Tuesday, April 15, 2014

Penalties for Late Filing and Payment of Your Income Tax Return in the Philippines


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Let’s face it.

Everyone procrastinates, especially when it comes to mundane things.


Today, April 15, 2014, is the deadline for the filing and payment of your annual income tax return.

Income Tax 2015:Compromise penalty has been updated to conform with the provisions of the new compromise penalty rates pursuant to RMO 7-2015.

FAQ : BIR Income Tax 2015 eFiling

I hope you filed your income tax returns, by the way. 

Because if you did not, you will be slapped by penalties.


If you have put off filing your Income Tax Return today, you may be one of those taxpayers feverishly googling on how to compute penalties for filing your Income Tax Return late.  Sure, you can always go to your Revenue District Office to have the Revenue Officer compute your penalties. 

But if you don’t want to be surprised with the penalties that you will incur for not filing your Income Tax Return on time, here is a step-by-step procedure on how you can compute the penalties.  Be aware, though, that you still have to go to the Revenue District Office where you are registered to have the penalties computed  and signed by the Revenue Officer. 

1.    Under the Tax Code, the civil penalties that may be imposed for failure to   file and pay your ITR on time are:
a.)         25% or 50% surcharge, 
b.)         Interest of 20% per annum, and
c.)         Compromise Penalty.
These Penalties will be added to your Income Tax Payable.

For illustration purposes, let us assume that your Income Tax Payable is P 20,000.00.

2.    A surcharge of 25% is imposed for failure to file and pay the tax due on time.  This surcharge is also imposed when you file a return other than those with whom the return is required to be filed (i.e.  You are registered with Revenue District Office-La Union, but you filed you return at the Revenue District Office of Baguio City).
Computation: 
     Surcharge = Income Tax Payable x 25%
     Surcharge = P 20,000.00 x 25%
     Surcharge = P5,000.00

The following cases will warrant a surcharge of 50%:
a.   In case of willful neglect to file the return on time; or
b.   In case of false or fraudulent return that is willfully made.

3.    An interest of 20% per annum (or a higher rate as may be prescribed by rules and regulations) is likewise imposed on any unpaid amount of tax until the amount is fully paid.
Computation:
Assuming that the Income Tax Return with Income Tax Payable in the amount of P20,000.00 is filed five (5) days after the deadline:
Interest = Income Tax Payable x 20% x( number of days / *360   
                                Days)
                Interest = P20,000.00 x 20% x (5 days/360 days)
                Interest = P55.56
                *360 days = one year

4.    Revenue Memorandum Order No. 19-2007 issued on August 10, 2007 prescribes the Consolidated Revised Schedule of Compromise Penalties for violations of the Philippine Tax Code.  

*Update as of April 2015:  The BIR has issued Revenue Memorandum Order No. 7-2015 prescribing the Revised Schedule of Compromise Penalties.  

Compromise penalty on the above-mentioned Income Tax Payable of P20,000.00 is P10,000.00.



**Revised Compromise Penalty Table for Failure to File as of April 2015




5.    Total Income Tax Payable inclusive of penalties is:

          Income Tax Payable                                20,000.00
          Add: Penalties:
                  Surcharge                    5,000.00
                  Interest                           55.56
                 Compromise Penalty     10,000.00
                 Total Penalties                                 15,055.56
         Total Amount Payable                              35,056.00


If you think that you don’t need to file your Income Tax Return because your computation led to an exempt or even return, you are wrong.  Although there is no surcharge and interest to be computed, you will still be liable for not filing your Income Tax return.  You still have to pay a compromise penalty , based on your gross annual sales or receipts:



*Revised Compromise Penalty on Failure to File effective April 2015




If you failed to file your 2012 ITR although your gross annual receipts or sales is P150,000.00 because you incurred a net loss and therefore have no income tax payable, you will be charged a compromise penalty of P5,000.00.

I hope you guys beat the deadline and filed your Income tax returns and paid the corresponding income tax due.

And oh, for employees out there receiving purely compensation income from only one employer for this taxable year whose income tax due is equal to tax withheld, don’t worry because you don’t need to file an Income Tax Return since BIR Form No. 1604-C/F  shall be considered as a substituted return filed by the employer.  BIR Form No. 2316 duly certified by both employer and employee shall serve the same purpose as if BIR Form No. 1700 (Income Tax Return for Employees)has been filed.  BIR Form 2316 shall be considered as proof of financial capacity for purposes of loan, credit card, and for other purposes with various government agencies.

Learn how to file your Income Tax Return here.
How to Apply for TIN if you are a local employee.




158 comments :

  1. Thanks for sharing this helpful information..:)

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  2. This is very informative. A bit late will really cause a lot. Kaya dapat magbayad on time.

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  3. Laki din pala ng surcharge. hindi pa namin na recieve itr namin hanggang ngayon.. hmm bakit kaya?

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    Replies
    1. sis, if you are receiving purely compensation income (you are a full time employee) and your tax due has been properly withheld by your company, your bir form 2316 (certificate of income tax withheld to be given by your employer) will serve the same purpose as your ITR. No need to file.

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  4. Hi Marie,

    My husband's payable is due on july 15. He has no payables schedule on april 15. So we thought ndi nklngn mgfile. But after reading your post, it seems n klngn p din pala. Ano ung amount n magiging basis s computation ng penalty? He's working in the US, assigned there last july kaya nging taxable pati salary nya dun :( the total due by july 15 is around 272k. Kung un ang basis, ang laki ng penalty :(

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    Replies
    1. If his payable is due on July 15, does this mean two installments siya? When the tax due exceeds 2,000 pesos, individuals may choose to pay in two equal installments. first installment is on April 15 and the 2nd installment is on or before July 15. assuming tax due is 10,000.00. 1/2 or 5,000 should be paid on april 15 and the other half is on or before july 15. If the withholding tax due will cover the one half of his tax due, he can elect to pay the balance on or before July 15. Example:

      Tax Due 10,000
      Less: Tax Withheld 7,000
      Still Due 3,000

      He can choose to pay 3,000.00 on or before July 15 and pay nothing on April 15 (because the tax withheld covered more than half of the 10,000). However, he still needs to file his Income Tax Return on April 15. the balance will be paid through BIR Payment Form 0605. Usually kasi ang basis ng penalty if he has no payment, based on gross. If may payable siya, based on the amount due. Have it computed at the BIR district where he is assigned, sis.

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  5. Hi Ms. Marie,

    Ask ko lng po kung compromise penalty lang ang babayaran para sa late filing ng 1701 Q 1st qtr?
    Wla na bang penalties & interest?

    Thanks!

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    Replies
    1. If no tax due, only yung compromise penalty based on annual gross sales or receipts. But if there is tax due, penalties are the 25% surcharge, 20% interest per annum and the compromise penalty based on the unpaid tax.

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    2. Thank you so much Ms. Marie,,, Big help..

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  7. Hi, Marie. Great blog and very useful too. I stopped working full-time in late 2011 but my employer was still able to file my ITR for that year. In 2012, I worked for them part time and made less than two thousand pesos because it was just several hours work and they deducted 10% from it. I don't have any other source of income and the allowance I get from my fiance can't be considered income. The problem now is I need the ITR for my son's STFAP application in UP Diliman but neither they or I filed an ITR for 2012. What my employer gave me was form 2307 or Certificate of Creditable Tax Withheld At Source. Would this be a suitable substitute for form 2316? Or should I still file and possibly pay any penalties?

    Thanks for any advice you can give! :-)

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    Replies
    1. If you didn't have income for the year 2012, you can present a Certificate from the BIR that you have no income to the school. Get a certificate from the barangay that you have no income and residence certificate from your munisipyo, then proceed to the revenue district office which covers your area to apply for a certificate of no income. There might be additional requirements sa district office mo.

      Or you can file your ITR declaring your income as self-employed and attach your 2307, and have them compute the corresponding penalties. That income would be exempt from taxes, but since late na siya, may penalties kang babayaran for late filing

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    2. Thanks for replying. I greatly appreciate it. I'll update you when I get all this done! :-)

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  8. Thank you for this. I have one question. what if the taxpayer stop filing (in 2006) and the BIR provided tax verification listing all the required Tax return. The problem is the tax payer has not preserve his documents and he has no basis (or idea) how much to file. What is the best way yo do? Shall he go to BIR and tell that he has no records because of flooding?

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  9. In addition to above, how much is the penalty for losing the documents?

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    Replies
    1. Hi, Mary! Answered through your g-account cuz I cant find your e-mail :)

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  10. GOODevening po tanaong ko lang po yung current situation ko sa tax problem ko.
    2009 po ng unang mahired ako sa Makati na ng tagal lang ng 3months..At binabayaran ng employer ko ang tax ko. After 3months po hindi na po na employed up to now, on call nalang po ako bilang draftsman. Kaya di ganun ka permanent at stable ang kinikita ko every month.Balak ko na po kasing mgapply na, kasi di na sapat yung kinikita ko bilang on call lang. Gusto ko po kasing ilipat yung rdo ko dito sa amin, na currently nasa Makati pa. Ano po ang magandang gawin at may penalties ba. thank you

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    1. Hi, Michael. Currently employed ka na ba or on call pa rin as draftsman? Eto ang guidelines ng BIR:" In case of transfer due to change of employer, it shall be the responsibility of the new employer to notify his BIR district office by submitting the duly accomplished form of the employee. The transfer of registration (TIN records) of such employee shall be initiated by the BIR district office which received the application. " The moment you get a job, your new employer will initiate the transfer. Puwede ring mag-fill up ka ng BIR Form 1905 - Application for Registration Update-and submit it to Makati where you used to be registered. Puwede ring isubmit mo sa RDO jan sa inyo (sila na ang magfa-fax sa Makati.). Sa tingin ko naman, walang penalties, unless they will find out you were self-employed as a draftsman (kasi subject din sa income tax yung kita mo doon...)

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    3. Hi Maam Marie. I have a similar case wherein i was employed by an Agency in Makati and i work there for 5 months. I am an architecture graduate then. when i left the company, i work for an architect in his small construction business to gain knowledge for me to take the board exam and to gain weekly wages as well. for 2 years, i work there without paying single taxes, because my wages was given as cold case every saturday. Then i took the board exam and luckily i passed it. I continue to work with that architect but still, i get my wages weekly and do not pay tax. Now that i am required to renew my license, i am ask to send ITR. Since mine is in Makati RDo, i need to transfer it to our province first before paying any tax, is that right? What would be the best things to do Maam? Should my boss pay my tax or should i pay for it individual? Will i pay penalties too?

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  11. salamat po sa info..goodevening opo employed na po ako,MS. Marie,actually relatives ko po ang bago kong employer ngayon, 3 lang kami sa office, may exemption po ba kung small company lang employer ko?

    Hindi po ba itatatanong ng BIR District ko sa Makati bakit po na tigil ang bagbabayad ko ng tax with in a long period of time?

    ReplyDelete
  12. salamat po sa info..goodevening opo employed na po ako,MS. Marie,actually relatives ko po ang bago kong employer ngayon, 3 lang kami sa office, may exemption po ba kung small company lang employer ko?

    Hindi po ba itatatanong ng BIR District ko sa Makati bakit po na tigil ang bagbabayad ko ng tax with in a long period of time?

    ReplyDelete
    Replies
    1. Hello! May sagot ako kanina nadelete. anyway, punta ka lang sa Bir District sa Makati and ask your status. If registered ka doon as employee, just tell them you have resigned na from that company and lilipat ka ng RDO. You have to fill up BIR Form 1905 ftp://ftp.bir.gov.ph/webadmin1/pdf/21351905.pdf transfer of home RDO. Siguro nanotify naman ng old employer mo ang BIR na resigned ka na (they submit an annual information return which becomes due at around January 30 of the next year and andun ang employees nila, their sweldo, deduction and category-if resigned, new employee, etc). As to exemption, you mean exemption mo? Hindi ka exempt from tax but if you qualify as a minimum wage earner (malamang hindi cuz I think you guys are paid high :))-daily minimum wage in the NCR is P466.00 http://www.mommyunwired.com/2013/09/how-to-file-your-income-tax-return-in.html , you are exempt from income tax. As to the company you are working, make sure nakaregister din sila ha kasi they will serve as your withholding agent when they will deduct taxes from your sweldo.

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  13. Hi Maam Marie. I have a similar case wherein i was employed by an Agency in Makati and i work there for 5 months. I am an architecture graduate then. when i left the company, i work for an architect in his small construction business to gain knowledge for me to take the board exam and to gain weekly wages as well. for 2 years, i work there without paying single taxes, because my wages was given as cold cash every saturday. Then i took the board exam and luckily i passed it. I continue to work with that architect but still, i get my wages weekly and do not pay tax. Now that i am required to renew my license, i am ask to send ITR. Since mine is in Makati RDo, i need to transfer it to our province first before paying any tax, is that right? What would be the best things to do Maam? Should my boss pay my tax or should i pay for it individual? Will i pay penalties too?

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    Replies
    1. Ano ang status mo with the company? is there an employer-employee relationship?(a) has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work but also as to the details and means by which the result is accomplished; (b) has the right to dismiss; and (c) furnishes the tools and place of work. If employee ka and wala nawithhold na tax sa yo, you are required to file and pay your ITR using Bir Form 1700 plus penalties. If parang professional ang work mo with the company, you file BIR Form 1701 (for self-employed professionals), with penalties also. Ask for assistance from the officer in charge at the revenue district office for the computation. yung work mo ba withthe small construction business is at a different RDO (hindi Makati)? You have to transfer using BIR Form 1905.

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  14. salamat po maam sana wala nmang penalty. Sa region 3 po ako ngayon ng tatrabaho maam.

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    Replies
    1. Tanong ko lang maam. para saan naman po yung PTR na binabayad ng mga professionals every year?Thank you

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  15. Atlast found your blog.. hahaha

    Goodevening miss MARIE. Im an Architect and i would like to asked also my TAX status, I have the same case as FER MENDEZ..Employed on a small company but not paying any taxes cause i recieved my wages on cold cash every friday
    What would be the best things to do miss MARIE ? Should my boss pay my tax or should i pay for it individual? Will i pay penalties too?
    Thank you

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    Replies
    1. Kenneth, ikaw ang magbabayad ng taxes mo, not your boss. Ang obligation sana ng boss is to withhold part of your salaries para sa taxes para di masyado mabigat pag one-time mo babayaran. ang mangyayari dito, you will have to pay tax on the entire taxable compensation income plus penalties. If you are an employee, ito yung computation: Your gross compensation income less personal and additional exemptions (50,000 personal exemption and if you have children, may additional deduction of P25,000.00 each, basta hindi more than 21 years old and not more than 4 children)equals taxable compensation income. Tax due is computed using this table on the ITR ftp://ftp.bir.gov.ph/webadmin1/pdf/599121700%20nov%202011%20BCB.pdf

      Example: Gross Compensation Income for 2012 P500,000.00
      Status: Single
      Tax Withheld - None
      Gross Compensation Income P500,000.00
      Less Personal Exemption 50,000.00
      Taxable Compensation Income 450,000.00

      Tax Due
      On 250,000.00 50,000.00
      30%in excess of 250K 60,000.00 110,000.00
      Less: Tax Withheld 0
      Income Tax Due 110,000.00
      Add: 25% Surcharge 27,500.00
      Interest (20% per annum)
      4/15/2013 to 10/15/13 9,167.00
      Compromise penalty-late payment 16,000.00
      Total Tax Due 162,667.00

      Ang laki ng penalties ano. and it gets bigger because of the interest.

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  16. Hi po, what if po if the Company is a retirement fund registered with BIR. Under RA 4917, exempt na sila sa income tax, pero hindi nkapgfile. Their income is derived from interest income (subject to final tax) and dividend income (exempt). Mag fofollow pa din ba ung compromise penalty based on gross receipts/ sales?

    Thanks po.

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    1. This comment has been removed by the author.

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    2. Even if a company is deemed exempt sa income tax by virtue of an R.A., they still have to file and the penalties will be based sa gross receipts/sales. I think you still need to apply for a tax exemption specifically for the company kasi exemption is never automatic or presumed. The company has to prove that it is qualified to be a tax exempt entity and the company will be issued by the bir a certificate or a ruling that it is tax exempt. Go to your district office and apply for the tax exemption. HTH.

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  17. Hi, I hope you can help me.
    I am usually employed and file my Income Tax Return for my pure compensation yearly. However, in 2002, when I lost employment, I became an insurance agent from Dec. 2002 to August 2003. I was asked by the company to apply for a Certificate of Registration with the BIR and the company withheld the corresponding tax. I did not make it good so I resigned from the insurance company and got employment in September of the same year. Since then, I never returned to being an agent and gain employment from different companies.
    I was informed that I should have changed(?)/cancelled (?) my COR when I resigned as an agent. I also did not know that I had to pay the annual registration. I tried filing for a 1905 to close or cancel the registration together with a letter of request and an affidavit of loss of the original COR. However, BIR staff did not accept these and asked me to pay P20,000 as Miscellaneous using form 0605. Do I not have any other recourse?
    Thank you for your inputs.

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    Replies
    1. Hi Lani, di Marie replied to your inquiry? I have the same case as yours... money down the train that I have to pay penalties..

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    2. Hi Lani, did Marie answered your query.. I have the same case as yours.. and have to pay 20k more for penalties..

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    3. Hi, Lani. The moment you register with the BIR kasi, you are required to file taxes that are in your COR. Once you fail to pay a certain tax, the system will tag you and magkakaroon ka ng open case. So it is very important to continuously pay your taxes and if wala kang income or no transaction, you still need to file a return. Malamang, ang sinisingil sa yo are the unpaid or unfiled taxes that you should have paid before. You need to inform them also if you are stopping your business, ceased being an employee, transferred to another revenue district office, etc. Since walang nafile or nabayaran, the system tagged you and nagkaroon ka ng open cases which can only be resolved once na you file and pay the penalties

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  18. Hi Ma'am Marie,

    Good Evening po.

    I already send a query awhile ago but I couldn't find it po (sorry first time ko mag gamit or magcomment po sa isang blog). I would like to ask po on how to compute for PENALTIES = SURCHAGE, INTEREST, AND COMPROMISE on Chattel Mortgage where DST hasn't been paid po. Here are the details po, viz:

    Loan Amount: 1,169,350.00
    Chattel Mortgage dt of Notarization: Sept. 20, 2011 (Deadline of payment of DST: Oct. 05, 2011)
    Expected date of payment: March 11, 2014 (computation po) and March 17, 2014

    Ma'am Marie, May I ask po a computation po and how did you do it po? Hoping for your quick response po.

    Maraming Salamat.

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  19. hi! ma'am marie! I have a business po.. auto parts, accessories. nag start sya December 2012 pero hindi ko agad napa register kasi nagsisimula pa lang talaga ako and im not sure kung ano ang magiging outcome ng business ko since first timer ako.. naging okay naman ang income ko kaya balak ko sana ipa late register at indicate na running na yung business since 2012.. magkano po kaya penalty ko? thank you in advance!

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  20. HA! Regarding the 1701Q deadline, muntik na akong mapabayad ng compromise!

    Jan
    Feb
    March
    -------
    April 15 1701Q Filing WHYYYY!!!!??? (sabay ng 1701!?!?)
    May 15 Why not here!?!?! (akala ko may 1 and a half months allotment for 1701Q filing, bwiset!)
    Jun
    -------
    July
    August 15 1701Q Filing
    Sept
    -------
    Oct
    Nov 15 1701Q Filing
    Dec

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    Replies
    1. Yes, april 15 ang deadline ng 1st quarter. Dati, may 15 yan kaya lang ginawang april 15 noong binago yung tax code. kasalanan ng mga mambabatas hehe

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    2. Maam, paano po nawala sa isip ko ung 1701q dahil ung 1701 ang inasikaso ko..so, late ko na po mafile ito..ung compromise penalty po saan ko i base? Sa gross receipts ng jan +feb+march 2015 po ba? Thanks po

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  21. Hi Marie, I failed to file my 1701 (for the year 2012) last april 15, 2013 but already paid my taxes, actually meron na kong 2307. Now I'll file my 1701 (for year 2013) ngayon april 15 2014 kailangan ko pa bang magfile ng 1701 (for the year 2012)? Also may nakita akong penalty sa form 1701 (for year 2013) ako ba ang mag fill up nun or yung BIR?
    Thank you so much.
    Your blog is highly appreciated
    BGR <3

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  22. what if april 16 ka mag file, may penalty ba yun?

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  23. Hi Marie! I was about to file mine yesterday in Bataan but we found out that my TIN is registered on a different RDO which is in Cubao and I wasnt able to check it first coz I had no idea. Now I'll be filing late, can I change my RDO from Cubao to Bataan and am I going to have charges for the late filing?

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    Replies
    1. Kailangang iupdate mo yung place by filling up this form ftp://ftp.bir.gov.ph/webadmin1/pdf/21351905.pdf I think if you file at a wrong RDO you will be charged with 25% surcharge for wrong venue aside from the other increments like the 25% surcharge for late filing, interest, and compromise penalty.

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  24. Hi Marie! I was about to file mine yesterday but the RDO in Bataan found out that my TIN was registered in RDO Cubao in which I had no idea at first. Now I'll be filing late. Am I going to receive the same charges (25% or 50%)? Can I transfer my TIN registration from RDO Cubao to Bataan?

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  25. hi! Ms. Marie
    Ask me lang po, paano po ggwin me f 7 mos. late filling po ako ng Form 2551M from June2013 to February 2014. Pati po Form 1701 ng 2013.

    ReplyDelete
    Replies
    1. hI! Ms. Marie,
      Ncheck me po Registration Form Withheld po pl expanded. Paano po ggwin me dun? From May 9, 2013 ndi n po nkpgfile s BIR?

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  26. Hi sis, i have a problem. I just got my form 2316 from makati city hall and apparently they didnt file it daw since resigned na ako since dec 31, 2013. Does this mean na late filer ako and mag-iincur ako ng madaming penalties? All the while kase akala namin sila na magfifile nun for us since employed pa naman kami with them on that calendar year. Thanks in advance!

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  27. hi ms marie, just want to ask kung kanino kinukuha ang USERNAME and PASSWORD sa Relief Data Entry System. Thank you

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  28. Hi Ms. Marie,thanks a lot for your blog, marami kang natutulungan. I hope you can help me too. Im a freelancer, i am attached to an Insurance broker, everytime i have income , my boss deducts the following : (1) OUTPUT VAT (1.12) (2) WH TAX (10%)(3) INPUT VAT (15%) (4) VAT 12% so after the numerous blah blah deductions, maliit na lang naiwan, and worst of them all, He never issue me 2307 ba yun? since 2010, id been asking from him to issue me 2307 since he deducts the amount from me.Unfortunately, for almost 5 years wala na issue. May habol ba ako sa perang nadeduct and never turn over to BIR? If Im direct they only deduct 1.12 tax.please help me. I cant understand all the taxes he deducts from me and for where all those taxes? Thanks a lot Ms. Marie in Advance.

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    Replies
    1. nalito ako sa dami ng deductions mo a hehe. You are not an insurance broker yourself? kasi if you are, yung company ang idededuct sa yo is the 10% creditable withholding tax. Kelangang may maissue sa yo na 2307 since ang tax na nadeduct sa yo is creditable sa income tax mo. Kumbaga, the company acted as a tax agent of the government. This is creditable so whatever na magiging tax due mo in your ITR, ibabawas mo ang withholding tax na ito. So you need the 2307. As to the VAT, supposedly if you are a broker, you should register as a professional and register either as a VAT or non-VAT taxpayer (if your income is more than 1.9M VAT ka and subject to 12%. If lower, 3% na percentage tax). So halimbawa may commission ka na 112,000 pesos. To remove the VAT component, ang commission mo net of VAT is 112,000/1.12=100,000. Your output tax is 12,000.00. Yung input tax is any VAT purchases you made related to the pursuit of your profession/business. Halimbawa, as a broker, your VAT expenses are as follows (all net of VAT): Gasoline Expense(if may sasakyan ka-charge only the amount related sa pagbenta mo ng insurance) 10,000.00, Meals (mga gastos mo when explaining to clients) 50,000, transportation 20,000. Total 70,000. Ang input VAt mo is 70,000*.12=8,400.(Take note, all purchases should be supported by VAT invoices or receipts). VAT due mo is 3600. If percentage tax ka naman subject, 3% ng commission mo. Since walang 2307, mukhang di talaga siya nagremit ng 10%. Ask for proof like a withholding tax return pag walang 2307 (BIR form 1601E).Since you are the one doing business, mas mainam na you register na lang with the BIR para ikaw na ang magpay ng taxes mo. do you have a sample of what he deducts from you? medyo nagtataka kasi ako sa 15% na input vat

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  29. Hi po Sana mahelp nyo ko 2008 po ako nag apply ng bir dti at mayors permit pero after 1 month di na tuloy yung business until na declared na di natuloy yun business may panalty po ako 2014 gusto ko po mag open ng business paano po kaya 2 mam. Need ko po file na closed na baka mag penalty pa rin ako or new registration thanks po

    ReplyDelete
  30. Hi Marie ask KO lang po same din po b computation if real property tax? Thank you

    ReplyDelete
    Replies
    1. Real property tax is sa munisipyo or city hall right? if penalties on capital gains, donation, estate, etc., the same ang penalties-25% surcharge, 20%interest p.a. and compromise penalty

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  31. Hi,
    Magkakaproblema ba if yung RDO sa ITR ay iba sa RDO sa database ng BIR? e.g. ITR = RDO 049 , Database = RDO 039

    ReplyDelete
    Replies
    1. You need to update using bir form 1905 para macorrect rdo mo.

      Delete
  32. Hi, Ms. Marie. Very informative po ang post! I would just like to raise an inquiry. Ano po ba ang mangyayari if I will not pay it in full by July 15 (deadline for 2nd installment)? I still have 15k for the 2nd installment. If I will pay just half of it, how much will be the penalties?

    I'll very much appreciate the help. More power!

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    Replies
    1. I need the answer to this question din po

      Delete
  33. Hi, Ms. Marie, question lang po, late filing of 1701Q first quarte, three kinds of penalties ang kailangan i-compute, kailangan pa po ba pumunta sa BIR/RDO for re-computation?

    Thanks!

    ReplyDelete
    Replies
    1. Yes, kelangang pumunta ka sa RDO to have it computed.

      Delete
  34. Hi Ms. Marie, tanong ko lang po, ex. it's for 2nd quarter, kapag negative ang taxable income to date kailangan pa po ba i-compute using tax table? or zero na po ang tax due? then paano naman po kung may payment noong previous quarter? I deduct po ba doon sa taxable income
    to date?

    Ex. with computation
    taxable income to date - (-500)
    500 x 5% = 250 (kailangan pa po ba ng ganitong computation?)
    Previous quarter payment - 200

    Tax due - (-450)

    or ganito po

    Ex. without computation
    taxable income to date - (-500)
    Previous quarter payment - 200

    Tax due - (-700)

    Thank you po.

    ReplyDelete
    Replies
    1. If negative ang taxable income, 0 ang tax due mo. If you paid 200 sa previous quarter, you will have excess tax payment of P200 (-200 ang lalabas sa itr mo)

      Delete
  35. Hi ms marie, ask ko lng po paano po ba computation ng penalties kung late payment ng 2551M and 1701Q? I supposedly pay it today but, I forgot. So I will pay on Monday. Hope you could help me. Thanks a lot in advance. :)

    ReplyDelete
  36. Is your 2551M for the month of July? the deadline is on the 20th pa. for the 1701Q, you are late na. The computation is based on your tax due. You multiply your tax due by 25% to get the surcharge, for the interest, you get the applicable interest on the day you missed paying till the day you will pay{ (20% interest/365 days)x3 days*}xTax Due , for the compromise penalty, look at the table above. I think it is better if you have your penalties computed at the REvenue District Office because the examiner will affix his signature on the computation anyway.

    ReplyDelete
  37. Good Day mam, paano po icompute ung penalty interest kung ngaung august plang po magba2yad sa BIR? Example po na may 30,000 income tax due, anu po ung surcharge, interest at compromise penalty at kung panu po cla nacompute

    Tnx po

    ReplyDelete
  38. Good Day mam, paano po icompute ang surcharge, interest at compromise penalty kung ngaung august lng po magpa.file sa BIR? Example po ung income tax due is 30,000

    Tnx po

    ReplyDelete
    Replies
    1. The best thing you should do is have your penalties computed with the bir. Para meron kang idea, though, the computation can be like this:
      Income Tax Due 30,0000
      Add: Surcharge (25%) 7,500
      Interest* 2,000
      Compromise penalty 8,500
      Tax Due & Payable 48,000
      *Interest is 20% per annum. Assuming you paid on august 15 and your deadline for income tax filing is april 15, you are 4 months late. (20%/12months )*4months*basic tax due of 30,000=2,000

      Delete
  39. Hi Ms. Marie.. I found these conversation really helpful.. anyways I have question lang.. about the income tax pero un payment is installment basis? What are the rules for creditable withholding tax?

    ReplyDelete
    Replies
    1. You can pay in 2 equal installments when your tax due exceeds P2,000.00,the first installment to be paid at the time the return is filed and the second installment 15 of the same year at on or before July 15. for creditable withholding tax, you deduct the amount in your certificate of creditable tax withheld from your tax due. Just make sure you have the certificates as proof that tax was withheld and that it is within the same year.

      Delete
  40. Hi my question what if you did not file tax for a business due to no operation,no income in the year 2006, and when you find out that it's still active up to this year how much will be the penalty for this scenario.

    ReplyDelete
    Replies
    1. You have to check your open tax cases with your revenue district office. Once no payment is made kasi, the ITS - computer system of the bir will tag you. If you havent informed the bir that you have ceased operations, you will have open cases (unpaid taxes) for each tax period that you failed to file. For some businesses who opted not to close their business with the bir although no operations, they file a "no transaction" return para wala silang penalties. There is a compromise penalty for failure to FILE a tax return, not only on failure to PAY. Per their table, compromise penalty for failure to file on gross earnings from 0-10,000 is 200 for each return, but have the BIR compute and sign the penalties pa rin.

      Delete
  41. Hi Maam,

    I'm working as part-time lecturer in a university. The university collects witholding tax from my salary every month. However, they forgot to file my certificate of tax withheld for last year 2013. I just discovered this lately so now I have to file it myself. They already remitted the collections to the BIR before the deadline last April 16 but they forgot to file my forms. Will I incur penalties for this? Thanks!

    ReplyDelete
    Replies
    1. Hi, Chris! The Certificate of Tax Withheld is what you will attach to your Income Tax Return as proof that tax was withheld from you. If you are employed by the university as a professional (no employer-employee relationship - you can take a look at the certificate they gave you. If it is BIR Form 2307, you are considered not an employee but a consultant/professional), you are supposed to file your Income Tax Return using the 1701 form - Income Tax Return for Self-Employed/with business/mixed income. After computing your tax due, you deduct the amount stated as withheld in your certificate of tax withheld then file the form with the attached certificate. Since late na (it should have been filed last april 15), you will be incurring penalties na. The best you could do is go to the Revenue District Office and have it computed. However, if regular employee ka and they gave you BIR Form 2316 (Certificate of Tax Withheld) wherein your tax due equals your tax withheld and you don't have any other jobs/business, you don't need to file since you qualify for substituted filing.

      Delete
  42. Hi. Nagwowork ako under agency. at kinakaltasan kami ng tax kada cut-off. i started working last july 2014. may makukuha ba kong tax return??

    ReplyDelete
  43. Hello Ms. Marie,kaya lang po ibang topic ito hindi penalties. How to file VAT for trucking and hauling services? What is the proper computation for this Ma'am? Please help me. thank you

    ReplyDelete

  44. Hello Ms. Marie. Tanong kulang po kung may penalty po ba kung nag file ka ng 1604C early before of on October 10 sa EFPS pero yung payment ay na late na beyond October 15 kasi may financial problem? Maka penalty po ba yung company namin? Thanks po. Waiting for your reply....

    ReplyDelete
    Replies
    1. Baka 1601-C yung finile mo? If lumagpas sa October 10, may penalties na

      Delete
  45. Hi, Ms. Marie. I have been working with a government agency for the past two and half years as contractual. Kanina ko lang nalaman na hindi pala kami kasama sa ITR na pina-file nila sa BIR at kami dapat ang magfile mismo. I badly need an ITR for my visa application. They told me I should think twice about filing it now dahil malaki na ang penalties kasi late na. Kapag po ba nagfile ako, magbabayad po ba talaga ako ng malaki para doon sa penalties? First time ko po magpa-file simula ng magwork ako sa kanila. Mayroon po silang ibinigay sa akin na 2307, pwede rin po bang i-present yon instead of the ITR? Thank you very much and more power to your very informative blog.

    ReplyDelete
    Replies
    1. If binigyan ka nila ng BIR Form 2307, self-employed/professional ang treatment ng employment mo. If you will file your income tax return, ang gagamitin mo is bir form 1701 http://www.mommyunwired.com/2014/04/how-to-file-your-bir-form-1701-income.html . For year 2013 halimbawa, you total all the gross receipts stated in your u 2307 (1st to 4th qtr). Para mas madaling i-compute, you claim optional standard deductions na 40%. Tapos you deduct also your personal and additional exemptions. After that, compute your tax due then deduct the tax withheld stated in your bir form 2307 to arrive at your income tax due and payable. Mas mabuting you go to the Revenue District Office where you registered and ask for their assistance in filling up the form. Besides, you will still need to go there para ma-compute ang penalties. Most probably, you will also be asked to register as self-employed/professional. If di naman kalakihan ang gross receipts mo, you will end up lang with kaunting tax due after deducting the tax withheld . Penalties kasi is based on your tax due. Ang magiging problem lang siguro is that you will be asked to register as self-employed/professionals. Ang treatment kasi nito is that parang may business ka. They will require you to file your percentage tax returns, quarterly income tax returns, etc.

      Delete
  46. Maam this is kaye pedro. Maam ask ko lang if ano pwede gawing action kasi nakareceive ako ng LA at hindi bangga yung nasa POS at ung declared sales ko kasi may time na nasira POS ko sa 2012 then nacopy namin ung sale ng 2011. What are my possible legal actions against BIR? malaki po ung difference amounting to 3M. I hope you could help me with this.

    ReplyDelete
    Replies
    1. May data ba ang BIR (like Letter Notice). Unfortunately, mahirap ijustify ito unless wala pang LA at pwede mo pa sana i-amend ang return. Pwede rin namang sabihin mong nagkamali ka basta maipakita mo ang proof na 2011 ang naibigay mong sales instead of 2012.

      Delete
    2. Hi ma'am Marie! Please give me some advice regarding this scenario:

      We are a newly opened shipmgt company here. We are not getting any income from the Phils. coz our parent company in Greece will be the one to send us remittance to cover up all expenses here. Usual expenses are: rents, utilities, office supplies, payroll etc. and some flight tickets ng mga seaman. All of our business docs were processed by a law firm in Makati. Last Aug. 2014, I received a COR from them, tax compliance are: Reg fee, WT-E,WT-C, Income Tax and Percentage Tax. Base on what I've read, diba po dapat Income Tax exempt kame? I already take to the one who processed it, accdg to her, income tax exempt nga daw kme kaya dpat ifile ay 1702EX, then nag ask uli me na why we need to have a percentage tax? Sabi nya ganon daw tlga pag income tax exempt ka, percentage tax nman daw papasok category mo. Seems very unusual. Starting july nagpapareceive po ako ng percentage tax na 0 amount, kasi po wla parin naman kame narereceive from Greece. Please send me feedbacks and comments as soon as possible. Thanks and God bless.

      Delete
    3. Hi. Can you check your COR again? If Income Tax is included, you are liable to pay or file your ITR, whether exempt or taxable. there was a recent court decision regarding tax exemption but it only applies to non-stock non profit educational instns.Ang stand kasi ng BIR is tax exemption cannot be presumed, it should be proven. Kaya if you file a 1702-EX, you need to cite a Republic Act or BIR ruling specific to your company that you are tax exempt. As to the percentage tax, income tax is different from percentage tax, You said in your comment that you are a "shipmgt company", does this mean shipping company? Operators of international air and shipping carriers doing business in the Philippines are subject to the percentage tax. By the way, I am not sure about the nature of your business, If your business happens to be any of the carriers mentioned in this bir revenue regulation, this might be helpful to you http://www.fnslaw.com.ph/PDF%20Files/Laws/RR%2015-2013.pdf

      Delete
  47. hello, ms. marie, tanong ko lang po,kc may nabili pong lupa aunt ko and d p nila naita-transfer for 21 yrs. Mga magkano na po babayaran niya kapag late ng 21 yrs.? Bale 136,500 pesos ang capital gains and doc stamp. paano po computation ng interest at surcharge and compromise? salamat po.

    ReplyDelete
  48. hello, ms. marie, tanong ko lang po,kc may nabili pong lupa aunt ko and d p nila naita-transfer for 21 yrs. Mga magkano na po babayaran niya kapag late ng 21 yrs.? Bale 136,500 pesos ang capital gains and doc stamp. paano po computation ng interest at surcharge and compromise? salamat po.

    ReplyDelete
    Replies
    1. Naku, antagal na. 21 years (legal age na haha). Anyway, nacomputean ito sa bir pero di nabayaran? I think the BIR will require a certification from the National Archives as to the date of notarization/execution of the sale of the property. Another alternative would be that the bir will compute the document as if "presented today" meaning ngayon ang date ng deed of sale using the prevailing selling price/zonal value.. Sa penalties, fixed ang 25% surcharge, but the interest would go as high as 420% (20% per annum kasi). The best thing you could do is have it computed at the revenue district office where the property is located.

      Delete
    2. Hello po! Mam marie, ask ko lang kung mga magkano na po babayaran ko sa estate tax pag 15 years na po patay 'yung isa at yung isa mga 3 yrs. ng patay. silang 2 at 3 pa nilang kapatid nakapangalan ang lupa na bibilhin ko? wala na po silang ibang property at 5 po sila magkakapatid na nakalagay sa title. P 7,000 per sq.m ang zonal value. Pwede nyo po ba akong bigyan ng sample computation? Baka po kasi mapamahal bili ko lalo na m estate tax.

      Delete
    3. Hi. Pag estate tax ang cocomputean doon is the entire estate ng namatay, meaning all real and personal properties, kaya pwedeng lupa, stocks, bank account,lahat ng properties ng namatay dito and outside philippines. ang basis din ng computation is yung value at the time of death. if 15 years nang namatay, malamang mababa pa ang zonal noon but malaki ang penalties. I suggest na pag balak mong bilhin ang lupa wag mo ishoulder ang estate tax kasi baka mapapalaki lalo na kung may iba pang properties and dahil sa penalties or ipa-estimate mo sa r.d.o kung saan namatay ang mga parties. sa computation din ng estate tax, usually nirerequire ang presentation ng medical expenses and funeral expenses kaya mas mabuting yung sellers ng property ang maglakad nun tsaka nila ibenta

      Delete
  49. Hello, Marie. Hope you can enlighten me with my situation now.

    Kasi Im currently employed as a talent in a media company. Dati okay naman ang lahat kasi yung company ang nagfi-file ng tax namin. pero biglang nabago ang system, kami na daw talents ang kailangang mag-file ng tax sa BIR and we need to provide receipts kapag magrereceive kami ng TFs. otherwise we cant get out TFs.

    Ang prob ko is meron akong registered events business sa BIR nung 2009 but i havent had any transactions. So I havent filed tax even once since 2009.

    My dilemma is I need my COR to be transferred sa kung saan gagawin yung receipts ko for my talent fees. What do I tell BIR kasi nga wala naman at all ako naging transaction. Do I need to pay compromise fees? penalties?

    ReplyDelete
  50. Pwede po bang pa send nlng sa email na ito: vergzdeapoloz@gmail.com

    Salamat po talaga..

    ReplyDelete
  51. Hi Ms. Marie,

    Pa help naman po. May 3 form 2307 ako dito, hindi ko alam paano gamitin ito. Binigay po ito ng previous company ko.

    1st form 2307 here for the period from: 01/01/14 to 03/31/14 = 9,935.89 (Tax Withheld for the quarter)

    2nd form 2307 here for the period from: 04/01/14 to 06/30/14 = 11,382.50 (Tax Withheld for the quarter)

    3rd form 2307 here for the period from: 07/01/14 to 09/30/14 = 9,935.89 (Tax Withheld for the quarter)


    Magkano po ba ang babayaran ko po kasama ng mga penalties.

    Please pa help naman po.
    Pwede po bang pa send ng copy ng sagot nyo po sa email na ito: vergzdeapoloz@gmail.com, gusto ko din mag subscribe sa inyo po.

    Salamat po talaga.

    ReplyDelete
  52. gud pm... ask lang po kung magkanu ang babayaran ko sa bir kc 2 years na ako self employed pero diko nafile ung itr sa bir.... tnx po

    ReplyDelete
  53. Hello Ms. Marie!

    Ano po ba ang magandang gawin kasi may paupahan family friend namin commercial sya halos 10yrs mahigit na nagooperate. Pero di sya nakarehistro sa BIR kasi di alam ng parents nya na dapat iparehistro tapos ngaun matanda na rin parents nya. 24k ung income nila sa paupahan. mula noon hanggang ngaun. Ano ba ung mga kailangan nilang gawin? Magkakapenalty po ba un? Kung meron man magkano aabutin? May surcharge rin ba un at compromise? Pls answer para matulungan ko rin yung friend ko. Thank you so much po. Godbless.

    ReplyDelete
  54. Hello poh Ms. Marie... Tanong ko lang po sana kung magkano penalty ko? Kasi May business poh aq started July 2014 , Narenew na ang Mayors Permit q this January 20,2015, .. Pero Hindi p q nakaregister s BIR.. Magkanu poh kaya penalty n babayaran q pag nagRegister ako ngaung March ?...Pls answer poh tnx. Salamat..and Godbless

    ReplyDelete
    Replies
    1. Within ten days from start of business kelangang iregister na sa BIR ang business. The penalty accdng to RMO 19-2007 is :
      a. Cities 20,000*
      b. 1st class municipalities 10,000*
      c. 2nd class municipalities 5,000*
      d. 3rd class municipalities 2,000*
      * Penalties provided are inclusive of all other violations

      Some revenue district offices naman if nakiusap ka will give consideration and lower the penalties :)

      Delete
  55. Hi Ms Marie.. I am a physician by profession and owned a clinic since 2013 until the 1st quarter of 2014. I stopped working due to some personal situations and decided to be a stay at home mon since then. During that time I had an accountant who is handling everything but she had to retire last year. My question is that now I have decided to not pursue my career do I need to inform BIR of my decision or do I still need to file something every year to state that I have no income? I don't want to incur penalties or violations. Thanks you very much! :)

    ReplyDelete
  56. Hello, Ms. Marie! I am lucky that I stumbled upon your blog because of researching on this topic. So far, it was able to supply answers for most of my questions. I just have a specific concern. I have been a freelancer since 2012 and I am now planning to register as a taxpayer. Say, I plan to declare my earnings since 2012, which specific taxes do I have to pay? The percentage tax, quarterly ITR or annual ITR? Kase based sa understanding ko, dine-deduct din naman yung pecentage tax at quarterly ITR dun sa annual ITR, tama ba? So parang reundant kung I’ll pay pecentage tax at quarterly ITR, only to deduct them from the annual ITR.

    I know late registration or filing is subject to penalties so before pursuing my registration, gusto ko muna sanang i-compute how much tax, I need to pay. Thanks. :)

    ReplyDelete
    Replies
    1. Magkaiba ang income tax from percentage tax (percentage tax is tax on business while income tax is tax on your incomee :) O Sa ITR, pwede mong ideduct ang percentage taxes, but as a business expense. Di mo siya pwedeng ideduct from income tax due dahil magkaiba silang klase ng tax. Yung quarterly income tax na binayaran mo, yun ang pwede mong ideduct sa annual income tax due mo. Regarding paying quarterly ITR then deducting it from your annual income tax, it is not actually redundant. The 3 quarterly income payments you made earlier for the three quarters are parang "advanced income tax payments" mo para di ka mabibiglang magbabayad ng malaki come April 15..Para itong sa mga empleyado na kinakaltasan sila every month in such a way na wala na silang babayarang income tax pagdating sa april 15 dahil nawithhold na lahat.

      As a self employed /freelanceer, ang taxes na subject ka ay Income Tax (quarterly and annual), percentage tax (VAT if your gross receipts exceed 1,919,500), withholding tax (if you have employees or you are renting a place for your business), and the annual registration fee.

      Delete
    2. Hi Marie,

      Please assist. I wanted to clarify if I resigned from my work as private employee, do I need to file/update my record sa BIR; say to be exempted from tax since I am no longer working.

      I resigned kc from my work since Nov 2012 pa, after that I help in managing the business of my tita so d muna ako nagwork. Just this year, I have to file my ITR as self employed, I am an insurance agent now. When I went to BIR office para magfile, I was told to pay for the previous years kc wala daw na file so I told them that now lang ako nagfile kc d nman ako nagwork after resigning from 2012. (masyado sila busy at dami nila ginagawa (plus not approachable ung nag assist sa akin), d ko maclarify ang iba ko pang tanong before I will proceed sa iba ko pang ipaprocess. I need to know more if ano pa ba ung mga dapat kong ifile na forms (if self employed) and ung iba pang babayaran. (Ung nkaindicate ba sa COR, un lang mga dapat kong bayaran). Please help - d ko gets kc ung iba pa nya pinapabayad sa akin like nagpa-update lang nman ako ng TIN and new ID, may babayaran daw ulit. :)

      Thank you so much.

      Delete
  57. Thanks. Very informative blog.
    Hope you could help - i am paying my income tax when i was still working at a government agency. Then i became a student abroad for one year and wasn't able to pay taxes. When i returned to the Philippines, i went back working in a government agency - tax were also filed/paid by my employed. After a year, I resigned and became a student again thus no income for 2 years. I was only receiving stipend as a student. However, i did not file any income tax. I will start work soon (hopefully) and want to pay my taxes.

    My question is: What will i do with those years that i did not pay any tax because i was a student?

    Hope you could help. Thank you.

    ReplyDelete
  58. Hi Marie,

    I'm planning to file my 2014 ITR next week so I'm good with that.

    My concern is, I wasn't able to file my ITR for 2013--I had 2 employers that year. The problem was, I found out that my last employer didn't update my RDO/Registration with BIR when I was hired. When I was already computing for my taxes, also found out that there were no witholding taxes recorded on the 2316 they issued, even though there were months when they deducted witholding taxes from my salary. I was in shock and I asked for an explanation from HR but I never got any.

    I wasn't able to file for that year's ITR as I wanted an answer from them as to why they didn't record the corresponding taxes they witheld from me. I didn't get so much as a word from them, to cut the story short.

    My question now is, will BIR penalize me for not filing that particular ITR? I'm worried that they might ask me to pay x amount for not filing (for 2013) when I finally file my 2014 ITR.

    Appreciate your feedback and inputs! Thanks.

    ReplyDelete
  59. Hi Ms. Marie,

    I'm planning to pay my ITR for 2014 by next week, so I'm good with that.

    My concern is, I actually wasn't able to file last year for my ITR in 2013--I had 2 employers then by the way. The problem arose when I was already computing my taxes using the 2316 forms issued by my 2 employers. My last employer, I found out, didn't update my RDO/Employer Info with BIR when they hired me. Couldn't remember filling out forms 1905 and 2305 upon hiring in that last company. And then there were the issues on taxes--the 2316 issued by my last employer didn't have on record the taxes they withheld from me. I tried to reach out to the HR of the company but I didn't receive so much as a definite answer/explanation for the lack of taxes recorded on the 2316. There were withholding tax deductions on my payslips so I have no idea where those deductions went.

    I didn't file for that calendar year as I was still waiting for their answer in April/May of last year, plus the busy schedule I had with my work after that.

    Now that I'm planning to file for my 2014 ITR, I'm quite worried that they might penalize me x amount for not filing for the 2013 ITR. Will they be able to know that I skipped filing last year?

    Appreciate your feedback and inputs on this. Thanks in advance!

    -Nash

    ReplyDelete
    Replies
    1. if you are in their database, they can trace if you filed or not. Also, your previous employers, if they have been filing regularly, would have submitted an annual alphalist (bir form 1604-c/f) which contains details on employees like gross compensation, sss, tax due, tax withheld, etc (data you can find in your form 2316). However, income tax filing is voluntary kaya they will not ask for your previous income so most probably they will not ask for your 2013 itr when you file your 2014,but like i said, they can trace.

      Delete
  60. hi po ma'am marie pano po if negative yung taxable income? pano po ang gagawin dun?

    ReplyDelete
    Replies
    1. If negative taxable income mo, wala kang tax due but you should still file your return

      Delete
  61. HI Ms Marie,

    I have a similar question like the poster above. I wasn't able to file my ITR for 2013 where I have 2 employers. At that time I wasn't aware that I have to file an ITR, I only found out this year because my current company requires it. I have the 2316 from my previous employer and the tax due is equal to the tax withheld. Do I still need to file it? If yes, do I have to pay penalites and where am I going to file it? Is this ok to be filed at a later date? Or should I go to BIR to ask about this? Will there be problems if I do not file my ITR for 2013?

    Thank you :)

    ReplyDelete
  62. Did you only have one employer last year? if yes, since your 2316's tax due = tax withheld, there is no need to file. However, if you have 2 employers last year, you should have submitted your 2316 to your new employer so that they will consolidate your income from your first employer with your income from your new employer. If you did not submit your 2316 to them kasi, magkakamali ang adjusment nila and possible na twice madededuct ang personal exemptions mo. What you should do is consolidate your bir form 2316. Look at your form 2316 from your current employer. Add Taxable Compensation Income from Previous employer (item 24) to taxable compensation from present employer (item 23). the sum is your gross compensation income. Deduct from the Gross Compensation Income your Personal and Additional Exemptions. The difference is your Net Taxable Compensation Income. Compute for your tax due. Deduct tax withheld from both previous and current employer to arrive at Income Tax Due and Payable.If you still have income tax due or income tax refundable, you need to file BIR Form 1700 to the BIR or pay at the accredited agent bank on or before April 15 (basta your income from both employers is from 2014 ha).

    ReplyDelete
    Replies
    1. Last year (2014) I had 2 employers and my ITR was filed this April, but for the year 2013 I had 2 employers din pero di ko nafile yung BIR Form 1700, magkakaroon po ba yun ng issue if hindi ko na i-file yung for 2013?

      Additional info - may consolidated 2316 po ako for 2013.

      Delete
    2. Hi Ms. Marie I've been employed last year in 2 companies. Previous company from Jan-Mar 2014 as a contractor, then my current employer as a regular employee from June 2014-Present. I don't have 2316 with my previous employer, but instead they gave me 2307 since i was just a contractor. So i submitted 2307 to my current employer instead of a 2316. Do I need to file 1700? I don't get it why my income from my previous employer is not consolidated with my income from current employer.

      Delete
  63. Gud day po. Ano po b ang dapat gawin kapag d na uupdate ang form 2316 kaya ung personal exemption ay hindi n tama resulting to incorrect witholding tax. Syempre instead of no payment, ngkaron ng underpayment ng tax. Will der b any penalty in case na ipa correct un?

    ReplyDelete
    Replies
    1. you need to file bir form 1700 and put the correct personal exemption. if nagresult sa tax due, you need to pay. if lagpas na sa 15, with penallties na siya

      Delete
  64. Hi. Its been 3 years now that my co has not updated my personal exemptions from w dependents to no dependent. How can I make the update. W this for sure magkakaron ako ng underpayment sa tax due. Pls help me. Would der b any penalty for not updating?

    ReplyDelete
    Replies
    1. you can update by submitting bir form 1905 which you can find at the bir website. ito ang isasubmit mo sa employer mo. since from w dependent ka to with no dependent, kelangang iamend mo ang nafile mong income tax returns then pay the tax due plus the corresponding penaltie.. curious lang ako. why with dependent to no dependent?

      Delete
    2. Hi ms marie. Actually substituted filing kmi. So we do not file itr anymore. Instead 2316 n lang. My dependents are over 21 already. Yet they do not update inspite of the request 2 years ago.

      Delete
    3. dapat pinatanggal mo na yung dependents mo as your addl exemption, kasi the BIR pre-audits the Income tax returns. Since nakalagay ang bdates ng mga anak mo, they will learn na more than 21 na sila, resulting to a deficiency income tax plus penalties

      Delete
    4. Gud day po.how will i go about it? Actually 2 po sila..actually 2 years ago p po ako ngpa update sa hr nmin. La po nangyari. Nkikita ko n lang po sa 2316 ganun p rin. Gusto ko po isettle kc nag woworry n po ako.

      Delete
    5. Gud pm madam. Gusto ko n po isettle ung mga tax deficiencies ko n na incur for 5 years. Though malaki n po but im willing to pay. I guess this is a voluntary move on my part. Is there nothing to be afraid of?

      Delete
    6. Gud pm. I decided to voluntary pay my tax deficiencies w/c were incurred for 5 years. Lumaki po cguro kc me penalties. But Im afraid they would file a case against me for not paying it? Please help me naman. If ever, can i pay in instalment?

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    7. use this form http://www.bir.gov.ph/index.php/bir-forms/certificates.html#c2305 (bir form 2305 then submit it to your employer. if you are concerned about your deficiency taxes, go to your revenue district office, bring your previous 2316 and pa compute mo tax due to be paid plus penalties.

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    8. Thanks a lot po ms marie. I already did some of your suggestions. But i cant find all of my 2316. 3 lang po ung naretrieve ko. The accounting office does not have any copy. Naibgay n raw po sa min. I wonder they dont keep a copy for their office? Naibgay ko n po ung form 2305, do i need to submit it also sa bir? San ko po kaya pde mkuha ang mga un. Thanks again po.

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  65. Hi, Ms, marie sana masagot mo agad ako. I'm not a bir registered. But I work in an hmo. I've passed 1701 before. I didnt know n dapat bir registered k. Will I pass 1701q tomorrow.?

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  66. Good day po, ahm may penaltypo ba if ung supposedly ipafile through efps eh instead ipafile nalang over the counter? kung meron po, magkano?
    Salamat po!

    ReplyDelete
    Replies
    1. wala naman ata. are you included ba sa mandatory na mag file sa efps?

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  67. Hello, Ma'am! I'm really confused. I currently have 2 employers since I am a Professor. One Full time and One Part time. Both schools deducts taxes from my pay. Do i need to file anything?

    ReplyDelete
    Replies
    1. Since you are a multiple income earner, you need to file your income tax return. Consoldiate your two certificates of tax withheld from both employers (BIR Form 2316). make sure you deduct your personal /addl exemptions only once ha even if you have 2 employers

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  68. Currently I have 3 employers since I am a Professor. 1 Full time and 2 Part times. Do I need to file something ma'am? All schools that I am working for deducts taxes from my pay. Thank you so much! You will really be of great help.

    ReplyDelete
    Replies
    1. you need to consolidate all your income, deduct the personal and additional exemptions once, compute for the tax due then deduct the tax withheld from all the schools. you need to file kasi multiple employer ka kasi

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  69. Hi Ms. Marie, until now hnd p din po ako makapasok s EFPS, deadline po ngyn.

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  70. Hello po. I had my employer last 2013, then had a new job last march 2014 until now, i am confused if I am going to file bir 1700. I really dont know if I should. Thank you

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    Replies
    1. The ITR that is due today is for the taxable period 2014, so I am sure your employer for 2014 gave you your 2316. If your 2316 reflects tax due=tax withheld, there is no need for you to file your ITR http://www.mommyunwired.com/2015/04/philippine-income-tax-filing-bir-form.html

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    2. Hi again, ano po yung snsabi nilang consolidated from previous to current po?

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  71. Hi Ms. Marie! Nagfile po ako ng BIR 1700 kahapon to consolidate yung dalawang 2316 ko since I have 2 employers last year. May deficit akong 18,600 but I opted to pay the whole amount on the 2nd installment like what some of my workmates did. Sobrang bigat talaga ng babayaran kaya medyo hesitant ako magfile ng 1700 kasi baka lalo ako habulin ng BIR.

    Ang tanung ko po, anu po mangyayare sa mga workmates ko na hindi nagfile ng 1700 nila? tulad ko kaya ayaw nila magfile kasi malaki din ung babayaran nila almost 20,000++. Magrereflect po ba yun sa tax refund nila this year? Or sa april 15 next year? Medyo may regrets po kasi ako na nag file pa ako eh hindi ko talaga afford na bayaran tong 18,000. Anu po mangyayare sakanila?

    -Abigail

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  72. Hi Ms. Marie! Nagfile po ako ng BIR 1700 kahapon to consolidate yung dalawang 2316 ko since I have 2 employers last year. May deficit akong 18,600 but I opted to pay the whole amount on the 2nd installment like what some of my workmates did. Sobrang bigat talaga ng babayaran kaya medyo hesitant ako magfile ng 1700 kasi baka lalo ako habulin ng BIR.

    Ang tanung ko po, anu po mangyayare sa mga workmates ko na hindi nagfile ng 1700 nila? tulad ko kaya ayaw nila magfile kasi malaki din ung babayaran nila almost 20,000++. Magrereflect po ba yun sa tax refund nila this year? Or sa april 15 next year? Medyo may regrets po kasi ako na nag file pa ako eh hindi ko talaga afford na bayaran tong 18,000. Anu po mangyayare sakanila?

    -Abigail

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  73. Hi Ms. Marie, ask ko lang if ndi ako nakapagfile ng form 1700 due to work. Will I be charged with penalties as well? By Jan 2014, employed ako sa previous employer ko. By Feb 2014, nagtransfer ako ng company. Tapos nitong April 15, pinagfifile ako ng Form 1700. Namiss ko ung deadline. Paano po kaya ang gagawin ko. Hirap din ako intindihin ang instruction na binigay ng BIR on eFOrm. Kakalito.

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  74. gud morning po...na-late po ako magfile last april 15,,,may due po ako na 2,890.36...magkano po kya ang bbayaran ko sa late filing...thanx po

    ReplyDelete
    Replies
    1. you will pay 25% surcharge (2,890.36*.25), 20% interest p.a. {(.20/360)x7days*}, and a compromise penalty of 1,000

      *7 days-april 16 to april 22.

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  75. Hi marie.. Please reply on my concern above :

    Hi Ms. Marie! Nagfile po ako ng BIR 1700 kahapon to consolidate yung dalawang 2316 ko since I have 2 employers last year. May deficit akong 18,600 but I opted to pay the whole amount on the 2nd installment like what some of my workmates did. Sobrang bigat talaga ng babayaran kaya medyo hesitant ako magfile ng 1700 kasi baka lalo ako habulin ng BIR.

    Ang tanung ko po, anu po mangyayare sa mga workmates ko na hindi nagfile ng 1700 nila? tulad ko kaya ayaw nila magfile kasi malaki din ung babayaran nila almost 20,000++. Magrereflect po ba yun sa tax refund nila this year? Or sa april 15 next year? Medyo may regrets po kasi ako na nag file pa ako eh hindi ko talaga afford na bayaran tong 18,000. Anu po mangyayare sakanila?

    -Abigail -

    ReplyDelete
    Replies
    1. if payable naman siya,hindi magiging tax refund. ang alam ko, bir is always pre-auditing income tax returns and submitted 1604-C (annual alphalist of employees) by employers, so malamang makikita nila ang unpaid taxes.And if napansin mo, malaki ang penalties nila, 25% surcharge and compromise penaltybased on unpaid tax plus 20% interest per annum

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    2. i need to pay 18, 600 before July 15. if ever pong hindi ko mabayaran sa July 15, magrreflect po ba yang 18, 600 sa December 30 or next year na po?

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    3. You will have a delinquent account with the bir related sa 2014 income tax return mo. You will be receiving notices from them na may babayaran ka. it will not be added to any income tax that you will have to pay this year or next. Don't ignore your notices ha, kasi the bir has the power to issue warrants of distraint and/or levy (they will have a claim to your properties) or garnishment (ikakaltas yung utang mo sa sweldo mo)

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    4. Hi Ms Marie. Same question as above - pwede pa po ba magbayad sa bank at end of July kung na-miss ko yung 2nd installment deadline (individual income earner, volutary payer)? Paano po computation ng penalties? Sample, P30,000 yung dapat 2nd installment na payment. Thank you in advance po.

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  76. hi patulong naman po...last april 15 nalaman ko na may dapat akong bayaran na 9274 sa tax tapos ang advise sa akin pay any amount muna that day since i dont know the reason bat may dapat akong bayaran so i paid 1500, the question now is paano po ung remaining balance ko ano po ang dapat kong gawin dun..tnx po

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  77. hi patulong naman po, i was advise last april 15 na may dapat akong bayaran na 9274 sa tax then i asked the reason why, since i need to go to the central office the next day i was advise to pay any amount muna since last day na ng filling, so i paid 1500, paano po ngayon ung remaining balance ko? tnx

    ReplyDelete
    Replies
    1. take a look at your 2316. (bir form for certificate of income tax withheld). Tignan mo yung tax due. if it is more than 2000, you can pay it in 2 installments, first on april 15, and yung 2nd on july 15.
      Example: Tax Due - 30,000
      Tax Withheld - 17,000.00
      Tax Still due- 13,000

      First Installment Computation (due april 15)
      Tax Due 30,000
      1/2 of tax due 15,000
      Tax Withheld 17,000
      Tax To be paid onApril 15 - none (since the tax withheld of P17000 covered more than 1/2 of your tax due.)

      Second Installment on or before July 15 - 13,000.00

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  78. hi! help naman po!

    nagfile po ako ng 1601c at 2551m manually for the month of march, but di narefile online, me penalty na kapag di narefile till april 30. if magrefile po ako ngayon, ako ba ang magcompute ng penalty? paano ako magcompute sa 1601c, no payment? at sa 2551m, like kung 2000 ang binayaran sa bank? tama bang ako ang maginput sa compromise section o penalty section ng 1000t amount? o automatic na lalabas un penalty amount kapag nagfillup uli ako ng ebir forms for that month of march?

    tenx in advance....

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  79. Hi, Ms. Marie..
    Year 2009, nagfile po kami ng business closure sa BIR. But last week ,I went to BIR to file a transfer of RDO ang sabi hindi pa daw closed yung business ko, and it was still active..
    Magkano po kung cocompute-in yung charges, when it was way back 2009, until now. thanks.

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  80. hello ms marie, part time/contractual instructor po ako since 2013 ng isang university..sahod ko po ay umabot ng 18000 per month..10% wiholding tax binawas po ng university. pero ng humingi po ako ng 2316 or 2307 ayaw po nila magbigay..last may 7 pumunta po ako sa BIR para kunin ang TIN card ko po..pero ayaw ibigay ng BIR kasi po may open cases po ako for the year 2013 and 14.. kaya malaki po nag nabayaran kung penalties, posibli bang hindi na remit ng university ang tax ko? if hindi po na remit pidi ko bang makuha sa kanila ang 10 % na binabawas nila sa akin buwan buwan? bali yong 36,000? kasina declare ko kasi yong sahod ko sa 1701..maraming salamat po.

    ReplyDelete
    Replies
    1. Dapat hingin mo sa university yung 2307 mo (na-classify ka as professional kaya 10% ang kinakaltas). since you should deduct the 10% withheld monthly from your tax due. If ayaw nila magbigay kasi it is their duty as a withholding agent.

      "For EWT - To be issued to payee on or before the 20th day of the month following the close of the taxable quarter. Upon request of the payee, however, the payor must furnish such statement to the payee simultaneously with the income payment."

      Dapat binigyan ka ng certificate as proof na nawithholdan ka ng 10%. You can either demand for them to give you their certificate or write a complaint and address it to the BIR Revenue District Office or Special Investigation Division kasi they can always verify if nawithholdan ka via the reports that the university should be submitting to the bir

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  81. Hello po Miss Marie! I'm glad I found your blog!! My concern is I have stopped my job as an online English tutor (acquired my TIN through 1901 professionals; self-employed individuals) since I am going overseas for migration. Technically, I am currently unemployed. I've read that we still need to file ITRs even if we don;t receive any income. What if I wanted to stop filing ITRs altogether because I do feel that it would now become a hassle because I won't be receiving any kind of income anymore and the fact that I won't be living here soon. I still have 5 months before leaving the country and I've planned to travel within these months. What should I do? I wouldn't want to pay penalties for not filing ITRs. Thank you Miss Marie!!!!

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  82. Hi Ms. Bulatao. I really need your help po. I filed my ITR on time this year. However when I had it calculated at BIR, I was shocked because I didnt know that I owe them 6,000 php. I resigned from my previous employer in Feb 2014 and got my new job in May 2014 but unfortunately my current employer did not consolidate my tax information when I submitted my 2316 as a requirement. When I went over my final payslip with the prev job I just realized that they provided me the Tax refund for around 4K, that I understand. But the thing is, my current company should have consolidated my taxes so it didnt happen. The witholding taxes I owe shouldve been deducted through my salary so I dont have to pay them upfront. What can I do now? I havent paid my taxes yet, the due date is on July 15th. Actually I just filed my resignation again with the recent employer, due to relocation. Lets say I have new job goin forward, can I talk to my new employer about my current situation so they will be the one to deduct my tax payments? is that possible? Your response would be much appreciated. Thank you!

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  83. Hi Ms. Marie, I'm Shie, 21 years of age.I was recruited last April 11 2014 to be a life insurance agent. Isa po sa mga requirement nila para magkaroon ng license ay TIN number, so I registered tru online to get a TIN number. I got my license April 16 and I attended 3 days trainings but I did not make it good so hindi ko na po pinag patuloy. I was informed that I should have closed/cancelled when I resigned as an agent. I also did not know that I had to pay the annual registration. I tried filing for a 1905 to close or cancel the registration together with a letter of request. However, BIR staff did not accept these and asked me to pay P50,000 as Miscellaneous using form 0605. Ano po ba dapat kong gawin? unemployed po ako simula nung umalis akosa pagiging agent util now. meron pa po bang ibang dapat gawin para hindi ako mag bayad ng ganyan kalaking halaga.?

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  84. Did u register with BIR as an insurance agent? If you did, you should have filed your tax returns. If you have no income for the period, you are still required to file the return...dapat you filed the 1905 earlier. Ask na lang for a detailed computation of your taxes na lang and try mo makiusap if they can lower penalties. The BIR is using a tax system kasi where you get tagged if you did not pay taxes that are in your certificate of registration. Halimbawa, you are required to pay percentage tax monthly. if wala kang binayaran, magkakaroon ka ng open case. And this will remain open and hindi ka makakakuha ng clearance unless you pay...

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  85. Thank you Ms. Marie for your response.
    Yes po. I register as an insurance agent thru online.I was not informed po kasi that I should have filed my income tax return kaya po inaabot ng ganito katagal.Ask ko lang po na kahit po ba wala naman income sa pagiging insurance agent? kailangan kong mabayaran ganun kalaking halaga?

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  86. additional lang po Ms. Marie, wala naman po saking binigay na Certificate of Creditable tax withheld at source FORM 2307 ang company, kaya wala po talaga akong income.

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  87. hello po Ms. Marie. Di ko po alam kung nasa topic po ito. Regular employee po ako kay company A from aug. 2012 to aug. 2014. My monthly gross compensation income po ay 11,763. First week po ng sept. nagpaalam po ako sa manager namin na di na ako makakapasok for health reason hindi ko natapos ang kontrata ko. Nag apply ako ky company B at hiningan ako ng BIR form 2316 (annual ITR) sa unang company. Ano po advice ninyo kung hindi ibagay yung 2316 dahil awol ako at may bond po 30k?

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  88. Hi, Ms. Marie. Last year 2014 lumipat ako ng employer ko so meaning nagkaroon ako ng itr from may previous employer at yung itr ko from my current employer. Pero hindi naconsolidate ng current employer ko yung itr ko from my previous employer. So bale ang nafile lang ay yung itr ko from my current employer, ngayon ko lang nalaman. Ang tanong ko po, if ever ba na hindi ko na mafile pa yung itr ko from my previous employer anong mangyayari po? Hindi naman po sa nagiisip ako na hindi ifile pero gusto ko lang malaman kasi meron narin akong kakilala na the same situation few years ago pa, hindi na daw nya pinarecompute at hindi na finile yung itr nya from previous emmployer. Salamat po

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