BIR Form 1901

Wed, May 11, 2011 at 8:14 PM

Hi Al!

. . . By the way, you and your other readers might also find this helpful: People who want to register their business name can already do so via the DTI's website. :) Once again, thanks for sharing these information details. :) I hope you could also answer the questions I raised . . . [See questions below.] Have a great day!

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Hi Cedric,

I apologize I was unable to respond sooner. But thank you so much for writing. I'm glad to know you're from Marikina too (nawa, hindi kayo binabaha). Marikeño din ako. At sa palagay ko, maayos ang regional office natin dito ng BIR. Now, let me answer your questions.

1. What type of taxes do I pay under #22 of Form 1901?

You know, I had a poor knowledge of which taxes to pay when I registered and so, I did not fill out that portion of the form. Hindi naman nila ako pinagalitan. :) But the BIR personnel will make matters like this clear during the briefing which you may attend after completing your registration. The BIR-Marikina City RDO has a regular schedule for the briefing so you will know when to attend. A certificate of attendance is issued afterwards.

Currently, the taxes we pay as professional income earners include the monthly percentage tax (3% of gross monthly income), quarterly tax, and annual income tax. We simply go to BIR on or before the due date to file for the month we have no income. (Oh, may God pour upon us numerous projects! :))

2. I'm not planning on registering a business name at DTI. What do I put on #19 of Form 1901 under business/trade name?

I did not fill that out either since I have no registered name at the DTI. The BIR then automatically affixes one's full name as the 'business name' on the BIR certificate of registration (COR) as well as the official receipts which you will be authorized to print later.

3. Do I need to have all accounts books (i.e., journal, ledger, cash receipt, and cash disbursement)?

Yes.

4. Does the Marikina RDO still conduct the taxpayers' briefing? If yes, when do they usually do it?

Oh, yes. The taxpayers' briefing seems to be a 'mainstay' at the BIR offices. Do attend one. The upcoming schedules are posted at the BIR office; do inquire around if you can't find the schedule. The taxpayers' briefings are conducted at least twice a month, if I'm not mistaken.

5. Could you recommend an accountant who could help me manage my books and accomplish my ITR?

What a timely question! I just withdrew all my accounting records from my accountant yesterday. After contemplating on this area of my business, I decided to take heed the advice of my dad. And the advice is that I need not get an accountant since my business is still small. The BIR also advised me that I can fill out my accounting books myself in the way I know best. (And I know a number of ways to do that! :)) Not that hiring an accountant is unnecessary; but as a business person, one has to consider as well the areas where he can most ably cut costs.

I am unable to recommend an accountant at this time. What I can recommend is for you to learn to handle your own accounting books and filing of taxes. I learned to fill out my books in approximately three days. :) Accounting references and general bookkeeping are available online.

6. Do you hire an accountant? If yes, does he/she also handle the leg work needed for filing the ITR, or does he/she simply handle the books?

Yes, I previously hired an accountant. But I later decided not to continue with the accounting services upon learning that I can still manage the accounting aspect of my freelance editing business.

Well, there goes my reply to your queries. I do hope you find them helpful. I wish you the best in all your endeavors.

Sincerely,

Al