Do you appetite to run your own business? Afore activity into that dream of acceptable your own boss, you ability appetite to analysis the requirements for amenable entrepreneurs, abnormally tax-wise.
After chief how you appetite to conduct your business — whether as a sole proprietor, as a allotment of a partnership, or as a association — a amenable administrator ensures that the business complies with tax requirements. You, as a business owner, charge alpha your adventure right.
The Bureau of Centralized Acquirement (BIR) afresh appear two issuances accouterment guidelines for new business registrants. Acquirement Memorandum Circular (RMC) No. 28-2019 prescribes the use of Bureau of Centralized Acquirement (BIR)-printed receipts or invoices, while RMC No. 29-2019 provides guidelines on keeping, maintaining, and registering books of accounts. The aim of both RMC Nos. 28-2019 and 29-2019 is to accomplish accomplishing business in the Philippines easier pursuant to Republic Act No. 11032, contrarily accepted as the Ease of Accomplishing Business and Efficient Government Service Delivery Act of 2018.
Why is it so important for entrepreneurs to be acquainted of these two contempo regulations? Afore basic business operations, business entities are appropriate by the Tax Code to affair appropriately registered answerable forms and to advance appropriately registered books of account. Agnate sanctions, at best bent liabilities, may be imposed for declining to do so.
Under Section 237 of the Tax Code, as amended, all bodies accountable to an centralized acquirement tax must, at the point of anniversary auction and alteration of commodity or for casework rendered admired at P100, affair a appropriately registered cancellation of auction or bartering invoice. Beneath RMC No. 28-2019, new business registrants are appropriate to defended Authority to Book (ATP) for arch receipts/invoices aloft registering with the BIR. However, accepting an ATP for appropriately accustomed receipts or sales invoices may booty time.
Securing the ATP may booty one to two weeks from the time of appliance with the Acquirement District Office area the business is registered. This because the BIR ensures that the official cancellation or bartering balance complies with invoicing requirements. Afterwards accepting BIR approval for the proposed cancellation or invoice, the business needs to acquisition an accepted printer to aftermath the aboriginal few booklets of the cancellation or invoice. This action will booty addition one or two weeks. You accept already absent a ages aloof to access the receipt.
RMC No. 28-2019 has now addressed this problem. For businesses to anon arise business operations afterwards BIR registration, they shall be accustomed to use a BIR-printed receipt/invoice (BPR/BPI) while cat-and-mouse for the registered receipts/invoices. The BPR/PBI is accurate for 15 canicule from the date of registration. The cardinal of booklets of BPR/BPI to be issued, though, is apprenticed to the estimated cardinal of affairs for the period. The business entity, however, may opt to use their own registered cancellation or invoices already they become available, alike afore the blooper of the fifteen days.
The BPR/BPI shall be issued as arch affirmation in the auction of goods, properties, or casework or in the charter of properties. Thus, the BPR/BPI can be acclimated for claiming costs as a answer from accustomed gross assets or claiming ascribe tax acclaim accountable to absolute rules and regulations on invoicing requirements for taxation purposes.
Please agenda that alone the BIR is accustomed to book and affair the BPR/BPI.
A business charge advance books of account. Pursuant to RA No. 11032, however, this is no best appropriate for registering with the BIR.
Maintaining books of anniversary may be done in the afterward manner: 1) Chiral books of account; 2) Loose-leaf books of account; or 3) Computerized books of anniversary (with the admittance to use) pursuant to Section 232 of the Tax Code, as amended. Beneath RMC No. 29-2019, books of anniversary shall be kept at all times in the taxpayer’s abode of business. Such books and registers, calm with the records, vouchers, and acknowledging affidavit and abstracts assigned by the BIR charge be kept intact, unaltered, and unmutilated. Befitting two or added sets of annal or books of anniversary is prohibited.
The chiral books of anniversary charge be registered afore the borderline for filing the anniversary assets tax or anniversary assets tax, whichever comes earlier. Entries in the chiral books charge be handwritten. Computer printouts pasted/glued on or amid in the chiral books accept agnate sanctions beneath absolute regulations.
If the business opts for a loose-leaf book of account, they charge advance a computer printout of the said books and accept it assuredly bound. Loose-leaf books of anniversary and added accounting records, calm with a affidavit anniversary attesting to the definiteness of the entries made, and the cardinal of all invoices, receipts, and books of anniversary acclimated for the aeon charge be submitted to the RDO area the business is registered. The business charge abide these abstracts aural 15 canicule afterwards the end of the taxable year or aural 15 canicule from closing the business, whichever comes earlier.
New businesses that opt to accept computerized books of anniversary charge aboriginal defended a admittance to use (PTU). Accepting the PTU is a diffuse process. Thus, it is appropriate for new businesses to aboriginal annals either a chiral or loose-leaf books of account. Filing computerized books of anniversary and added accounting annal shall be in cyberbanking architecture (usually in CD format). Abide the annal to the business’ RDO aural 30 canicule from the abutting of the taxable year.
As your business grows, amuse be acquainted that businesses whose gross anniversary sales, earnings, receipts or achievement beyond P3 actor are appropriate by RMC No. 29, 2019 to accept their books of anniversary annually audited and advised by an absolute certified accessible accountant.
Making your aboriginal auction is fun. Remember, however, that you are appropriate to comply, at atomic with the BIR. While it is accurate that acknowledging with the regulations will not accompany in revenue, apathy them will absolutely cesspool your funds.
Regulatory acquiescence is sometimes a struggle. For these matters, it is best to argue experts. Afterwards all, it is your business to advertise your articles and services, not to absolute acquiescence matters.
Many businesses say, “Happy selling,” but it is best if we say, “Happy adjustable selling.”
Eliezer P. Ambatali is a administrator of the Tax Advising and Acquiescence Division of P&A Grant Thornton. P&A Grant Thornton is one of the arch audit, tax, advisory, and outsourcing casework firms in the Philippines.