In starting a business, it is important to understand tax compliance and other government requirements to ensure smooth operations. Registration of a company is just the beginning. Certainly, everyone wants to meet tax compliance standards to avoid future disputes and penalties, specifically with the Bureau of Internal Revenue (BIR). Here is a list of things to consider before launching your business operations and during actual operations to remain compliant with BIR requirements:
- Register your business establishment and all branch offices and facilities.
- Register your books of accounts.
- Request for permits from the BIR such as Authority to print/issue receipts and invoices, Permit to use cash register and POS machines and Permit to use loose-leaf books of accounts or computerized accounting system.
- Pay annual registration fee of P500 for every separate or distinct establishment or place of business on or before January 31.
- Display the BIR Certificate of Registration, the Registration Fee for the current year and the “Notice to the Public/Ask for Receipt” orange signage in a conspicuous area within your office premises.
- Issue registered invoices and receipts for sale of goods and services as required.
- Register and maintain books of accounts in the business premises at all times.
- Preserve all books of accounts for tax examination by the BIR within 3 years.
- Withhold taxes as required by law and remit the correct taxes withheld.
- File the necessary tax returns and pay the corresponding correct taxes at the times required by law.
If you have complicated tax issues, you may want to ask for assistance in areas such as tax compliances, tax review, tax study and tax planning to help you comply with the requirements of the tax authority.
