Millennial Bookkeeper

Corporations who are subject to regular income tax is covered by  Minimum Corporate Income Tax (MCIT) . It is not an additional tax, MCIT is compared to the regular income tax of the corporation (RICT) in the income tax return form, wherein whichever amount is higher will be the final tax due to be paid by the corporation.  MCIT is computed as 2% of the gross income. Gross income is clearly defined on the next paragraph. Gross income is gross sales less sales returns, discounts and cost of goods sold. Passive income do not form part of gross income for purposes of computing the MCIT. Cost of goods sold includes all business expenses directly incurred to produce the merchandise to bring them to their present location and use. For trading or merchandising concern , cost of goods sold means the invoice cost of goods sold, plus import duties, freight in transporting the goods to the place where the goods are actually sold, including insurance while the goods are in transit. F...

Post-pandemic, the country's economy is struggling to get back on its feet. Almost all businesses even the big companies are adjusting to the new normal as it seems this coronavirus will not be going away anytime soon. The small and medium businesses who are gravely affected by the closure of establishments and its operations due to the widespread of the virus has taken a big toll on SME owners. For two months, the business did not earn any income at all; and another month or so, the business will not be earning any income still. What's painstaking is that the fixed income that the business owners are obliged to pay even without having any money coming in. This would logically mean that the business should have included on their budget the contingency money to pay up for the fixed costs such as rental and salaries add to that the support that you may need to provide your employees until everything is normalized. But what if the business do not have an account for these expen...

Feeling worried that you might not be able to finish computing before the deadline because of the community quarantine in Metro Manila?  Did you know that you can easily file online? Of course, you can. You can just download the eBIR database from the BIR website - www.bir.gov.ph . I also prepared a quick tutorial on how to fill up the form.  Hope this is what you are looking for.

Under the TRAIN law, the tax table that are presently in use is on the table where effectivity is from January 1, 2018 to December 31, 2022. After December 31, 2022, this tax table will be applied.

Originally, deadline is every April 15 but due to this unnecessary circumstance, the internal revenue made several extensions in order for taxpayers to be able to comply. The latest memorandum issued RR 11-2020 extending the deadline of 2019 ITR filing to June 14. Let's define the three important annual income tax return forms to guide you as taxpayer or tax preparer and fill-out the correct form. BIR form 1700 - for taxpayers who are earning purely compensation income (including non-business/non-profession related income). For 1701, this refers to the taxpayers who are engaged in business and practice of profession earning mixed income and those under the graduated income tax rates with itemized deduction as the mode of deduction. 1701A refers to the taxpayers whose income is under the graduated income tax rates with optional standard deduction (OSD) as mode of deduction OR those who opted to avail of the 8% flat income tax rate) Here's an summarized chart for visua...