TIN problem, and taxes witheld

[pinkk]

www.bir.gov.ph

[marose17]

^ Was your business on a net income position?  Hindi ba kamo lugi ang business?  Baka naman walang income na masa-subject to tax to begin with?  But, you may have VAT and withholding tax liabilities.

Yung TIN, forever na iyan.  You should not get a new TIN.  Having two TINs is a criminal offense subject to imprisonment and penalties.

Consult an accountant para ma-settle mo kung may tax due ka from the business. 

And next time, secure a separate TIN for your business.  Mag-incorporate ka na lang ng family corporation para iba ang TIN sa negosyo.

[kolinetongue]

haay, ganyan din problem ng husband ko...he registered a business in 2009 but did not operate kase nagkaproblema with his partner...at ngayon nag update ang BIR meron daw liability si husband na 7k from 2009-2011, juice me! wala naman operation eversince!

oh well, lesson learned: dapat pala magfile din ng closure sa BIR in case wala na talaga yung business...

 

[tabbru]

Yan kasi ang problema sa mga nagreregister ng single proprietorship. Pag hindi na nagwork ang business, pinapabayaan na lang. Hindi naiiisip ang implication later on. Once na naka-register ka sa BIR, tuloy-tuloy na yan. Kung walang operation, still dapat nagsa-submit pa rin ng mga monthly at yearly tax returns na may nakalagay na "no operation." Ipapa-receive lang naman yun sa BIR. Kung talagang wala ng pag-asa ang business, ipa-close ng maayos.

Computerized na kasi syempre ang BIR ngayon. So makikita at makikita talaga sa records kung may tax liability ang isang tao.

I would suggest na kung hindi naman ganun kalaki ang amount, i-settle na lang sa BIR. No choice ka rin naman kasi forever na may record ka sa BIR kung hindi mo aayusin. Kung medyo malaki ang amount, makipag-compromise na lang sa mga tao sa loob kung me papayag (although this is illegal).

[marose17]

@mhaevick, actually 30% ang income tax on corporations, 32% on individuals.  Sa corporations, puwede mo pang i-deduct from the taxable income ang ordinary and necessary business expenses.

[scrapbookjunkie]

ako din, magtatanong. i work as a freelance writer for a PR agency based  in pasig. yung payment ko, per article yun. so in a month's time, iba iba ang nakukuha, depende sa dami or konti na naisulat. sabi sa akin ng hr sa office, they deduct 5% withholding tax sa payment. ang tanong ko, kelangan ko bang magfile ng tax at pano ko gagawin  hindi naman fix yung income ko.

[marose17]

^ Of course you still have to file an ITR!  The 5% withholding tax is just an advanced payment of your tax.  You still have to pay the balance on or before April 15 of the following year.  Check the graduated rates of personal income tax in the Tax Code.  The maximum rate is 32%.

Go to www.bir.gov.ph and check which rate is applicable to you and how to prepare your tax return.  You can download the ITR from that site.

[PrincessC]

hi mga sis!

i was talking to a friend of mine last time and she told me na pwedeng lumiit ang taxes if may loan ka (in my case, may housing loan ako). is that true?

i asked my company pero di rin nila alam ang tungkol dito. have any of you heard about this before?

syempre laking ginhawa rin yan if pwede mabawasan ang tax. my monthly amortizations are killing my finances! hehe

[scrapbookjunkie]

^ Of course you still have to file an ITR!  The 5% withholding tax is just an advanced payment of your tax.  You still have to pay the balance on or before April 15 of the following year.  Check the graduated rates of personal income tax in the Tax Code.  The maximum rate is 32%.

Go to www.bir.gov.ph and check which rate is applicable to you and how to prepare your tax return.  You can download the ITR from that site.

thanks sis!  pero tanong ko, how do i compute. i don't have a receipt din naman from the PR agency. they deposit payment sa bank account ko. tapos yun nga, hindi sya fix. like may months na hindi ako naswesweldohan, pag walang pinapagawa.

[marose17]

@princessC, are you an employee?  If so, you cannot deduct the loan.  The only deductions allowed are the mandatory deductions under Section 35 (personal exemption) of the Tax Code, as amended.

@scrapbookjunkie, you have to calculate by back-tracking the deposits made by the PR agency to your account, i-total mo yun so that you will arrive at your annual gross income.  Then, from the gross income, deduct yung taxes withheld (yung 5%) by the company to arrive at your net taxable income

Actually, kapag nakita mo na ang ITR form, maco-compute mo naman doon ang tax due mo eh.  It's fairly simple.  Just read the formula and guidelines sa likod.  You may download it from the BIR website.
You may also go to your revenue district office at magpatulong ka mag-compute ng tax due mo doon sa officer-of-the-day.

[scrapbookjunkie]

ok. sis. thanks! pag-aralan ko na lang! ayoko kasing magtanong sa BIR, feeling ko papatungan lang nila para may kickback sila. hahaha

[marose17]

^ Sa bank ka naman magbabayad, hindi sa BIR employee na pagtatanungan mo on how to fill out the form.

[PrincessC]

@marose17: yes, i'm an employee. ganun ba? sayang naman. hehe. thanks for the response!

[PrincessC]

mga sis, alam nyo ba kung ilang % ba talaga dapat ang tax pag consultant ka or independent contractor? TIA!

[marose17]

^ You can find the answer here: http://www.bir.gov.ph/taxinfo/tax_withld.htm

[PrincessC]

^ sis, parang mas naguluhan pa ako sa link e... hindi malinaw ang rates.

[marose17]

^ You can read Revenue Regulations No. 2-98 and its amendments.

Please note that the withholding tax, regardless of the rate, is just an advance payment of the income tax due on your income.  Thus, your income tax payable depends on the graduated rates (5%-32%) under Section 24, Tax Code.

What exactly is the nature of your consultancy? 

[PrincessC]

^ sent you a PM sis

[Miss Charcoal]

Hello mga sis! May BIR form 1904 at TIN card akong hawak, pero hindi ako yung naglakad nun. Sa Makati siya niregister pero magwowork ako sa Paranaque. Kelangan ko pa bang ipatransfer yung location? At anong gagawin ko dun sa BIR form 1904 ko? Thanks!

[danda]

^sis ano ang 1904? Kasi kung change RDO ka ( from Makati to Paranaque ), 1905 ang form.
Punta ka muna sa current RDO mo then papatatakan mo iyon ( change RDO), then dadalhin mo naman sa new RDO mo, pero kapag employed ka yata, ipapasa mo nalang sa HR ninyo.

sis question lang, pwede bang iba ang magpasa ng FORM 1905 tsaka 1901 ko? Thank you.