8 Most Frequently Asked Tax Questions
Already done with your to-do-list this summer? All set to head out and meet the sun? Great! But wait, you might have forgotten something that Manny Pacquiao must also remember after winning his fight against Bradley.
Why don’t you take a detour first with me in discussing 8 of the most frequently asked tax questions before April 15, the deadline for filing annual income tax return (ITR).
8. Do I need to file an income tax return (ITR)?
If you are employed by two or more employers, self-employed either as professional or entrepreneur during the taxable year, then it is a big YES for you.
If you are a minimum wage earner, but you derived income from other sources, then it’s still, a YES.
And lastly, it is also a YES for all corporations, including foundations.
7. What is a financial statement and who needs to prepare it?
A financial statement is a report that presents your profit or loss, and the resources invested in your business. It must be attached to your ITR.
6. Do I need an auditor to sign my financial statements?
If you are earning a quarterly gross revenue exceeding 150,000 pesos or an annual income above 600,000 pesos, then pick up your phone now and call an accredited certified public accountant (CPA) to audit your financial statements before filing your ITR.
5. Are supporting documents needed?
Of course! Always ask for official receipts. Allowable expenses must be supported by official receipts to reduce your taxable income.
4. Where do I file?
You cannot just drop it off anywhere. Unless you are ready to be rejected, you have to file it in the Revenue District Office (RDO) where you are registered.
3. Are there deductions or exemptions I can avail?
Another big YES for you! There are “allowable deductions” which you can deduct from your gross income provided that they are supported by official receipts. A list is provided in the BIR website or you can just visit: https://knowyourtaxes.ph/pay
Individuals can also avail of the 50,000 personal exemption and 25,000 additional exemption for every dependent child, maximum of four, every year.
2. How do I compute my income tax due?
Don’t fret as technology has also come its ways to do tax computation. Just be ready with your list of important information needed such as your gross revenues, exemptions, allowable deductions.
Here’s a helpful guide published by Rappler
1. When do I file?
File your annual income tax return (ITR) on or before April 15. If you haven’t filed your ITR, what are you waiting for? File now to enjoy a tax-free vacation—a vacation free from penalties and compromises.
Mark your calendars for all other deadlines: https://knowyourtaxes.ph
and accomplish them ahead of time.
You may also like Ask the tax Whiz Facebook page href=”https://www.facebook.com/askthetaxwhiz”>https://www.facebook.com/askthetaxwhiz
and post your tax questions!
Watch out for the release of the self-guide tax handbook for more answers to your most frequently asked tax questions. Available soon in all bookstores nationwide.
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or call us at (02) 622 7720.