Mga Dapat Malaman Bago Simulan ang Planong Negosyo

Kung ikaw ay may mallit na Negosyo dito sa Pilipinas, o di kaya naman ay nagbabalak magtayo ng Negosyo o Business. Dapat mong alamin ang ilang importanting mga bagay paano ang tamang pagnenegosyo.

Ang mga sumusunod ang basic na dapat gawin para sa maunlad na negosyo.

1.   May Puhunan
   
   
2. Tamang pag-aaral o kaalaman tungkol sa Business na gustong gawin. “Feasibility Study”
   
   
3. Pagrerehistro, Permit at mga lisensya
   
   
4. Pamamahala o Management
   
   
5. Accounting at mga Pag-uulat na pinansyal “Financial Report”
   
   
6. Pagbubuwis o Tax Compliance 
   
   

May puhunan o “capital” maaaring ito ay  galing sa matagal na  pag-iipun o kaya naman ay galling sa kamag-anak, o pwede rin na Loan ito mula sa mga bangko o iba pang mga Financial Institution na nagpapautang o kaya naman ay pautang mula sa mga proyekto ng gobyerno o pamahalaan.

Kung mayroon ka nang idea sa gusto mong business o negosyo, mahalaga pa rin mayroon kang malawak na pag-aaral tungkol dito. Tulad ng kung paano ito simulan, location kung saan ang tamang lugar, sino ang mga target na customer, suppliers at marami pang iba.

Pagrerehistro, kung ready na tayong simulan ang planong negosyo;, mahalagang irehistro muna ito sa Deparment of Trade and Industry-DTI kung Sole proprietor, at sa Securities and Exchange Commision-SEC, naman kung Corporation.

Sapagkat para lamang sa maliliit na negosyong pinoy ang topic na ito, hindi natin tatalakaying ang anumang tungkol sa Corporation.

Mahalagang ipinaparehistro sa DTI ang business name upang maiwasan ang pagkakapareho sa mga pangalan ng business sa buong Pilipinas.

Kung mayroon ka nang DTI certificate, pwede ka nang kumuha ng business permit to operate sa lugar kung saan mo gusto itayo ang negosyo mo.

Kailangan din i-register sa Bureau of Internal Revenue-BIR ang business, para sa pagbubuwis.

Pamamahala o Management, pagkatapos mo gawin ang mga steps bago ang pagsisimula ng business, ngayun ready ka na “Open for Business” na ang negosyo mo, ang pamamahala at pagpapa-unlad nito ay nakasalalay sa mahusay na diskarte mo bilang may-ari.

Accounting, nakapaloob sa accounting ang tamang pagpapahalaga sa lahat ng mga kaganapang may kinalaman sa pananalapi o pinansyal ng isang negosyo.

Ano nga ba ang ACCOUNTING?

Ang pinaka-matandang definition ng ACCOUNTING, na alam ko bilang accountant at memorized ko pa hanggang ngayon.

Accounting is "the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof"

Kung ako ang magbibigay ng kahulugan nito sa tagalog ito ay;

Ang accounting ay "ang sining ng pagtatala, pag-uuri at pagbubuod sa makabuluhang pamamaraan at pagtalakay sa mga tuntunin at mga transaksyon na may kinalaman sa pananalapi, mga kaganapang may lakip na pinansiyal na katangian at pagbibigay-kahulugan sa mga resulta nito"

Kung babasahin sa tagalog, mahirap pa rin intindihin kaya para sa lahat, ang pinakasimpleng pwede kong ibahagi na definition ng accounting sa tagalog ay “Pagku-kwenta o pagtutuos ”.

Pagku-kwenta o pagtutuos  kasama ang mga proseso ng pare-record, pagsukat, at pagbabahagi sa pamamagitan ng mga report na pinansyal at iba pang impormasyon tungkol sa negosyo.

Ang “Accounting” ay profession? Bilang Business owner kailangan ko ba talaga gawin ito?

Ang sagot ay, Oo, sapagkat kahit gaano man kaliit ang isang negosyo, bilang may-ari, dapat alam natin kung magkano ang kinikita nito, o kung ito ba ay nalulugi. Kaya nga sa mga tulad natin na may  maliit lang na negosyo simple lang ang kailangan marunong tayo mag-kwenta.

Pagbubuwis o Tax Compliance, mga dapat bayaran sa gobyerno. Napakahalaga na malaman ng mga business owners ang  mga panuntunan ng pagbubuwis, o TAX COMPLIANCE, kung hindi ito masusundan ng tama, ito ay maaaring maging isa sa mga dahilan sa pagsasara ng negosyo. Sapagkat ang pagbubuwis ay tungkulin ng bawat mamamayan, ang mga alituntunin nito ay nakasaad sa batas at ang pagsuway sa batas ay may mga kalakip na kaparasuhan o penalties.

Dapat tandaan. Ang Tax na dapat babayaran ay yun lamang may tamang basehan na sinusuportahan ng mga transactions receipts at nai-record sa books of accounts upang maiwasan ng mga under declaration na maari din namang makita ng mga examiner ng BIR kung mag- Audit ang mga ito. 

Marami pa tayong dapat malaman tungkol sa accounting at tax compliance kaya abangan nyo pa ang mga topic ko tunkol dito.

ELEDGER BOOKKEEPING AND ACCOUNTING SERVICES:
Our Services: Bookkeeping and Accounting , Tax Compliance
Business Registrations : DTI, SEC, BIR, Mayor's Permit, SSS,
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Simple Tax Compliance for Self Employed - Part 1

Self-employed are working individuals who do not have regular employers as such they specifically earn through their own efforts and expertise. 

Let us first define who are under the category of self-employed. 

1. A Sole Proprietor is simply as a business-owner who utilizes their resources as capital for profit. It is sufficient that they are knowledgeable with any kind of business they are interested in. 
   
   
2. Freelancers or Independent Service Contractors are people with acquired, enhanced and special skills. They render their time, skills and expertise for a fee. Examples are IT/Programmers, sales agents, bookkeepers, masseurs etc., these service providers usually work on their own. 
   
   
3. Professionals may be similar to freelancers, the big difference is that prior to practicing their profession publicly they should have passed a board examination administered by Professional Regulation Commission; after passing the board exam they are called Professional with PRC identification card and certificate. 

All persons who work on their own, and not limited to the above as discussed, and includes others who earn by rendering a special kind of job or services are considered self-employed. 

Generated income from business, jobs and services rendered are taxable, as such self-employed individuals must secure registration and licenses to operate. 

SOLE PROPRIETOR’s undergoes business name registration with the Department of Trade and Industry, DTI. Must secure a business permit to operate from the Local Government Unit - LGU, and must register with the Bureau of Internal Revenue-BIR. Compliance to those requirements make Sole Proprietor as a business entity. 

FREELANCERS AND OTHER SERVICES PROVIDERS must secure Occupational Tax Receipts (OTR) from the Local Government Unit - LGU for them to be able to register with the BIR.

Why is it important that a Freelancer and other services provider be registered with the BIR?

Freelancers, like any other business, must be registered with the Bureau of Internal Revenue (BIR). It is stated in Section 74 in the Philippine Tax Code that if an individual is receiving income from sources within or outside the Philippines, they are required to pay taxes.

PROFESSIONALS must secure Professional Tax Receipt (PTR) and must also register with the BIR with the same reason as freelancers. 

It is important to note that freelancers must have an OTR; and a professional have PTR. 

Now that you are able to identify yourself as to what type of self-employed you are, then you may go to the BIR and register. Take note that once you register with the BIR you must religiously comply with all the tax types indicated  in BIR Certificate of Registration BIR form 2303 because non-compliance requires no explanation but penalty and sanctions may be imposed without recourse. 

Below are the usual compliance for self-employed;

SOLE PROPRIETOR

1. Annual BIR registration renewal – 0605
   
   
2. Quarterly Percentage Tax BIR form 2551Q for Non-Vat or;
   
   
3. 2550Q for VAT registered
   
   
4. Quarterly Income Tax Returns
   
   
5. Withholding Tax on compensation 1601C if with employees
   
   
6. Expanded Withholding Tax 0619E for monthly and 1601EQ for quarterly payment
   
   
7. Invoice and or Official Receipts with approved Authority to print
   
   
8. Books of accounts
   
   
9. Annual Inventory
   
   
10. Annual Alphalist of payee withholding for both Compensation and EWT
    
    
11. Income Tax Return with Audited Financial Statement if Sales exceeded the Three Million Threshold.

FREELANCERS and PROFESSIONALS

1. Annual Registration
   
   
2. Official Receipt
   
   
3. Books of Account
   
   
4. Quarterly ITR
   
   
5. Annual ITR
   
   

Detailed discussion about actual tax computations and examples will be discussed in a separate blog.

ELEDGER BOOKKEEPING AND ACCOUNTING SERVICES:
Our Services: Bookkeeping and Accounting , Tax Compliance
Business Registrations : DTI, SEC, BIR, Mayor's Permit, SSS,
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Income Tax Return Filing - File ITR Early to Avoid Penalty...

Income Tax Filing na naman sa April 15, 2023  dapat January pa lang o simula ng bagong taon na-markahan na sa kalendaryo ang petsang ito, at dapat hanggat maaga makapag-file tayo ng ating ITR o Income Tax Returns.

We should avoid yun habit na kung kailan deadline na saka dumadagsa ang mga tao sa BIR to file their ITR. Naku ito pa, ngayong 2023, ang last day of filing ng ITR ay April 17, 2023. pumatak na Sabado ang April 15, at syempre extended ang filing, at karamihan ikinatutuwa ang ganyang mga extension.

We all know that everyone who has earnings during the year needs to file an Income Tax Returns which includes employed individuals, self employed and yun mga kompanya. Kaya marami talaga ang pumupunta sa BIR lalo kung malapit na ang deadline and even more sa mismong deadline.

Even the BIR has implemented several ways of ITR filing like the SUBSTITUTED filing, EFPS and ebirforms to speed up the filing of ITR, still peoples crowds in almost all RDO's nationwide. 

Why?

The main reason is that the ITR including its attachments has to be stamped RECEIVED by the BIR to make it official, authentic and reliable for other users like the SEC, banks and other interested party. 

Siguro sometimes may fault din tayo, because many of us nakaugalian na yun "MANYANA" habit o saka na.. 

Karamihan pa niyan, kung kailan deadline saka pa may kailangan ipa-notaryo, ise-xerox, bibili ng docs stamp at syempre habang nasa pila magdidikit pa ng docs stamp at kung mamalasin pa pagdating sa receiving window REJECT ang submission because of missing  or lacking documents.

We should avoid the same situations mentioned above, let us be more organized, dapat sa preparation pa lang ng ITR , we should ensure that the content of the ITR can be traced from the source, the books of accounts. Good accounting and audit practices been done and sufficient documentations was prepared and attached to the ITR as required. 

Everyone who earns by doing jobs or business is liable to pay income tax and file a tax return on time provided for by the tax code. Failure to do so incurs penalty.

Except for employed individuals who earns purely compensation from jobs and their supposed to be income tax due were withheld and remitted in advance to the BIR, this type of taxpayers are given withholding tax certificate (BIR Form 2316) that can be as good as ITR already; as such they are no longer required to file the ITR provided that correct amount of tax was deducted from their salary and the same were remitted to the BIR, and;

Minimum wage earners - MWE who are exempted from paying income tax are not bothered about ITR filing, simply because exempted nga sila.

Who really are required to file income tax returns and pay income tax due on or before April 15, deadline every year?

1.  Working individuals who have other sources of income on top of their regular job or those who had multiple employers during the year and that  all their earnings from various employers needs to be consolidated into an ITR. Example is an employee who have multiple employers and at the same time running a personal business. 
2. Self-employed  are actually business owners who utilizes capital in order to profit, and income from business is subject to income tax. Recording of business transactions and accounting is necessary to accurately calculate taxable income.
3. A Company in the form of partnership and corporation. These are legal entities formed by means of laws. They are classified as non-individual taxpayers with more complicated tax and reportorial compliances than individual taxpayers. Because this type of taxpayers employs people to do the bookkeeping, accounting and audit, and even lawyers are hired whose task is to determine and express tax implications and ensure tax compliances are in accordance with the tax code. 
   
   

Most of the time the reason for delay in filing the ITR is the essence of time, it seems that the three (3) months after the end of a taxable year isn't enough. Let's be honest among ourselves di kaya napapa-petiks-petiks talaga tayo habang hindi pa deadline? Bato bato sa langit ang tamaan ay ngumiti na lang.

ELEDGER BOOKKEEPING AND ACCOUNTING SERVICES:
Our Services: Bookkeeping and Accounting , Tax Compliance
Business Registrations : DTI, SEC, BIR, Mayor's Permit, SSS,
PHI,, HMDF-Pagibig,  Send us Email elbas.main@gmail.com

Marginal Income Earner - MIE

Self-employed business owners whose annual total gross sales or receipts do not exceed PHP100,000, may be tagged as Marginal Income Earner (MIE)

Marginal Income Earners are small businesses we see around and are usually few blocks away from each other, it may be, but not be limited to small sari-sari stores, small carinderias or turo-turos, drivers/operators of a single unit tricycle or jeepney, vulcanizing shops and others.

Like what I've said in my previous blog Marginal Income Earners are exempt from paying taxes, even the annual BIR registration are free for them, provided they stay small and no plan of expansion; because once they expand the business to generate more sales or revenues most likely they have to change their registrations and pay regular taxes to the government.

Though MIE's exist primarily for Subsistence or Livelihood, they still need to register with the Bureau of Internal Revenue (BIR) with minimal requirements provided for by BIR RMC - No. 7-2014 as follows;

1. Accomplish BIR Form 1901 with only a sworn statement of income and PSA authenticated birth certificate;
2. Registration of books of accounts (e.g., two-column journal or other simplified books for daily expenses and revenues);
   
3. Issuance of registered principal receipts/sales invoices as prescribed under Revenue Memorandum Order No. (RMO) 12-2013; and 
4. Filing annual income tax return (BIR Form 1701) is still required annually.

It must be noted that for Marginal Income Earners, the issuance of invoice or receipts is still required, simple bookkeeping still has to be maintained in the form Books of Accounts, that can be a two-column journal or other simplified record of daily expense and revenues; and filing of Annual Income Tax Returns is mandatory meaning a penalty may be incurred for non-compliance.

The above presentation are self-declaration based on searches applicable to the topic involving the latest issuance from tax regulating body of the Philippines, if there are other revenue regulations or revenue memorandum issued that over rule the above as discussed, such new tax related issuances shall prevail.

ELEDGER BOOKKEEPING AND ACCOUNTING SERVICES:
Our Services: Bookkeeping and Accounting , Tax Compliance
Business Registrations : DTI, SEC, BIR, Mayor's Permit, SSS,
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Sari-Sari Store needs to pay tax... really?

The answer is Yes! Or may be NOT.  

Confused?

At the time the sari-sari store become operational after complying with all the required registrations and permit, what comes next is tax compliance.

What is a tax compliance means for a Pinoy business even in a small business like sari-sari store.

Tax compliance is the taxpayers' decision to comply with tax laws and regulations by paying tax timely and accurately.

In the Philippines and almost in every country around the world recognizes the importance of taxation and there always issues about compliance.

Small business like sari-sari store has to register with the Bureau of Internal Revenue (BIR).

Bureau of Internal Revenue (BIR) is the governments agency that regulates all kind of taxes every Filipino has to comply directly or indirectly. 

Later on in my future blog, I will tell you about direct and indirect tax.

A sari-sari store should register with the BIR and comply with certain taxes like;

1. Annual Registration - paid annually using the BIR form 0605
2. Quarterly Percentage - paid quarterly using the BIR form 2551Q
3. Annual Income Tax Return using the BIR Form 1701 for self employed or what we call sole proprietor. 
4. Withholding Tax 

In usual way the tax type for compliance is indicated in the BIR Registration Certificate or the BIR form 2303. Said tax type has to be complied with, accordingly per schedule otherwise it will incur penalty and interest commencing 

from the date the tax is due until the time such tax is paid.

So what about a small sari-sari store? 

It depends, if your sari-sari store fall under the category as Marginal Income Earner (MIE) with annual gross sales not exceeding P100,000 then it is totally exempt from paying taxes.

What if the sales exceeded the P100,000.00?

Annual gross sales exceeding P100,000.00 is a departure being MIE, as such the business or the taxpayer has to pay annual BIR registration and may be subjected to percentage and income tax.

Take note that according to new law or the TRAIN Law, Purely Self-Employed Individuals and/or Professionals Whose Gross Sales/Receipts and Other Non-Operating Income Do Not Exceed the VAT Threshold of P3,000,000, the tax shall be, at the taxpayer’s option;

1. 8% Income Tax on Gross Sales or Gross Receipts in Excess of P250,000 in Lieu of the Graduated Income Tax Rates and the Percentage Tax; Or

2. Income Tax Based on the Graduated Income Tax Rates

Therefore if the sales exceeded the P100,000,00 up to P250,000.00 the business owner should nominate the No. 1,  8% Income Tax on Gross Sales or Gross Receipts in Excess of P250,000 in Lieu of the Graduated Income Tax Rates and the Percentage Tax, from which still no taxes has to be paid, otherwise if the sales exceed P250,000,00 the 8% applies to the excess over 250,000.00

Example : Quarterly Compliance of a sari-sari store with accumulated sales of P260,000.00 in one year. Detailed as follows;

                                    

                 

         

I hope that I am clear with my simplified explanation of what a sari-sari has to comply when it comes to taxation.

ELEDGER BOOKKEEPING AND ACCOUNTING SERVICES:
Our Services: Bookkeeping and Accounting , Tax Compliance
Business Registrations : DTI, SEC, BIR, Mayor's Permit, SSS,
PHI,, HMDF-Pagibig,  Send us Email elbas.main@gmail.com