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Tax obligations at the start of 2010

Tax obligations at the start of 2010

 

Please be reminded of the following deadlines for certain tax obligations at the start of the 2010 tax season:

1. Annualization and refund of excess withholding on compensation - This process involves the year-end determination of any deficiency or excess withholding tax on the annual compensation income of the employees. Any excess tax withheld on compensation for CY 2009 should be refunded to the employee on or before January 25, 2010.

 2. Annual Information Return of Income Taxes Withheld on Compensation (BIR Form 1604-CF) - This is due on February 01, 2010 since January 31, 2010 is a Sunday.

BIR Form 1604 CF should be accompanied by a hard copy of the Alphabetical List (Alphalist) of Employees. An employer with 10 or more employees should submit the alphalist both in hard and soft copy. EFPS filers are required to submit the list in soft copy, regardless of the number of their employees.

Check that the file formats comply with the BIR requirements. Submission may be thru diskette/CD/email: esubmission@bir.gov.ph.

3. Employees’ Withholding Statements (BIR Form 2316) - For 2010, BIR Form 2316 should be issued on or before February 01, 2010 to all employees, including those who qualify for substituted filing or as a minimum wage earner (MWE).

For MWEs, BIR Form 2316 should show the sum of non-taxable statutory minimum wage (SMW), including the non-taxable benefits such as holiday, overtime, night shift differential and hazard pay earned during the calendar year. For employees who do not qualify for substituted filing, the certification at the bottom should not be signed by both the employer and employee. In such case, BIR Form 2316 should be attached to the ITR that the employee will file on April 15, 2010.

4. Registration of books of accounts - Taxpayers using new manual books of accounts intended for use in 2010 should be registered with the BIR on or before December 31, 2009.

Previously registered manual books whose pages are not yet fully exhausted can still be used in the succeeding years without the need of re-registration or re-stamping. However, the portions pertaining to a particular year should be properly labeled.

Loose-leaf bound books of accounts for CY ended 2009 should be registered on January 15, 2010 while for computerized books, the deadline is January 30, 2010.

5. Inventory list - The annual inventory list should be submitted not later than thirty days after the close of accounting period. Thus, for taxpayers whose accounting period ended on December 31, 2009, the deadline is January 30, 2010.

6. List of regular suppliers for Top 20,000 - Top 20,000 corporations are required to submit a semestral list of all local/resident suppliers with whom they regularly (at least 6 times) made purchases of goods and services as well as non-regular suppliers for single purchases of P10,000. The deadline for the list for the second semester of TY 2009 is February 01, 2010.

Ensure that you comply with the technical specifications of the list. Submission should be in diskette in dat.file format for the meantime that the validation module using existing data entry module is not yet available. Other RDOs, however, may require the submission of the hard copy, together with the diskette and transmittal form.

7. Annual registration fee – The P500 annual registration fee is due on or before February 01, 2010 payable through authorized agent banks (AAB) within the RDO where the business or branch is registered. Late payment is subject to 25% surcharge, 20% interest and P200 penalty.

8. Renewal of LGU registration - This involves payment of local business tax (LBT), mayor’s permit fee, and other fees and charges imposed b y LGUs. Due dat e is January 20. The LBT may be paid in installment within the first 20 days of each quarter. Please check with your LGUs whether discounts are available on full payment.  

P&A Tax Alerts are issued to keep our clients updated with the latest tax developments.  These are not intended to be a substitute for professional advise.   For inquiries and suggestions on how the Tax Alert may be even more useful to you, e-mail Lina.Figueroa@ph.gt.com or Senen.Quizon@ph.gt.com or call 886-5511.

For other tax concerns, please check out our other tax services.