Securing a person’s Taxpayer Identification Number or TIN is now easy with the introduction of e-REG. This system was launched in year 2009 but some enhancements were introduced to give better taxpayer service. You may check on Revenue Memorandum Order (RMO) No. 26-2009 on how easy to register with the Bureau of Internal Revenue especially for employers who want to assist their employees in getting their TINs ready before employment starts.
Mark Zuckerberg is the CEO of Facebook, which he founded in 2004. Facebook is a social utility that helps people communicate more efficiently with their friends, families and coworkers. Mark is responsible for setting the overall direction and product strategy for the company. He leads the design of Facebook’s service and development of its core technology and infrastructure. Mark attended Harvard University and studied computer science before moving the company to Palo Alto, California (Taken from Facebook – Executive Bios).
On July 21, 2010, Zuckerberg reported that the company reached the 500 million-user mark. If the annual net income of the company reached $1B in 2010 as published in the net, an average of $2.00 was contributed by each user. Converted to Philippine peso, that’s Php 47B.
There are 5,784,560 Filipino users as of October 2009. If this figure doubled at the end of December 2010, about 11.6M Filipinos are using FB. Multiply it by $2.00 per user at Php 47.00 to a dollar, we would arrive at Php 1.09B income generated from the Philippines.
Using the above estimates, BIR may collect corporate income tax of 30% of Php 1.09B or Php 327.12M and Php 130.85M of Value-Added Tax computed from net income to make it simpler. That would be a sum of Php 457.97M, more than enough to cover the government counterpart expenditures of Philippine Heart Center for Asia and even have something for its modernization.
This is just one of the revenue measures that BIR should consider. There are a lot more who can contribute to government revenues. They are there in the cyberspace.
Here’s the latest BIR issuance on withholding tax on compensation as a result of the increase in minimum wage issued by DOLE. This Revenue Memorandum Circular is in a question and answer form. You may send your queries to this site if your scenario is not addressed.
Taxpayers always reason out that they are late in compliance in submission of tax requirements simply because they are not aware of the deadline. It’s December and time to register all manual books of accounts. Small taxpayers still use manual recording of accounting entries. A penalty of Php 1,000 is imposed for late stamping. So better include BIR in your itinerary this month for the deadline is every December 31. You don’t have to wait for the deadline. Be free before Christmas. It’s more likely that you will forget to do this.
For those who are using computerized accounting systems, the deadline for registration is January 31 of each year. The book-bound printed accounting documents are submitted to BIR for stamping and encoding in the Integrated Tax Systems.
BIR Form 1905 shall be filled out in 2 copies to register these books.
Save money by just remembering the dates. Pay zero penalties!