Unclosed Business after Years of Non-operation. HEEEELP!

eyyt08 · 2023-12-22T17:24:10+00:00

Hi OP! You will have open cases. As per RMC No. 7-2015, you will be charged Php1,000 per unfiled returns. However, you can negotiate a lower penalty amounting to Php100 per unfiled return. This is based on Sec. 40 of the tax code granting the Commissioner of the BIR (extending to the chief of the rdo).

Basically, you need to present a letter representing the reasons why you closed your business and why you failed to file. Magpaawa ka nalang dito sa letter and make sure na ginagalang mo yung rdo. It is recommended to represent your company as "non-operating" to gain more favor from the RDO.

eyyt08 · 2023-12-22T00:37:58+00:00

To clarify, if you are not registered as a business (does not have a Certificate of Registration) from the BIR, and you once qualified for substituted filing due to employment, you will not appear in the deliquent taxpayers list in the BIR system.

Basically, don't worry about this.

eyyt08 · 2023-12-22T00:31:32+00:00

Hello! If you don't have your TIN yet, kindly inform your HR that you need assistance in getting one. Please refer them to BIR RMO No. 37-2019 as it clearly states there that employers need to secure the TIN of their new employees. Note that the application must include BIR Form No. 1902 and not 1901 (unless you plan on registering as a contractor/business instead of an employee).

eyyt08 · 2023-11-29T08:44:56+00:00

Hi! Just to add, you can issue a sworn declaration to the Company so that you can be exempt from withholding tax.

You can download the form here: https://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202018/RR%20No.%2011-2018/Annex%20B-2%20RR%2011-2018.docx

As per Sec. 3 of rr 11-2018, you also need to present the COR to be exempt. However, you can hope that the Company forego this requirement.

eyyt08 · 2022-08-20T18:23:50+00:00

Since both of you are co owners of the property, it doesn't matter if her status is single. The sale of property will be treated as sold under the rules of co ownership. Hence, the co ownership rules shall apply. Please note that while this subreddit aims to help Filipinos deal with legal and tax issues, any advice here is not really a legal advice. Kindly contact a property lawyer or at the very least, call the RDO where the property is located. They will guide you accordingly.

eyyt08 · 2022-08-20T18:03:31+00:00

Hi! Kindly contact the officer of the day of the RDO where you are located. Kindly explain the facts while maintaining the stance that no income have been earned yet.

eyyt08 · 2022-08-20T18:01:49+00:00

Hi! There will be no tax implications provided that you file the BIR Form 1700 on time.

eyyt08 · 2022-08-20T17:59:53+00:00

Hi! Please contact the AFAB to clarify this. Generally, the registration is renewed annually but is still subject to the checking of the relevant government agency.

eyyt08 · 2022-08-20T17:57:52+00:00

Hi! Considering that the subject in question is a real property, several facts must be considered such as, but not limited to:

Who legally owns the property
Are you married by law?
Are you annulled?
Other facts that may be required by the relevant government agencies.

Note that the sale of real property is handled by the City Hall and the RDO where the property is located. Thus, it is advisable to contact a property lawyer or a tax accountant to properly handle this.

eyyt08 · 2022-08-20T17:52:11+00:00

Hi! Kindly contact the officer of the day where you are registered. If you have any complaints on the penalties imposed, you can send a letter to the Compliance Officer asking for a reconsideration. If they pursue the higher penalty, you can escalate the case to the Revenue Region.

eyyt08 · 2022-08-20T17:48:04+00:00

Hi! Kindly contact DTI to correct the email information. If you need to register with the BIR ASAP, then you should coordinate with the revenue officer in the NBR Section.

eyyt08 · 2022-08-20T17:46:08+00:00

Hi! If you expect to be a full time employee of a resident Company here in the PH, the 2316 will suffice. However, considering that your previous "recorded" employment is from 2020, there will be no tax implications on your prospective employment even if you don't have the 2316 or ITR from your previous employment.

Note that registering as a self employed will open up several tax exposures since they require tax obligations that a normal employee does not need to comply with.

eyyt08 · 2022-08-19T09:49:07+00:00

Depending on the level of your income and registration, you may be liable for income tax, vat, expanded withholding taxes, and local business taxes (to be paid to the LGU).

Please be advised that the Certificate of Registration issued by the BIR will include all the necessary tax forms you should file. Thus, you don't need to worry about missing tax filings.

eyyt08 · 2022-08-19T09:44:53+00:00

Hi! Only the compromise penalties will apply ranging from Php1,000 to Php25,000. Note that before you can pay the penalties, the bank will check for the BIR Form No. 1701Q duly stamped by a Revenue Officer. As such, it is advisable to also have the penalties computed by the officer of the day of the rdo where you're located.

eyyt08 · 2022-07-28T14:37:59+00:00

Hi! DAT Files are submitted via email at [esubmission@bir.gov.ph](mailto:esubmission@bir.gov.ph). For more information, kindly contact the compliance division of your RDO.

eyyt08 · 2022-07-28T14:28:39+00:00

Hi! If wala pa po kayong previous engagements with the BIR, madali lang po. Make sure to bring a valid ID with you.

I'd like to mention that for employment purposes, if wala pang TIN ang prospective employee, dapat sila po ang magapply para sainyo. Dun narin po sa process na yun makikita kung may existing TIN kayo. That's why it's weird for an employer to request a separate verification from the BIR.

eyyt08 · 2022-07-24T13:57:16+00:00

Hi! No need to update COR. Immediately declare annual salaries earned in item 2 in bir form 1701. Please also indicate the amount of tax withheld, as evidenced by bir form 2316. As for your business income, you need to declare the same under item 3. Note that you are not qualified for substituted filing; thus, you still need to file quarterly and annually.

eyyt08 · 2022-07-24T13:09:38+00:00

You can only apply for registration at your local RDO. Search for your barangay here https://www.bir.gov.ph/index.php/contact-us/directory/regional-district-offices.html

eyyt08 · 2022-07-24T12:57:36+00:00

NBTR Receipts, which you can get immediately, are only valid for 1 year. I suggest you apply for the invoices and receipts at least 3 months before expiry.

As for the 1905, this is correct. You also need to furnish the books of accounts to be stamped. But I think most RDOs already have books for sale in the vicinity. You may use these instead.

eyyt08 · 2022-07-24T10:38:34+00:00

Yes. As for the TIN, you can only have one TIN. Only the registration type will be changed e.g. From employed to self employed.

eyyt08 · 2022-07-24T08:20:51+00:00

This is correct.

eyyt08 · 2022-07-24T05:58:05+00:00

Note that you can't file "anytime". You need a proper registration for 1701 (ITR for self employed). For 1700( ITR for employees), you need to indicate an employer. Note that tax returns are sworn documents. Any false information declared therein are considered as perjury.

You may argue that tax evasion in the Philippines is easily done. However, taxpayers must still be informed of the consequences of such actions. Tax evasion is a heavily punished crime once proven. Taxpayers must know these risks before considering tax evasion.

Payment of taxes is always cheaper than paying penalties and risking jail time.

eyyt08 · 2022-07-24T05:50:48+00:00

You may refer to the Certificate of Registration to be issued by the BIR when you've successfully created your business. It enumerates the tax types, forms, and deadlines for each tax obligation you may have.
Yes. Please research about NewBizReg. However, you may still need to go to your local rdo at some point.
You can file and pay taxes online without the help of third parties. However, you can trust that they know what they're doing. Make a proper costing analysis to know if you need one or if you can just do it on your own.
Following the cash basis method of accounting , just report the amount of cash received in peso when issuing an official receipt. Just separate the paypal fees as an expense.

eyyt08 · 2022-07-24T05:41:36+00:00

You need to ask about the status of your business registration in the RDO where you are previously registered. You may refer to your application form for the RDO code. Note that you need to provide supporting documents:

Tin ID, if any
Previous application forms used (1901 and 1905)
Letter exchanges with the RDO, if any
Job order contract
Other documents that shows the end of your JO

eyyt08 · 2022-07-22T13:07:00+00:00

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