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What is BIR Certificate of Registration (BIR form 2303)

BIR Certificate of Registration (COR) or BIR Form 2303 is a basic requirement in the conduct of your business in the Philippines. Of course, this is a must following the general principle that “everything is taxable”. Anyhow, if you are one of the following, then you are required to secure a Certificate of Registration (COR) from the BIR and of course pay the necessary registration fee, if applicable.

(1)    Self-employed individuals (a single proprietor or with business), professionals (a practicing lawyer, architect, engineer, doctor, accountant, etc.) estates and trusts, their branches or facilities. Secure the COR within thirty (30) working days from the day the corresponding Mayor’s Permit(assessment)/PTR is issued to the taxpayer.

(2)    Corporations, partnerships, cooperatives, associations, their branches or facilities. Secure the COR before payment of any tax due.

(3)    GAIs, GOCCs, LGUs, their branches or facilities. Get the COR before or upon filing of any applicable tax return, statement or declaration

Now, this is somewhat complicated to others. Well, I have tons of experiences from my first-time clients, with tax issues already, about BIR 2303 application, and registration mostly single proprietorship opening businesses or branches in other locations. These are the two simple rules.

1) Registration Form shall be filed with the same RDO where TIN was obtained.

2) If individual applies for business and principal place of business is under the jurisdiction of a RDO different from the RDO that issued his TIN, said TIN shall be transferred to the new RDO.

In closing, the COR shall only be issued to individuals engaged in business or the practice of profession and to juridical persons. Further, each Head Office, branch or facility shall be issued with a COR. Again, again, again, each Head Office and branches, so take note of this.

 

AND LASTLY ALWAYS REMEMBER: The COR shall be posted or exhibit the same, and his/its duly validated RF Return at a conspicuous place in its/his principal place of business to avoid penalties and fine.

Also take note that all taxes registered to be paid are found in the COR, so please be guided with each related deadlines (taxes required to be filed based on registration)

If you are having trouble with this, please dont hesitate to leave a message, it will be my pleasure to guide and help you out.

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WHAT IS VAT?

VAT stands for Value Added Tax. It is a form of business tax which is passed on to the consumers/buyers.

If you register your business you need to register either VAT or Percentage Tax.

Here in the Philippines, we are required to include VAT to our sales and pass it on to the customer, generally (when you choose VAT on your registration or when your Sales exceed 1,919,500). We are, therefore, required to remit this VAT (equivalent to 12%) to the Bureau of Internal Revenue (BIR). That is your Output VAT. However, during the course of business, we also incur some expenses. That means VAT was passed on to us already. That is your Input VAT.

So to make things even simpler, Output VAT comes from your revenues, while Input VAT comes from your expenses.

To compute the VAT Payable to BIR, you deduct all Input VAT (from purchases or expenses with proper documentation) from all of your Output VAT (from your sales) for a specific period.

If you will take a look at any receipt, say, from your bookstore. You will see a breakdown at the bottom. Where VAT is specifically identified at the bottom.

Notice how the VAT (12%) is separated from the Vatable Amount on your receipt? For example:

Vatable Sales: 100

VAT Exempt:

Zero rated:

VAT: 12

Total VAT Inclusive: 112

Less: VAT

Less: SC/PWD disc.:

Less: Withholding:

Total Amount Due: 112

The business earned Php 100.00 and the Php 12.00 goes directly to the BIR as payment for taxes.

Hopefully this will help clarify the terminologies and application in the course of your business.

The Computation of VAT

Remember, mentioned above that you are required to pay for 12% and that you also already paid for some VAT? That is where the computation and confusion comes in. Tax payable is equivalent to Output VAT minus Input VAT. See the sample spreadsheet computation here to provide more details. Of course this does not represent the business world because there are other things to consider (like valid expenses, withholding taxes, etc.).

vat

Now, please look at your BIR Certificate of Registration (form 2303) to see if you have VAT listed there. If there is, then this article is for you.

Common Costs of Doing Business in the Philippines

Are you starting a small business in the Philippines? Starting a business is surely exciting, especially if it’s about your dream and passion. However, being a businessperson or an entrepreneur is not always fun, as it also comes with a lot of expenses. So before starting a business and imagining about all the profits and the glories you can achieve, consider these common costs of doing business in the Philippines first.

1. Office space and building improvement/Leasehold Improvements
If you own a building or space which is ideal for your business, you may not need to rent. However, you will still spend money on building improvement to prepare it for your business. If you don’t own any building, you will need to rent. This will make you incur monthly rental expenses. Moreover, landlords usually require advance and deposit payments. Hence, this could be one of your major costs in doing even for a small business in the Philippines.

2. Business registration, licenses and fees
This cost includes registration fees with the Securities and Exchange Commission (for partnerships and corporations), Department of Trade and Industry (for sole proprietorship businesses),Local Government (Professional Tax Receipt for practice of profession) Bureau of Internal Revenue (BIR), Mayor’s Office, and other required government agencies. Most of these permits and licenses are usually renewed annually.

3. Taxes
This cost includes the recurring taxes you will pay with the BIR, such as monthly percentage tax or Value Added Tax, quarterly and annual income tax, and monthly withholding taxes. Taxes also include the local taxes you will regularly pay with the local government. These taxes usually depend on the amount of your initial capital or gross sales.

4. Bookkeeping and Accounting Services
Business registrations and compliance with the government are strenuous processes. Thus, you will most likely hire a bookkeeper to save your time and focus on the more significant and profitable steps of your business. Bookkeepers are usually hired in a monthly retainer agreement. The cost varies from business to business.

5. Legal fees
To avoid legal disputes and liabilities in the future, business owners should seek legal advice first before doing any major business decision. Legal fees also include notarial fees on important business documents, such as contracts and incorporation papers.

6. Furniture and equipment
Furniture and equipment are essential to run your business. You have to provide office tables, chairs, computers and other equipment for your workers or employees.

7. Utilities
Your computers and other equipment will not work without electricity. Your people cannot work without water. Electric and water bills are part of your monthly business expenses. You cannot live without them.

8. Employee salaries and benefits
This includes the cost of selecting and hiring the most qualified workers for your business. Their daily, semi-monthly or monthly salaries and other benefits (SSS, Philhealth, HDMF, bonuses, etc.) are one of the biggest costs you will incur in doing business, especially if you will provide services rather than sell goods with this you might also want to avail a payroll preparation service who will prepare monthly payroll for these employees.

9. Employee training and development
Not all the people you will hire are automatically fit to do the jobs that you expect them to do. You need to invest for their training to sharpen their talents and skills. If you will be coaching them personally, expect to spend a lot of time.

10. Travel and transportation
Speaking of time, transportation can be costly in the Philippines, especially if you’re doing business in Metro Manila due to heavy traffic congestion. Travel and transportation expenses also include cost of fuel, toll fee parking and other costs incidental to your business travels.

11. Internet and communication
This cost includes your monthly Internet and telephone bills. Internet in the Philippines can be slow and expensive, especially in the provinces. Thus, you might want to stretch your budget to have the most reliable Internet and telephone monthly service package.

12. Repairs and maintenance
What would you do if your computers do not turn on anymore? What would you do if your car’s engine is not already starting? Your office space, furniture and equipment will certainly wear and tear. Hence, expect to incur expenses on repairing and preserving them.

13. Insurance
Your business, employees and vehicles need insurance. The common insurances you would incur include business insurance (like fire insurance), car insurance, and life or disability insurance for your people.

14. Loan interest
Many Filipino entrepreneurs start a business without adequate capital coming from their own pocket. Consequently, they resort to getting loans with a promise to pay a monthly interest aside from the principal. Some business owners also use their credit cards to pay suppliers, thus, incurring interests and other charges.

15. Marketing, sales and advertising
A new business need to reach its target market for the first time. This requires a series of advertising, paying commissions to sales agents, and other marketing efforts. If you’re starting a business, you have to set a budget to stand out from the crowd. And even after 5 or 10 years, you would still need to continue implementing an effective marketing strategy to constantly win your competition.

There you are. Those are only some of the common costs and expenses that you should expect when starting and operating a business in the Philippines. They don’t include yet the “cost of materials” or “cost of goods to be sold” for retailers and manufactures. Those business expenses will also depend on your specific industry, location, competitors, and business size.

All of these expenses should be part of your working capital, in order for you to be ready on anything that might come up on your business operation.

If you want to succeed in business, don’t ignore them. You have to come up with a sound financial plan. Finally, don’t forget that you have to spend, not only money, but also time, passion and dedication in your business to succeed.

What other business costs or expenses in the Philippines can you add to the list? Feel free to make a comment below.

Do you need some assistance in your business operations? Please feel free to contact us, it will be my pleasure to help you.

Sole Proprietorship vs Partnership vs Corporation, which is the best one to put up?

For most entrepreneurs, one of the most important decisions is whether to be a sole proprietorship, a partnership or a corporation. A mistake in form of organization can bring long-term damage to a business. Despite the risks, most people make this decision without a good idea of the type that is really best for their company.

Usually, we rely on our accountant or some other person who we believe is knowledgeable in making this decision. While most of the time their advice may have been correct, it would be better if you yourself understand what is best for the company you are planning to put up. Below are tips on the advantages and disadvantages of each type of organization:

Sole Proprietorship

This is when only one person owns and controls the business. It is the most simple and inexpensive alternative. If you have very limited capital, then this may be your only option. It is also very fast to put up. The large majority of businesses in the Philippines are sole proprietorships. The main problem here is that you and the business are legally the same, and this means that your company’s liabilities are also your personal obligations, exposing you to great risks.

There are many cases where a business is formed as a sole proprietorship even though it is not really so. The most common example is the case of married couples. When a husband and wife form a company, it should, at least, be a partnership since there are two of them. A partnership allows two or more persons. Many couples think having the business in the name of only one of them does not matter if everything is conjugal property anyway. To be on the safe side, consult an expert on all the possible consequences of this arrangement.

Partnership

Midway between the sole proprietorship and corporation is the partnership form of business. Partnerships are registered in the Securities and Exchange Commission. Some types of business must be partnerships. Some types of professional practices, like law and accounting, can only be organized as partnerships.

A partnership’s income is equally divided among the partners, unless there is a written provision that dictates otherwise. Frequently, there are quarrels because there are partners that think their partner is not putting in the same amount of effort or investment and still get the same profit. Decide on a fair arrangement beforehand.

If you are the main investor, and the one personally liable, this position is called the general partner. The others are called limited partners because they have only limited liability, as if they were shareholders in a corporation.

Corporation

A corporation is considered a separate entity; an artificial person created by law and, like partnerships, is registered in the Securities and Exchange Commission. It takes at least five persons to form a corporation in the Philippines. There are many advantages if you are a corporation, and thus almost all large companies are corporations because of these. Also, there are some businesses that by law must be organized as a corporation, like a lending company for example.

The main deterrent in choosing a corporation is the much larger amount of expenses and effort required in setting up and maintaining this type of legal entity. If the expense is not a problem, a corporation is quite probably the best option.

The most often cited advantage of corporations is limited liability. That is, in normal circumstances, you will not be liable beyond your investment in the corporation. This is quite understandable since operating a business always has some risks and you would want your personal assets to be free from creditors in case your business goes bankrupt. However, this is not entirely accurate. If you have unpaid subscribed shares, then you are still liable for the unpaid balance of the stock. You can have fully paid shares so that you will not be surprised by this. There are also some other situations where you may be personally liable.

One of the greatest advantages of a corporation is that it is relatively easier to get additional capital for it. Note, however, that in applying for a loan for your business, there is often fine print that makes you personally liable for unpaid obligations. Try to avoid this provision, if possible, as it nullifies the legal protection of your personal assets if your company is a corporation.

Perhaps the most serious disadvantage of corporations is that there is double taxation. The company’s income is first taxed, and then cash dividends to stockholders are once again taxed. However, in practice there are also tax advantages in being a corporation.

Choosing the appropriate legal structure for your company has a profound impact on its eventual success, so do not take this decision lightly. The good news about this is that, should you find the status quo not ideal, it is possible to change to a different form of business structure. But you can only make a wise judgement on this crucial matter if you have a basic understanding of the advantages and disadvantages of the options.

 

*Originally published by the Manila Bulletin. D-4, Sunday, July 7, 2013. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.

Tax evasion vs. tax avoidance: What’s the difference?

Generally non-paying of taxes is a felony, and Felony is punishable via imprisonment.

“Avoid common taxation troubles that may be detrimental to your business.”

Benjamin Franklin once said, “Nothing in this world can be said to be certain, except death and taxes.”

 

Starting up a business may give you the financial freedom you’ve always longed for or that sense of fulfillment in creating something that’s entirely yours. But you should not overlook some requirements; you’ll have to pay your taxes or face the consequences of not doing so.

 

Tax lawyer Shennan Sy, cites proper tax payment and registration as among the most common mistakes new business owners tend to commit with regards to taxation. And in many cases, such mistakes could be irreversible.

 

What is tax avoidance?

 

While most people would think that tax evasion and tax avoidance mean the same thing, only one would land you in jail.

 

“There is a thin line between tax avoidance and tax evasion,” Atty. Sy explains. “Taxpayers are allowed to engage in tax avoidance by structuring their transactions, within the bounds of the law, to minimize tax payments.”

 

Take for example an employee’s take home salary. In an employer’s point of view, a higher take home salary comes with a higher withholding tax. If an employer would like to increase an employee’s salary but would like to avoid paying additional tax, he could opt to fill in the gaps through de minimis benefits that are spared from withholding tax.

 

The above scenario is just an example of tax avoidance. Although such a scheme may be legal, the law still stipulates that tax avoidance be done in ‘good faith’ and ‘at arm’s length.’

What about tax evasion?

 

Here’s where the distinction between tax avoidance and tax evasion becomes vital.

 

“Tax evasion occurs when the taxpayer goes beyond the bounds of the law in structuring his transactions in order to minimize tax payments,” says Atty. Sy.

 

Illegal means of tax reduction include: generation of falsified receipts, over-statement of expenses, under-reporting of income, and other means to intentionally defraud the government in an attempt to lessen business tax or to completely avoid paying any amount at all.

 

According to Sec. 253 of the National Internal Revenue Code, persons found guilty of tax evasion are subject to imprisonment of not less than two years but not more than four years. On top of that, tax evaders are also fined an amount of not less than P30,000 but not more than P100,000, depending on the severity of the case.

To avoid this, Atty. Sy advises taxpayers/business owners to keep a close track of all transactions and receipts. All sale transactions must be issued a receipt and all those declared as gross income must be supported by official receipts or invoices.

While it is understandable that a business owner would much rather focus on growing his business than spend time to handle the nitty-gritty and legwork, it is advised that a competent bookkeeper, at the very least, be hired and tasked to keep track of all financial transactions.

 

Taken from website below:

http://www.entrepreneur.com.ph/startup-tips/tax-evasion-vs-tax-avoidance-whats-the-difference

By Angelica Louise G. Dantes |

Let us file our required taxes accordingly, let us follow the law diligently.

If you are having problems with your taxation, please feel free to leave a message and I will gladly assist and help you. Please click here.

 

BIR wants online sellers to pay taxes

MANILA, Philippines – The Bureau of Internal Revenue (BIR) said it will start collecting taxes from  individuals and businesses selling products online as part of its aggressive efforts to meet collection goal and boost government revenues.

The BIR issued a new memorandum which reiterates online sellers’ obligation to pay taxes.

Citing the National Internal Revenue Code, Internal Revenue commissioner Kim Henares said failure of online sellers to register with the BIR would result in the imposition of appropriate penalties.

Henares said the law requires the issuance of receipts by online sellers for every sale of goods and properties or exchange of service. The receipt must bear the full amount of the sale to the buyer.

 

Under the rules, online sellers must secure the required Authority to Print (ATP) invoices and register books of accounts for use in business either manually or electronically.

The receipt, the BIR said, must be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of the latter’s accounting records.

Online sellers are also required to file and pay applicable tax returns on or before the due dates as well as submit a summary list of sales/purchases including the payees.

Henares said the existing tax laws and revenue issuances on the tax treatment of purchases (local or international) of goods (tangible or not) shall apply to all transactions wherein consumers directly buy goods or services from a seller and an intermediary or third party over the Internet. Therefore, those using online social networks such as Facebook must register as a taxpayer.

Among the popular online buy and sell websites include sulit.com.ph, ayosdito.ph, alibaba.com, and tsikot.com, etc.

Also covered by the rules are those that use the Internet to deliver marketing messages to attract potential buyers and those that conduct online auctions (such as ebay.ph).

Aside from issuing official receipts, online merchants or retailers are mandated to issue acknowledgement receipt to the credit card company or payment gateways for the amount received.  They must also pay the commission of credit card company net of 10 percent expanded withholding tax.

Payment gateways which refer to banks, credit card companies, financial institutions and bill paying services are similarly required to issue validated bank deposit slips in the name of the merchant or intermediary and remit the amount to the merchant less EWT of one half of one percent.

Freight forwarders and online website administrators are likewise required to issue the BIR registered OR for the service fees paid by the merchant or advertisers.

According to the BIR, the merchant/retailer is obliged to pay the online advertising entity for the advertising fee,  net of two percent EWT.

To avoid paying more penalties feel free to contact us, we would gladly help you.

 

http://www.philstar.com/business/2013/08/24/1126961/bir-wants-online-sellers-pay-taxes

How to Register Business in the Philippines

Detailed steps on how to register your business in the Philippines. How to register your business under R.A 9178: Barangay Micro Business Enterprises (BMBEs) act of 2002.  Barangay Micro-Business Enterprises (BMBEs) can now register their businesses, free of charge, at the Department of Trade and Industry (DTI) through the agency’s Negosyo Centers.

Under Republic Act No. 9178 or the BMBEs Act of 2002, a BMBE is referred to as any business entity or enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million. Such assets shall include those arising from loans but not the land on which the plant and equipment are located.

If you want to start a business in the Philippines, just follow these simple business registration steps. Starting a business in the Philippines is easy and does not have to be a daunting task.

 

Steps in Registering your Business in the Philippines

Step 1 – Business Entity Registration

If Sole Proprietorship: 
• Register with the Department of Trade and Industry (DTI)
If Partnership / Corporation:
• Register with the Securities and Exchange Commission (SEC)
If Cooperative:
• Register with the Cooperative Development Authority (CDA)

 

For Sole Proprietorships – REGISTERING WITH THE DEPARTMENT OF TRADE AND INDUSTRY (DTI)

Business Name Registration Certificate
Where: DTI-Provincial Office where the business is located or log on to http://www.bnrs.dti.gov.ph or http://www.business.gov.ph/
Validity: 5 years
Requirements:
• Presentation of 1 copy of government issued ID
• Accomplished Business Name Registration form (BTRCP FORM 16A) in duplicate
Registration fee depending on territorial coverage of the business name and documentary stamp :
Barangay – P 200.00
Municipal – 500.00
Regional – 1,000.00
National – 2,000.00
Documentary Stamp tax of P15.00 per application.

Business Name Registration Application Form

For Partnerships and Corporations – REGISTERING WITH THE SECURITIES AND EXCHANGE COMMISSION (SEC)

SEC Registration Certificate
Where: SEC Building, EDSA, Greenhills Mandaluyong City
Tel. No.: (632) 584.0923
Email: mis@sec.gov.ph
Website: http://www.sec.gov.ph or http://www.sec.gov.ph/secireg.htm (for online registration)
Validity: 50 years

Requirements for Partnership:
. Name Verification Slip (online or at the name Verification Unit)
. Articles of Partnership
. Written Undertaking to Change Corporate Name by any partner
. Form F-105 for partnership with Foreign Equity
. Proof of Inward Remittance by foreign partners

Requirements for Stock (S) and Non Stock (NS) Corporations:
. Verification Slip Form (S) (NS)
. Articles of Incorporation (S) (NS)
. T reasurer’s Affidavit (S)
. Notarized Bank Certificate of Deposit where the bank is located (S)
. Written Undertaking to Change Corporate Name by any Incorporator or Director (S), by any T rustee (NS)
. Clearance from other government agencies (S)
. Foreign Investment Application Form F-100 (for subsidiaries of foreign corporations (S)
. Proof of Inward Remittance by Non-Resident Aliens/Subscribers (S)
. List of members and amount contributed certified by the Secretary and T reasurer (NS)
. Registration fee of Php 360.00

For Cooperatives – REGISTERING WITH THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA)

Certificate of Registration
Where: 6th Floor, Ben-Lor Building, 1184 Quezon Avenue, Quezon City
Tel. No.: (632) 372.3808 / 373.6895 / 332.0019
Email: webmaster@cda.gov.ph
Website: www.cda.gov.ph
A cooperative is a duly registered association of persons, with a common bond of interest who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required, and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.

Requirements:
. Economic Survey (4 copies)
. By-Laws and Articles of Cooperation duly notarized (available at CDA office) – 4 copies
. At least 15 members
. Undertaking to change name
. Undertaking to submit reportorial requirements
. Bond of accountable officers
. Cooperative Pre-membership Education Seminar Certification
. Favorable endorsement of proper government agency, if necessary
. Capitalization of at least Php 15,000.00 (total paid-up capital)
. Cooperative Annual Performance Report and audited financial statements for them to secure a certificate of good standing

Schedule of fees:
TYPES OF COOPERATIVES 
Laboratory Cooperatives – No Registration Fee
Primary Cooperatives – Paid-up Capital of P2,000.00 – 500,000.00 up, Fee of P500.00 – 1/10 of 1% of the paid up capital
Secondary Cooperatives – Paid-up Capital of P2,000.00 – 500,000.00 up, Fee of P1,000.00 – 1/10 of 1% of the paid up capital
Tertiary Cooperatives – Fee of P3,000.00

Step 2:  Business Permit

Apply for business permit and license from the City/Municipality where the business is to be located.

Get sector specific clearances:
For Example:
travel agency – Department of Tourism (DOT)
food and cosmetics – Food and Drugs Administration (FDA)
pawnshop – Bangko Sentral ng Pilipinas (BSP)
learning centers – Department of Education (DepEd)
wood crafts/furnitures – Department of Environment and Natural Resources (DENR)

 

REGISTERING WITH THE MUNICIPALITY / LOCAL GOVERNMENT UNITS
(Follow steps 1 and 2 of the Process Flow before registering with your Municipality)

Mayor’s Permit
Where: Municipality or City where the business is located
Validity: 1 year
Requirements:
– DTI or SEC Registration
– Certificate / Articles of Incorporation
– Community Tax Certificate
– Barangay Clearance
– Location Clearance
– Certificate of Occupancy
– Building Permit
– Fire Safety / Inspection Permit
– Electrical Inspection Certificate
– Contract of Lease
– Picture / Sketch of the Site
– Public Liability Insurance (for restaurants, mall, cinemas)
– SSS Registration

Step 3

Register with the Bureau of Internal Revenue (BIR) District Ofce where the business is to be located for Authority to Print Invoice and Book of Journal

REGISTERING WITH THE BUREAU OF INTERNAL REVENUE (BIR)
(Follow steps 1 and 2 of the Process Flow before registering with the BIR)

Tax Identification Number (TIN)
Authority to Print Invoice and Book of Journal

Where: BIR Provincial Office where the business is located or go to the BIR Revenue District Office
Trunklines: (632) 981.7000 / 981.8888
E-mail: contact_us@cctr.bir.gov.ph
Website: www.bir.gov.ph
Validity: 1 year
Requirements:
1. Application for Tax Identification Numbers (TIN) for Employers

a) Self Employed/Mixed Income Individual (BIR Form 1901)
• Birth Certificate or any valid ID showing name, address and birth date
• Mayor’s Permit or application for Mayor’s Permit
• DTI Certificate of Registration of Business Name

b) For Partnerships and Corporations (BIR Form 1903)
• SEC Certificate of Registrations for Partnerships and Corporation
• License to do business in the Philippines (in case of residence foreign corporation)
• Mayor’s Permit or Application for Mayor’s permit

2. Application for Authority to Print Receipts and Invoices

a) For New Taxpayers (BIR Form 1906)
• Job Order
• Final and Clear Sample of Receipts and Invoices (machine printed)
• Photocopy of BIR Form 1901 or 1903, TIN Card, Proof of Payment (BIR Form 0605)

b) For Registered Taxpayers (BIR Form 1906)
• Job Order
• Final and clear sample of receipts and invoices
• Photocopy of Proof of Payment (BIR Form 0605, previously approved Authority to Print Invoice (ATP), Certificate of Registration (COR) BIR Form 2303, last booklet printed

Step 4 – Other Registration Requirements

Register your business with the following offices to comply with existing regulations:
– Social Security System (SSS)
– Department of Labor and Employment (DOLE)
– PhilHealth
– PAG – IBIG
– Department of Environment and Natural Resources (DENR)

REGISTERING WITH THE DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)
(Follow steps 1 to 3 of the Process Flow before registering with the DOLE)

Every employer, as defined in Rule 1002 of the Occupational Safety and Health Standards, shall register his/her business to the Regional Labor Office or authorized representative having jurisdiction thereof to form part of the databank of all covered establishments.

Where: DOLE-NCR Building, Maligaya St. Malate, Manila or go to the Nearest DOLE Regional/Provincial Office
Hotline: (632) 527.8000
E-mail: osec@dole.gov.ph, dolecallcenter@yahoo.com
Website: www.dole.gov.ph
Validity: Lifetime
Requirements:
• Registry of establishments under Occupational Health and Safety Standards No. 1020

REGISTERING WITH THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR)
(For securing an Environmental Compliance Certificate (ECC))

ECC Application for new single project located within Environmental Critical Areas (ECA) or Non- Environmental Critical Projects (Non – ECP)
Where: Visayas Avenue, Diliman, 1100 Quezon
Tel. No.: (632) 929.6626
E-mail: web@denr.gov.ph
Website: http://www.denr.gov.ph
Requirements:
a) Proponent must submit a letter of request to the Environment al Management Bureau (EMB) stating desire to receive ECC
b) Attach Project Description which should include raw materials to be used, the process or manufacturing technology to be implemented
c) Submit the estimated project capacity, type and volume of products and discharges
d) Proof of possession of necessary capital for proposed project
e) Location map of project area
f) Manpower requirements

Any project in the Philippines that poses a potential environmental risk or a significant impact to the environment (such as mining, agriculture projects, or construction) is required to secure Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR).

REGISTERING WITH THE SOCIAL SECURITY SYSTEM (SSS)
(Follow steps 1 to 3 of the Process Flow before registering with SSS)

Social Security System (SSS) Certificate
Where: SSS Provincial Office where the business is located or log on to www.sss.gov.ph
Tel. Nos.: (632) 920.6401 / 920.6446
Email: member_relations@sss.gov.ph
Website: www.sss.gov.ph
Requirements:
• Employers Registration (SSS Form R1) and Employment Report (SSS Form R1A)
• Specimen Signature Card (SS Form L -501)
• Sketch of business

1. If Employer (Main Office)
Single Proprietorship
• Business Name Registration
• Business Permit or any proof of business operations

Partnership
• Photocopy of approved Articles of Partnership (original must be presented for authentication purposes)

Corporations
• Photocopy of approved Articles of Incorporations (original must be presented for authentication purposes)
• SSS Form R -1 and R-1A (signed by the President or any of its Corporate Officers)

2. If Self-Employed member
• SSS Form R -1 (Self Employed Data Record)
• Photocopy of any of the following: Baptismal Certificate, Birth Certificate, Drivers License, Passport, PRC Card, Seaman’s Book

REGISTERING WITH THE Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno (PAG-IBIG)
(Follow steps 1 to 3 of the Process Flow before registering with PAG-IBIG)

PAG-IBIG Fund Membership
Where: Atrium Building, Makati Avenue, Makati City
Trunkline: (632) 812.8186 / 813.6615 / 812.4731 / 724.4244
E-mail: publicaffairs@pagibigfund.gov.ph
Website: www.pagibigfund.gov.ph

Per Republic Act 7742 which was fully implemented on 01 January 1995, membership to the Pag-IBIG Fund shall be mandatory for all employees covered by the Social Security System (SSS) and/or the Government Service Insurance System (GSIS) and earning at least P4,000 a month. This mandatory coverage extends to expatriates whose age is up to 60 years old and who are compulsorily covered by the SSS.

Membership for employees who are earning less than P4,000 a month, including those who belong to other working groups, shall be on a voluntary basis. ,

Requirements For Individual Payors (IPs)
Sole Proprietorship
• Employer’s Data Form
• Members Data Form (for employees)
• Certificate of SSS Coverage and Compliance
• DTI Business Name Registration
• Mayor’s Permit or Business Permit

Partnership / Corporation
• SEC Registration or Articles of Partnership (for partnership) or Articles of Incorporation (for corporation) and By-Laws.
*Bring original copies for authentication purposes

Start the Business

For Bookkeeping Services, Payroll services, Tax compliance I might help you with that. Please click here for inquiries.

Basic Bookkeeping Package for Small Business

(1) Gather and Record Source Documents:
– Invoices,
– Official Receipts,etc

(2) Update Books of Accounts
(Philippine Accounting Standards and other relevant standards)
– Cash Disbursement Journal
– Cash Receipts Journal/Sales Book
– General Journal, etc
(3) Tax Preparation
1701Q, 1701, 1702Q, 1702, 2550M, 2550Q, 2551M, 2551
1601C/E/F, 1600, 1604CF, 1604E
Letter of Authority, Letter of Notice.

(4) Produce Unaudited Financial Statements
– Statement of Financial Position/ Balance Sheet, etc.

What s in it for YOU – Benefits

Organized financial documents
Updated books of accounts
Saves time
TAX compliance
Produces savings
Reduces business risk
Clear picture of the financial standing of your business
Full control of your business
Peace of mind