Are you making a living? Then this is your priority: Avoid the inconvenience of getting penalized — for either late payment or undeclared income. The high penalty fee that should have used to save money dents your finances incredibly.
Whether your daily earning is small or big, the fact is you are at the receiving end of the money.
By law, it is your legal duty to adhere to two basic obligations in Philippine Taxation — pay your income tax and file all tax forms, including those 'no payment' returns.
Now, most of us are overwhelmed by this reality. We are anxious to — how to's — and — what if's.
But the main recipe for the disaster years from now for your business or profession if you don't abide by our law is the “lack of time today.”
I've laid out in this article practical simple things you can do so that you get properly informed of all BIR Tax Forms that you must file in a year.
Our main purpose, you and me, is for you to save time and money both today and months or years from now that would bring about by inevitable penalties and settlement.
Why does paying tax is crucial in our endeavor to save money?
Filing and paying our taxes is the shortcut to saving the money that might waste in the penalties we would incur in the future for the opposites of it which are non-filing and not-paying of one's tax.
We avoid spending the exorbitant amounts of the money in settlement of what we owed in not doing our tax obligations on time, not to mention the time involved which also translates to money.
We have more time to be productive and, we don't touch our money to spend it on the cost of tax settlement.
Productivity produces more money, and not touching money saved means it generates more money when invested properly.
Save money in tax late filing by getting now the complete list of all tax forms that must be paid & filed
What are tax forms?
It is important to note that you have to be familiar with tax forms as they are your basis in filing 'no payment' returns online and paying tax dues on a BIR accredited bank. And today, we use the term eBIRForms when we refer to tax forms in the Philippines.
The eBIRForms or tax forms are worksheets with blank fields taxpayers fill-out in tax declarations. Today, all tax forms are accessible in the eBIRForms Program used by all taxpayers.
In bank payment slips, the term used is Tax Form and not eBIRForms. Now, eBIRForms labeled Tax Forms as — BIR FORM followed by its form number, i.e., 605. You will see it in the top right-hand side of a particular eBIRForm tax form.
A Tax Form number is actually the number assigned to a BIR FORM for a specific tax type, i.e., the tax form of Monthly Percentage Tax is 2551Q which a self-employed pay quarterly.
Self-employed Annual Income Tax Return's TAX FORM is either 1701 or 1701A. You get to learn which one is for you upon registration in your BIR-RDO.
It's very important that you know how to access, fill-out and submit eBIRForms online. Follow the steps in the next sub-topic.
How to fill out ebirforms online?
First you need to download the program. Follow these steps:
How to download eBIRForms?
1. Go to https://www.bir.gov.ph/, scroll down to eBIRForms, and click the link To download eBIRForms Package.
2. Download the eBIRForms to your Downloads Folder.
3. Once downloaded, open the zip file, click on it, then Extract it, and choose Extract all.
4. Open the extracted ebirforms setup file, click Run in the dialog box that will open.
5. Setup Wizards dialog box will open, click Next.
6. Click Next buttons consecutively in the next couple of dialog boxes that will open, respectively.
7. Finally, click the Install button, then Finish.
How to use eBIRForms?
1. Open the eBIRForms on your computer.
2. Enter your personal information on the fields of the main screen.
3. Select your BIR forms and click Fill out.
4. Fill out the tax form that you selected.
5. Review all information for accuracy, edit it if necessary, then click Submit
Important reminders & tips in accomplishing eBIRForms
- When you first use eBIRForms, you need to fill out the main screen fully. In the subsequent uses, you only need to enter your TIN (tax identification number) and it automatically populates the page, except for the forms which you need to select.
- Before filling out the main screen of eBIRForms, prepare your BIR certificate of registration as you need to copy the vital information from it. Make sure all information in your registration and on the eBIRForms matched. You get the details under 'Where to look at' down below this guide.
- It easy to fill out a BIR form that you choose from the main screen. That is if you attended the seminar given free when you register in your RDO (Revenue District Office). An RDO is a BIR office like a branch located NEAREST to your address. Do not go to different RDO.
- Tip: In filling out a form, it will be easier & fast if you click the Validate button at the bottom of the page because a dialog box opens and tells you what are the missing information one after another until such time that it says Validation Successful.
- Once you submitted an accomplished tax form, it is final and you can't modify it anymore. So before you go and tap the Submit button, make sure all data in the form are accurate. Use the Edit button if you want to revise anything.
No payment and with payment tax forms
- If you're filing a no-payment tax form, click Submit. You will be asked to confirm your email address and TIN, before you can proceed all the way. You will receive an email confirmation. Compile all BIR confirmations in a separate folder for easy access in the future.
- If there's a tax amount to be paid in your tax form, print 3-copies of the form. No need to submit online. Head to a bank accredited by your RDO and pay your tax. Compile all tax forms with payments together with the bank payment slip in a hardbound folder.
List of BIR accredited banks
Your RDO has the complete list of the accredited banks. You can only pay your tax in the bank accredited by your RDO. Chances are there's an accredited bank just a walk away from your house.
Level of importance
Do you know that one single tax form that you don't pay or file on due date incurs two penalty fees? First, there's the amount of compromise which is fixed, and second, there's the daily interest fee of the unpaid tax due.
Now imagine this: By honest mistake, you have no knowledge that you have to file a BIR Tax form quarterly.
Yes, you have attended the seminar, but for some reason, the information didn't trickle down to you, and by now your only knowledge is you have to pay your annual income tax return.
Two years have passed, and suddenly you get notified that you have to settle this particular tax that slipped your ears and you are stunned to learn the total amount to settle which is compounded by daily interest.
That's what I am talking about. So let's avoid that for your own sake.
Where to look at?
Upon application of BIR Registration in the RDO at which your profession or place of business is under jurisdiction you will receive BIR Registration Certificate.
Of course, you will undergo a process including a compulsory seminar after which certificates will be released to all members who participated.
In the certificate indicated are your Tax Types and below them are tables of Tax Forms and due dates of payments.
You only need to get the Tax Forms in relation to the listed Tax Types for your line of business/industry or profession that you must pay and file regularly in a calendar year, be it monthly, quarterly, yearly, etc.
Basically, you will find all your Tax Types in the tables to get the Tax Forms and the deadlines. You must refer to these tables when you fill out eBIRForms, so keep it handy.
Now to save more time, you can go practical by following our next subheading.
Ask the right person
Your BIR Registration Certificate will be released by a front liner in your RDO.
Front liners of BIR RDOs are officers at the most or trained subordinates at the very least.
Why would you go to the Officer of the Day where the queue is long when you can get the information right off the bat upon release of your certificate?
It will only take less than a minute as the front liner behind the counter will only pinpoint or read out from the certificate the Tax Forms for your line of business.
So, in that particular stage of your registration at that particular time, go ask them. And you can leave the premises, saving a lot of time.
Record & hang it conspicuously
Yes, we have calendar apps on our smartphones. We have 'Keep' that alerts us on time. We can use all reminder apps.
But nothing beats the power of familiarity and close acquaintance and full knowledge of objects that we must not forget.
Since late filings of taxes have bad consequences on our finances, it is crucial that we always see Tax Due Dates.
It helps when all Tax Important Dates are recorded and in bold in a clear white background which is hanged in your wall near your desk. Not only does it save valuable time and money in the future, but it definitely eliminates stress caused by beating the deadlines.
Final thoughts
Self-employed individual's first priority is to make sure that all taxes are paid or filed on due dates. Forget about — it is a legal obligation, etc. But it's quixotic to shrug off on-time tax filing.
The predicament of having to pay high penalties, the stress of always thinking about the unpaid tax debt, the long hours one will waste in the settlement — all translate to big amount of the money lost — crash into pieces the productive things to do to save money.
Are you self-employed? How do you make sure that your taxes are paid on time? Do you use an app or online filing facility? Let us know and help one another. Share through comment's box below.
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