Regulatory Compliance BIR 06 13 24

can i share my screen na po go ahead po miss all right Ayan so thank you um cvs for inviting us iy me pala ngayon to share with you um our insights our um knowledge regarding naman sa UM sa taxes Actually we will cover um as discussed with Miss hanah Uh Last Time is more of the registration Anong importance niya Paano ka pipili ng tamang tax gym Uh based on your status as professional um or service providers ng cvs and Actually in include ko na din Pati yung closure kasi nga um based on our experience

with other entities na um nag-out source ng services namin ah gusto nila ah end to end So what is nga yun nabanggit kanina ni Miss ama or I can't remember the name So what if um parttime lang sila and then they decided to ah retire Or mag-resign from being va Anong gagawin nila with regards to their registration Ayan so in case may mga tanong ah in between ng discussions just ah let me know if hindi ko nakita ung pag raise ng hand just open your um mic para macat yung at attention ko and ah if

I can answer yung question in between ng discussion then Uh let's go for it okay Ah okay tayo Okay sige so yan Malin ba or parang Wait lang ha nauhan ba yung presentation ko Ayan Yes po kita po malinaw na siya ayan so the first thing is at nasa page 4 na ako sor guys page 2 Ayan mahina at internet ko can I off my video kasi humihina yung pag-scroll ko ng slides all good po Ayan okay Ayan so the first thing na I want to share with you Ano ba yung advantages or your Edge

um being registered with vir so number one um like ah lag sinasabi you are legally doing your business ' ba So I think Clear naman sa lahat na that being a um freelance or professional practitioner you are also business yourself Okay so if you are doing Syempre if you're selling yourself um sa ibang clients other than cvs you can say that you are registered as professional or service provider and number two you can enjoy tax incentives so ito um may mga incentives kasi sa mga professionals Okay na hindi na-enjoy ng mga regular um employees Okay

other than syempre when you are regular may mga nontaxable not taxable however if you are a va or professional um service provider mayroong Later on idi-discuss ko mas magandang ma-enjoy niyo na tax incentive na ah it will save you more money than the regular employees and then Third is mga financial services so ah being a va or a freelance um wala kang Walang gumagawa ng it mo kasi h ka na I mean compared to regular employment Um yung company yung nagpo-provide ng itr mo which is y yung lagi mong naririnig or laging hinahanap SAO when

you purchase real properties or like you want to um apply for loan di ba So if you are fulltime va at hindi ka registered with vir you cannot have this itr thing as your proof of income and of course opening savings account so we have a lot of um freelancers no na nag-struggle sila when um magoopen ng savings account so they have all of this money coming from different clients ganyan nagiipon sila however they cannot open a savings account kasi nga when you go to Uh bank like vdo they will ask you Ano Saan galing

yung money tama ano yung paggagamitan mo ng account mo So Syempre sabihin mo um um freelance ako I'm I'm a vlogger financial institutions Are governed by amla Okay so the anti-money laundering law and um they are required na to disclose Saan galing yung mga pera na pumapasok doon sa mga accounts na hina-handle nila and next is of course yung travel goals mo So a lot for for Ilang years namin sa business so lagi ito y naging struggle ng mga ah vaas or mga freelancers they cannot apply for Uh visa kasi wala silang Ayan so I

want to share with you Uh one of my friend Ah Way Back sig 2018 or 2019 ah Vi na siya sa upwork Ayan if you're Familiar um nagas na siya ng ng assistance before sa amin and then medyo Ah hindi pa siya sure so hanggang sa recently ah lahat ng na- purchase niya na bahayat lupa car ah nalaman ko Sher niya sa akin na hindi pala nakapangalan sa kanya okay kasi wala siyang ipr so she's earning um six digits for years now but Uh she cannot own um properties or hindi siya maka maka-abala ng mga

properties under her name Kasi nga wala siyang proof of income and ang naging parang eye opener na lang niya is when ah mag-japan sila ng Family niya this year pero hindi siya makapag-apply for visa because wala siyang ipr and wala siyang ah proof of income talaga and all ng kanyang savings is nakapangalan sa partner niya So Ayan so yun yung mga ah possible na mapaggiit for Hindi lang naman sa mga indents or whatever even mga business owners or mga freelance like us so ah one of the requirement para makapag avail ka ng mga um assistance

from the government is of course kailangan you have Uh proof of income na um t you're earning here in the Philippines Ayan so clear tayo doon Sorry hindi ko kayo Nakikita kasi naka-full ano ako um sorry clear po clear naman okay sige so next is Ayan who are required ba to register with IR Okay so number one is full time service providers ng cvs mapa PRC license ka man or non PRC license so I have um tawag dito sarate ko si because may Later on I'll discuss ng PRC lic holder and non prcc holder it

comes to witholding tax and of course Sorry po nawala po ang slides niyo po ah sorry Thank you than Thank you thank you po ah present again Ayan dear Okay na good okay thank you so again important rule natin for va um all va receiving professional service fees commissions or any bonuses from cvs regardless of the amount should issue receipts to catalyst management So this is the general rule so i think nasa transition pa si ah catalyst um si cvs ah regarding dito so again this is general rule Okay Para ma-claim din cvs yung Ah

yung expense niya Uh yung professional fees ninyo pang dedu sa taxes po nila or sa Revenue Okay again a service provider cannot issue or if they are not registered with dir ang binabanggit po nating resibo dito is the BIR approved receipts Excuse me hindi yung binibili lang or ginagawa natin via Uh canva na receipts and again a service provider is de registered if he or she holds a valid certificate of registration or the vir 2303 Ito po siya ayan This is the sample This is the Cor na nire-release ni dir na patunay na ikaw ay

rehistradong um professional practitioner or as you can see there on the this one doon sa L line of business nakalagay diyan virtual assistance So this is the actual example of one of our client na Uh registered as va okay but other than that other than the 238 Okay you have also Uh to have the 1921 or the authority to print ito yyung ah separate certification na binibigay ni BIR that you are authorized to use a vir approved invoice and and secondly the nearly or the notice to issue receipts and lastly the books of accounts where

you will um write record all your income earned and your expenses so ito yung mga sample niyan Okay yan so 1921 the service invoice So ngayon wala ng or guys so service invoice na tayo bago lang siya under our eopt So lahat na po is invoice wala na pong or or the official receipts yan siya and then This is the niri green siya then ilalagay mo lang yung name mo yan So you commonly CD sa mga establishments when you buy ice cream or anywhere you go to Mall Makikita mo siya na dapat ito ay naka

display in public Ayan itong notice to issues So ikaw bilang professional practitioner you also have this Okay and then the books of accounts so apat nilagay ko dito pero for for you Uh for va dalawa lang required um the cash ement and the cash reip books Okay So how to register naman yan so These are the basic requirements based on ah sa inyo as status niyo as va so number one kailangan lang may government issued ID kayo with your name address and birth name and and or Okay so itong professional tax receipt or occupational tax

receipt Depende po yan sa dir or rdo so not all rdos require that pero ang difference niyan ptr Okay is for professionals na PRC license holder for example um we are registering as a lawyer or CPA or engineer or a nurse na nagpa-practice ng Uh medical or whatever medical services so ppr po yung applicable sa inyo if you are not a PRC license holder ah let's say you are an Ah you're um tawag dito let's say you're a teacher pero hindi ka um license ah PRC license nagtu-tutor ka online or you're like um ah graduate

ka ng nurse nursing pero hindi ka pa nag-exam But you are rendering Uh medical services for example so ang applicable SAO is occupational tax receipt Ito po ay kinukuha sa munisipyo so every year po siyang nire-renovate this one Depende po sa BIR so some BIR requires that some not okay and next ito Iyung form the 1901 application for registration so before kasi ang daming form na Ah pini-prepare okay iba-iba siya per ah per step So ngayon yung bago make sure lang na yung latest ang ah gamitin niyo I think 9 ah version 2022 meron na

ah 1901 is two page form nandun na siya lahat So ah ah 19 parang pinagsama siyang 1901 1905 1906 Okay and then itong BIR form 1906 some rdo separate nila Ong pinapa submit some some naman hindi na kasi inclusive na siya doon sa 1901 so ito ay nakalagay diyan yung details ng printer mo and then mag-attach ka ng sample ng reits Tulad nung pinakita ko kanina Ayan so when you go to b magpa-register kayo ah Kailangan meron na kayong ah tawag ito template or printed niyan if wala naman you can ask um mga tao doon

may mga not totally fixer but may mga tao doon na tumatambay sa vir na mga printer ganyan so they will accommodate you or they will ah assist you naman regarding that pero para hindi ka na maghanap or like hindi ka ma ma makakita ng masyadong mataas sa price you can ask online or you can ask your friends na may kakilala na accredited Uh printer talaga para pag nandon ka na diretso na yung registration mo and of course books of account so you can buy um 8 columns or 14 columns books of account sa mga National

Bookstore ganyan or any office supply store so mas maganda dala mo na d siya kasi pag doon mas mahal Next question Where to register you have um options number one is Uh sa place of your business so as va or freelancers Ano ba yung place of business natin Syempre sa bahay so if Saan ka nakatira kung ano yung nakalagay na address sa government ID mo doon ka dapat magpa-register Okay so same din siya ah doun sa residential kasi sa case ninyo nga you don't have a office naman na nire-renovate PLDT kasi nasa makati sila so

and then you have this other other source of income as va so ang registration mo doon is mixed income earner professional income plus compensation Okay so ito yung mga steps an siya So number one you prepare all yung sinabi ko and then submit mo lang siya um may a download itong nasa nasa right yan yung um checklist na You have to print um pag pupunta kay sa vir Meron yang ano parang pif upan sa baba tapos kung anong ah steps ka na So Ito naman yung pagpapa register ang timeline niyan should be ang nasa ang

nasa batas natin is one day lang so again Depende siya sa rdo kasi there are rdos na Sobrang daming tao like here in Cavite Uh Uh 54a You have to Uh drop box muna para makakuha ng um schedule Uh some is meron silang online appointment pero yung iba ah pwedeng walk in within the day makukuha mo siya pero currently with the new regulations kay BIR Uh it takes 2 to 3 days or let's say mag-apply ka today then after a week mo mo pa siya makukuha ganun siya pero doable naman any questions so far magcheat

mag-check lang ako ng ano chat walan po Hello po Hello po Yes po Um question yung steps ng pagpa-file ng first time magbabayad ng tax is same ba doon sa sa steps ng pagpa-file for mix income earner halimbawa Meron na akong existing te number Kailangan ko pa rin bang pagdaanan Ong steps and procedures na sinasabi niyo po Yes Po Opo Kasi if you have a teen and your teen is nakuha mo siya during the employment Tama po kasi kailangan siya dur employment tama Opo So you are currently um Uh employed Uh sa isang company and

you're receiving compensation so for the purpose ng um for the professional income you're earning or the service fees you're earning from cvs Sorry Uh kailangan mo mag-issue ng receipts kailangan mo din siyang ma Ah mafil kay BIR so to legally Uh update your status kay bar na You are a mixed income earner meaning You're you're earning compensation plus the service fees or the professional fees kailangan mo pong mag-apply Same po ng process so I need to do this 2303 pa rin kailangan mo pong kumuha ng 2303 Yes po Okay sige po mm Opo and next

Okay Ayan so after getting C okay Make sure lang na hindi lang C yung ah nakuha natin kasi um ah This is the reality maraming kasi We also cater ung yung if pa mga insurance Agent so same na Same din kasi yung um tawag nito a setup also with um architecture company engineering company they also have independent constructors or professional practitioners lagi nila Ong nakakalimutan ang kailangan lang daw kasi Cor 2303 and then Hindi na sila bumabalik sa dir so kailangan kumuha din kayo ng authority to print and books of accounts okay Ah hindi natatapos

sa pagkuha ng Cor yung station po natin kasi when we don't have authority to print Hindi ka makakapag makapagpa-book if you don't have books of account hindi mo mare-recommend Tama ba ung Uh Tama ba ung dine-deadma are requiring this one some lang kasi may mga kung may mga cases ka or whatever like kung mixed income ka pero again Depende siya next is the documentary stops Meron po ito ah 120 um reits ito yung mga vir approved reits so Depende po siya pinakamababa is 2,000 up to 3,000 Depende din po sa pipiliin niyo kung carbonless ba

' two duplicate ba ' or triplicate Gusto mo ba one wh of paper or 1/4 lang so Depende po sa ah sa ah preference po ninyo so ito yung pinakamababa next if you are required to get the professional or the occupational tax receipt Uh ptr for professionals is 300 occupational for the non PRC license is 200 Okay again It's either sa munisipyo po siya there are certain lgus na pwede kang kumuha nito sa Barangay like in passive But not all is Meron po ah ang common na pwede mong makuhanan po niyan is the munisipyo or

minsan ag ah ag Hindi ito hinanap ni BIR barangay clearance po Okay next is um Cas book and disbursement ano lang to Um yung pinakita ko po sa inyo Kanina the columnar and then you have the incidental cause Depende po ito kung Malayo Malapit si vir sa inyo and if you are you have your own printer ganyan So it will depende depende siya sa ah tawag dito sa status po ninyo so naglagay lang ako diyan is 1,000 kasi kung may mga kailangang ipaue or like malayo yung vir vir office po sa inyo so most likely

nasa average 3750 yung magagastos mo um add minus lang yan kung makukuha mo siya ina then better pero mostly kailangan bumalik ka pa two times or three times so that will add up the cost any question po so far Before I proceed Wala naman po Okay so sure registration compliance and deadlines naung check okay wala so next is the tax filing and compliance and of course the deadlines Okay so ano ba yung mga deadlines applicable so for cvs or mga V um dalawa yung normally na Pakita ko lang ung sa Cor kung ano nandito sa

Cor niyo ito rin yung applicable sa inyo so in this example Ang nakalagay lang na required is that income tax individual income tax ta Okay so ito kasi ah elected nagel siya ng 88% so ito yung common quarterly na income tax and annual na income tax pero there are va na let's say um multiple source multiple um client sila so sa tingin nila mas um mas makakatipid sila sa graduated or the normal tax Reg gy so meron pong lalabas diyan na percentage tax that is the 3% business tax naman So for the percentage tax it

siya ang deadlines natin for the quarter 1 is May 15 so remember lang pag percentage tax Ang Jun niya filing and payment is Uh 15 days ito 15 days 25 days after the quarter close Ayan so January February March after 25 days d siya ah due so dapat every 25th following the 25th of the month following the quarter close magpa-file and pay tayo ng percentage tax ngayon naman if ayaw mong mag percentage gusto mo 88% na lang or the ano um election of 8% so wala na siya mawawala na yung percentage tax Ang required lang

po sa inyo to F is the income tax Okay so sa income tax naman 45 days you have 45 days to file after the quarter close so for example quarter 1 January February March you are obliged to file and pay ah 45 days So you have ba April tsaka May 15 Ganon din sa quarter two ah April May June ang filing po natin is August 15 for quarter 3 November 15 while for annual ah April 15 po siya mas matagal Why kasi they i-consider earn niyo if you are a mixed income if you are ano

va lang I mean ito lang yung source of income Wala hindi ka multiple source of Uh client so mabilis ka lang mag-file kasi kung ano lang yung na-receive mo na 2307 or income kay cvs mabilis lang siya however for those mixed income earner ah employed sila at the same time um part time sila kay cvs medyo matatagalan Kasi they have to wait for the 2316 from their employers normally ang sinasabi sabi ng vir kailangan ma-release siya on or February ah 28 yun ang nasa batas pero hindi technically hindi talaga siya nasusunod so some employers nagre-release

sila ng 2316 is March na and then i-c consolidate April 15 Ayan siya ah michela question ulit about itr um si ah employer ko kasi is ano naman ah Actually maaga silang mag-release ng income tax Returns I think nagre-release sila ng January January mm So ibig sabihin yung employer ko kung kung magbibigay sila ng income tax return sa akin Hindi ko yun makukuha agad na because I have to wait for this ah para doon naman kay cvs na itr tama ba so malalaman ni employer ko na hindi niya ako mare-release han ng itr tama po

ba Hindi po Um si employer po ay wala po siyang kinalaman sa consolidation po natin Okay so ganito po siya si employer niyo to answer din yung kanina na question doon sa UM dun sa Google ah sheet um nasa sa inyo po yan ang sinasabi ng batas if you are a mixed income earner You have to um inform your employer na you have other source of income Bakit kasi let's say kami as your employer Uh empleyado kita Meron kasi kaming report na ginagawa on your compensation so every month nire-report namin yan kay BIR na o

this are the employees earning ganito ganyan ito yung taxes nila i-remit namin siya every of the month following the following the um covering month let's say January February emit namin siya i-report namin siya comes um annual annualization if if Naririnig mo siya sa HR annualization so si employer niyo po ay mag-prepare yan ng individual income ng mga empleyado via 2316 Okay ito yung compensation tax with held ng employer sa mga employees nakikita niyo po doon kung magkano yung taxable non taxable ito yung 13 month pay ko ito yung um ah taxes ko doon sa portion

sa baba dalawa yung pinipirmahan po doon if maalala mo miss Rose Anne sa ah sa bottom part ung sa medyo taas niya nandoon na i hear by ganyan ganyan na ito yung income mo na na-receive mo kahit employer mo let's say PLDT so ung pirma ka pipirma din si employer mo sa baba noon may nakalagay doon if under substituted filing siya kung pipirma ka doon Ibig sabihin non na you are a- allowing pdt for example na mag-file ng itr mo for that particular Year and yun yyung final na itr mo So nire-report yon ni accounting

or ni HR or ni pay accountant niyo po na isa-submit yun Kay BIR na These are the list of employees na ah ito lang yyung income nila for the whole Uh for the whole Year and kami the pldt for example is the withholding tax Agent And it will serve as your final ipr okay Kasi pag hindi mo sinabi na you are also earning Uh other source Uh of income yun magiging final na ipr mo So magiging um ano yun agag nag checking sa vir na ito na yung final kasi naka under substituted filing ka nga

and then you're filing a separate itr naman ng income mo kay cbs So kung kung susundin natin ung tama dapat hindi ka under substituted filing gagawa pa din si si employer mo again ng 2316 as your income tax return earning compensation pero kung ikaw ay merong other source of income hindi ka pipirma or hindi pipirmahan ng cfo niyo yung sa pinaka bottom na that is the certifying that is your final ipr Okay pero to answer again go back doon sa tanong kanina ang sabi malalaman ba ni ah employer ko na may parttime ako eh May

May May um tawag nito may non-compete agreement or whatever clus is that sa contract namin actually hindi nila malalaman Ano sasabihin mo Hindi naman sinabi ng ng Ah ng vir na um Rose Anne You have to inform your employer na meron kang other of other source of income tapos sasabihin mo Ano yung nature Hindi naman sinabi ganon ang sinasabi lang ni BIR You have to inform them that you are receiving Uh other income from other source It's up to you kung idi-discuss another employee Or Another um source of income na in directly or incomplete with

them so kung idi-display sa kanila ang sinasabi ng ang sinasabi ng vir pero if a company has the regulation based on your company manual na You have to disclose everything So that's beyond our Ano na hindi na namin yun control kasi kung alam mo in the first place na bawal pala at kailangang i-is Bakit ka nag-apply for cvs ' ba kasi nauna ka do eh Company manual niyo pero kung wala naman It's safe to say na don't disclose If ever na they ask you na Ano Iyung other source of income mo ah sabihin mo lang

confidential or Depende po sa inyo kasi kung oblige nga kayo to Close the entire Uh nature of your ah part-time job then kailangan niyo po i-d disclose kasi nasa company regulation po siya pero hindi malalaman hindi nila malalaman na meron kayong other source of income unless idi-display mmm Okay po so Bale ang concern ko naman kasi wala namang ano si company kung may business ka kung may sarili kang kita kasi it will also be subject for tax di ba ang concern ko lang is yung ano yung filing nung itr so dapat hindi ako pipirma so

Sabihin ko na lang sa kanila Tama ba na ako ungol ka Yes po Tama po have Opo magpa-file pa din sila ma'am pero the consolidation kasi ang kailangan din for example ako accountant mo ah mixed income earner ka so i-consider so ang kailangan namin is the 2316 coming from employer and then we consolidate so ibang form yun 7 dalawa kasi ah may mga iba't ibang form kasi agag sa individual Depende sa nature ng I mean sa status mo kung mixed income earner ka 1701 so naka-promo magkano yung kinita mo based on the 2316 and yung

237 naman na galing kay cvs Magkano naman ung kita mo ito siya Ito siya so we will consolidate And that's your final itr ma'am Okay so kung ano man yung mga babalik na pera saakin from yung sa itr nga hindi pa nila m re-release yon Tama hindi po ire-release nila yun ma'am Kailangan po dahil nasa batas ang sabi on or before January 10 ay January 10 of the year following the taxable year kailangan i-remit po What i-refund po sa mga employee whatever na sobrang ah wi hold po nila SAO so every January 10 ma'am Kailangan

mabigay nila SAO yung refund kung meron ka m tax refund Okay sige Thank you Opo hindi oo hindi siya Hindi wala silang pakialam doon sa personal na consolidation mo po Okay po tayo Okay sige yan so Okay po tayo sa mga deadlines and compliance my chat Okay Yes po Okay po so next naman is with regards doun sa withholding tax ito yung medyo I think maraming maraming ano ah tumataas ang kilay sa withholding tax Ayan so I hope ma-deliver ko ng tama kung ano yung kailangan niyong ah marinig for tonight Regarding sa withholding tax so

in compliance po sa regular regulations ang company si cvs ay required mag withhold ng taxes po sa lahat ng vaas niya para po ma-claim din po ni cvs yung mga yung mga professional fees niyo po or service fees as valid deductions so I don't know if you heard of this ang Pwede po na ma- withhold sa inyo ay zero meaning Wala talagang mawi hold you're earning you are vir compliant pero 0% yung mawi withhold sa inyo or 2% ba 5% or 10% so ah case to case po siya case to Depende po sa status mo

Okay so ito yung mga category natin right first one is the 10% so Ito po ay para sa mga VAT registered professional practitioners or mga va meaning You are earning more than 3 million income anual or that's 200 50,000 so 200 if you're earning 250 you are VAT registered at the same time the with holding tax is 10% if non VAT naman po kayo okay Ah with several payers and earning 3 million below so ang pwedeng ah ma- withhold po sa inyo is 5% Okay however if you are a non VAT um with only Uh

one payer si catalyst lang or si cvs lang ah pwedeng ma- tax po yung first 250,000 mo na income from cvs as zero and then in excess of it is 5% this 5 and 10% is applicable sa mga ah professionals or mga individuals holding PRC license okay if you're not a PRC license holder Pwede ka pong ma- sa 2% or the subcontracting um Uh agreement po okay ulitin ko 5 and 10 is applicable for the PRC license holder and Ah 2% pwede sa mga non PRC as subcontractors or mga sub independent contractors Okay so ano

ba yung sample ng 2307 ganito po siya Okay so nakalagay po diyan yung name mo Anong period Okay That's only as example your address ito ah Um yung teen ng company pangalan ng company address and then dito sa may um parang tabular ah portion nakalagay diyan kung anong ATC code mo kung anong klase ah for 10% professional fees or like lawyers cpas engineers etc wi011 ibig sabihin nito ay 10% po you are earning more than 3 million okay and kung sa mga 5% naman below professionals earning 3 million below Uh you can only be subjected

sa 5% Okay and then for income payments to certain contractors naman non PRC license holder um they can be subjected sa 2% po ito ay ma-enjoy mo itong 5 and two 02 and 5 ah withholding kung ikaw po ay registered with bir and magsa-submit ka ng sword declaration ngayon kung ibig sabihin baka hindi po kayo registered pa sa vir and you have not submitted the sn declaration kasi nga as Sabi nga ni ah Nabanggit ni Attorney kanina if ikaw ay if ang company ay hindi sure kung ang magwiwi hold and ano yung rate na kailangan

i- withhold yung yung mas yung pinakamataas yung favorable sa government ang taxes kasi laging favorable sa government kung ikaw a again kung ikaw ay hindi ah hindi BIR registered kailangan ka pa din withhold Dan ano applicable rate SAO 10% kasi hindi ka nag-comply doun sa requirement po nila Okay so ito yung sample ng sn declaration Okay so we have Actually dalawa Okay so yyung b1 Annex we can provide naman to or you can download via BIR website So sinasabi dito um You are a non VAT pero with several income payers so kailangan um mas ang

subject na ang applicable with holding tax SAO ay 5% Okay pero if you have um you have a you are non VAT tapos si cvs lang yung source of income mo okay si cvs lang yung Um gusto mong i-declare p source of income mo okay dahil si cvs lang yung nagre-require SAO ng withholding si cvs lang yung nagre-require nagre-require SAO ng this one Hello po mo iss Yes po Medyo nagputol lang po ah okay Saan ako naputol Ma'am ah kung ideclare po ay sa cbs lang sa cbs Opo okay for the B2 or the income

do sa loan payer you can do this if um si cvs lang yung ide-deploy na income payer niyo or si cvs lang yung nagre-require ng resibo po sa inyo you can file for this para po yyung first 250,000 um fees mo professional fees or service fees is 0% withholding you can get it 100% pero and excess of that 5% na po so let's say January February March or ka 50,000 si cvs lang yung loan payer mo So that's 150,000 you can get the whole 150,000 kasi 0% po siya okay comes um April May June nag-e

earn ka again ng tig 50,000 a month so technically January to June ang consolidated income earned mo is 300,000 Okay the first 250 is 0% wala kang withholding tax do h ka babawasan na CDs the 50,000 in excess of 250 is subject to 5% so doun lang magdedeny to December 5% na po yung weight holding unless in the middle of that let's say ah October nag-shoot up ng 4 million Yung income mo kay cvs magiging 10% na po siya okay clear po tayo doon Okay so This is sample of sw sn statement so ito way

back 2019 sn declaration ko Ayan so I have a multiple income payers So may mga clients with holding so Dian nakalagay is ah sa lahat ng earnings is 5% Okay so iba po yung para B2 yung para sa loan Ayan and nakagay nakalagay din diyan kung magel ka ba ng 8% or the normal income tax rate of graduated tax so Later on the discuss ko What's the difference of graduated and the 88% Ayan na pala siya So yung 88% na i think yung iba aware na of this and the graduated so itong graduated tax bago

siya um pinasa pinasa siya 2018 through train law Ah ito ay para padaliin yung ah filing ng taxes ng mga individuals kasi sobrang hirap nga naman kung ah maghahalungkat ka pa ng mga reo etc dito kasi um for tax payers dalawa yung tax natin we have the income tax and the business tax as mentioned earlier at ang daming talagang nahihirapan kasi um business tax It's either 3% for those non or 12% for VAT for professionals sobrang hirap siya kasi um magbabayad ka ng 3% and then magbabayad ka pa ng 0 to 35% na in tax

mo and then mag-collect ka pa ng receipts ganon kasi nagiging scenario So what the the lawmakers did is O sige for those individuals na non VAT naman earning below 3 million let's pass on the 8% Na flat rate so dito If You choose the 8% you are exempted from paying the 3% Uh percentage tax Okay so makikita niyo diyan yung difference um pero election nito rest with the tax payer so Depende po yun Kung sa tingin niyo saan po kayo mas makakatipid ng tax okay and this one is elected every year Okay so let's say

this year feeling mo 8% ka mas makatipid ka So you go for 8% pero the election is um done every quarter one of the year or sa first filing mo so let's say first filing ah Uh registered ka last year 2023 for 2024 gusto mo mag 8% ka so pag nag-file ka ng quarter 1 na itr mo iel mo doon pipiliin mo yyung tax gim mo na 8% and it is irrevocable for the whole year unless magkakaroon ng um change sa tax ah sa status mo let's say from non-vat magiging VAT registered ka pero if

wala naman non-vat ka all through the year so ang ang tax rate mo is 88% irrevocable siya ngayon gusto mo mag-change ay ang laki pala nung 88% Based on my computation Gusto ko ng mag-graduate tapos 3% na percentage stock so you can do that next year Okay clear po tayo doon Ayan So may mga may mga ah advantages ah mostly naman ah Mamaya idiscuss ko Pero dito ang Major is that si 8% flat rate hindi ka na exempted ka na sa sa 3% and then hindi mo kailangan magpait or mag um you are not required

to prepare yung balance sheet income statement unlike kung graduated ka ah Syempre naka itemize yung expenses mo You have to have to have the financial statement tapos ah Kailangan yung mga resibo mo yung mga kini-claim mo na deductions is um valid as per BIR regulations yan siya So currently ito yyung um graduated tax ng individual so This is from 2023 onward so mas mababa na siya ngayon compared sa previous last ah 2022 202 2018 to 2022 nasa 20% yung starting na percentage natin for it so kung makikita niyo diyan 2001 250 is zero and then

naka-back siya 250 to 400 is 15 and excess of that up to 800 is 20% 800 to 2 million is 25 2 million to 8 million is 30 and then above 8 mil 35% sobrang laki and as you all know this type of um income tax rate is applicable po siya sa lahat ng employee Okay so that is your tax sa mga empleyado po question Sorry po Ma'am paano kong ano hindi ako non ah VAT yung hindi zero per yung nakukuha ko sa company ko na existing Meron akong tax tapos magc over ba yun dun

sa nakukuha ko sa cbs parang halimbawa na 30% ako ng tax sa company ko kay cvs ba 30% din kasi parang pagsasamahin siya Yes po Tama po okay thank you for br bringing up that question Mama um ganito po siya ang sinasabi ng batas if you are a earning if you are an employee earning compensation income wala kang choice kundi ito okay zero to 35% yun ang taxes mo pero kung ikaw ay business owner ah professional ah professional practitioner freelancer or whatever individual taxpayer provided You are a nvat you have the option kung ito ba

ang pipiliin mo or flat rate 88% magkaiba po siya ma'am isang filing lang isang return lang siya for your compensation income and professional income Pero magkaiba po ng Pwede po yun did I answer your question po So parang hayaan ko si company kung kumuha ng ng VAT saakin kung graduated yung Ah yung sorry yung tax saakin kung graduated yung ginagawa niya tapos ako may choice din ako to file kung gagawin kung 88% or po Yes po ma'am Opo yung sa compensation tax po natin Wala po silang choice doon pero yun po ang sinasabi ng batas

compensation tax is subject to graduated tax rate of um 15 to 35% pero ang income mo ang personal income mo as individual taxpayer earning professional income business income or um other income yan ah na hindi compensation income Pwede kang mamili kung graduated ba or 88% po ah just um be mindful lang na kung ikaw ay mixed income earner si company mo po ay Kim na yung 250 exemption kaya expect sa professional income mo lahat po yon is subjected to 88% ah okay thank you OP Sige po okay sig may other questions pa po Regarding sa

tax rates so far okay wala so next po Okay po tayo do na ah may Sige po go ahead Sorry mag na lang po kayo kasi hindi ko makita yung ano yung isa lang yung screen na gamit ko go ahead po ma'am before ko itanong yung Ah yung context muna baka kasi idi-discuss mo din sa susunod na slide pero Yung question ko is nandun sa ah I'm declaring 88% tapos si cvs mag withholding tax Paano yun Yes Okay po if you are Yes Yeah po if for example po i assume You are a mixed income

earner Ma'am hindi ah full time freelancer po ako okay full time Okay so first if you will we will avail for the loan payer or the several payers several payers po ako okay for several payers ibig sabihin the first 250,000 shall be subjected to 5% for example so let's say upon consolidation meron kang um sa first quarter January February March may tig 50,000 ka po na income declared declara Alam ko na yan let's say yun lang ide-deploy comp payers ka and then pag nag-file ka ng itr 150 lang yung iano mo ide-deploy na 5% which

is 150 times Wait lang po wala akong calculator ah 150,000 let's say times 05 so meron kang 7,500 na tax credit from Ah cvs so you will file this doon sa 1701q mo as tax credit at the same time you will file it via Scout or the summary of Alpha lis withholding tax sinubmit po yun kay BIR kasi hindi hindi po tayo allowed mag-claim ng deductions unless you um report it kay BIR na Hey BIR Meron akong tax credit from cvs ito ung 2307 and ito ung details niya Okay so Ah it's a separate discussion

kung paano ung filing pero ganon po siya we have to file it kay dir po so for the first quarter let's say meron kang 7,500 na um tax credit kasi ang taxes ni mo zero kasi below 250 and meron kang 75 na tax credit So come second quarter Ma'am meron kang 500,000 na total um declara income sa second quarter So if you are Uh if you will ano consolidate 500 plus the first 150 sa quarter two so meron kang 650,000 in total na consolidate Uh Uh accumulated income for 2024 so less natin yyung 250,000 na

exemption so 400,000 po yung mawi hold po SAO ay yung taxable times let's say 8% ka so 32,000 po yung ah taxes due let's say ang tax credit mo from um cvs is let's say 650 times 5% 5% 5% sorry That's 3,500 so magkano yung kanina na ano mo ma'am na withhold Uh total taxes J mo 32,000 So the 32,000 taxes DU less the taxes with held by ah cvs 325 so meron ka pang credit na 500 Wala ka pa ring babayaran kay vir pero again para ma-claim mo siya tax credit at wala kang bayaran

kay BIR You have to report it via alphalist so ini-email lang po siya ininput system ng Bi then you email it for validation so quarter ah quarter 1 and 2 may 650,000 ka na accumulated income may deduction ka from cvs na 5% So um ACC accumulative mas sobra pa yung Wi hold ni Uh cvs SAO compared doun sa taxes payable mo until ah quarter two so ganon siya hanggang quarter hanggang annualization So kung magkano yung taxes Jess kung magkano yung deduct po ni cvs Okay ba tayo Okay po Okay so I have example here kung

paano naman siya yung actual na computation Ayan so Malinaw ba siya kasi may nakao na Wait lang nakikita niyo po yung monthly income of 30,000 sample Yes po nakikita po namin puro numbers numbers ano lang sample lang for example lang i want you to visualize kung ano yung um advantage ng isang freelance opting the 88% compared sa mga regular employees na walang choice kundi 15 to 35% tax rate yung pinapatong sa kanila ng vir Okay so let's say you're earning 30,000 okay a va earning 30,000 a month compared to a regular employee So makikita niyo

on the Yellow um highlight diyan ung na numbers Ayan so ang ang annual gross income niya okay 30,000 * 12 That's 360,000 so sabi ni vir if you are earning compensation income wala kang karapatang so let's deduct 360 less 250 so ang net taxable income mo ay 110,000 So kung titingnan natin the bracket of 360 is under what 15% okay yung 250 to 400 So you are tax at 15% so out of 110,000 income taxable income 16,500 po ang taxes du ng isang regular employee however for independent contractors bas or freelancers even mga business owners

individual Ito po siya first is ang sabi graduated tax ito yyung normal tax regime po natin Pero dito sa ah hindi siya in-assume natin na hindi siya nag itemize deduction dahil mahirap mag mag mag ano mag-ipon ng resibo Okay so ang sabi ng batas Okay kung nahirapan kang mag ano maghanap ng deductible expenses mo kasi wala ka naman talagang expense e nasa bahay ka lang ' ba um work from home so let's assume na as per vir po ito ha as we a tax no let's assume that 40% of your earnings yan yung standard deduction

out of your total earnings the 360 ang taxable na lang is 60% or or the 260,000 Okay and then you have tax exemption of 250 so all in all wala kang taxable income so zero ang income tax mo pero sabi ng batas if graduated ka okay nag ka ng 40% osd still your subject Saan percentage tax of 3% so ang percentage tax natin is based sa gross so for annual income of 360 3% of it is 10,800 pay ka pa din ng 10,800 Okay This is annualized na siya So if um ganito yung magiging tax

mo meron kang percentage so every quarter So yung 108 div 4 quarters yun yung babayaran mo sa BIR for the percentage tax Okay eh merong ah tax credit SAO si TVs let's say nag-avail ka 5% several several ano ka eh several ah income payers so 5% of 360 is 18% 18,000 Okay kung makikita mo 18,000 yung deduct sa akin ni cgs pero ang tax Ang taxes DU lang sa akin is 108 So may refund ba ako na 72 Actually you can refund that to BIR or you can claim it as stock credit the following year

Okay so Syempre hindi namin ia-add Kasi po Binay binayad na yan na cvs kay vir okay Ganun po siya kasi ang usapan po natin ah every first first quarter Kailangan mag-issue tayo ng sw declaration pag sinabi po natin kay cvs na loan loan pay ah several payers po ako so I'm subject sa 5% then cvs will will withhold 5% so and the withhold withhold ah tax will be ah remit to be ar kaya po ito a subject for refund or um tax credit for the next 3 years Excuse me while for Wait lang Ayan Sorry

while for um independent contractor freelancers or va elected who elected the flat rate of 88% ganito po siya for annual 360 again if you are a flat Rate wala kang Hindi ka makakapag claim ng deductions soever 88% lang nga ung Uh applicable tax rate mo So the first 250,000 is zero Okay and then the exist of 36 Uh 250 is subject to 88% which is 8,800 and again you are exempted sa percentage tax of 3% so ang total Tax na J mo lang for the whole year is 8,800 compare kay osb na naka-graduate which is

10,800 and the regular employee na nsub sa 16,500 taxes so for 30,000 um um fixed income ng isang freelance ay assume mas mas ano pa siya ah mas maka-save ka ng tax compared doon sa regular income tax rate natin Okay next Matrix is yung computation yung yon Na 88% flat rate is that all true kahit anong gross income or merong mga certain scenarios na mas applicable yung iba um i sure Meron akong dalawang Matrix Ano yun ma'am you you judge po you judge kasi I have I still have four Matrix to show and then you

you ano you You choose kung ano yung sa tingin mo ay mas magkakaroon ka ng saving compared doun sa regular tax rate po So this is just for 30,000 ma'am Okay po Okay tayo so again for 30,000 verus Uh you have savings of 2,000 compared doon sa ah regular income tax rate now will go to 40,000 and 50,000 so same lang ng Same lang ng um explanation kanina pero dito kasi tumataas ung income mo Tama po so sa sa graduated from the word itself graduated habang tumataas ang income mo tumataas ang tax rate Ito po

siya okay nakita niyo kanina ah the first 250 zer the first 50 the first 250 to 4 15 pag 400 to 800,000 ka na 20% ka na 800 to 2 million 25% 2 million to 8 30% so habang tumataas sabi ng ang La of ano kasi na natin taxation is ah the more na lumalaki ung income mo dapat lumalaki din yung ah tax rate mo para lumaki din yung taxes Duo ganun yung ganun yung ano natin ganun yung batas natin kasi isa ang taxes kasi is one of control ng economy natin na um kumbaga hindi

hindi nalalayo yung yung bracket ng income ng take home ng mga ah highest income earners sa mga middle class or mga poor so taxes ung nag nag Anong tawag dito nagba-bra hindi lang sa Pilipinas but all through ah the world ganyan siya graduated so dito kung titingnan niyo po yung 40,000 and 50,000 lumalaki yung total taxes do niya So for 40,000 earning for regular employee nasa 3,500 siya nng nag-jump siya ng 50,000 naging 62,577 same with the graduated income tax rate naging 15% po siya kung makikita mo dito kanina 0% siya this one the income

tax rate kasi below 250 yung taxable income niya na 216 wherein pag nag 40,000 siya meron na siyang 38,000 in exist of the 250 so under na siya ng bracket ng 15% so tumataas po siya unlike kung sa flat rake ka Okay whatever Ah basta income mo is not more than 3 million ang rate ng taxes mo is 88% sa 40,000 meron ka pang tax savings of 1,700 while if you're earning 50,000 nasa 6,500 yung savings mo if you OP for the 88% kasi nakafix po yung 88% natin compared nga doon sa graduated or the

normal income tax rate po natin Ayan siya So another is for another is 60 and 100,000 yan tinas ko na I'm sure merong mga 100 or 200,000 pa dito ' ba So dito sa 60,000 kung makikita niyo tumaas ulit yung bracket or yung tax rate ni ni ano ni va natin earning 6,000 from 15% kanina ngayon 20% na po siya kaya ang total taxes DU the gr the income tax plus the percentage stock of 3% is around 50,598 po siya So if you OP again if you elected the 88% You still have the savings of

1,900 for the year This is your tax savings and hindi pa siya Masakit sa ulo kasi whatever na del clear ni cvs na income mo times ah less 250 * 88% That's your tax compared sa dito osd have to complete pa ' ba and mas madami ka pang i ah iaf kasi dalawa ang dalawa ang return na required SAO when you do this the percentage tax of 3% and the income tax yan so for at lastly yung sa 100,000 Ayan so Mas malaki na the more na lumalaki kasi yung income mo lumalaki din yung yung

bracket yung percentage mo Where in pag flat rate ka lang per lang siya So mas malaking magiging savings if nasa 88% ka pero again Depende po yun sa inyo if you want to give more kay kay government why not ' ba you can you can OP for the graduated income tax any question po so far Sorry po the numbers pero ganyan po talaga siya Yes po Hello team may questions po kayo kaya pa po ba Praise God sa I think all good lang you can continue all good sige sige po thank you so much ayan

ayan we go to penalties na ayan So okay na tayo dito ha next is yung mga applicable penalties naman yan to avoid Syempre yung yung future um Tax obligations na mag incur sa inyo Okay so ano Ong compromise penalty of non-filing of return so once you're registered with vir nakalagay do kung ano yung mga Returns na kailangan mo i-file kailangan siyang i-file Okay so pag hindi mo siya na-file may non-filing po tayo na 1,000 per return So kung isang taon kang hindi nag-file ilan yung Depende kung swerte swerte kung hindi ka nag nakalagay doon is

itr lang So that's 4 so 4,000 lang kung merong percentage taxes two Okay penalty for incorrect tails of returns so again 1,000 so hindi naman to masyadong applicable sa mga individual tax payers kasi ano naman unless mali yung um mali yung date let's say dapat 2023 ang ipa-file mo pero nakalagay 2024 So that's incorrect um ma mapapa-amin mo naman siya kay vir Pero yun nga may may penalty na siya na 1,000 for ma unpaid tax you say merong Uh taxes due dapat pero hindi mo na-file So kung magkano yung nacompute ni vir plus 25% na

surcharge so let's say meron kang 100,000 taxes due times 25% that's 25,000 plus 12% per anum doon sa taxes mo and then the compromise penalty minimum of 1,000 to 25,000 po yan so ang minimum natin na 1,000 ay kung Maliit lang din ung tax ta mo pero kung malaki po ang taxes DU mo is nagre siya hanggang 25,000 yan yung mga penalties na um relevant sa atin kailangan siyang um na-consider para in case po na may mga unfiled Returns or like may mga unsettled accounts Yan po yung maencounter kay Ayan so important reminder for resign

or um termin service providers so Once na naka-register po tayo kay BIR Hindi porke Wala na po kayo kay cvs or hindi kayo nagpa-practice ng ah ng ng profession mo or like your h ka na nag-valedictory ah sumuko ka na maging va So kailangan mo pong i-close yon So may inopen tayo may nirehistro tayo kailangan po natin siyang i-terminate so ang closure naman po ay walang bayad technically unless meron ka pong mga open cases Okay so kailangan mo pong mag-apply ng closure so y go to BIR dala mo ang lahat ng resibo na iniissue nila

together with the niri o yung green kanina na pinakita ko ah kailangan dala mo din ung authority to print ung 9 1801 original kailangan po dala mo yung original na certificate of ah registration mo yung 2303 and and or Syempre kailangan dala mo din yung mga file terms mo So isa-submit mo po isa-submit po natin yung kay dir magpapa routing slip po si dir ipapa verify kung wala po kayong open cases kung wala naman po Ayon maisyuhan naman po kayo ng certificate of no outstanding liability with dir t's Magbabayad lang ng 100 ph3 para sa

certification fee and doc St so paghawak niyo na po yung Certificate of no taxability Ah it's your proof na na end date na po So whatever na nakalagay doon sa certificate of registration initially na You have to file for idr percentage tax ay wala na pong visa ion from the date na inisan po kayo ng certificate of no tax liability an in the event na gusto mong mag mag-business naman under your name as soul proprietor so you can Start again magpa-register po ulit tayo kay bir and kailangan Dala mo yung Certificate of no tax liability

para lang in case magkaroon ng system glitch na makita kay vir na o meron ka registration prior to this daye pero naka-close mo naman na siya So you can show them yung certification mo po mabilis lang naman siya basta wala po kayong open case and again wala po Ong bayad unless ipapa ah lakad mo siya sa other other party pero kung ikaw ah Wala naman pong bayad make sure lang na um kumpleto po ang again Cor ATP niri tsaka yung mga resibong mo and the books ah question so far po Okay po tayo michela overtime

na ata ako michela question po Um Sorry halimbawa mix income earner ako so dahil meron akong tax sa kabila tapos ang pinili ko yung flat rate 88% sa cbs nag-file ako ng flat rate 88% ah paano kong yung income ko kay cbs is hindi pa siya umabot ng 250k annual so dahil Kinuha na yun ng Kinuha na yun ng employer ko sa kabila hindi ko na siya makakalas kay cbs tama Yes po Tama po 8% na po k so subject pa rin ako ng 88% kay cbs Yes po Tama po yun Ma'am 88% po siya

So kung ang deduct po ni cvs ay 5% You have to pay the difference na 3% kay vir po via paymaya lang naman yun or via accorded banks na Malapit po sa inyo ah okay so hindi ko pa rin talaga pwedeng pirmahan yung itr na ano Opo Ma'am so Katamad kas mag consolidate kung ayaw mo na magbayad ng 3% kasi ' ba 88% yung ano mo yyung tax rate mo and then cvs with hold 5% So you have ah 3% pa na payable Pwede ka namang ano sabihin mo kay cvs 10% na lang para wala

na akong wala na akong bayarang 3% pero syempre Sayang pa rin yung 2% na dapat nasa sayo na ' ba I mean n-cash mo na siya Okay so still um we recommend 5% tapos mag-ot na lang kayo ng 3% for the taxes kasi kung 10% Poh Hold the cbs hindi mo na mababawi yung 2% unless mag-shoot up talaga the following months yung declared income mo na hindi na withhold done mm Okay sig Sorry po gutom gutom na tayo lahat malapit na po Miss hann Konti na lang ah si C Ah si c na lang po

ang magbayad ng 3% pwede naman bigay nilang bonus Depende po sa arrangement niyo sa client Hindi po kayo cvs J Pwede naman po yun we can arrange that Malapit na po to I think ayan Actually last na pala last slide na ayan Ito kakain na po tayo so service provider to personally handle um an attend the requirement to vir So halos sa turo ko naman lahat ah Actually pag ganito first first first to t's yung second na ginagawa naming training is more of the technical na siya kasi yun na yung magpa-file kayo Tuturuan namin kayo

mag-file lahat meron siya and then or engage a accountant so Ito naman Depende po sa inyo ah Depende sa kasipagan niyo po na mag-file pero normally ganyan po yung rate and then other avilable expenses Ito po ay pag may mga special or may mga yung memorandums kay vir na kailangan po icom So you have you can go personally or you can outsource naman I think last sles na siya gutom yy Thank you po Last sles na po pero if you have questions you can um email or DM po or doon sa Uh um shinare ni

Miss Hana kanina so I can answer naman po doon Thank you all yun lang po Sana may natutunan kayo right Thank you so much po Cha Praise God po sa