Again it is that time of the year where individual taxpayers are busy preparing their tax returns and books.
Also the BIR’s(Bureau of Internal Revenue) shame campaign for those professionals not paying their taxes has gotten some mixed opinions in the society. Some say it is just right while others say that it is inappropriate. Well I guess somebody has to do such brave act and I salute the bravery of the commissioner Henares to push for transparency and compliance to the tax regulations. We Pinoys should be aware of our tax obligations because it is our duty as citizens of a nation.We call that power of taxation. Who else will finance our nation but us its citizen. I know our officials has not been doing good for decades already but who is to blame for that than ourselves who elected such government officials who abuse their power.
But lets put politics aside and focus on doing the right thing.
source: http://knowyourtaxes.ph/
The BIR has this another campaign that has been airing in television for some time now. Their “It’s easy as RFP: Register, File, & Pay” campaign aims to educate mostly professionals and online sellers who has not yet registered and has not paid their correct taxes. You can check out the simple site that is very easy to use at http://knowyourtaxes.ph
This campaign answers most of the questions you guys sent me.I remember that as for online sellers and contractors(those whose source of income is via Odesk or other online jobsites) your place of business is where you do your business. So if it is in your house in Quezon City then register in the RDO responsible for your area. Also for those who are still working and do part-time online you still need to register using the same TIN(Taxpayer Identification Number) as both employee and practicing professional/business owner in the case of online sellers.
Again a reminder: don’t wait to prepare your books and other documents when it is time to file your quarterly or annual returns. Doing it earlier and in a systematic way will take out the stress and the rush when deadline comes. Hire a bookkeeper or consult Certified Public Accountant to set up your bookkeeping requirements for your taxation. It may be an additional cost but it is costlier to end up paying fees to BIR for erroneous and late filing. Also having your books of accounts will enable you to analyze where your business is giving you a picture of your financial health.
So again remember the deadline is April 15, Tuesday to file your taxes. If all is alright you can pay it as well if you have still tax payable.
Be a good citizen and remember it is as easy as RFP: Register, File, and Pay.
Dear sir,
It was stated at RFP guidelines that if a taxpayer opted to use the optional standard deduction,there is no need to submit AIF or financial statements.If so,do we have to have our form 1701 certified by a CPA before filing?
Thank you and more power
Respectfully yours,
JS Pasumbal
Hi Julie,
First of all I apologize for the late reply. Just read your question and I have to do lots of research as well since it is not really my expertise. But I hope my research will help you out in your dilemma.
Your question is do you need a BIR accredited CPA to certify your ITR(1701 - self-employed income taxpayer)?
First of all you need to make sure you opted for OSD when you first filed your first quarterly income tax if you haven’t you just can’t change your 1701 to OSD but rather do an itemized deduction. What the NIRC(National INternal Revenue Code) says you need to accomplish 1701 AIF or submit Financial Statements certified by a BIR accredited CPA when your your gross quarterly sales, earnings, receipts or output exceed P 150,000.00.
Also as noted in the new 1701 AIF if you opted for OSD you don’t need to accomplish 1701 AIF to support your 1701.
So with that if your quarterly gross sales, earnings, receipts or output is less than 150,000 pesos there is no need to have a CPA certification. CPAs express their opinion on the fairness of the financial statement after conducting their audit of the financial statements, we don’t certify your ITR but rather the accuracy of the records you present to them(financial statement). And since if would be too tedious if all will present an accompanying FS to all ITR , the ruling has a threshold of 150,000 quarterly sales, receipts, output.
So since you opted for OSD there is no need for AIF or FS thus no need for the CPA’s certification unless you exceeded the threshold.
Hope this helps Julie
Disclaimer: I am not yet a duly BIR accredited CPA. Should you need tax advise on a wide range please seek the help of a BIR accredited CPA or a tax lawyer.
Hi sir, what if i have chosen osd in q1 and in q2 , i have exceeded the 150k gross sales. Can i now shift to itemized ? Thank you.
Hi Tina,
I have some catching up with BIR rules and regulations, but what I remember is that whatever you elected in the first Quarter filing that should be for the rest of the year.
I will try to research and post the answer here.