their retainer paid accountants or bookkeepers in the Philippines.  Unfortunately, while this may have worked in the past decade, the current circumstances of accounting and tax compliance would disfavor such mindset of small and medium entrepreneurs in the Philippines. In most worst instances, the entrepreneur would end up headaches on missed compliance blaming none other than themselves for entrusting everything to their retainer paid accountants or bookkeepers in the Philippines. By this present, let us give a simple overview of what basic business accounting is all about. Going through this before attending any

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