Taxation

Week 2
Administrative Provisions
• Any merchants or business organization are mandated to comply with
the following requirements:
• Registration with the BIR
• Keeping of accounting books/records
• Issuance of sales invoices and receipts
• Filing of tax returns and payment of related tax
• Withholding tax
Persons required to file income tax returns
• Every Filipino citizen residing in the Philippines, on his income sources
within and without Philippines
• Every Filipino citizen residing outside the Philippines, on his income
within Philippines
• Every alien residing in the Philippines, on his income derived within
Ph
• Every non-resident alien engaged in trade, business, or in the exercise
of profession in the Philippines on his income sources within the
Philippines
Persons not Required to File Income Tax
Returns
• An individual with respect to pure compensation income
• An individual whose sole income has been subjected to final
withholding tax
• An individual who are exempt from income taxation pursuant to tax
code and other laws
Place to File Income Tax Returns
• Authorized bank
• Revenue district officer
• Collection Agent
• Duly authorized treasurer of the city
Time to File Income Tax Return
• Annual estimated income tax return for self-employed individual/
Quarterly Income tax returns for Self-employed Individual
• Make and file a declaration of his estimated income for the current taxable
year on or before April 15
• Installment
• 1st installment- 25% of the estimated tax due shall be paid on April 15
• 2nd installment- 25% of the estimated tax due shall be paid on August 15
• 3rd installment- 25% of the estimated tax due shall be paid on November 15
• 4th installment- 25% of the estimated tax due shall be paid on April 15
• Purely Compensation Income- on or before April 15 of the following
year
• Final Income tax- within 30 days of transactions
Substituted filing of income tax returns
• System of filing the tax return for an individual where his employer’s
annual return maybe considered as the former’s substitute income
tax return in as much as the information provided in his regular
income tax return would exactly be the same information
Persons Qualified for Substituted filing
• Received purely compensation income
• Received the income on one employer only
• The amount of income tax was correctly withheld by the employer
• His/Her spouse has complied with all the above 3 requirements
• His/her employer filed its annual information return and furnish
copies of BIR 2316
Persons Not Qualified on Substitute Filing
• Received compensation on two or more employers
• Received other non –business, non-professional or non-trade income
in addition to the compensation income
• Those spouse does not entitled in substituted filing
Type of persons under taxation
• Resident Citizen
• Non-resident Citizen
• Resident Alien
• Non-resident Alien