Compliance and Reporting: Tax reporting the right way
Fulfilling tax reporting obligations can be a real challenge for businesses, from knowing how to fill out standardized forms with the correct amounts to providing additional information upon the request of the tax authorities. There are times when the authorities may also require explanations and analyses of how the tax reports were prepared.
This is why assistance and advice on Compliance and Reporting are much sought after by busy business owners whose time is taken up by the daily management and operations of their enterprise. Advisory services include providing insight into the way tax returns were filed for past transactions
When preparing tax returns, our team analyses the business’ historical information against the country’s tax laws, accepted tax filing practices, and industry precedents. Note that should tax authorities require it, any tax returns that are prepared will also be reviewed and approved.
Our Compliance and Reporting services include assistance in preparing and filing:
Concerning Compliance and Reporting, our team also assists businesses with bookkeeping and maintenance of their financial records. Note that larger companies will also need to have these records audited yearly by an independent Certified Public Accountant.
Anyone whose source of income is in the Philippines is required to pay taxes and file a tax report. This includes Filipinos living overseas and foreign nationals residing in the Philippines who derive income from the Philippines. Foreigners who don’t live in the Philippines but work or own a business in the country are likewise required to submit an income tax report.
The amount to be paid varies according to a person’s annual taxable income as defined by the country’s progressive personal income tax system. This system is currently covered by the Tax Reform for Acceleration and Inclusion or TRAIN law, which has lowered personal tax rates since its implementation in 2018.
Our team is also able to assist professionals, entrepreneurs, and freelancers who may not have sufficient or updated knowledge of tax filing requirements and processes which include registration, filing, and payment.
All Filipino- or foreign-owned companies doing business in the Philippines are required to pay and file corporate taxes. Filipino-owned companies must pay taxes on all income generated within or outside the Philippines, while foreign-owned companies are only required to pay taxes on income generated within the country.
On top of the standard 30% corporate income tax, most companies that provide products or services in the Philippines are also required to pay the 12% value-added tax or VAT. Companies that provide healthcare, education, and agricultural food products remain VAT-exempt.
Companies that hire staff in the Philippines will likewise have to pay various employment taxes which include payroll tax, social security, and employees compensation which varies according to an employee’s monthly salary credit.