Corporation Tax

Hello everyone,

I hope someone can give me an advise and help my problems.I have a company registered in United Kingdom someone help me registered my company,it was registered on August 23 2009 it's an offshore company cause i live here in Philippines.that's my first experienced about owning a company and until now i don't have a clue of what should i do specially on paying my tax since my company start it's business activity on October 01,2009 and receive the first income on October 31,2009.i did not pay my company's tax until now.and i guess they've start charging me for a company's tax.my questions is listed below:

1) In my case that I've shown above when is my first accounting period begin and when should i need to pay my tax?

2) On the dates I've stated above when is the first accounting period of my company begin and when is the late penalties charge begin?

3) What is the example list of a company's first accounting period and end date in a year?

4) In one year how many months do i have to pay for my company's tax?

5) When is the company's tax begin it's first accounting and end period in a year?

6) How many months is given to pay the tax before the late penalties applied?

7) How many months included in first accounting period and end period in a year?

In my case do I'm legible to file a bankruptcy?

9) Now that i don't have enough money to pay my company's tax and I've closed my business already what should i do since i did not pay my tax yet?

10) My business is already closed but my company is still active what should i do to stop or close my active company so i can't be charge for a company's tax?



I hope someone can answer my questions above,your legal answer is a big help to solve my problem and I'm very thankful of someone can help me.thanks..

the tax liability of your company is separate from your own personal tax liability.

in what country are the biz activities of your UK company conducted? where is the income derived from and where does it go?

after you registered the corporation in the UK, did you also register it here (as a branch or subsidiary) in the philippines with the SEC and the BIR?

the rule in taxation is that the place where the money is made is the place where the tax is supposed to be paid. you will need to be more descriptive of your company's activities and where it's conducted.

My business nature is online and my customers are coming from any part of the world.in my situation what and how do i pay my corporation tax?

I'm doing business over the net,and my income is no specific area where it is been made since my customers are coming from any part of the world.my question is how my corporation tax will be calculate and on what place my corporation tax supposed to be paid?

your corporation is considered a resident foreign corporation because it is doing business here in the philippines.

it is required that you should register it as a branch or doing business here in the philippines first with the SEC and then with the BIR.

the rate of income tax is 32%. You should have been remitting VAT and withholding tax reports on a monthly and quarterly basis from the date it started operating here in the Philippines. Income tax should have been reported and paid quarterly, with annual tax paid last 15 April.

I have a questions:

1) Is it mean that i need to pay a double income/corporation tax which one is here in Philippines and the other one is in United Kingdom since my company is been registered there?

2) I'm doing business over the net and i provide a virtual service and no physical product involve.is that mean that my business is been operated here in Philippines?

3) I earn more on dollars should i paid 32% income tax in dollar currency?

4) is VAT,Income Tax,Corporation Tax,Withholding Tax,and Annual Tax are different from each other?if so could you please let me know what is mean by that taxes and how it works.


Please Let me know does taxes behave cause i don't really know what is mean by that and what should i do with that.thanks..

taxation is a very specialized field, international taxation more so.

I am not knowledgeable of UK tax law, but the normal rule in taxation is that if tax was paid in the place where the income was earned, then it will not be taxed again in another jurisdiction. you will have to check if there is a tax treaty between Philippines and UK.

I believe that the situs of taxation for your business activities is in the Philippines because the activity is performed here, but note you have not fully explained what your biz is.

VAT is and add-on tax for the sale of products and services. Income tax is tax on a percentage of your profits. Withholding tax is not a separate tax but the law requires you to hold on part of your payments and remit them to the BIR, and your suppliers can use these as credit for their own taxes, if applicable.

I recommend that you approach a tax lawyer or tax accountant so he can review your business and recommend a proper course of action regarding your taxes.

I have more questions:

1) Do i also need to pay this VAT?

2) Is withholding tax means that i need to deposit some money to BIR?


This is my first experience of owning/operate a business I'm a total newbie.Please let me know what exactly need to do when you have a business,what are all the fees that is need to be paid and what is the name called of those fees like income tax and other fees to make the business a fully complete legal business.

If your business activity is covered by VAT, then this has to be remitted. If you have biz transactions covered by withholding tax, then this has to be remitted also. A copy of the National Internal Revenue Code is available at www.bir.gov.ph. You may look up these sections.

as i said, business taxation requires a thorough review of the business. it is better for you to seek advice from a tax practitioner. you may also inquire with the BIR when they conduct their free seminars for small enterprises.

and as a final note, it doesn't end with the SEC and BIR. to be fully compliant, you have to register with the local government and pay business permit taxes as well. you also need barangay clearance.

Now do you see why corporate lawyers earn the big bucks? good luck!