Recap: Filing with the BIR

Updated: 8 January 2014

On Wed, Dec 19, 2012 at 8:43 AM

Thanks for the propmt reply!

Guess I had more questions after your explanation, so here they are:

1. For initial registration, what exactly do I need to file with the BIR? I have a 1901 ready but you mentioned 2302. Are they filed at the same time?

2. What is income tax and when do I pay this? Every quarter? Month? And how do I pay these fees?

3. As you mentioned, I bought books for the ledgers and stuff but they're unclear to me so I only bought a columnar book (as advised by the BIR representative I spoke to) and a ledger. What kinds do you use for the 4 books? Do you track it digitally or do you write them down?

4. The percentage tax, is this paid quarterly with the 1701Q or monthly? Are these submitted to the BIR?

No worries about the social benefits, I'm familiar with the SSS procedure since I was able to process that before. As for PhilHealth, can this be paid at any branch? Nearest one from me is a branch in Sta Lucia but since I'm based in Santolan, it would be a nice option to pay it at a center nearer to me than having to go all the way to Pasig (like I'd have to for my BIR).

Thanks so much for pointing me in the right direction! More power to you!

On Wed, Dec 19, 2012 at 9:30 AM

You're welcome!

1. For initial registration, what exactly do I need to file with the BIR? I have a 1901 ready but you mentioned 2302. Are they filed at the same time?

That's Form No. 2303 or the number of the Certificate of Registration which you will receive from the BIR once you have completed your BIR registration requirements. You may find/review the requirements list on the Taxpayer's guide page.

2. What is income tax and when do I pay this? Every quarter? Month? And how do I pay these fees?

Income tax is the fee we give back to the government that allows us to transact business and earn income in the country. We pay this monthly (or percentage tax, Form No. 2551M), quarterly (Form No. 1701Q), and annually (Form No. 1701). If we do not have an income for any month, then we simply file the corresponding BIR form at the BIR regional district office (RDO). Check out your RDO. You may read through the Schedule page for details.

You may also find the list of the books we use on the Taxpayer's guide page. We can digitally fill out and print the required BIR forms (I've included the BIR form link here or just proceed to the BIR website forms page) we use for payment and filing. However, we have to write things down on the books: our daily expenses on the (a) journal and its details on the (b) cash disbursement book, the money we earn on the (c) cash receipts, and others on the (d) ledger. Now, I say "others" because I have used my own for a summary of my tax deductible expenses. In terms of using the books, I was advised by a BIR personnel, "Kung paano po ang alam ninyo." I just make sure that I keep the totals balanced throughout the four books.

4. The percentage tax, is this paid quarterly with the 1701Q or monthly? Are these submitted to the BIR?

The percentage tax is paid (or filed) monthly using Form 2551M. You may pay for the corresponding tax through a BIR-accredited agent bank (AAB). Check out your bank to see if it accepts BIR payments. Some banks require four copies of the form which goes to BIR when you pay. If a month has no income earned, you may have to go directly to BIR to file the form on or before the due date (20th of the following month).

I suggest you pay directly to PhilHealth, although it now has an electronic payment system. Just ask your bank or any payment center if it forwards the copy of payments to PhilHealth.

Thanks so much for pointing me in the right direction! More power to you!

You're welcome, my pleasure to be of help. Good day!

Sincerely,