What are Offline eBIRforms?

Offline eBIRForms are electronic Bureau of Internal Revenue (BIR) forms used in the Philippines for tax-related purposes. These forms can be downloaded and installed on a computer, enabling taxpayers to fill them out offline, without the need for an internet connection. Once completed, the forms can be saved and submitted to the BIR online or offline.

Understanding offline eBIRForms is crucial for taxpayers in the Philippines, as eBIRforms compliance is a mandatory requirement set by the BIR. By familiarizing themselves with the system, taxpayers can ensure that they file their taxes correctly and avoid penalties or legal issues. Moreover, understanding offline eBIRForms can help taxpayers save time and effort, making the tax filing process more manageable and efficient.

The article aims to assist taxpayers in understanding offline eBIRForms, its benefits, and how to use it, providing a detailed guide on how to fill out the forms and submit them. By the end of this article, readers will have a better understanding of offline eBIRForms and will be equipped with the knowledge needed to navigate the system efficiently.

How to Download and Install eBIRforms for offline use?

There are step-by-step instructions to follow to download and install eBIRforms. Following the step-by-step process in eBIRForms download and installation is crucial to ensure that the eBIRforms software is properly installed and functioning. Failure to follow the correct installation process can result in eBIRforms errors or technical issues when using the software, which can lead to inaccurate tax returns or delayed filing.

• Go to the official website of the Bureau of Internal Revenue (BIR) at www.bir.gov.ph.
• Click on the eServices tab on the main menu, and select eBIRForms from the drop-down menu.
• Click on the Download Now button to download the eBIRForms package. Choose the appropriate version for your operating system (Windows or Mac).
• Once the download is complete, locate the downloaded file and open the eBIRForms Installer by double-clicking on it.
• Click on the Install button to start the installation process.
• Follow the on-screen instructions to complete the installation process. This may include accepting the terms and conditions, choosing the installation directory, and creating desktop shortcuts.

Once the installation is complete, you can launch the eBIRForms application and start filling out the forms offline.

• Input your tax information into the appropriate fields and double-check for accuracy. Make sure to fill out all required fields and attach any necessary supporting documents.
• Save your tax form in the desired format, such as PDF or XML. Make sure to name the file in a way that is easy to identify and keep a copy for your records.
• If you prefer to file your tax return electronically, click on the eFile button within the eBIRForms application and follow the instructions to submit your tax return online. You will need to have a stable internet connection to complete this step.
• If you prefer to file your tax return manually, print out your tax form and submit it to the nearest BIR office together with the required attachments and supporting documents. Make sure to sign and date the form before submitting it.

It’s important to note that you will need to update your eBIRForms application periodically to ensure that you are using the latest version of the forms. You can do this by clicking on the Update button within the eBIRForms application or by downloading the latest package from the BIR website.

Tips for Using eBIRForms Offline Effectively and Efficiently

Using eBIRForms offline can save you time and effort in eBIRforms tax preparation and eBIRforms filing your tax returns with the Bureau of Internal Revenue (BIR). However, it’s important to use the software effectively and efficiently with the correct eBIRforms requirement to avoid errors, penalties, and other issues. We’ll provide you with some tips for using eBIRForms offline effectively and efficiently. These tips will help you familiarize yourself with the software, avoid common mistakes, and streamline the eBIRforms tax preparation process. Whether you’re a seasoned user of eBIRForms or new to the software, these tips will help you make the most of its features and functions.

1. Familiarize yourself with the software: Before using eBIRForms software for the first time, take some time to familiarize yourself with the different features and functions of the software. This will help you work more efficiently and avoid eBIRforms errors.
2. Keep your computer updated: Make sure to regularly update your computer’s operating system, security software, and other programs to ensure that they are running smoothly and are compatible with eBIRForms.
3. Double-check your tax information: It’s important to carefully review all of the tax information you input into eBIRForms before submitting your tax return. Double-checking can help you catch any errors or omissions that could lead to penalties or other problems down the line.
4. Save your work regularly: Be sure to save your work frequently while using eBIRForms to avoid losing any data in case of a power outage or other unexpected events.
5. Use the help desk or customer support: If you have any questions or encounter any problems while using eBIRForms, don’t hesitate to contact the help desk or customer support for assistance. They can provide guidance and troubleshooting to help you resolve any issues quickly and efficiently.
6. Keep a backup of your tax records: Make sure to keep a backup copy of your tax records in case of computer crashes, file corruption, or other data loss. This can help you recover your records quickly and easily if needed.
7. Submit your tax return early: To avoid the stress and hassle of last-minute filing, try to submit your tax return early. This will give you more time to review your information and correct any errors before the deadline.
8. Read the instructions carefully: When filling out tax forms using eBIRForms, make sure to read the instructions carefully and follow them closely. This can help you avoid mistakes and ensure that your tax return is accurate and complete.

Common Issues and Errors With Using eBIRForms Offline

Here are some eBIRforms troubleshooting steps, if you are encountering common issues and errors when using eBIRForms offline. Here’s a brief explanation of each one:

• Compatibility issues: eBIRForms may not work properly on certain operating systems, web browsers, or hardware configurations. It’s important to check the system requirements before installing the software.
• Incorrect data entry: Inputting incorrect data can result in errors, penalties, or delays in processing your tax returns. Double-check your tax information before submitting your tax return.
• Incorrect file format: eBIRForms may require specific file formats for certain eBIRforms forms, such as PDF or XML. Make sure you save your tax form in the correct file format.
• Technical issues: Technical issues such as system crashes, network connectivity problems, or software bugs can affect the performance of eBIRForms. 
• Incomplete or outdated software: Using an incomplete or outdated version of eBIRForms may result in compatibility issues or missing features.
• Unavailability of eBIRForms: The eBIRForms software may occasionally be unavailable due to maintenance, upgrades, or other reasons. Check the BIR website for announcements and updates.
• Lack of familiarity with the software: If you’re new to eBIRForms, it may take some time to get familiar with its features and functions. Consider reading the user manual, watching tutorials, or attending training sessions to improve your skills.

By being aware of these common issues, you can troubleshoot them more effectively or seek assistance from customer support or help desk services. Overall, taking the time to understand and address potential issues and errors can lead to a smoother and more efficient tax filing process.

Best Practices for Keeping Your Offline eBIRForms Secure and Up-to-date

Offline eBIRForms are a useful tool for taxpayers in the Philippines to prepare and file their tax returns conveniently and efficiently. However, it is crucial to ensure that your tax data is kept secure and up-to-date to prevent unauthorized access and data loss.

• Keeping your software updated: Ensure that you have the latest version of eBIRForms installed on your computer to avoid any security vulnerabilities.
• Installing antivirus software: Antivirus software can protect your computer from viruses and malware that could compromise the eBIRforms data security.
• Using strong passwords: Create strong and unique eBIRforms passwords for your eBIRForms account to prevent unauthorized access to your data.
• Storing your data securely: Store your tax data in a secure location on your computer or external hard drive to prevent unauthorized access.
• Backing up your data regularly: eBIRforms backup can prevent data loss in case of computer failure or other unexpected events.
• Being cautious with emails and downloads: Be wary of emails and downloads from unknown sources as they may contain malware that could compromise the security of your computer and data.
• Protecting your login information: Do not share your eBIRForms login information with anyone and ensure that you log out of your account after use to prevent unauthorized access to your data.

By following these best practices, you can ensure the safety and integrity of your tax data and prevent potential security breaches.

Are there alternatives to eBIRForms?

The only all-in-one solution available in the Philippines is Juan Accounting Software. With built-in integration to JuanTax, every transaction you enter—whether it’s a sale (invoice) or a purchase (bill)—automatically syncs with your tax returns. This means you can trust that your financial data is always accurate and ready for tax compliance with the BIR.

The post Understanding Offline eBIRForms: A Comprehensive Guide appeared first on JuanTax.

The package can do automatic computations and has the capability to validate information encoded by taxpayers. After filling out the forms in this package, taxpayers can submit them to the Online eBIRForms System. Using the eBIRForms Package can help streamline the tax filing process, reduce the likelihood of errors, and ensure that your tax returns are processed faster. Additionally, it saves you time and effort by eliminating the need to do the manual process of filling out forms and submitting them physically to the BIR.

The article covers what the eBIRForms Package is, features of the eBIRforms package, types of eBIRforms, filing and payment deadlines, consequences of missing payment of taxes, and how to file and pay taxes using eBIR. The article emphasizes the benefits of using the eBIRForms Package, including its ability to streamline the tax filing process, reduce errors, and save time and effort.

Features of eBIRforms Package

The eBIRForms Package is a powerful software that offers a wide range of features to taxpayers. In addition to the features previously mentioned, it also includes:

• Online filing and payment: Taxpayers can submit and pay their taxes online, eliminating the need to physically go to a BIR office.
• Electronic submission of tax forms: The software allows taxpayers to generate and submit their tax forms electronically, reducing the need for printed forms.
• Automatic computation of taxes: The eBIRForms Package automatically calculates taxes based on the information entered, making it easier for taxpayers to file accurate returns.
• Electronic acknowledgment receipt: The software generates an electronic acknowledgment receipt once the tax forms are submitted, providing proof of submission.
• Secure online platform: The eBIRForms Package is a secure platform that uses encryption technology to protect the confidentiality of taxpayer information.
• Easy access to tax information: The software provides easy access to tax information, including tax rates and deadlines, making it easier for taxpayers to stay up-to-date with their tax obligations.

Some common questions around the eBIRForms Package’s features include:

1. Is online filing and payment mandatory?

No, online filing and payment are not mandatory. However, using the eBIRForms Package can make the tax filing process faster and more convenient.

2. Can I still file my tax returns manually if I use the eBIRForms Package?

Yes, you can still file your tax returns manually if you use the eBIRForms Package in the Philippines. The Revenue Memorandum Circular No. 19-2015 states that RDOs and AABs should continue to accept manually filed returns (either printed BIR Forms or generated forms from the Offline eBIRForms)

3. What types of taxes can I file using the eBIRForms Package?

The eBIRForms Package supports various types of taxes, including income tax, value-added tax, and withholding tax.

Aside from the common questions regarding the eBIRforms package, you may also ask the different types of eBIRforms in the Philippines.

Types of eBIRforms

The Electronic Bureau of Internal Revenue Forms (eBIRForms) are digital versions of the paper-based tax forms used by the Bureau of Internal Revenue (BIR) in the Philippines. These digital forms are designed to make it easier for taxpayers to file their taxes online, listed below are the following types of eBIRforms:.

1. Income Tax Returns (ITRs) – are tax forms used to report an individual’s or entity’s income to the government and determine the amount of tax owed. In the Philippines, the Bureau of Internal Revenue (BIR) requires taxpayers to file ITRs annually on or before April 15 of the following year.

2. Value-Added Tax (VAT) Returns – these are tax forms used by businesses registered under the VAT system to report and remit the VAT they collected on sales and purchases. In the Philippines, the Bureau of Internal Revenue (BIR) requires VAT-registered taxpayers to file VAT returns quarterly, depending on their annual gross sales or receipts.

3. Withholding Tax Returns – these are tax forms used to report and remit withholding taxes on behalf of employees, suppliers, and other payees. Withholding tax is the amount withheld from the income or payment due to a payee, which is then remitted to the government as a form of advance income tax.

Withholding Tax Returns are tax forms that taxpayers in the Philippines must file to report income payments and taxes withheld. 

4. Documentary Stamp Tax (DST) Returns – these are tax forms used to report and remit documentary stamp taxes on various transactions, such as loans, leases, and insurance policies. Documentary stamp tax is a type of excise tax on legal documents and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, rights, or property.

In the Philippines, Documentary Stamp Tax (DST) Returns are tax forms that taxpayers must file to report and remit the documentary stamp tax due on certain transactions.

5. Percentage Tax Returns – these are tax forms used by businesses and individuals engaged in certain types of businesses or activities, such as franchising, transportation, and amusement, to report and remit the percentage tax due to the government. Percentage tax is a type of business tax that is computed as a percentage of gross sales or receipts.

 The Bureau of Internal Revenue (BIR) requires taxpayers to file percentage tax returns on a monthly or quarterly basis, depending on the number of gross sales or receipts. 

6. Excise Tax Returns – these are tax forms used to report and remit excise taxes on certain goods or products, such as petroleum, automobiles, and tobacco. Excise tax is a type of indirect tax that is levied on the manufacture, sale, or use of certain goods, rather than on income or property.

 It’s important for taxpayers to accurately and promptly file their Excise Tax Returns to avoid penalties and other issues with the Bureau of Internal Revenue (BIR). 

7. Annual Registration Fee (ARF) Returns – these are tax forms used to report and remit the annual registration fee paid by corporations, partnerships, and other entities registered with the Securities and Exchange Commission (SEC). The ARF is a fee imposed by the SEC as a regulatory requirement for the continued operation of corporations and other entities.

The Bureau of Internal Revenue (BIR) requires taxpayers to file ARF returns annually, together with their audited financial statements. 

8. Quarterly Summary List of Sales and Purchases (QSLSP) – is a tax form used by businesses registered under the Value-Added Tax (VAT) system to report their sales and purchases for a given quarter. The QSLSP serves as a summary of the VAT-registered taxpayer’s sales and purchases for the quarter, which is used to reconcile with the information provided in the monthly VAT returns.

The QSLSP is important because it helps the Bureau of Internal Revenue (BIR) verify the accuracy of the taxpayer’s VAT returns and ensure that the correct amount of tax is being paid. Failure to file or file accurately the QSLSP may result in penalties and other consequences imposed by the BIR.

Filing and Payment Deadlines

The filing and payment deadlines for tax returns in the Philippines vary depending on the type of tax and the taxpayer’s registration status. Generally, taxpayers are required to file their tax returns on or before the 15th day of the month following the applicable taxable period, whether monthly, quarterly, or annually.

In order to avoid penalties and interest charges for late or non-payment taxes, it is important for taxpayers to comply with the filing and payment deadlines.

• Income Tax Returns (ITRs) – April 15th of the following year. On or before the 15th day of April of each year covering taxable income for calendar year 2018 and thereafter.
• Value-Added Tax (VAT) Returns,  (monthly) – on or before the 20th day of the following month; (quarterly) – on or before the 25th day of the month following the end of the quarter.
• Withholding Tax Returns – 10th day of the following month after the withholding was made.
• Documentary Stamp Tax (DST) Returns – on or before the 5th day of the month following the transaction subject to DST
• Percentage Tax Returns – on or before the 20th day of the following month
• Excise Tax Returns – on or before the 20th day of the following month after the month in which the excisable article was removed
• Annual Registration Fee (ARF) Returns – on or before January 31st of each year

After knowing the filing and payment deadlines, if you missed paying taxes before the deadline there are some consequences you can face.

Consequences of not filing forms or paying taxes on time

The consequences of missing payment of taxes can vary depending on the circumstances and the severity of the situation. Here are some potential consequences that can result from failing to pay taxes:

1. Interest and Penalties: When you miss the deadline for tax payment, you may be charged interest and penalties on the amount you owe. These can accumulate quickly and make it even more difficult to pay off your tax debt.

2. Legal Action: If you continue to ignore your tax obligations, the government may take legal action against you. This can include tax liens, wage garnishments, and even the seizure of your property.

3. Inability to get clearance: In some cases, certain government agencies or employers may require tax clearance as part of the application process. This means that the applicant must provide proof that they have paid all taxes owed to the government before they can be approved for clearance.

If an individual has outstanding tax debts, they may not be able to obtain the necessary tax clearance, which could result in their application being denied. This can impact their ability to work in certain industries or obtain certain government contracts.

4. Damage to credit rating: missing payment of taxes can have a negative impact on your credit rating. If you owe taxes to the government and fail to pay them on time, the government can report the debt to credit bureaus, which can then affect your credit score.

This can make it difficult for you to obtain credit in the future, as lenders may view you as a higher-risk borrower and charge higher interest rates or reject your application altogether.

How to File and Pay Taxes Using eBIR

Filing and paying taxes is an important obligation for individuals and businesses in the Philippines. Fortunately, the Bureau of Internal Revenue (BIR) has developed an electronic tax filing and payment system called the Electronic BIR Forms (eBIRForms) Package. Here’s a guide on how to file and pay taxes using the eBIRForms Package:

• Register with the BIR eServices – Before using the eBIRForms Package, taxpayers must first register with the BIR eServices by visiting the BIR website and creating an account.
• Download and install the eBIRForms package – Once registered, taxpayers can download and install the eBIRForms Package from the BIR website. The software is available for free.
• Prepare and fill out the required forms – Using the eBIRForms software, taxpayers can prepare and fill up tax forms offline with the required tax forms, such as the Income Tax Return (ITR), Value-Added Tax (VAT) Return, and Withholding Tax Return.
• Validate and submit the forms – After filling out the forms, taxpayers must validate and check the accuracy of the information provided before submitting them online through the eBIRForms software.
• Pay the taxes due – Taxpayers can pay their taxes due either through an Authorized Agent Bank (AAB) or through the BIR’s online payment facility.
• Receive the confirmation and acknowledgment receipt – After payment, taxpayers will receive a confirmation and acknowledgment receipt from the BIR, which serves as proof of payment and filing of the tax returns.

In summary, the eBIRForms Package is a user-friendly and secure online and offline platform that simplifies the tax filing and payment process for individuals and businesses in the Philippines. By following the steps outlined above, taxpayers can avoid potential legal and financial consequences and stay compliant with tax regulations.

Conclusion

In conclusion, the eBIRForms Package is a user-friendly and secure online platform that allows taxpayers to file and pay their taxes conveniently and accurately. It provides a range of features and benefits, including automatic computation of taxes, electronic submission of tax forms, and easy access to tax information. However, it is important for taxpayers to be aware of the various deadlines and penalties for non-compliance. By following the steps outlined in this article and staying up-to-date with tax regulations, taxpayers can avoid potential legal and financial consequences.

So, if you are a taxpayer in the Philippines, consider using the eBIRForms Package to simplify your tax obligations and stay compliant with the law.

If you’re looking for an easier and more efficient way to file your taxes in the Philippines, consider using JuanTax. With its cloud-based tax software, JuanTax can help simplify the tax filing process and ensure compliance with tax regulations. Plus, with its user-friendly interface and expert customer support, you can rest assured that your taxes are filed and paid properly. Visit / for more information. 

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BIR Form 2000-OT is known as the Monthly Documentary Stamp Tax Declaration Return for One-Time Transactions.

Documentary Stamp Tax, also simply known as DST, is a tax in the Philippines applied to transaction documents regularly. Common transactions where DST can be utilized include but are not limited to, execution of loan or debt agreements, issuance or sale of stocks, or the sale and transfer of properties.

Depending on the face value of the transaction, DST payable can vary significantly. 

In layman’s terms, it’s a stamp that certifies that an agreement is taxable. The amount of tax can be fixed or else based on the face value of a document or instrument. The difference between Form 2000 and Form 2000-OT, is that BIR Form 2000-OT is only meant for one-time transactions.

Who Needs to File and When?

BIR Form 2000-OT should be filed by the person making, signing, issuing, accepting, or transferring  the following transaction types

Every Natural or Juridical Person, Resident of Non-Resident for:

• Sale, barter, exchange, or other onerous disposition of shares of stock in domestic corporations classified as asset, not traded in the local stock exchange

Every withholding agent/buyer/seller on:

• Sales, transfer, exchange of real property classified as assets. The “sale” includes pacto de retro sale and other forms of conditional sale.

Every withholding agent/buyer/seller on:

• Sales, transfer, or exchange of real property classified as ordinary asset

This form should be filed and paid within (5) days after the close of the month when the taxable documents were made, signed, issued, accepted, or transferred. 

Got Everything? Our Turn! 

Manually having to keep track of forms, filling them out, and submitting them to their respective BIR offices can be tiring and time-consuming. Similar to other tax forms at JuanTax, you can File and e-Pay forms for your clients using JuanTax Fast File. Get started on BIR Form 2000-OT at home and start filing at https://fastfile.juan.tax/.

The post BIR Form 2000-OT – For Stamp and Tax Declaration appeared first on JuanTax.

Documentary Stamp Tax, also simply known as DST, is a tax in the Philippines applied to transaction documents regularly. Common transactions where DST can be utilized include but are not limited to, execution of loan or debt agreements, issuance or sale of stocks, or the sale and transfer of properties.

Depending on the face value of the transaction, DST payable can vary significantly. 

In layman’s terms, it’s a stamp that certifies that an agreement is taxable. The amount of tax can be fixed or else based on the face value of a document or instrument.

Who Needs to File and When?

BIR Form 2000 should be filed by the person making, signing, issuing, accepting, or transferring  the following transaction types

• Documents
• Instruments
• Loan agreements and papers
• Acceptances
• Assignments
• Sales and conveyances of an obligation
• Right or property 

This form should be filed and paid within (5) days after the close of the month when the taxable documents were made, signed, issued, accepted, or transferred. 

Example Of Use 

Let’s say Juan wanted to purchase stock from a Philippine company. The cost per share would be PHP 100 and Juan wants to purchase 15,000 shares. DST is currently set at PHP 1.50 for every PHP 200 spent. 

The formula to calculate this would be:

Cost Per Share x # of Shares / PHP 200 x PHP1.50 = DST Payable

Ex: PHP 100 x 15,000 / PHP 200 x PHP 1.50 = DST Payable

Juan would have to pay PHP 3,000 in Documentary Stamp Tax

Got Everything? Our Turn! 

Manually having to keep track of forms, filling them out, and submitting them to their respective BIR offices can be tiring and time-consuming. Similar to other tax forms at JuanTax, you can File and e-Pay forms for your clients using JuanTax Fast File. Get started on BIR Form 2000 at home and start filing at https://fastfile.juan.tax/.

The post BIR Form 2000 – Documentary Stamp Tax Declaration appeared first on JuanTax.

Issued primarily to help ease the burden on corporate taxpayers during the current pandemic, C.R.E.A.T.E. affects how tax calculations are to be carried out going forward—including the calculation of percentage tax.

Note that provisions of RA 11534 relative to percentage tax are “temporary,” and they are only effective from July 1, 2020, through June 30, 2023. 

In this post, we’ll focus on how RA 11534 affects the calculation of percentage taxes, particularly for individuals and non-individuals. We’ll also highlight the changes we’ve made to the form you’ll be using when entering transactions into our transactions module to help guide you along the way.

Then we’ll go into the changes in the 2551Q return in JuanTax Fast File, as well as how overpayments will be treated under RR 4-2021 as a result of the retroactive effect of the temporary tax rate adjustment.

How JuanTax Has Adapted to the Changes Brought About by C.R.E.A.T.E.

C.R.E.A.T.E. Law affects tax calculation, filing, and payment of Annual Income Tax Returns by non-individual taxpayers. These taxpayers may use the new transitory rates as published in Revenue Regulation 5-2021 on or before April 15th 2021 for the taxable year ending December 31st 2020.

Another tax affected by C.R.E.A.T.E. law is the percentage tax with the introduction of a temporary rate adjustment, reducing percentage tax rates from 3% to 1% effective July 1, 2020 through June 30, 2023. 

To help percentage tax filers who choose to use the new, temporary rate adjustment, JuanTax has adapted in terms of filing 2551Q by making changes to its platform that make tax calculation easier for accounting firms as well as individuals.

These changes will be found in our transactions module, specifically in the section where transactions are entered as shown below:

You’ll find a new PT010 (C.R.E.A.T.E.) option included in the ATC Codes, which will expire on June 30, 2023. 

When generating or opening an unfiled Percentage Tax Return (Form 2551Q), JuanTax will automatically determine if the transactions are within the covered period (July 1, 2020 through June 30, 2023) and will automatically assign the correct ATC code PT 010 (C.R.E.A.T.E.).

How JuanTax Fast File Has Adapted to C.R.E.A.T.E.

In Fast File, we have adapted by adding a new percentage tax code, PT 010 (C.R.E.A.T.E.) which can be selected in completing your 2021 quarterly tax returns. 

How JuanTax Helps Accounting Firms and Individual Filers

Under the temporary rate adjustment, where the percentage tax was formerly 3%, the tax rate is now at 1%. This change takes effect retroactively from July 1, 2020, and is good for three years.

Should you choose to use the temporary rate adjustment under the C.R.E.A.T.E. law, those rates will now be used as you populate the 2551Q form.

How Overpayments Will Be Treated as a Result of the Retroactive Effect of the Temporary Tax Rate Adjustment

Released on April 8, 2021, RR 4-2021 explains that taxpayers should calculate their overpayment from the previous quarters (Quarter 3 and 4 of 2020) and carry over the excess payment when filing their Q1 2021 tax return. Overpayment should be inserted into line number 17 of the Percentage Tax Form 2551Q. 

Assuming that the taxpayer did NOT entirely consume the excess payment, the taxpayer can continuously carry over the excess payment until there is no more remaining balance. 

In JuanTax Fast File, you need to manually enter the excess payment you computed from Quarters 3 and 4 of 2020 and insert it into line number 17 of the 2551Q tax form.

Once your 2551Q form has been filled out and filed successfully, you’ll be able to go straight to payment without having to leave JuanTax. We have a series of Help Center Articles to show you how to do just that.

It will take some time for all of us to adjust to the new calculations under C.R.E.A.T.E.. But whether you’re an accounting firm filing for your clients using JuanTax, or filing for your own business using JuanTax Fast File, you’re not alone. 

If you need extra help in calculating percentage taxes using the new temporary rates under C.R.E.A.T.E., you can reach out to our support team any time by clicking the chat icon in the lowermost right corner of your screen. You can also schedule a call with any of our Partner Firms for personalized advice today.

Are you planning to file your BIR Form 2551Q soon?

Make tax compliance easier with Juan Accounting Software!

Juan integrates accounting, payments, financial reporting, and tax compliance with JuanTax into one complete solution, perfect for PH businesses. Experience all-in-Juan accounting and tax at https://www.juan.ac/.

The post BIR Form 2551Q (C.R.E.A.T.E. Law) appeared first on JuanTax.

What is the C.R.E.A.T.E. Law

On March 26, 2021, a new bill was signed by President Duterte, known as the Corporate Recovery and Tax Incentives for Enterprises (C.R.E.A.T.E.), which is now Republic Act No. 11534.

With the new law in force, corporate income tax in the country, currently at 30%, is now a two-tiered system lowered to general tax rate of 25% and 20% for qualified small businesses*.

*With net taxable income not exceeding P5,000,000.00  AND with total assets not exceeding P100,000,000.00 million. Excluding land on which your business office, plant and equipment are located.

How Our Systems Have Adapted to the C.R.E.A.T.E. Law

We have already adjusted to the changes implemented with Revenue Regulation 5-2021. With 2 simple clicks before filling out the form, changes to taxes with the C.R.E.A.T.E. Law will be automatically adjusted and calculated for you based on the transitory rates* provided in the regulation.

*Transitory Rates are calculated depending on your chosen accounting period (Calendar or Fiscal)

When filing BIR Form 1702-RT, you will be met with new options when computing your taxes

• Compute taxes with C.R.E.A.T.E. Law Tax Rates (If you choose Yes)
• Compute taxes with pre-C.R.E.A.T.E. Law Tax Rates, 30% (If you choose No)

If you choose to compute your taxes using C.R.E.A.T.E. Law’s tax rates, Minimum Corporate Income Tax (MCIT) will be set at 1% and Income Tax will be set at 25% or 20% respectively. On the other hand, if you choose to compute your taxes using pre-C.R.E.A.T.E. Law, tax rates will remain the same. MCIT will remain at 2% and Income Tax Rate will remain at 30%.

To clarify which Income Tax will apply to your business under C.R.E.A.T.E. Law, a second banner will appear to determine if your total assets exceed PHP 100,000,000. 

• If total assets exceed PHP 100,000,000, the Income Tax will be set at 25%. 
• If total assets do NOT exceed PHP 100,000,000, and net taxable income do NOT exceed PHP 5,000,000.00, the Income Tax will be set at 20%

*27.5% is the cumulative calculation done by JuanTax with Transitory Rates applied.

Stay one step ahead with your business using JuanTax, your digital tax compliance solution. Our all-in-one cloud-based platform makes electronically filing and paying your taxes easier. Find out more about how you can use JuanTax to file in time for the April 15 deadline and sign up for FREE today.

The post BIR Form 1702-RT (C.R.E.A.T.E. Law) appeared first on JuanTax.

What You Need To Know

A significant change had occurred in early 2018 where tax authorities had issued a Revenue Regulation (RR) No. 11-2018 which amended certain provisions of RR No. 2-98 and implemented new amendments introduced by the Tax Reform for Acceleration and Inclusion (TRAIN) Law in relation to withholding taxes. One such repercussion of this had been the splitting of BIR Form 1604-CF into BIR Form 1604-C and 1604-F. 

BIR Form 1604-F is an Annual Information Return of Income Payments Subjected to Final Withholding Taxes. This form needs to be filed by every Withholding Agent/payor required to deduct and withhold taxes on income payments subject to Final Withholding Tax.

Documents Required

This form must be filed on or before the 31st of January of the year following the calendar year in which the final withholding taxes were accrued or paid. 

For example: BIR Form 1604-F relating to the year 2020, must be filed by 31 January, 2021

Along with the form you’ll need to attach some documentation. These documents are the alpha-list of Employees, alpha-list of Employees Other than Rank & File Who Were Given Fringe Benefits During the year and alpha-list of Other Payees Whose Income are Exempt from Withholding Tax but Subject to Income Tax.

Got Everything? Our turn! 

At JuanTax we do it all for you!  All you need to do is either enter a transaction or upload a sample transaction just once. When we have all the information required from you, every form from here on out can be automated for you! We can even file the forms electronically on your behalf! 

Manually having to keep track of forms and filling them out can be tiresome and time-consuming. The law still requires that you follow up with it, but that’s where we come in. We keep you up-to-date on forms to be submitted in the future, fill up the forms on your behalf and before you know it, all you have to do is file the form yourself. It really is that easy.

The post What you need to know about BIR Form 1604-F appeared first on JuanTax.

What You Need To Know

A significant change had occurred in early 2018 where tax authorities had issued a Revenue Regulation (RR) No. 11-2018 which amended certain provisions of RR No. 2-98 and implemented new amendments introduced by the Tax Reform for Acceleration and Inclusion (TRAIN) Law in relation to withholding taxes. One such repercussion of this had been the splitting of BIR Form 1604-CF into BIR Form 1604-C and 1604-F. 

BIR Form 1604-C is an Annual Information Return of Income Taxes Withheld on Compensation. This is because in the Philippines, employers have to calculate, subtract and withhold part of the value of an employee’s compensation before it’s actually paid to them.

This BIR form is filed by every employer or withholding agent/payor who is either an individual, estate trust, partnership, corporation, government agency, government owned and controlled corporation, local government unit and other juridical entity required to deduct and withhold taxes on compensation paid to employees.

Documents Required

This form must be filed on or before 31 January of the year following the calendar year in which the compensation payment or any other income payments were accrued or paid. 

For example: BIR Form 1604-C relating to the year 2020, must be filed by 31 January, 2021

Along with the form you’ll need to attach some documentation. These documents are the alpha-list of Employees and the alpha-list of Minimum Wage Earners. These lists must be declared and certified using BIR Form No. 2316.

Got Everything? Our turn! 

At JuanTax we do it all for you!  All you need to do is either enter a transaction or upload a sample transaction just once. When we have all the information required from you, every form from here on out can be automated for you! We can even file the forms electronically on your behalf! 

Manually having to keep track of forms and filling them out can be tiresome and time-consuming. The law still requires that you follow up with it, but that’s where we come in. We keep you up-to-date on forms to be submitted in the future, fill up the forms on your behalf and before you know it, all you have to do is file the form yourself. It really is that easy.

The post What You Need To Know About BIR Form 1604-C? appeared first on JuanTax.

Here’s What You Need To Know

The BIR issued this form that needs to be accomplished every time a taxpayer pays taxes and fees that don’t require the use of tax returns. Such examples would include: secondary installment payment for income tax, deficiency tax, delinquency tax, registration fees, penalties, etc. 

This form is required when a tax payment/penalty is due, when an advanced payment is made, when the BIR issues a demand letter notice/collection letter, or to be accompanied by the annual registration fee for new businesses before January 31 of every year.

Documents Required

Before you can submit this form, you’re going to need to attach some supporting documentation with it. You’ll need a duly approved Tax Debit Memo, if applicable as well as a copy of the notice from BIR for which this form is accomplished (Whichever is applicable: pre or final assessment, post reporting notice, collection letter of delinquent or accounts receivable, xerox copy of the ITR/Reminder Letter of second installment on income tax)

Got Everything? Our turn! 

At JuanTax we do it all for you!  All you need to do is fill out a form on our website once. When we have all the information required from you, every form from here on out can be automated for you! We can even file the forms electronically on your behalf! 

Manually having to keep track of forms and filling them out can be tiresome and time-consuming. The law still requires that you follow up with it, but that’s where we come in. We keep you up-to-date on forms to be submitted in the future, fill up the forms on your behalf and before you know it, all you have to do is file the form yourself. It really is that easy.

The post BIR Form 0605 – Payment Form appeared first on JuanTax.

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