As another year draws to a close, we are once again reminded that we have to prepare our financial statements, inventory listing, and other reports such as tax returns and the required attachments therein to start the new year without mishaps.
For guidance, below is a list of tax-related information one should know and adhere to before its due dates:
- Renewal of Registration
At every start of the year, a taxpayer is required to file and pay the registration fees to their respective RDOs and LGUs. Of the documents obtained when you register a company in the Philippines, below are the documents that require annual renewal and the deadline set for them:
- Barangay (village) permit – 20th of January
- Mayor’s (business) permit – 20th of January
- Bureau of Internal Revenue (BIR) registration thru BIR 0605 – 31st of January
Note that one has an option to renew business registration quarterly, on every 20th day after the close of each quarter. Barangay and Municipal Registration may be moved depending on the local government. Other deadlines also move if they fall on a weekend.
- Registrations and Submission of Books of Accounts
- These are the requirements for each type of Books of Accounts:
- Manual Books of Accounts
The only requirement for this type of BOAs are new sets of permanently bound books of accounts for registration/stamping or the bound journals and ledgers. According to RMC 82-2008, the only time Manual Books of Accounts will be renewed or re-stamped is only if it nearly or has been fully used from cover to cover.
- Loose-leaf Books of Accounts
- Upon registration of Loose-leaf books of accounts, the following are required:
- Permit to Use Loose Leaf Books of Accounts;
- Permanently bound Loose Leaf Books of Accounts;
- An affidavit attesting the completeness, accuracy, and correctness of entries in Books of Accounts and the number of Loose Leaf used for the period.
These books must be filed on or before 15 January of the following year.
- Computerized Books of Accounts
Companies that use the Computerized Accounting System (CAS) must submit their books (and any other accounting records and relevant media) in soft copy (CD-R, DVD-R, or other optical media) for the year ending 31 December 2021 on or before 30 January 2021.
An affidavit must also be submitted, which confirms the completeness and accuracy of the computerized books, to the Revenue District Office (RDO) or the Large Tax Assistance Division.
- Submission of Inventory List and other requirements
All businesses that hold or sell inventory are obliged to submit Inventory Lists to the BIR. This relates to the year ending 31 December 2021. Inventory Lists should include schedules (in both hard & soft copy) of finished goods, works in progress, raw materials, supplies, and stocks-in trade. The list must be submitted on or before 30 January 2022.
- Submission of Summary List (Alphalist)
SAWT or Summary Alphalist of Withholding Tax at Source serves as a consolidated Alphalist of withholding agents from whom income was received and are subjected to withholding agents in the process. This needs to be submitted by the payee-recipient as an attachment to a filed return based on the specific period and contains a summary of data such as gross sales/receipts and tax credits from all 2307 certificates as issued by the payor.
For the submission of BIR Form No. 2307, the RR No. 16-2021 provided the following procedures in lieu of the submission of hard copies of the Certificate of Creditable Tax Withheld at Source as an attachment to the Summary Alphalist of Withholding Agents of Income Payments Subjected to Creditable Withholding Taxes:
- Scan the original copies of BIR Form No. 2307 through a scanning machine or device;
- Store the soft copies of BIR Form 2307, using the file format and naming conventions prescribed under the available modes or submission facilities of the BIR; and
- Submit the soft copies of said BIR Form in accordance with revenue issuances governing the selected modes or submission facilities of the BIR.
To further clarify the RR No. 2-2015, The Commissioner of Internal Revenue has issued RMC No. 117-2021. It states that the regulations offered all concerned taxpayers other modes or submission facilities of the BIR that are currently available, such as the Audited Financial Statement (eAFS) System. The use of a Universal Storage Bus (USB) memory stick or other similar devices were required in the absence of DVD-Rs.
- Distribution and Submission of BIR Form 2316
BIR Form 2316 is a Certificate that has to be issued by employers each year and to each employee earning a salary and then submitted to the BIR. It outlines the total amount paid to the employee throughout the year and the total amount of taxes withheld from that employee during the same period.
For 2021, employers must issue BIR Form 2316 to each employee on or before 31 January 2022, or on the day of last payment of wages in case of termination from employment.
- Filing of Annual Income Tax Returns and Audited Financial Statements
In general, except those exempted, companies or taxpayers engaged in business are required to submit to BIR and Securities and Exchange Commission (SEC) (for corporations only), a copy of their Annual Income Tax Return (BIR Form 1701 or 1702) and Audited Financial Statements. The deadline of payment for said documents is on or before April 15 although the summarization and preparation for external audit may already be started at year-end.
- Filing of General Information Sheet
This is again a requirement of the SEC only for stock corporations. It must be signed by the Corporate Secretary and must be submitted within ninety (90) days after the actual annual stockholder’s/member’s meeting agreed on from the by-laws(For Domestic Corporation) or anniversary date of the issuance of the SEC license (For Foreign Corporation). It must also be noted that the GIS is to be submitted electronically with the SEC through the OST.
To conclude, above are the gist of annual compliance requirements of companies or taxpayers engaged in business. It may look much, but with JuanTax, we can help make tax filing and payment easier and more convenient for you. We make sure that you stay compliant all year round!
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