TAXATION FOR PROFESSIONALS


True Wellness WarriorsTaxation, in general, is not that popular with most small & medium business owners. The same scenario exists for those professionals who wanted to practice their chosen profession such as doctor. Perhaps because most of the time, taxation is synonymous with a reduction to the overall profitability of a certain business. However, Taxation is a MUST particularly if you wanted to start a business.

Last May 30, 2015, I conducted a seminar entitled “Taxation for Professionals” at the Bayview Park Hotel in Manila organized by True Wellness Warriors. True WellnessThe seminar was specifically intended for doctors who wanted to practice profession and of course doctors who wanted to venture into business such as clinic and the like. The topics I prepared are basically about BIR registration, invoicing compliance, bookkeeping requirements, tax computation, penalties, interest & surcharges, and important dates. Yep, it’s practically an ultimate guide for professionals who wanted to become self-employed and yes starting a business too.  Whew! the question and answer portion is the most exciting portion of the seminar.

WarriorsAnyhow, since I already caught your attention and you are now browsing through and reading this article, I would like to share you the requirements first before we go to the step-by-step procedures, okay?

Okay, if you are a professional, a doctor, lawyer or an accountant, here are the requirements that you need to accomplish.

1. A registered TIN number
2. One original and two photocopies of BIR Form 0605
3. Photocopy of your birth certificate (NSO)
4. Photocopy of your marriage certificate (if married) and the birth certificate/s of your dependents, if you have any
5. Two copies of completed BIR 1901 form
6. Photocopy of proof of address
7. Payment of Professional Tax Receipt (PTR)
8. PRC License
9. Affidavit indicating the rates, manner of billings, and the factors considered in determining service fees (as specified in BIR Revenue Regulation 4-2014). You can download a sample affidavit here.

After securing all those requirements mentioned, here is what you need to do next.

Step 1 – is to know you Revenue District Office (RDO)

Step 2 – go to the RDO and register by filling up BIR Form 0605 (payment form) and pay Php500.00

Step 3 -Fill up BIR FORM 1901 (application for registration) and submit the needed requirements

Step 4 – Apply for Invoices/Receipts using BIR FORM no. 1906 – Authority to Print (ATP). Release of ATP is usually 3-5 working days.

Step 5 – Register books of accounts and have them stamped by RDO where you are registered. These are:(1) Journal (2) Ledger (3) Subsidiary Professional Income Books (4) Subsidiary Purchases (5) Expenses Books

There. Simple, yes?  Congratulations, you can now start becoming a self-employed professional.  Good luck!

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SEC i-Register


This blog had been receiving a lot of queries about on-line SEC registration.  However,  sad to say the SEC i-Register only offers reservation of your proposed company name or selected name for a non-stock or your desired name for a certain corporation for a particular industry.

SEC Registration Requirements for Stock Corporation


Here are the requirement that you need to prepare in connection with the registration of a stock corporation with the Philippine Securities and Exchange Commission (SEC).

1) COVER SHEET

2) NAME VERIFICATION SLIP

3) BANK CERTIFICATE OF DEPOSIT OF PAID-UP CAPITAL (notarized in the place executed)

4) ARTICLES OF INCORPORATION

5) TREASURER’S AFFIDAVIT

6) BY-LAWS

7) UNDERTAKING TO CHANGE NAME (not required if provided in the Articles of Incorporation)

HOWEVER, additional requirements such as: (1) Indorsement/clearance from other government agencies, if applicable (2) For corporations with foreign equity, submit proof of inward remittance by non-resident aliens and foreign corporate subscribers who    want to register their investment with BSP; (3) For corporations with more than 40% Foreign equity, submit SEC Form No. F – 100; (4) For corporations with Phil. Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA) or other economic zones application, attach Certificate of Authority or indorsement from said government agencies.

Of course, as of my last inquiry,  the cost associated with the registration are (1) Filing Fee:  1/5 of 1% of the Authorized Capital Stock but not less than Php1,000.00 (2) By Laws: Php510.00 and (3) Legal Research Fee:  1% of Filing Fee but not less than Php10.00.

Gasoline Depo – a business idea


I was watching an early news program, and I was a bit mesmerized when the subject matter shifted to used plastic materials, like plastic bags that for groceries and the styro material  for packed meals. Yes, these are biodegradable materials but commonly used by malls and fast food chains.

Anyhow, I won’t be talking about the business of turning plastic materials into diesel or gasoline. Ha ha ha! But of course it is amazing – remember doc?  the “back to the future” movie. Perhaps in some other days if science permits us to do so. 🙂 Hopefully, if that day will come, facts and information about “no harm” to the environment or to people per se are also available na.

Anyhow, as I was watching the news about diesel and gasoline, and ka-boom! Flashback! Six years ago, yeah, 6 years ago…I and my four friends were talking and storming our brains about business. Then suddenly we came up with something.  How about putting a gasoline depo? What? Gasoline depo?

The business model is so simple: purchase, provide and sell diesel to passenger jeepneys (PUJs) and the like basta those motor engines drinking diesel. So the question now is why gasoline depo? depo or depot? what the… whatever.

Hhmmm, anyhow, okay, the business idea was a product of a niche market that we have identified back then. Yep yep, since one of my four friends is a police guy who happens to own a passenger jeep and the concurrent president of a drivers and jeepney operators association — ting! Sweet. Earn while servicing the needs of your members then members have the chance to earn naman via rebates. There are about fifty (50) passenger jeeps registered under the association — very clean, a niche market. Let us do the math, 50 jeeps a day six year ago multiplied by per liter of diesel multiply by… 😉 Man! That is profit! yes, prooofiitt.

Another thing is one of us owned a 200 sqm lot near the hi-way whereby passenger jeeps passes through every day. So it’s not only jeep that we are looking at but all vehicles even trucks. Putting the raw ideas together, ka-boom! “a gasoline depo”. So the next step is to find the right business partner who can supply us diesel with a plus package like an overhead tank and at least one diesel dispenser to start with. We were able to talk with Sea Oil and Total that time – haggled with the best possible low cost deal and good terms.

So how do we earn?

Ok, normally those big operators of bus and jeep have what they called an on-sight refilling station. Meaning these operators purchased their own gasoline or diesel as part of their supplies and stores it. However, this thing already evolved. Most of them are now directly purchasing gasoline and diesel via available gasoline station near their garage. But the power of leverage is still there via discount and terms.

Now, by putting up a gasoline depo, you can also negotiate a better deal like discount and terms. Why, because you already have a sure buyer, a niche that will purchase your diesel.  And that is power.  Two ways to earn, purchase discount plus add on margin – but not that high and not that low so as not to distort the on-going market price of diesel.  In addition, you still have the chance to supply other vehicles aside from your niche market.

So there you are. Hope you get the idea…

Starting a START UP!


One thing for sure, the question of how to start a start-up business is the most basic question at the back of our mind. Anyhow, I came across to this site “How to Start a Startup” talking about things that are needed in creating a successful startup.  I would like to share this to you because I find it interesting and well explained.  Three important things the writer is pointing out however on his writings about startup.  One, is to start with good people. Second to make something customers actually want.  And lastly is to spend as little money as possible.

Okay, starting a startup discusses areas on startup that are basically you already knew prior to reading this blog.

To summarize the basic ingredients —

(1) Idea – yes, idea, idea, idea.  Is my idea salable? Was it already introduced? Is it bas like others? Well,  it doesn’t take brilliance to do better.

(2) People –  Seemingly, one of the best tricks during startup was a rule for deciding who to hire. Yes of course, get the good people and lil of right one.

(3)  What Customers Want – the second most hard part of the equation.  But then again can be solved by your imaginative mind.

(4) Raising Money – huh! probably this is the most critical one.

So there, the essay is kinda helpful.  Yes, I think it is very helpful.  🙂