This is where tax mapping comes in. Tax mapping is a process that involves analyzing your business operations to identify potential tax issues and opportunities for tax savings. By conducting a tax mapping exercise, you can ensure that your business is fully compliant with all tax laws and regulations, while also taking advantage of any tax breaks that may be available to you. The importance of tax mapping cannot be overstated, as it can help you avoid costly mistakes and ensure that your business is running smoothly from a financial perspective. In addition, staying compliant with tax laws can help you build a positive reputation with customers and partners, which can be crucial for long-term success.

In this article, we will dive deeper into tax mapping for compliance, exploring what it is, how it works, and why it’s so important for your business. Whether you’re a small business owner or the CEO of a large corporation, this information is essential for keeping your business on the right track when it comes to taxes.

Importance of Tax Mapping

For any business owner, staying compliant with tax laws and regulations is a top priority. This means keeping track of various tax-related requirements, such as needing to pay the annual registration fee and submitting the necessary forms, like BIR Form 0605. Failure to comply with these regulations can result in hefty fines and legal issues that can harm your business.

One way to ensure compliance is through tax mapping. Tax mapping involves analyzing your business operations to identify potential tax issues and opportunities for tax savings. This can help you stay on top of requirements such as the annual registration fee and avoid any issues that may arise during the tax compliance verification drive.

Listed below are some importance of Tax Mapping:

1. Improved compliance: Tax mapping helps businesses identify areas of non-compliance, such as missing certificates of registration or tax violations, and take corrective action. This can help businesses avoid penalties and legal issues that can arise from non-compliance.
2. Reduced risks: By identifying potential tax issues through tax mapping, businesses can take steps to mitigate risks and avoid potential problems. This can include ensuring that all receipts or sales invoices are registered with the Bureau of Internal Revenue (BIR) to avoid penalties for using unregistered receipts or invoices.
3. Increased accuracy: Tax mapping can help businesses ensure that all tax-related information is accurate and up-to-date. This can include verifying that tax returns are filed correctly and that all tax payments are made on time.
4. Cost savings: Tax mapping can help businesses identify opportunities for cost savings, such as taking advantage of tax breaks or incentives that they may not have been aware of before. This can ultimately save businesses money in the long run.
5. Enhanced decision-making: By having a clear understanding of their tax obligations and compliance status, businesses can make informed decisions about future operations and investments.

In summary, tax mapping is a crucial tool for businesses to avoid penalties, reduce risks, increase accuracy, save costs, and make better decisions. By identifying potential issues early and taking corrective action, businesses can stay compliant with tax laws and regulations and avoid any unnecessary financial or legal repercussions.

Tax Mapping Process

Tax mapping is a crucial process for any business owner to ensure tax compliance and avoid potential legal and financial issues. The tax mapping process involves a thorough review of the business’s operations, including how they issue receipts, keep records, and register with the Bureau of Internal Revenue (BIR).

During the tax mapping process, the BIR may check if a business issues official receipts, which are required for every sale or transaction. They may also review the point of sale system and check if the business is using Cash Register Machines (CRM) to accurately record all transactions. 

The tax mapping process is a structured approach that businesses can follow to ensure tax compliance and identify potential tax savings opportunities. Here are the five key steps involved in the tax mapping process:

1. Identify tax data sources: The first step is to identify all of the sources of tax data within the business, such as financial statements, invoices, and receipts. This includes both electronic and paper-based records.
2. Map tax attributes: Next, the tax attributes of each data source should be mapped out, including the type of tax, tax rate, and any exemptions or deductions that may apply. This helps businesses identify any potential tax issues or savings opportunities.
3. Validate results: Once the tax attributes have been mapped, the results should be validated to ensure accuracy and completeness. This includes verifying that all required tax data sources have been identified and that the tax attributes have been mapped correctly.
4. Document the tax mapping process: It’s important to document the tax mapping process, including the steps taken and the results obtained. This documentation should be kept up to date and made available to relevant stakeholders, such as auditors or regulatory authorities.
5. Update and maintain tax mapping: Finally, the tax mapping process should be updated and maintained regularly to ensure ongoing compliance with tax laws and regulations. This includes keeping up to date with changes in tax laws and regulations, as well as changes to the business’s operations or structure.

By following these five steps, businesses can ensure that they are fully compliant with tax laws and regulations, avoid potential penalties, and identify opportunities for tax savings. The tax mapping process can help businesses build a positive reputation and make informed decisions based on accurate financial information.

Tax Mapping Software

Tax mapping software is a powerful tool that can help businesses streamline their tax mapping process and ensure compliance with tax laws and regulations. The software uses advanced algorithms to analyze a business’s financial data and identify potential tax issues or savings opportunities.

To sum up, tax mapping software is a comprehensive tool that can help businesses streamline the tax mapping process and ensure compliance with tax laws and regulations. Here are the four key features of tax mapping software:

1. Data integration: Tax mapping software can integrate with a variety of data sources, such as accounting software, point-of-sale systems, and financial statements. This allows businesses to easily access and analyze all of their financial data in one place.
2. Tax attribute mapping: Once the data has been integrated, the tax mapping software can automatically map tax attributes, such as tax rates, exemptions, and deductions, to each transaction. This helps businesses identify potential tax issues or savings opportunities.
3. Tax calculation: The tax mapping software can also perform tax calculations automatically, based on the mapped tax attributes. This can help businesses ensure accuracy and reduce the risk of errors or omissions.
4. Validation and auditing: Finally, the tax mapping software can validate and audit the results to ensure accuracy and completeness. This includes verifying that all required tax data sources have been identified and that the tax attributes have been mapped correctly.

By using tax mapping software, businesses can save time and reduce the risk of errors or omissions that could result in penalties or legal issues. The software can help businesses stay up to date with changes in tax laws and regulations, and identify potential tax savings opportunities. Overall, tax mapping software can be a valuable tool for businesses looking to improve their tax compliance and financial management processes.

Benefits of Tax Mapping

Tax mapping is a process that helps businesses ensure compliance with tax laws and regulations, identify potential tax savings opportunities, and streamline financial management processes. Here are some of the key benefits of tax mapping:

1. Improved accuracy: Tax mapping can help businesses ensure accurate tax reporting by automating tax attribute mapping and calculations, reducing the risk of errors or omissions.
2. Increased efficiency: By streamlining tax reporting and financial management processes, tax mapping can help businesses save time and resources, improving overall efficiency.
3. Better decision making: Tax mapping provides businesses with valuable financial information that can help inform strategic decision-making. By having a clear understanding of their tax liabilities and potential tax savings opportunities, businesses can make informed decisions about investments, expansion, and other business activities.
4. Compliance: Tax mapping can help businesses ensure compliance with tax laws and regulations, reducing the risk of penalties, fines, or legal issues related to non-compliance.
5. Competitive Advantage: By using tax mapping to streamline financial management processes and identify potential tax savings opportunities, businesses can gain a competitive advantage over other companies in their industry. This can help them improve their financial performance, build a positive reputation with stakeholders, and attract new customers or investors.

In conclusion, tax mapping provides businesses with a range of benefits related to compliance, financial management, and strategic decision-making. By streamlining tax reporting and financial management processes, automating tax attribute mapping and calculations, and identifying potential tax savings opportunities, tax mapping can help businesses improve accuracy, increase efficiency, make better decisions, ensure compliance, and gain a competitive advantage. 

Conclusion

Tax mapping is a crucial process that can help businesses ensure compliance with tax laws and regulations, improve accuracy, increase efficiency, and make better decisions. By using tax mapping software to integrate data, map tax attributes, calculate taxes, and validate results, businesses can reduce the risk of penalties, fines, or legal issues related to non-compliance, and gain a competitive advantage.

Also, compliance with BIR regulations such as the submission of BIR Form 2303 and the payment of taxes to the Bureau of Internal Revenue is essential, and tax mapping can help ensure that businesses keep accurate records required by law.  If you’re a business owner or financial manager looking to improve your tax reporting and financial management processes, consider implementing tax mapping in your organization. This investment can pay off in the long run, helping you save time and resources, improve accuracy, and make better decisions that can drive your business forward.

 If you’re a business owner looking for a reliable and user-friendly tax solution to help your business stay tax compliant, consider checking out JuanTax. Tax compliance can be made simpler and more manageable using JuanTax. For more information about our tax solution, Sign up now at  /!

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As a professional who wants to engage in business activities in the Philippines, it is important to be aware of the requirement to register your business with the Bureau of Internal Revenue (BIR). This is because all businesses operating in the country, regardless of size or industry, are required to register with the BIR and obtain a Taxpayer Identification Number (TIN) in order to operate legally.

The process can be overwhelming and time-consuming to gather all the necessary documents and information. That’s why this topic on a checklist for BIR registration requirements for professionals is so important. A checklist provides a clear and concise guide for you to ensure that you have all the required documents and information before submitting your application for registration. It can help you avoid unnecessary delays or rejection of your application due to missing or incomplete requirements.

This topic aims to provide you with a comprehensive checklist of BIR registration requirements specifically tailored for professionals. By following this checklist, you can be confident that you have all the necessary requirements in order to successfully register your business with the BIR.

Documents Required for BIR Registration

Bureau of Internal Revenue (BIR) is a government agency responsible for administering and enforcing tax laws in the Philippines. If you are planning to start a business in the Philippines, you will need to register with the BIR to obtain a Taxpayer Identification Number (TIN) and comply with tax requirements.

When it comes to registering with the Bureau of Internal Revenue (BIR), there are several documents that professionals need to prepare and submit. Here are the following required documents:

• Professional Taxpayer Identification Number (PTIN) – A PTIN is a unique identification number assigned by the BIR to professionals who are required to pay taxes. 
• Tax Identification Number (TIN) – A Tax Identification Number (TIN) is a unique identification number assigned by the Bureau of Internal Revenue (BIR) to individuals or entities for tax purposes. Once you have a (TIN), you can have a certificate of the Bureau of Internal Revenue (BIR) which contains a unique serial number.
• In other circumstances, when the taxpayer or business entity is applying for a TIN for the first time and there is a need to verify their identity or citizenship, you need to prepare your birth certificate.
• Barangay Clearance – A Barangay Clearance is a document issued by the Barangay Office certifying that the applicant is a resident or operating a business within the jurisdiction of the Barangay. It is required by the BIR as part of the registration process.
• SEC or DTI Registration Certificate (if applicable) – An SEC (Securities and Exchange Commission) or DTI (Department of Trade and Industry) Registration Certificate is required for professionals who are operating as corporations, partnerships or sole proprietorships. It serves as proof that the business has been registered with the appropriate government agency.
• Mayor’s Permit of Business Permit (if applicable) – A Mayor’s Permit or Business Permit is a document issued by the Local Government Unit (LGU) certifying that the business has complied with the necessary requirements and is allowed to operate within the area. It is required by the BIR as part of the registration process.
• Documentary Stamps – In the context of BIR registration, documentary stamps may be required to be affixed to certain documents, such as Articles of Incorporation or Partnership and Deeds of Sale, among others. The amount of documentary stamp tax to be paid depends on the nature of the document or instrument and the amount involved. 

These documentary requirements are necessary to comply with BIR registration requirements and to avoid penalties and sanctions for non-compliance. 

BIR Registration Process for Professionals

BIR (Bureau of Internal Revenue) registration is a vital step for professionals who are starting their own businesses or working independently. This process ensures that professionals comply with the Internal Revenue Code (IRC),  tax laws and regulations set by the government. Registering with the BIR allows professionals to obtain a Professional Taxpayer Identification Number (PTIN) and Tax Identification Number (TIN), which are necessary for filing tax returns and paying taxes. In this article, we will discuss the step-by-step process of BIR registration for professionals and the documents required to complete the process.

1. Obtain a Professional Taxpayer Identification Number (PTIN) by submitting an accomplished BIR Form 0605 and paying the corresponding PTIN registration fee.
2. Apply for a Tax Identification Number (TIN) by submitting an accomplished BIR Form 1901. You will also need to present a valid government-issued ID, such as a passport or driver’s license; you are also required to provide your business address to the BIR.
3. Obtain a Barangay Clearance from the barangay office where you reside or where your business is located.
4. If applicable, obtain a registration certificate from the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI).
5. If applicable, obtain a Mayor’s Permit or Business Permit from the local government unit where your business is located.
6. Submit all the required documents to the BIR Revenue District Office (RDO) where you are registered. You may also need to attend a taxpayer seminar or orientation before your application is processed.
7. Once your application is approved, you will be issued a Certificate of Registration (COR) and an Authority to Print (ATP) if you need to issue official receipts or invoices.

In conclusion, the BIR registration process for professionals may seem daunting at first, but it is a necessary step to comply with the law and avoid penalties. By following the steps outlined in this article, professionals can successfully register with the BIR and enjoy the benefits of compliance, such as the ability to issue official receipts and access government services.

BIR Tax Compliance Checklist for Professionals

The BIR Tax Compliance Checklist for Professionals is a comprehensive guide to help individuals ensure that they are following all the necessary tax requirements in the Philippines. It includes a list of tasks and obligations that must be fulfilled by professionals to stay compliant with tax laws and regulations. 

1. Secure a Professional Tax Receipt (PTR) annually and display it in a visible location in your office.
2. File and pay your Income Tax Return (ITR) on or before the deadline set by the BIR. The deadline is usually on April 15 of the following year, unless otherwise specified.
3. Keep accurate records of your income and expenses. This includes invoices, receipts, and other relevant documents that support your tax return.
4. Register your books of accounts with the BIR and ensure that they are updated regularly.
5. Comply with the requirements for Value-Added Tax (VAT) registration and payment, if applicable.
6. If you have employees, register with the BIR as an employer and comply with the withholding tax requirements for compensation and other payments.
7. Comply with the tax compliance requirements for specific professions, such as lawyers, doctors, and accountants.
8. Pay the necessary taxes and fees, such as documentary stamp tax, local business tax, annual registration fee, certification fee and other applicable taxes.
9. Ensure that you have the necessary permits and clearances to operate your business, if applicable.
10. Attend taxpayer seminars and other training to keep yourself updated on tax laws and regulations.

By following the checklist, professionals can maintain accurate records, pay taxes on time, and access government services. 

Benefits of BIR Registration for Professionals

Registering with the Bureau of Internal Revenue (BIR) is a necessary process for professionals who want to operate their businesses legally in the Philippines. While it may seem like a hassle, there are actually several benefits to BIR registration that can make a positive impact on your business. 

The following are some of the key benefits of BIR registration for professionals:

1. Compliance with the law: BIR registration is required by law for professionals who earn income from their services. By registering with the BIR, professionals can avoid penalties and legal sanctions for non-compliance with tax laws.
2. Ability to issue official receipts: Registered professionals are authorized to issue official receipts for the services they render. Official receipts serve as proof of payment and are important for both the professionals and their clients.
3. Access to government services: Registered professionals have access to various government services such as loans, grants, and other assistance programs. Being registered also provides proof of income, which may be required when applying for these services.
4. Tax deductions and benefits: Registered professionals can claim tax deductions and benefits that are not available to non-registered individuals. These include deductions for expenses related to their profession, such as professional development and equipment costs.
5. Build trust with your prospect or existing clients: Having a Certification for Registration from BIR can build trust with your prospect and/or existing clients, investors, and partners. This indicates that you are operating legally and are being monitored by government agencies and departments. You can use your BIR Form 1701A or annual income tax return as evidence of your income when applying for loans and credit cards.

Penalties and Sanctions for Non-Compliance with BIR Registration Requirements

Penalties and sanctions for non-compliance with BIR registration requirements can have serious consequences for professionals. It is important to be aware of these consequences and ensure that you comply with all BIR requirements to avoid any penalties or sanctions.

These are some of the possible penalties and sanctions for non-compliance with BIR registration requirements.

• Fines and penalties: The BIR may impose fines and penalties for failing to register or for late registration. The amount of the fine varies depending on the nature of the violation and the duration of the non-compliance.
• Interest charges: The BIR may also impose interest charges on any tax liability that remains unpaid after the due date.
• Compromise penalty: A compromise penalty may be imposed for any violation of the tax code, including non-compliance with registration requirements. The amount of the compromise penalty is generally lower than the regular penalty.
• Closure of business operations: The BIR may order the closure of a business for failing to register or comply with tax obligations.
• Suspension or revocation of professional licenses: For professionals, such as lawyers or accountants, the BIR may suspend or revoke their professional licenses for non-compliance with tax obligations.
• Criminal charges: In severe cases of non-compliance, the BIR may pursue criminal charges against the taxpayer, which can result in imprisonment or hefty fines.

In Summary

Non-compliance with BIR registration requirements can lead to various penalties and sanctions, including fines, interest charges, compromise penalties, closure of business operations, suspension or revocation of professional licenses, and even criminal charges. It is important for professionals to comply with BIR registration requirements and other policies of the BIR, in general, to avoid these penalties and ensure compliance with the law.

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How can I request a transfer of RDO?

To transfer/update registration from one RDO to another follow these steps: 

1. File a duly accomplished BIR Form 1905 (Application for Registration Update) in 2 original copies where your TIN is currently registered. 
2. Indicate the new RDO where you are requesting to be transferred.
3. Bring the BIR Form 1905 to your old RDO. In about a week, the process should be done and your TIN should now be registered to your new RDO.

How can I process an RDO transfer online?

As per BIR’s chatbot, Revie, there is no online option for RDO transfer.

Source: https://www.bir.gov.ph/

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For guidance, below is a list of tax-related information one should know and adhere to before its due dates:

1. 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.

2. Registrations and Submission of Books of Accounts

1. These are the requirements for each type of Books of Accounts:
   1. 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. 

2. 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.

3. 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.

3. 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.

4. 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:

1. Scan the original copies of BIR Form No. 2307 through a scanning machine or device;
2. 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
3. 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.

5. 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.

6. 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.

7. 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!

Book a demo with us and learn more about what our platform can offer!

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Why do we pay taxes?

“There are only two things certain in life: death and taxes.” This popular saying only shows how taxes greatly affect our entire lives, making us wonder, how do taxes really work?

Have you received the financial support given by the government in the recent lockdowns? Do you enjoy your ride with the newly rehabilitated MRT? Or the no-traffic ride in NLEX? These are only some of the things that people benefit from paying their taxes.

Tax serves as a fund of the government to be used for various public purposes such as education, public infrastructures, health insurances, and other projects that will provide the basic necessities of the society. Tax may appear to be complicated, yet it contributes to the growth of our economy and provides the necessities of the public. And every individual, whether a person or corporation, who earns income in the Philippines has the responsibility to pay taxes that will supplement the needs of the public. 

Why do I need to know it?

It is every Filipino citizen’s legal obligation to understand which taxes one must pay and to calculate them properly. As it is considered a violation of the law once a person fails to file and pay taxes on time, whether intentionally or unintentionally, making that person criminally liable for not paying its taxes.

Knowing how taxation works can help you have a deeper understanding of how your money is taxed in the long run and enable you to take charge of your finances.

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1. Renewal of Registration

Every start of the year, a taxpayer is required to file and pay the registration fees to their respective RDOs and LGUs. The deadline for annual payment of business registration renewal is every 20th of January. However, a taxpayer has an option to renew their registration quarterly which is due every 20th day after the close of each quarter. On the other hand, an Annual Registration fee of Php500.00 is required to be filed and paid to the BIR on or before January 31 using BIR Form No. 0605.

Permit applications are required at both the Barangay and Municipal levels. In addition, companies must also pay the business permit fee, local business taxes and any additional charges imposed by the LGU.

2. Registrations and Submission of Books of Accounts

There are several types of Books of Accounts that can be registered with the BIR. To learn more about the different types of BOAs, click here.

These are the requirements for each type of Books of Accounts:

1. Manual Books of Accounts

According to RMC 82-2008, the only time Manual Books of Accounts will be renewed or re-stamped is if only it has been fully used from cover to cover. This type of BOAs is not required to be submitted annually to the BIR. But, this may be a requirement to be presented for auditing and tax mapping.

2. Loose-leaf Books of Accounts

Any business that maintains its accounting books via the loose-leaf books of accounts system is required to submit BIR approved accounting books and records for the year ending 31 December 2020. These books must be submitted on or before 15 January 2021.

An affidavit must also be submitted confirming the type of books, the number of pages, and the volume number of the books submitted. Remember to take note that to be entitled to file loose-leaf books of accounts, your company must first have been granted authorization by the BIR to use this system!

3. 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) for the year ending 31 December 2020. Computerized books have to be submitted on or before 30 January 2021. An affidavit must also be submitted which confirms the completeness and accuracy of the computerized books.

3. Submission of Summary List (Alphalist)

The Bureau of Internal Revenue (BIR) recently issued Revenue Regulations (RR) No. 2-2015 to amend the pertinent provisions of RR No. 2-2006 and No. 11-2013 with regards to the submission of copies of BIR Form Nos. 2307.

The provisions of Section 2.D. of RR No. 2-2006 are amended as follows:

Section 2. Mandatory Submission of Summary Alphalist of Withholding Agents of Income Payments Subjected To Creditable Withholding Taxes (SAWT) by the Payee/Income Recipient and of Monthly Alphalist of Payees (MAP) Subjected to Withholding Tax by the Withholding Agent/Income Payor as attachment to their filed returns.

D. Return required to be filed with SAWT and Certificate of Creditable Tax Withheld at Source.

Provided, however, that the SAWT shall be submitted through the applicable modes of submission prescribed under RR No. 1-2014, using the entry and validation module of the BIR. On the other hand, in lieu of the submission of hard copies of Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) as an attachment to SAWT, the following procedures shall be strictly observed:

1. Scan the original copies of BIR Form No. 2307 through a scanning machine of device;
2. Store the soft copies of BIR Form No. 2307 using the “PDF” file format with the file names alphabetically arranged in a Digital Versatile Disk-Recordable (DVR-R). The file name shall contain the following information separated by an underline:

a. BIR-registered name of the taxpayer-payor;
b. Taxpayer Identification Number (TIN), including the head office code or branch of the payor, whichever is applicable; and
c. Taxable Period.

4. 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. The Certificate 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 2020, employers must issue BIR Form 2316 to each employee on or before 31 January 2021.

5. 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 on or before April 15.

6. Filing of General Information Sheet

This is again a requirement of the SEC for stock corporations only. It must be signed by the Corporate secretary and must be submitted thirty (30) days after the actual annual stockholder’s meeting (For Domestic Corporation) or anniversary date of the issuance of the SEC license (For Foreign Corporation).

7. 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 2020. Inventory Lists should include schedules (in both hard & soft copy) of finished goods, works in progress, raw materials, supplies and stocks-in trade.

Inventory Lists must be submitted on or before 30 January 2021.

8. Summary list of regular suppliers

Per Revenue Regulations No 14-2008, large taxpayers (Top 5,000 individual/Top 20,000 Private Corporations) as determined by the Commissioner of the Internal Revenue, shall submit on semestral basis a summary list of its regular suppliers of goods and/or services to the Large Taxpayers Assistance Division/Large Taxpayer District Office on or before January 31 (for the 2nd semester: July to December) and July 31 (for the 1st semester: Jan to June).

To conclude, this article has summarised the annual compliance requirements of companies or taxpayers engaged in business. There may be other annual reportorial requirements needed by your company depending on the industry, formation, and size such as reports that need to be submitted to BOI (Bureau of Investments), PEZA (Philippine Economic Zone Authority), etc., which you may need further information and research to comply with.

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In the Philippines, Tax compliance is one of the most tedious things to handle as a business. Our current tax process is complicated enough to make an accountant go crazy. What more for an ordinary business owner? The root of the problem stems from doing taxes manually which wastes valuable time and money. From a single sales or purchase receipt, you’ll have to record this transaction in more than 7 different tax forms. The better way of doing tax compliance is through automation.

Automating your tax process helps you in a lot of ways. It will save you time and effort by letting a coded program do the manual recording for you. It will also save you costs because of the operational expense it will save you by having one program handle a work of more than ten people. Best of all is that financial data is much more organized, accessible, and secure through encryption. There are a lot of accounting softwares that can help accountants experience these. But only a few can handle tax automation in the Philippines.

While a lot of young developers are on their way to create such products, JuanTax, the Philippine’s first BIR Accredited Tax Platform, has been innovating and leading the Tax Technology industry in the Philippines since 2017. We’ve listed 4 main benefits in automating your Tax Process using JuanTax.

4 Benefits of Automating your Tax Process

• Accurate
  In the manual tax process, repetitive and tiresome work can’t be avoided. It takes time to make all the information precise. However, with automation, every data is reliable and accurate in calculating your taxes and recording data to your tax returns. In JuanTax, One single data entry is all it takes to have your financial data reflected all the way to your Financial Reports.
• Efficient
  Traditional tax processes take too much time and resources. There have been a lot of innovative ways in simplifying some processes through the use of excel but it still takes too much effort for accountants and business owners to go through every spreadsheet in a single excel file. Although traditional methods have improved through time, tax automation through JuanTax beats manual method by ten-fold when it comes to efficiency. Imagine just recording a transaction once, don’t you wish everything is auto populated in an instant? JuanTax simply does that.
• Accessible
  Every data on your account, transaction, and receipt you created are organized and easy to access with JuanTax. Any transaction entered in your account is backed-up in the cloud and accessible with other devices. Automation made it easy and organized when you’re searching for data on your Tax Forms, Books and Financial Reports.
• Secure
  Automation guarantees the protection of your data through encryption. Data encryption is a method of protecting your financial data you enter through JuanTax. Additionally encryption is a process that scrambles readable text and helps provide data security for sensitive financial information.

Through JuanTax, your practice becomes more accurate, efficient, accessible and secure. JuanTax pivots your traditional method of manually recording and maintaining financial accounts to advisory work. Get your tax done right with automation as it creates the opportunity for you to do more and give more to your clients.

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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.

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The Payment Confirmation email is your electronic receipt showing that your payment was successfully issued through your selected payment partner. It also includes a few details about the form you have submitted as well as the amount and date of the transaction.

If you are going to use JuanTax to file and pay for your taxes, here are some helpful guides you can check on how you can locate your Tax and Payment Confirmation within our platform:

• Tax and Payment Confirmation in JuanTax
• Tax and Payment Confirmation in Fast File

If you are going to use eFPS or eBIRForms, find out how you can confirm that your taxes were successfully paid online by reading below:

• For eFPS Taxpayers, you simply need to fill out the form in the platform, file it, and pay using the same system. If the filing and payment were processed successfully, the system will automatically generate a payment confirmation that can be located in the eFPS-AABs  e-payment confirmation screen. Your tax return will automatically be deemed filed and paid after your confirmation number has been issued to you.
• For eBIRForms Taxpayers, you will need to personally pay your tax returns manually through AABs to your designated RDO, collection agent, GCash, or other modes of payment applicable when you use the eBIRForms. After filling up and validating the information entered, and submitting your tax returns, you will receive a confirmation email bearing essential details of your transaction. Proceed to your chosen payment method, then submit your proof of payment and confirmation email to the BIR.

With the electronic tax filing in place, the shift towards digital payments has become imperative as a variety of payment methods become available.

These are the 4 options in paying for your taxes. These may vary depending on your taxpayer type.

1. Fund Transfer – for cash, debit/credit card payment through online banking system;
2. Tax Debit Memo (TDM);
3. Tax Remittance Advice (TRA) – for National Government Agencies (NGAs);
4. Mobile Payments – (GCash/Pay Maya);

Now that you have learned how to confirm whether you have performed your tax compliance correctly, you may now proceed with filing your actual tax return. If you have further questions or clarifications, search JuanTax Help Center for the information you need. If you can’t find an article that answers your query, you may contact our support team via chat or email from Mondays to Fridays, 8 AM to 9 PM.

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