Do I need to enroll in the BIR’s eFPS?


BPI_C0057_BPI EOL Infographics-23 Transfer to Enrolled Accounts_BIR eFPS or Electronic Filing and Payment System is a facility provided by the Bureau of Internal Revenue for a fast, convenient and paperless tax filing and payment using web browser and internet connection.

But who are required to enroll in the eFPS facility? Not all are required, only those the are listed below are the mandatory to enroll in the eFPS.

Large Taxpayers (RR#2-2002);

  • Top 10,000 Corporations (RR#5-2004);
  • Top 20,000 Corporations (RR#3-2009);
  • Insurance Companies and Stockbrokers (RMC#71-2004);
  • Corporations with paid-up capital stock of 10 Million and above (RR# 10-2007);
  • Corporations with complete computerized system (RR#10-2007);
  • All Government Bidders pursuant to EO 398 as implemented by (RR# 3-2005);
  • Top 5,000 Individual Taxpayer (RMC# 69-2009);
  • Philippine Economic Zone Authority (PEZA) (RR 1-2010);
  • Licensed Local contractors  (RR 10-2012);
  • National Government Agencies  mandatorily required to use the Electronic Tax Remittance Advice (RR 1-2013);
  • Taxpayer Account Management Program (TAMP) and accredited importers, including prospective importers required to secure the Importer Clearance Certificates (ICCs) and Customs Broker Clearance Certificates (BCCs) (RR 10-2014); and
  • Those required to secure the BIR-ICC and BIR-BCC (RMO 10-2014)

However, if you are not one of those identified but have the intention of using eFPS, you can submit a Letter of Intent addressed to the Revenue District Office (RDO) where you are registered, for proper evaluation and approval.  You can only enroll and eventually log on to the eFPS website upon approval of your application. Please coordinate with the Taxpayer Service Section (TSS) of your RDO.

Here are the requisites for the availment of the eFPS system:

  • Taxpayer Identification Number (TIN) should be registered in our BIR Integrated Tax System;
  • Certification authorizing any of the two (2) officers designated to file the return under Section 52 (A) of the Tax Code (President or other principal officer, and Treasurer or Assistant Treasurer of the Corporation) who shall enroll for the system usage;
  • Enrollment to eFPS;
  • Enrollment to eFPS Authorized Agent Bank (AAB);

Here are the steps in enrolling to EFPS:

Step 1:  Access BIR website at www.bir.gov.ph, using your internet browser.

Step 2: Click on “eFPS” icon to go the the eFPS home page.

Step 3: From the eFPS Login page, click on “Enroll to eFPS” link.

Step 4: The eFPS enrollment form appears. Complete the required fields on the Enrollment Form page. Then, click on the “Submit” button.

Afterwards, the system will inform you that your enrollment has been successfully received. Then you have to wait for an e-mail message from BIR informing you of the status of your enrollment – whether approved or disapproved.  Once your account has been activated, you are ready to e-file and e-pay, and perform all the functions within eFPS.

It is important, however, for you to remember your username and password, as well as the answer to the challenge question.  Keep the answer to yourself.  Do not make it easy to guess, nor write it down.

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HAVE YOU LOST YOUR BIR CERTIFICATE OF REGISTRATION?


lostDid you lose your original BIR form 2303 or the Certificate of Registration (COR)? That you already exerted effort but you can’t find it.   Or your company’s BIR 2303 was caught by fire, flood or natural disaster?  Well, don’t worry, you can always replace the BIR Form 2303 or the BIR Certificate of Registration (COR) by doing the following:

  1. Get a copy of BIR form 1905 (Application for Registration Information Update) and fill out properly.
  2. Prepare a notarized Affidavit (e.g. Affidavit of Loss, if lost).  Much better if you have a photocopy of the BIR Form 2303.  Much much way better if you have the old original certificate for replacement.
  3. Then go to your Revenue District Office (RDO) where your business is registered and submit the accomplished BIR Form 1905 together with the required attachment/s. Please take note that the BIR is already implementing the queuing system.  Thus, get a number and check window / table number for the submission of your application.
  4. The BIR RDO personnel who is assigned for the receiving will advise you to pay the necessary certification fee and documentary stamp tax. This is the time to get and accomplish copy of BIR Form 0605 (Payment Form).
  5. After which, you will be advised to pay the required amount to the any BIR accredited bank/s and the date when the new Certificate of Registration will be released.
  6. Bring the proof of payment or submit before the issuance of the new Certificate of Registration.  But for some RDO, the proof of payment is required prior to accepting the BIR 1905 and Affidavit.  Either way, you should get a receiving copy of your application and the specific date of release of your new BIR Form 2303.

There. Easy.

De Minimis Benefits Values


deminimis 2De Minimis Benefits are tax exempt.  These benefits were outlined and defined by the Bureau of Internal Revenue (BIR) in the issuance of Revenue Regulation No. 3-98 and several amendments since its adoption such as RR No 8-2000, RR No. 15-2011, RR No. 8-2012, RR No. 1-2015 and the latest issuance as of this writing is RR No. 3-2015.

There are several sites discussing the topic and even the BIR per se. But how much really is the maximum amount of the benefits if we convert these into peso amount  on a monthly or yearly basis?

The table below will give you a guide on the peso amount assuming a Minimum Wage Earner located in NCR or a daily wage of P454.00.deminimis

But then gain in the application of de minimis benefits, its important to note the stated limits.  Further, it is also important to consider policies created by the company such as (1) Sick & Vacation Leave (SLVL) and  (2) Health policy covered by an HMO.  Lastly, it is important as well to finally consider if a company is under a CBA agreement.

Bottom line, De Minimis Benefits were created as employees privileges and these are relatively small in value and non-taxable.

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!

Attention Corporation: Risk of paying not less than Php10,000.00 penalty on 1702Q


1702QATTENTION CORPORATION: There is a potentially expensive sting in the tail for pay and file taxpayers who have not yet paid & filed their 2014 second quarter corporate income tax (1702Q). Second quarter covers April, May & June 2014 and the deadline for filing is on the 28th of August or on or before 60 days following the close of each of the quarters.  Anyhow, for corporate taxpayers, the 2014 income tax return will trigger a penalty not less than Php10,000, if not filed. Therefore, it is important, however, to note that the penalty is calculated on your income tax liability, and that this penalty is in addition to the tax liability. Oh yes! aside from the tax payable you will be charged for additional penalty.  You don’t want that do you?  Well of course, the BIR issued a table of compromise penalty depending on the amount of tax involved.   But that is not he point.  Because additional penalties may also apply for non-compliance with filing obligations and worst you will be monitored already.

Thus, if you want to avoid any penalty then make sure you have filed and paid your 1702Q ON OR BEFORE THE DEADLINE.