HOW TO COMPUTE WITHHOLDING TAX ON COMPENSATION

HOW TO COMPUTE WITHHOLDING TAX ON COMPENSATION
by: Ione Baron Mejia

Tanong ni empleyado, "Tama kaya ang computation ng withholding tax ko?"

Una, bago tayo mag compute. Ano ba yong withholding tax? Withholding tax,  eto yong tax sa kinikita mo ng gobeyerno na binabawas sayo ng employer mo kada buwan. Yong employer mo ang nangungulekta sayo para sa gobeyerno. 

Now, this is how to compute withholding tax on compensation.

Step 1: Determine kung talagang dapat ka bang withholdan o hindi.

Please be informed that if you are a minimum wage earner (MWE) who is purely earning compensation income you are not subject to income tax, therefore you are not subject to withholding tax. Kaya dapat hindi ka binabawasan  o hindi ka nabawasan ng withholding tax. In short, ang mga minimum wage earner (MWE) ay walang withholding tax.

Then, who are subject to withholding tax?

Those who are earning above minimum, (except those that are expressly enumerated by the National Internal Revenue Code), their income are taxable and are therefore subject to withholding tax.



Step 2: Presenting the Withholding Tax Table. Eto ang gagamitin natin para sa pag compute ng withholding tax nyo. (Please dont be intimidated with it, madali lang intindihin yan.)

Legend:
Z - Zero exemption
S - Single
ME - Married Employee 1;2;3;4- Number of qualified dependent children
S/ME  =  P50,000 
Each Working employeeQualified Dependent Child = P25,000 each but not exceeding four (4) children

( Yan po ang ibig sabihin ng Z,S at ME madali lang di ba)

1. DAILY TAX TABLE - SHOULD BE USED BY EMPLOYERS USING DAILY PAYROLL PERIOD
2. WEEKLY TAX TABLE - SHOULD BE USED BY EMPLOYERS USING WEEKLY PAYROLL PERIOD
3.SEMI-MONTHLY TAX TABLE - SHOULD BE USED BY EMPLOYERS USING SEMI MONTHLY PAYROLL PERIOD
4. MONTHLY TAX TABLE - SHOULD BE USED BY EMPLOYERS USING MONTHLY PAYROLL PERIOD

( Para naman yan sa nakahighlight ng blue )

Ngayon alam mo na, above minimum ka, so may income tax ka therefore may withholding tax ka. Second, kailan ba kayo nagswesweldo? daily, weekly, semi monthly, monthly. Third, determine/compute total compensation you receive, from there determine your regular taxable compensation and your supplementary taxable compensation.


STEP 3:

Determine the total monetary and non monetary compensation you have received for the payroll period. Excluding the ff below: 
1. 13th month pay, 
2. productivity incentives, 
3. Christmas bonus, 
4. other benefits, 
5. your contribution to SSS or GSIS, HDMF, Philhealth.

( Gross benefit which are received by officials and employees of both public and private entities in the amount of thirty thousand pesos (P 30,000) or less is exempted from income and withholding tax.)


Step 4: Determine your taxable and non taxable compensation income.

What is taxable ? 
The taxable income refers to all remuneration paid to an employee not otherwise exempted by law from income tax and consequently from withholding tax.

What is non taxable?
The non-taxable income are those which are specifically exempted from income tax by the Code or by other special laws as listed in Sec.2.78.1(B) hereof 
example: 1. benefits not exceeding P30,000, 
               2. non-taxable retirement benefits 
               3. separation pay

After you determine your taxable compensation income, you segregate it into:
1. Regular taxable compensation income
    A. basic salary
    B. fixed allowances for representation
    C. transportation and other allowance you receive per payroll period
2. Supplementary compensation income
    A. Commission
    B. Overtime pay
    C. Taxable bonus
    D. Other taxable benefit

Yong regular mong narereceive kada payroll ang regular compensensation income mo, ang supplementary eh yong narereceive mo o dagdag na binibigay sayo pwera sa regular na narereceive mo. Importante ma determine nyo to kasi ang regular taxable compensation income ang gagamitin mong amount sa withholding tax table.


Example:

1. Juan Dela Cruz, married with two dependent. 
    (Check the legend in the taxable table = ME2 kasi married at 2 dependent)

2.  He is receiving eighteen thousand basic salary ( P 18,000), received semi monthly. = 9,000   ( Regular taxable compensation income)  
    ( For example purpose amount of SSS, Philhealth, and others is 1,000)

3.  Overtime pay two thousand pesos.( P 2,000)
      ( Supplementary taxable compensation income)

4. Commission of five thousand pesos ( P 5,000)
       (Supplementary taxable compensation income)
     

Basic pay            9,000 - 1,000 = 8,000
 (semi monthly basic pay less non taxable SSS and others)


Overtime pay       2, 000
Commission         5,000
Total                    15,000


 1. Go to the table in semi monthly section
 2. See number 2 ME2
 3. Check compensation level line 7,083  (base sa 8,000 na regular taxable compensation)
 4. Compensation level 7,083   
     Excess = 7,917   (Total 15,000 - 7,083 compensation level line)   
     % on excess tax = 20%     ( base on tax table)
 5. Tax on compensation level = 354.17
     Tax on the excess = 1,583.40  (7,917 x .20)
     Total withholding tax = 1,937.57  (354.17 + 1,583.40)


Eto ang ginawa ko para makuha ang total withholding tax:

Total withholding tax is P 1,937.57. Pano nakuha, pakicheck yong table, punta ka sa semi monthly tapos hanapin mo yong ME2. Bakit ME2 kasi married employee si Juan Dela Cruz at 2 ang dependent. Tapos tingan mo yong linya from ME2, hindi ka pwede sa 5,417 kasi masyadong mababa hindi ka rin pwede sa 10.000 at sobra ka naman sa 8,000 ang compensation level mo ay sa 7,089, syempre may sobra ang excess eh 7,917. Pano nakuha yong 7,917 eto yong total compensation mo na 15,000 minus 7,083 na compensation level line. Ngayon tingnan mo sa taas ng 7,083 naka lagay don yon tax sa compensation level mo na 7,803 ang tax nyan eh 354.17 tapos ang tax naman sa excess na 7,917 eh 1,583.40. Paano nakuha yong 1,583.40, imultiply mo yong 7,917 x 20%  excess tax ang sagot dyan eh 1,583.40. Ngayon i add mo yong 354.17 na tax sa compensation level at yong 1,583.40 na tax sa excess yan yong total withholding tax mo 354.17 plus 1,583.40 equals 1,937.54.

1,937.57 dapat ang ibabawas ng employer ni Juan Dela Cruz sa sweldo nya. Yon ang tax nya na ibabayad sa government. In totally unrelated issue, yong MRT/LRT daw magtataas ang pamasahi, saan kaya napupunta yong tax na winiwithhold sa mga empleyado? Syempre sa mga government projects.hehehehe.



For comments, questions or  tax help please email me at yourtaxaid@gmail.com or ione.mejia@gmail.com

TAXABLE BA ANG CHRISTMAS BONUS MO?

TAXABLE BA AND CHRISTMAS BONUS MO?

by: Ione Baron-Mejia

Ho! Ho! Ho! Merry Christmas!!

This is to answer  your burning question this Christmas Season...Taxable ba ang Christmas bonus ko? 

1. Una, linawin natin. Ano ba yong Christmas bonus?

Answer:

Bonus - an extra amount of money that is given to you as a present or reward for good work as well as the money you were expecting:

a productivity bonusa Christmas bonusThe company used to give discretionary bonus payments.

( Dictionary.org)

Christmas bonus  is a form of present or gift, or renumeration given by employers to it's employees every December during Christmas time.

Remuneration means?

Remuneration is the compensation that one receives in exchange for the work or services performed. Typically, this consists of monetary rewards, also referred to as wage orsalary.^[1] A number of complementary benefits, however, are increasingly popular remuneration mechanisms. Remuneration is one component of reward management. ( Wikipedia.org)

2. We were given gift in kind, is it still considered christmas bonus?

Answer: Yes. Christmas bonus can be given on cash or in kind.

3. Is Christmas bonus taxable or  is it tax exempt?

Answer: It depends how much you received. BIR Revenue Regulation 5-2011 ( further amending BIR RR 2-98 and 3-98 as last amended by RR 5-2008 with respect to "De Minimis " benefit ),   states that : Gifts given during christmas and major anniversary celebrations not exceeding five thousand pesos (P 5,000) per employee per annum is EXEMPT from tax. Hence, any excess in the Five thousand pesos (P 5,000) threshold shall be lodged under the Thirty Thousand ( P30,000) statutory exemption and if it exceeds the statutory allowance it shall be taxed accordingly.

BIR Chief Henares explains it clearly:

http://www.gmanetwork.com/news/story/339490/economy/companies/13th-month-pay-bonuses-below-p30k-are-tax-exempt-bir-chief-henares

Internal Revenue chief Kim Henares on Thursday reminded government agencies and private firms that 13th month salaries, bonuses and benefits not exceeding P30,000 are exempted from tax.

On the other hand, any amount exceeding P30,000 would be subjected to tax.

Henares' reminder came at a time when companies are starting to hand out 13th month pay as well as holiday and year-end bonuses to their employees.

"For example kung sinuma mo lahat bonuses mo whatever you call it... kunwari total bonuses for the year is P40,000, P30,000 is exempted and P10k lang binubuwisan," Henares told reporters at the Department of Justice in Manila.

"Iyon lang ang nasa batas kaya iyon lang i-implement ng BIR," she added, saying that the tax rule should be implemented "across the board."

Henares emphasized that the rule on tax exemptions applies to all workers whether in the private or public sectors.

"So if you are in government, whether executive or legislative or judiciary branches... the rules are the same," Henares said.

The Revenue chief said companies and their accountants should be "conscious and mindful" of this tax exemption rules or risk being held criminally liable "for not withholding properly."

She also reminded income earners to indicate in their annual income tax returns details on their 13 month pay, bonuses, and benefits as well as the corresponding deductions if any.

Henares was earlier quoted as thumbing down a proposal made by Senate president pro-tempore Ralph Recto to raise the tax exemption for bonuses to P75,000 from the current P30,000.

Henares said Recto's proposal cannot be implemented unless there is a law that would determine an alternative source for the billions of pesos that the government stands to lose from implementing a higher tax exemption ceiling. —KG, GMA News

If you need assistance or tax help, contact us @TAXINSIDER

NEW BIR INCOME TAX FORM

Hear ye! Hear ye!

There is a new BIR income tax form! Below is the copy of the new revenue regulation.

REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE


REVENUE REGULATIONS No. 2-2014

 January 24, 2014

SUBJECT : New Income Tax Forms

 TO : All Revenue Officials, Employees, and Others Concerned


SECTION 1 - Objective.

 These Revenue Regulations are issued to prescribe the new BIR forms that
will be used for income tax returns (ITRs) filing covering and starting the taxable year
ended December 31, 2013.

 SECTION 2 - Scope.

 Pursuant to Section 244, in relation to Sections 6(H), 51(A)(1) and 51(A)(2)
of the National Internal Revenue Code of 1997 (Tax Code), as amended, these
Regulations are issued to prescribe the use of revised income tax forms with bar codes,
and to reflect the changes in information required from said forms. This will also
enable the said forms to be read by an optical character reader (OCR) for ease in
scanning.


SECTION 3 - Filing of New ITR Forms.

 All taxpayers required to file their ITRs under Section 51(A)(1) of the Tax
Code and those not required to file under Section 51(A)(2) but who opted to do so,
covering and starting taxable year ended December 31, 2013 shall use the applicable
forms as follows:

 1. BIR Form No. 1700 version June 2013 (Annual Income Tax
Return for Individuals Earning Purely Compensation Income);


2. BIR Form No. 1701 version June 2013 (Annual Income Tax
Return for Self-Employed Individuals, Estates and Trusts);


3. BIR Form No. 1702-RT version June 2013 (Annual Income Tax
Return for Corporations, Partnerships and Other Non-Individual
Taxpayers Subject Only to the REGULAR Income Tax Rate);


4. BIR Form No. 1702-EX version June 2013 (Annual Income Tax
Return for Use Only by Corporations, Partnerships and Other
Non-Individual Taxpayers EXEMPT Under the Tax Code, as
amended, [Sec. 30 and those exempted in Sec. 27(C)] and Other
Special Laws, with NO Other Taxable Income); and


5. BIR Form No. 1702-MX version June 2013 (Annual Income Tax
Return for Corporations, Partnerships and Other Non-Individuals
with Mixed Income Subject to Multiple Income Tax Rates or with
Income Subject to Special/Preferential Rate)
 

SECTION 4 - Rounding Off to the Nearest Peso in the ITR.


The requirement for entering centavos in the ITR has been eliminated. If the
amount of centavos is 49 or less, drop down the centavos (e.g., P 100.49 = P 100.00).
If the amount is 50 centavos or more, round up to the next peso (e.g., P 100.50 =
P101.00).


SECTION 5 - Mandatory Itemized Deductions.

A. Corporations, partnerships and other non-individuals are mandated to use
the itemized deductions in the following cases:


1. Those exempt under the Tax Code, as amended [Section 30 and those
exempted under Section 27(C)] and other special laws, with no other
taxable income;

2. Those with income subject to special/preferential tax rates; and
3. Those with income subject to income tax rate under Section 27(A) and
28(A)(1) of the Tax Code, as amended, and also with income subject
to special/preferential tax rates.
Juridical entities whose taxable base is the gross revenue or receipts (e.g.,
non-resident foreign international carriers) are not entitled to the itemized
deductions nor to the optional standard deduction (OSD) under Section
34(L) of the Tax Code, as amended.


B. Individual taxpayers who are not entitled to avail of the OSD and thus use
only the itemized deduction method are as follows:

1. Those exempt under the Tax Code, as amended, and other special laws
with no other taxable income [e.g. Barangay Micro Business Enterprise
(BMBE)];
2. Those with income subject to special/preferential tax rates; and
3. Those with income subject to income tax rate under Section 24 of the
Tax Code, as amended, and also with income subject to
special/preferential tax rates.


SECTION 6 - Transitory Provisions.

Taxpayers who filed using old forms for their 2013 ITRs (manual and/or
electronic) must re-file using the new income tax forms upon their availability.


SECTION 7 - Repealing Clause.


All existing regulations and other issuances or portions thereof which are
inconsistent with the provisions of these Regulations are hereby repealed, amended,
or modified accordingly.


SECTION 8 - Effectivity.

These Regulations shall take effect starting the taxable year ended December
31, 2013 and after fifteen (15) days following publication in two (2) newspapers of
general circulation.

 (Original Signed)

CESAR V. PURISIMA
Secretary of Finance


Recommending approval


 (Original Signed)
 KIM S. JACINTO-HENARES

 Commissioner of Internal Revenue

If you need assistance or tax help, contact us @  TAXINSIDER

Revenue Regulation 1-2014 Amendment of RR 2-98 Alphalist Reporting

Happy New Year!

This is my renewed/renamed blog, so we cannot to be accused of being sexist ( just kidding) from yourtaxmama.blogspot.com  to yourtaxaid.blogspot.com hence all the posts are from the previous blog except this one.

On to my first post of the year, just when we are busy preparing our annual alphalist reporting to BIR, here is the revenue regulation with regards to it.  It is now required to report/submit to BIR list of your employees whether they are exempted or not from withholding tax and list of payees on income payments subject to creditable and final withholding taxes. It simply means report/submit the names of all your employees and payees together with its income and its the corresponding withholding taxes.

Revenue Regulation 1-2014

What is it?

It is amending the Provisions of Revenue Regulations (RR) No. 2-98, as Further

Amended by RR No. 10-2008, Specifically on the Submission of

Alphabetical List of Employees/Payees of Income Payments.

  

What does it mean?

Again,  BIR now requires all withholding agents, regardless of number of employees and payees, whether the employees/payees are exempt or not, submit an alphabetical list of employees and list of payees on income payments subject to creditable and final withholding taxes which are required to be attached as integral part of Annual Information Returns ( BIR Form No. 1604CF/1604E) and Monthly Remittance Returns, etc., under the following  modes.

1. As attachment in the Electronic Filing and Payment System ( eFPS)
2  Through Electronic Submission using the BIR's website address at esubmission@bir.gov.ph and
3. Through electronic mail ( email) at dedicated BIR address using the prescribed CSV data file format, the details of wich shall be issued in separate revenue issuance.

"In cases where any withholding agent does not have its own internet facility or unavailability of commercial establishments with internet connection within the location of the withholding agent, the alphalist prescribed herein maybe electronically mailed (e-mail) thru the e-lounge facility of the nearest revenue district office or revenue region of the BIR."

“The submission of the herein prescribed alphalist where the income payments and taxes withheld are lumped into one single amount (e.g. “Various employees”, “Various payees”, “PCD nominees”, “Others”, etc.) shall not be allowed. The submission thereof, including any alphalist that does not conform with the prescribed format thereby resulting to the unsuccessful uploading into the BIR system shall be deemed not as received and shall not qualify as a deductible expense for income tax purposes.”

"Accordingly, the manual submission of the alphabetical lists containing less than ten (10) employees/payees by withholding agents under Annual Information Returns BIR Form No. 1604CF and BIR No. 1604E shall be immediately discontinued beginning January 31, 2014 and March 1, 2014, respectively, and every year thereafter.”

( manual submission of Alphalist for companies with less than 10 employees is not allowed anymore, all alphalist are to be submitted electronically/ via email)

Deadline for manual submission:

1604CF & Annual Employees Alphalist - January 31, 2014

1604E & Annual Payees List subject to creditable and final withholding tax  - March 31, 2014

Here are the email addresses, where you can send digitally submit your alphalist of employees:

If you need assistance or tax help, contact us @ TAXINSIDER

ARE ONLINE SELLERS REQUIRED TO PAY TAXES?

ARE ONLINE SELLERS REQUIRED TO PAY TAXES?
by: Ione Baron-Mejia


YES, ONLINE SELLERS ARE REQUIRED TO PAY TAXES.

REVENUE MEMORANDUM CIRCULAR NO. 55-2013

REITERATING TAXPAYERS' OBLIGATIONS IN RELATION TO ONLINE BUSINESS TRANSACTIONS


What does it means?

It means online sellers, in however form should pay taxes says the BIR. :-)


BIR has classified online transaction as follows: Check which one you're classified with.

1. Business to Consumer ( "B2C")  - which involves online store selling gods and services to final consumers.

( You are included in this group if you have a website, online store, selling goods or services to your costumers/clients/consumers. )

2. Consumer to consumer ( "C2C') 

( You are included in this group if you sell online through www.facebook.com, www.sulit.com.ph, www.ayosdito.ph, www.ebay.com.ph, etc. as long as your are selling online whatever website you are coursing/using to sell your goods and services.)

3. Business to Business ( "B2B") which encompasses job recruitment, online advertising, credit, sales, market research, technical support, procurement, and different types of training.

( This includes companies who offers their goods and services to other companies. )


If you are classified in any of the above you are required to register your business with BIR and pay your taxes accordingly. :-)


How do you do it?

First: Register your business at the Revenue District Office ( RDO) having jurisdiction over the principal place of business/head office ( or residence in case of individuals).





 
Before you go to BIR to register your business,
You have to secure first the ff:

1. Go to your barangay hall for Barangay Clearance.

2. Then, register your business in Department of Trade and Industry (DTI) . www.dti.gov.ph
( Think of what you will name your business,  ex. Mabenta Online Enterprise but you have to check it first with DTI if the name is taken already so you need to prepare at least three names for your business just in case the other two have been taken already.)

3. Go to city hall for your business permit.

 Requirements for new business in Quezon city:

( Original & Photocopy)

1. Barangay Clearance
2. DTI for single proprietor, SEC with Articles for Corporation
3. Title or tax declaration ( if owned) Contract of lease ( if rented)
4. Location Clearance
5. Authorization letter & ID ( if representative)
6. Other documents required per nature of business.



Reminder: May bayad lahat ang pagkuha ng barangay clearance, DTI and business permit. :-)

Those are the requirements before when you register your business in BIR.
But someone told me last week ( October 2013) that you only need DTI to register in BIR in Makati. But last week October 2013,  our staff went to BIR - RDO 40 in Cubao, Quezon City to register and they are still asking for business permit. if you are in Makati area, you can check it first with them if you can register your business with DTI only, then you can go straight to BIR first, before you get your business permit from the city hall.


How do you register your business in BIR?

1. Accomplish BIR form 1901 ( for individual ) & 1903 ( for corporations or partnerships)
    With the ff:
     For individual: 1. birth certificate  2. mayor's permit  3. DTI

2. Pay registration fee to any bank ( AAB-Authorized Agent Bank) located within you RDO.
       ( Use BIR form 605 when you pay this in bank)

3. Then, the BIR will issue your Certificate of Registration
       ( this should  be displayed conspicuously in the business establishment for those in traditional/not online  business, since the BIR usually conduct tax mapping for these.)

  *** conspicuously meaning it should be where it can be seen clearly, or it should be in a noticeable place.


 What to do next?

1. Secure te required Authority to print (ATP) invoices/receipts and register books of accounts for use in business, which may either be:

A.) Manual books of accounts, booklets of invoices/receipts, accounting records or loose-leaf.
B.) Computrized Accounting System (CAS) and/or its components including e-Invoicing system under Revenue Memorandum order (RMO) No. 21-2000 as amended by RMO No. 29-02.


After you register your business and you have your books of account, what do you do now?

1. Issue registered invoice or receipt, either manually or electronically after every sale, barter, exchange, or lease of goods and properties as well as for every sale, barter, or exchange of service.

2. Withhold required creditable/ expanded withholding tax, final tax. tax on compensation of employees, and other withholding taxes. Remit the same to the BIR at the time/ times required, and issue to the concerned payees the necessary Certificate of Tax Withheld.

3. File applicable tax returns on or before the due dates, pay correct internal revenue taxes, and submit information returns and other tax compliance reports such as Summary of List of Sales/Purchases. ( SLS/P), Annual Apha List of Payees, etc. at the time or time required by existing rules and regulations.

( Check your Certificate of Registration, it is listed their the required tax return you need to file.
Ex. if you are VAT registered you need to file BIR form 2550M every month and 2550Q for the quarter or BIR form 2551M if you registered in percentage tax.)


4. Keep books of account and other business/accounting records with in time prescribed by the law, and such shall be made available anytime for inspection and verification by duly authorized Revenue Officer/s for the purpose of ascertaining compliance with tax rules and regulations.


For  "C2C' type, i think the above information is enough for you since mostly of C2C transact are on cash basis but the "B2C" and "B2B" i think they have their own accountant to take care of the withholding and other accounting stuff they need to accomplish. :-)

 
 If you need assistance and tax help, contact us @ TAXINSIDER

BIR REVENUE REGULATION 1-2012-Mandatory Submission of Summary List of Sales & Purchases

Revenue Regulation 1-2012 : Requires the MANDATORY  submission of Quarterly Summary List of Sales and Purchases by all VAT registered taxpayers. - Issued February  20, 2012

I think a lot of taxpayers are still unaware of this revenue regulation, stating the mandatory submission of summary list of sales & summary list of purchases, even if this regulation has already been issued last year.

What it means to us? 

Answer: All VAT registered taxpayers, regardless of  total sales & purchases are required to submit the Quarterly Summary List of  Sales & Quarterly Summary List of Purchases.

When do we submit it?

Answer: We have to submit it on or before the twenty-fifth (25th) day of the month following the close of the taxable quarter (VAT quarter)-calendar quarter or fiscal quarter. However, taxpayers under the jurisdiction of the LTS, and those enrolled under the EFPS, shall, through electronic filing facility submit their  Summary List of Sales/Purchases to the RDO/LTDO/LTAD, on or before the thirtieth (30

For the calendar quarter these are the deadline:

1st quater covers  January to March           =  deadline is April 25

2nd quarter covers April to June                 = deadline is July 25

3rd quarter covers July to September         = deadline is October 25

4th quarter covers October to December    = deadline is January 25

Where to submit it?

We have to submit it to the Revenue District Office ( RDO), Large Taxpayer District Office ( LTDO) or Large Taxpayers Assistance Division (LTAD) whichever has jurisdiction over the taxpayer.

( For non large taxpayer; check your Certificate of Registration which RDO you belong.)

 

How to submit it?

Answer: Save it in Compact Disk Recordable (CDR) and bring it to BIR.

 

Things you need to know:

This is an amendment to Revenue Regulation 16-2005, which is called,  the Consolidated Value Added Tax (VAT) regulations of  2005

Which requires:

1. All VAT registered  taxpayers such as manufacturers, wholesalers, service-providers, among others, with quarterly total sales/receipts (net of VAT) exceeding Two Million Five Hundred Thousand Pesos

(P 2,500,000.00 to submit Summary List of Sales, NOW it has become MANDATORY to all VAT registered tax payers.

 

2. All VAT registered taxpayers such as manufacturers, service-providers, among others, with quarterly total purchases (net of VAT) exceeding One Million Pesos (P 1,000,000.00) are required to submit summary List of  Purchases, NOW regardless of  the total quarterly purchases, it's MANDATORY to all VAT registered taxpayers to submit the quarterly summary list of sales & purchases.

What do you mean  by mandatory?

Answer:

man•da•to•ry (ˈmæn dəˌtɔr i, -ˌtoʊr i)

adj., n., pl. -ries. adj.

1. authoritatively ordered; obligatory.

2. pertaining to, of the nature of, or containing a command.

3. having received a mandate, as a nation.

 man·da·to·ry  (mnd-tôr, -tr)

adj.

1. Required or commanded by authority; obligatory: Attendance at the meeting is mandatory.

2. Of, having the nature of, or containing a mandate.

3. Holding a League of Nations mandate over a territory.

n.pl.man·da·to·ries

mandatory

adjective compulsory, required, binding, obligatory, requisite Attendance is mandatory.
voluntary, unnecessary, optional, discretionary, nonbinding, noncompulsory, nonobligatory


If you need assistance or tax help, contact us @ TAXINSIDER