Introduction to Business Tax | Basics of Percentage Tax and VAT
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- Опубліковано 21 лип 2024
- This video explains the basic tax compliances of business taxes in the Philippines. It an introduction to percentage tax and value added tax (VAT).
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Time Stamps:
00:00 Intro
00:22 Business Taxes Defined
01:06 Percentage Tax
02:02 Value Added Tax
03:34 Optional Income Tax rate
04:46 Other Compliances
05:21 Outro
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Hashtags
#businesstax #percentagetax #vat #inputvat #outputvat #createlaw #trainlaw #bir #philippines #overview #introduction
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Disclaimer:
This video is mainly for academic purposes and is not a substitute in doing your due diligence. For highly technical tax issues, you are advised to seek professional assistance or contact BIR for proper tax compliance.
Hi Gerard, thank you for sharing. I hope you can also share more about local compliance for PEZA-registered and Non-PEZA entities.
VERY HELPFUL
For homeowners assoc (reg. wSEC as not for profit corp.), total annual collection of dues is 600k, what are the documentary requirements when filing annual ITR? Do we need Audited FS? Help please
Good eve Sir Gerard, ano po kaya best tax option for this scenario sir. Nagbebenta ako ng mga agricultural products with sales invoice sa mga company, then projected gross sales po is 2M, then deductable expenses lang is 100k.
Hi sir gerard. Would like to ask About percentage tax was paid on the 1st quarter. Then we updated as VAT registered on the 2nd quarter. we paid VAT on the 2nd year onwards in the same taxable year. Will the VAT retroact from the 1st quarter?
Hi Gerald, good morning po. I am opening a commercial property for rent. As of now it is still under construction and will be finished by end of May 2022. No business name yet nor Mayor's permit and BIR permit as this is my first time. I already have some prospective tenants interested to rent @ 75k/mo for a 10 yr contract. I am required to be VAT registered or simply pay my percentage tax since I will not exceed the 3M threshold? Thank you sir!
paano po kung hindi agad nag-update ng COR kahit na nag-exceed na sa vat thresshold? mag-update lang kapag nakatanggap na ng letter from BIR.
Hi, Just want to ask.. we opted for graduated income tax since mababa lang kami magpatubo like 8-10%, non VAT po kmi kc rice retailer po and way below 3M ang puhunan, do we have to file and pay OPT still?
We opted for graduated kc yung gross sales namin exceeding tlaga ng 250,000 pero konti lang patubo nga namin dun....tpos nag itemized deduction kmi..kc di namin kaya ung 40% deduction lang.
Wala po kasing nakalagay sa COR, kaya I'm hoping na tama po na hindi na kami nagfifile nun..
1701/1701A, 1701Q lang po nkalagay
Good Eve, Sir. Question po. What if the creditable withholding tax exceeds the taxable income resulting to an income tax benefit, how will it be recorded?
Graduated Tax po ang gamit
310,060.54
less 250k not subject to income tax
= 60,060.54 times 20%
= 12,012.11
less creditable withholding 16,786.18
Negative 4,774.08
What will be the entry, Sir?
Is it
Dr: Income Tax Exp 12,012.11
Dr: Def Tax Asset 4,774.08
Cr. Creditable Withholding 16,786.18
Pano po pag next yr ay negative uli ung inc tax? Okay lang po ba na maiipon sa deferred tax asset? Or kino close din po ba ung def tax asset?
Hi sir Gerard! We have small resto po and we are registered po as BMBE. Ano nalang po babayaran namin na taxes. Thank you sir! 😇
Sir magkano ba ang tax ng international company na may branch sa pilipinas? Pareho lang ba sila ng tax sa local business? Paano e compute. Salamat sana mapansin
Hello. Your videos are very helpful. i have a question sir. If i am a farmer (e.g. rice farmer, livestock, vegetables, etc, no manufacturing included), what are the taxes i should pay assuming i also own the farm land? Are all my produce subject to tax? However, I saw one article that agri products are not taxed under the new train law?
BME po ba ito?
Hello Sir. I would like to ask if gross sales is added with non-operating income to determine if an individual exceed the VAT threshold or the gross sale alone?
Hi Mary. For VAT threshold purposes, It would be gross sales/reciepts without adding non-operating income.
Sir may tax bha ang expenses
Hello, Sir Gerard. I have a question regarding the commercial property that I am renting out. I paid my taxes duly for many years until the tenant moved out in 2020. Since then, my commercial space has been vacant. I informed the mayor of our municipality that I closed the business, and a certification was issued. However, the BIR in our capital province, whom I also informed, did not release any certification. Just recently, I reopened the business, but the BIR would not acknowledge it because, according to them, we did not officially close the business and would continue to tax us for the years that the property was vacant, even when there was no tenant anymore. We documented everything, including the end of the lease. Thanks for the advice.
Meron po kasing official form and process ang BIR para mag apply ng closure of business. Normally meron din pong mandatory tax audit ang BIR kung nag aapply for business closure. Need po ito para hindi po mabigyan ng open case. Mag pa assist nalang po kayo sa officer of the day sa RDO niyo kung ano po best na gawin kasi mukahng hindi po properly approved ang business closure ng rental business.
Hello Sir Gerard, thank you for videos. I have a question, I am a real estate broker practitioner (based in Marikina), my tax for this income is being filed regularly by an agent, Recently I opened a small laundry business located in Makati, this is an extension of my TIN, may I know please how to pay for the tax? and what are the type of tax I need to pay? I am still confuse whether to pay for the vat or percentage tax. And if there is a book of guidelines I can read for this that you can reco. Thank you very much in advance.
Hi joyce. If you register the business, the BIR will provide you the certificate of rgistration (COR) indicated therein all the tax obligations related to the business. VAT registration is mandatory for businesses with Php 3M gross revenue, so otherwise it is under 3% percentage tax.
sir gawa naman po kayo content about sa binance at forex. mga tradings po ng crypto
(2)
Are money from loan taxable? If not will it be taxable if you use it to start your business? I would really appreciate your comment on this, or if possible could you make a video about this? Thank you in advance!
Hi Meeka. Money from loan is not taxable. For business, what is taxable is the gross revenue or net income not loan proceeds. But take note of tax arbitrage on interest income, you can watch my video on that to learn more.
sir yung may solving sna
Hi. I just like to ask how much is the estimated tax if the business is earning 100k a month or 1.2 million in a year? Thanks in advance.
Hi Richard. The 1.2M is taxable income it would be 102,500 plus 25% excess of 800k. Also, 3% business tax based on gross sales. Also, 500 for annual registration..
Sir good day po salamat sa very informative video nio..
May question lng po ako.tanung ko na lng ng example para maigsi lng. Agent po kasi ako ng isang real estate ni juan.
Ex. Si juan po ai may real estate company then ginawa nia po etong Incorporation, sinama nia ung 2 pa niang businesses dahil isa po architect, and then vatable na po ung real estate niang firm. Ang position ko po is ganeto.
Nakakuha po ako ng 100k na commission then less with holdingtax na 10% = 90k na lng po.
Since vatable na po ung company nia tama po bang i less sa 90k nmin na commission ung vat na 12%?
90k-12%vat= 79200.
Bali na lessan pa po ako ng 10800.
Hi Angie. 12% VAT is only for vatable taxpayers. Being withheld 10% withholding tax (non-vat) you are not required to be withheld the 12%.
How to properly compute the cost of services for OSD 40%
Just know the kind of taxpayer, whether individual or juridical, so that you know to which tax base you are going to multiply the OSD rate.
Hello po! Paano naman po yung computation ng tax sa mga single proprietor construction companies or contractor? Can you pls talk about this in your vlog. Thanks! :)
Hi Nico. For business taxes with gross revenue of more than 3M per annum you can watch my VAT video, Its kinda seldom that they are covered by 3% percentage tax.
Being VAT registered would mean paying VAT dues eventhough it may not reach the 3M threshold. To minimize the VAT, you may have input taxes to lessen the VAT due.
Hi Sir Gerard, good morning I'm on the initial planning stage of having a minimart in our area. I would like to know what kinds of taxes are applicable to my minimart business in the future and if you can provide me with a sample computation or a scenario it wil be greatly appreciated sir thank you and more power to your channel...GODBLESS
In terms of business tax in relation to BIR, aside from applicable business taxes mentioned in the video, you need to pay annual registration fee. You can watch videos on income tax computations as well for more info.
Sir, san po ako pwede mag aral kc ako nalang gagawa ng income taxes ko
Hi Nickolson. You can watch my playlist on Income Taxation to learn more.
ano po recomended percentage tax for new online sellers po?
Kung hindi naman umaabot sa Php 3M ang gross sales, 3% ang rate.
Good video but try to dumb down the video for regular people to fully understand what you are saying.
This is like reading a book. I'm sure CPAs understand you but we non-number eating commoners ar struggling to keep up.
Mag tanong lang po kayo sa comment section. Salamat sa feedback at na realize ko na need ko pa mas isimplify.