Tax compliance is always challenging for most business establishments. In comparison with large companies Micro Entities, Small and Medium Enterprises (MSME’s) cannot always afford the cost of in- house accountants or even seek the services of outsource accounting, especially if they are start ups. The owner is the one responsible for the tax compliance and overseeing the business processes. With these task ahead, there are possibilities for non compliance, therefore paying for unnecessary penalties.
If you belong to Micro Entities, Small and Medium Enterprises here are steps for easy tax compliance in the Philippines:
- Make a schedule for monthly, quarterly and annual deadlines of tax payments always visible in your work desk if you haven’t memorized them.
- Visit BIR website often for tax updates. Even join Facebook support group for Tax Help in the Philippines.
- Register your business before operation. Registering your business before operation will avoid penalties and forced closure of your business. Here are the government agencies you need registration DTI, Municipal hall for Mayors Permit, BIR, SSS, Philhealth, Pag- ibig fund and other government agencies necessary for registration. Not all businesses are the same and not all registration are the same. But BIR and Mayors permit are always mandatory because it is the basis for paying national and local taxes.
- Register your Official Receipt and invoices. Make sure that your OR’s are printed by BIR accredited printers.
- Attend Tax and Accounting Seminars. Since you’ll be handling tax compliance it is best to learn from an experience practitioner. Invest with the right information, to avoid paying more on unnecessary penalties in the future.
- Inquire with your local CPA for more information and clarification. It would be best for your business to have an accountant and tax practitioner with your business team. You can disclose private information with reliable accountants and gain expert advice regarding your tax or accounting concerns.
These easy steps will help you be updated on the information regarding taxes thus making it easier for a company to comply. It will take discipline in tax compliance, once your get use to it, it will be just an easy task.