am+dg Taxation Two Addendum

RETURNS Income tax Individual

Who: Married individuals: GR: file jointly, but compute separately based on their respective total taxable income EX: impractical to file one return, each may file a separate return If income cannot be attributed exclusively to each, the income will be divided equally between them Return of parent to include income of children: GR: Income of unmarried minors derived from property received from a living parent shall be included in the return of the parent EX: when the donors tax has been paid on such property or When the transfer of such property is exempt from donors tax Return of PWD: If unable to make his own return, it can be made by: Agent Guardian of his person or property Not required to file: Gross income does NOT exceed his total personal and additional exemptions (but a citizen or alien individual engaged in business or profession in the Phil shall ALWAYS file, regardless of amount of gross income) Pure compensation earners and the income tax has been correctly withheld (but if compensation is derived from 2 or more employers at any time during the taxable year, he has to file)

Where: Authorized agent bank in the territorial jd of the RDO where the taxpayer is required to register or where the taxpayer has legal residence or place of business in the Phil If no AAB, returns shall be filed with the: RCO City or Municipal treasurer If taxpayer has no legal residence or place of business, file with the Office of the Commissioner

When: Annual ITR: April 15 of the next succeeding year Remember: individuals always follow the calendar year Can be extended by the CIR, for meritorious cases

PAYMENT GR: Pay as you file EX: INDIVIDUAL can avail of INSTALLMENT payments when the tax due is in excess of P2,000: 1st installment: paid at the time the return is filed 2nd installment: on or before July 15 following the close of the calendar year If installment is NOT paid on or before the date fixed for its payment, the whole amount of the tax becomes due and payable, together with the delinquent penalties

Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador

am+dg Taxation Two Addendum

Individual whose sole income has been subjected to final withholding tax Individual who is EXEMPT from income tax because of special laws or the NIRC Minimum wage earner

Corporate

Corporation In case of receivers, trustees in bankruptcy or assignees are operating the property or business of the corporation, they will be the ones who will make the returns, in the same manner For GPP: Each GPP shall file a return of its income EXCEPT exempt income setting forth the items of gross income and of deductions allowed, and the names, TIN, addresses and shares of each of the partners

Same, but should be in the place where the principal office of the corporation is located

Quarterly corporate income tax: Within 60 days following the close of each of the first 3 quarters of the taxable year whether calendar or fiscal year (Remember: corps can choose whether calendar or fiscal year, but it can not change the period without approval of the CIR) Final adjustment return: On or before the 15th day of the fourth month following the close of the taxpayers taxable year Extension may be granted by the CIR For corps contemplating dissolution or reorganization: Within 30 days after the adoption by the corporation of a resolution or plan for its dissolution

Pay as you file. No installment payment for taxes allowed, since its only allowed for individuals.

Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador

am+dg Taxation Two Addendum

Return on CGT from sale of shares not traded in the stock exchange: File a return within 30 days after EACH transaction Final consolidated return of ALL transactions during the taxable year on or before the 15th day of the 4th month following the close of the taxable year Can be extended by the CIR, for meritorious cases Return on CGT from sale of real property held as capital asset: Within 30 days following each sale or other disposition Return on CGT from sale of shares not traded in the stock exchange: File a return within 30 days after EACH transaction Final consolidated return of ALL transactions during the taxable year on or before the 15th day of the 4th month following the close of the taxable year

Capital Gains Tax

Seller

Same

GR: Pay as you file. EX: if seller submits proof of intention to avail of benefit of exemption of capital gains under existing special laws, no payments will be required. That in case of failure to qualify for exemption, the tax due on the gains realized from the original transaction shall immediately become due and payable, subject to the penalties prescribed. If the seller, having paid the tax, submits such proof of intent within 6 months from the registration of the document transferring the real property, he

Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador

am+dg Taxation Two Addendum

shall be entitled to a refund of such tax upon verification of his compliance with the requirements for such exemption. In case the taxpayer elects and is qualified to report the gain by installments under Sec 49 of this Code, the tax due from each installment payment shall be paid within (30) days from the receipt of such payments. No registration of any document transferring real property shall be effected by the RD unless the CIR or his rep has certified that such transfer has been reported, and the tax herein imposed, if any, has been paid.

Estate Tax

Estate, through the executor or administrator. If more than 1 executor or admin, all are severally liable. Heir or beneficiary: subsidiary liability for the payment of that portion of the estate which his distributive share bears to the value of the estate. Cant be liable for more than the value of his share. MANDATORY filing: Transfers subject to estate tax

Same, but should be of place of decedents domicile

GR: Within 6 months from the decedents death EX: can be given extension by the CIR, but extension should not exceed 30 days Upon payment of the amount, the executor or administrator shall be discharged from personal liability for any deficiency in the tax.

GR: Pay as you file, but before delivery of the shares to the heirs or beneficiaries EX: when the CIR finds that payment on due date would impose undue hardship upon the estate or the heirs, the CIR can extend time to pay: If judicial settlement,

Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador

am+dg Taxation Two Addendum

Transfers which are exempt but the gross value of the estate exceeds P200,000 Regardless of the gross value, the estate consists of registered/registrable property for which a clearance from the BIR is needed for transfer of ownership in the name of the transferee

Also, upon payment and receipt of clearance from the BIR, the estate can now be distributed. Notice of death: within 2 months after death, or within a like period after qualifying as such executor or administrator TO the COMISSIONER Same, but should be place of donors domicile In case of nonresident alien, then in Office of Commissioner or Philippine Embassy or Consulate where the donor is domiciled at time of transfer. Within 30 days after the date the gift is made Remember that each donation piles up during the CALENDAR year. Return should state: Each gift made during the calendar year Deductions claimed Any previous net gifts during the calendar year Name of the done Monthly VAT declaration and payment of VAT: 20 days from the end of the month But for Electronic Filing and Payment System Taxpayers: depends on the industry classification of the taxpayer, but they have to pay 25 days from the end of the month Withholding VAT: 10th day of the following month

not to exceed 5 years. If extrajudicial, not to exceed 2 years. No extension when taxes are assessed by reason of: Negligence Intentional disregard of rules and regulations Fraud on the taxpayer Pay as you file

Donors Tax

The transferor or donor, whether natural or juridical, resident or nonresident

VAT

VAT-Registered or one required to register

Same, but should be where taxpayer is required to register Taxpayers with branches shall file only one consolidated return/declaration for his principal place of business or head office and all branches

Pay as you file

Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador

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Withholding tax returns

Person who withheld If payor is govt of the Phil, return shall be made by the officer or employee having control of the payments or by a designated officer

Same

Quarterly VAT return: Within 25 days following the close of each taxable quarter. Quarterly returns shall reflect the cumulative totals of the sales, purchases, output tax and input tax GR: Within 10 days after the end of each month EX: taxes withheld for December shall be filed on or before January 25 of the following year For LARGE taxpayers, within 25 days after the end of each month For FINAL WITHHOLDING TAXES on INTEREST from any currency bank deposit and yield from deposit substitutes, within 25 days from the close of each CALENDAR quarter. Must also file an Annual Information Return showing: Name, address and TIN, and Nature of income payments, gross amount and amount of income tax withheld from EACH payee and whatever the CIR wants pa. The Annual Info return must be made before January 31 of the following year in which payments are made.

Pay as you file

Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador

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Mickey Ingles 4C Ateneo Law 2012 Atty Montero/Atty Salvador