UPDATED:
Hello guys! I just like to let you know that the BIR has come out with Revenue Memorandum Circular (RMC) No. 31-2015 announcing the availability of the New eBIR Forms Package version 5.0. So to those who manually filed last April 15, 2015 (specially those who filed tax returns with No Payment), you still have until June 15 to electronically re-file your tax return/s.
Taxpayers who are mandated to use the eBIR Forms for eFiling are reminded and may also download the said version from the BIR website or at the following sites:
Websites: www.knowyourtaxes.ph; www.dof.gov.ph
Dropbox link: http://goo.gl/UCr8XS
Direct link: http://ftp.pregi.net/bir/ebirforms_package_v5.0.zip
The instructions for installation of the latest version is also provided in the said RMC or you may open this link: eBIR Forms Reminders.
If you are using the alternative mode of filing, the BIR also has recently announced that effective August 1, 2015 such mode of filing will be stopped. If you will still use it, a message " This tax return submission channel is now unavailable and your tax returns will be disregarded..." will be received.
Hopefully, a new version (5.1) will come out on the fourth week of August, 2015 where online submission of the BIR Form 1700, 1701, 1702RT, 1702MX and 1702EX will be available. In addition, BIR Form1707A will also be accessible on the said version but it is not yet for online submission.
Happy Quezon City Day to everyone !!!... and may we all have a blessed day.
Sunday, June 14, 2015
Thursday, June 11, 2015
HOW TO CANCEL YOUR TIN OR CLOSE YOUR BUSINESS REGISTRATION WITH THE BIR.
I had an encounter with individuals having problems with their TIN. One of which is the case of the daughter of my husband's friend. After she graduated from college, she was able to pass as an insurance agent of one insurance company. Her income will be more of a commission basis. Since there was no employer-employee relationship between her and the company, she applied for TIN as a self-employed individual. But, for some reason, she did not continue with her plan to be an insurance agent. She, then, took further studies without informing the BIR of her change of plan.
To cut the story short, she had problems with the BIR when she finally was employed by another company. Her TIN needed to be transferred to another Revenue District Office (RDO) where her employer was registered but it was verified that the TIN had open cases. It was also learned that she did not filed the applicable tax returns or paid the tax liabilities as self employed.
Please be informed, that, if ever you will register as self-employed, you have the obligation to file certain tax returns with or without tax due or payable and renew and pay your annual registration fee. (see Business Registration)
Moreover, even if the business becomes insolvent, you are, still, required to file annually, monthly and quarterly your corresponding tax returns. You need to indicate in the return that it is non-operational until such time that you have formally declared it close or have cancelled your TIN registration as a self-employed.
To discontinue or terminate your registration, I found out from the BIR website the following documentary requirements and procedures:
BIR Form 1905 (Application for Registration Information Update) together with the following:
1) Letter of request stating reason for termination of business
2) Original Certificate of Registration
3) Books of Accounts
4) Inventory List of Unused Receipts and Invoices
5) Unused Receipts and Invoices for cancellation
6) Board Resolution / Notice of Dissolution (if Corporation / Partnership)
Procedures:
1) Taxpayer applicant files BIR Form 1905, together with the attachments at the RDO where they are registered within ten (10) days from retirement of business/cancellation of TIN.
2) Taxpayer files short period return for income tax purposes.
3) RDO verifies if taxpayer has open cases reflected in the Integrated Tax System (ITS). If YES, ask taxpayer to submit required returns and pay the corresponding tax due/s and penalties if any.
4) RDO verifies if taxpayer has delinquent cases at the Assessment, Collection, and Legal Divisions of the Region;
5) RDO verifies if taxpayer has delinquent cases at the Collection Enforcement Division, BIR National Office
6) RDO requests for Letter of Authority to investigate internal revenue taxes for all un-audited taxable years prior to cancellation of business.
7) Assigned Case officer conducts investigations for period/s covered in the issued Letter of Authority.
8) Taxpayer complies with requirements of audit and pays corresponding deficiency taxes resulting from audit using Form 0605.
9) RDO issues tax clearance for closure of business.
10) RDO updates ITS and cancels TIN of taxpayer (for non-individual taxpayer).
(see also Application for Closure of Business/Cancellation of TIN).
For other concern, we suggest that you coordinate with the Officer of the Day (OD) of the RDO where you are registered regarding the correct procedure to finally close your registration.
To cut the story short, she had problems with the BIR when she finally was employed by another company. Her TIN needed to be transferred to another Revenue District Office (RDO) where her employer was registered but it was verified that the TIN had open cases. It was also learned that she did not filed the applicable tax returns or paid the tax liabilities as self employed.
Please be informed, that, if ever you will register as self-employed, you have the obligation to file certain tax returns with or without tax due or payable and renew and pay your annual registration fee. (see Business Registration)
Moreover, even if the business becomes insolvent, you are, still, required to file annually, monthly and quarterly your corresponding tax returns. You need to indicate in the return that it is non-operational until such time that you have formally declared it close or have cancelled your TIN registration as a self-employed.
To discontinue or terminate your registration, I found out from the BIR website the following documentary requirements and procedures:
BIR Form 1905 (Application for Registration Information Update) together with the following:
1) Letter of request stating reason for termination of business
2) Original Certificate of Registration
3) Books of Accounts
4) Inventory List of Unused Receipts and Invoices
5) Unused Receipts and Invoices for cancellation
6) Board Resolution / Notice of Dissolution (if Corporation / Partnership)
Procedures:
1) Taxpayer applicant files BIR Form 1905, together with the attachments at the RDO where they are registered within ten (10) days from retirement of business/cancellation of TIN.
2) Taxpayer files short period return for income tax purposes.
3) RDO verifies if taxpayer has open cases reflected in the Integrated Tax System (ITS). If YES, ask taxpayer to submit required returns and pay the corresponding tax due/s and penalties if any.
4) RDO verifies if taxpayer has delinquent cases at the Assessment, Collection, and Legal Divisions of the Region;
5) RDO verifies if taxpayer has delinquent cases at the Collection Enforcement Division, BIR National Office
6) RDO requests for Letter of Authority to investigate internal revenue taxes for all un-audited taxable years prior to cancellation of business.
7) Assigned Case officer conducts investigations for period/s covered in the issued Letter of Authority.
8) Taxpayer complies with requirements of audit and pays corresponding deficiency taxes resulting from audit using Form 0605.
9) RDO issues tax clearance for closure of business.
10) RDO updates ITS and cancels TIN of taxpayer (for non-individual taxpayer).
(see also Application for Closure of Business/Cancellation of TIN).
For other concern, we suggest that you coordinate with the Officer of the Day (OD) of the RDO where you are registered regarding the correct procedure to finally close your registration.
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