4 Ways to Minimize Your Cost for BIR Annual Registration

Minimize Cost in Accomplishing Your Payment Form 0605 for BIR Annual Registration

As the year ends, accountants are wrapping up their tax compliance for 2019 while gearing up for 2020. And this means taking care of the annual BIR registration fee of 500 PHP using BIR’s Payment Form 0605. This is a yearly renewal requirement for every taxpayer.

What is a BIR Form 0605?

This form needs to be accomplished every time a taxpayer pays taxes and fees which do not require the use of a tax return. One of which is BIR’s upcoming Annual BIR Registration for new business or renewals. Taxpayers are required to pay 500 PHP for the fee. On top of that, taxpayers have to factor in costs for transportation, food and time.

How to Minimize Cost for Accomplishing Form 0605?

However, did you know you can minimize your annual BIR registration cost? That’s right, you can save up even when duly following your company’s tax compliance (and they’ll surely thank you later)

Here are a few tax solution tips to help you get ready for Tax Year 2020:

1. Organize Your Papers Ahead of Time

Nothing beats a prepared accountant. Being organized reaps rewards in the long haul such as knowing where valuable paperwork and receipts are when finishing the tax calendar year.

Some of the paperwork you have to prepare is the duly approved tax debit memo and a copy of your ITR (in case of payment of the second installment on income tax) for voluntary payment.

For payment of deficiency taxes, you’ll have to prepare a duly approved tax debit memo, a preliminary and final assessment notice, a post reporting notice (if applicable), and a collection of delinquent or accounts receivable.

2. Set the Date and Reminders

Although the annual registration fee is just 500 PHP for SMEs, this can stretch out to 1000 PHP or more because of the late filing penalty charge when you file it beyond January 31. It’s easy to miss the deadline since the beginning of the year comes with all new tax compliance demands.

To avoid paying more than you should, keep close tabs on the deadlines and add it to your phone calendar to prompt reminders every now and then. That way, you won’t have to miss any important tax dates and incur penalties.

3. Take Advantage of Tax Digitalization

The BIR has an online portal called the eFPS (electronic filing and payment system) where you can download, submit, and pay for your taxes.

When dealing with the annual BIR registration of your company, you can simply download the form 0605 through their online system. You can now freely end the tax calendar year in the comfort of your home or in your own office.

4. Sign Up in JuanTax and easily file Form 0605

Everything we’ve mentioned above can be found in one convenient app: JuanTax, the cloud-based tax compliance companion. You can make digital files of your receipts and important documents, set timely tax deadline reminders on your phone or laptop, and fill out various tax forms such as Form 0605 – without the need to visit your nearest BIR branch! You can easily file, review and pay your 0605 in minutes! Aside from paying the 500 PHP registration fee, you only need to pay 100 PHP for filing the form!

How Does JuanTax Ease the Pain of Manual Filing?

When you file your taxes manually (i.e going to the BIR branch, presenting your physical receipt copies, and waiting in line for your turn) it’ll take half a day just to process your annual BIR registration fee. You’ll also have to endure the traffic and high transportation costs nowadays.

The risk of losing your paperwork is also there. With no digital backups to spare, you’ll have to start all over again, taking up time you should’ve had for personal endeavors.

So to sum it up, we created this table to help you understand how cost-efficient JuanTax is when it comes to tax compliance:

View BIR’s complete guide line by clicking here.