All about TAX

Good day sir. I just want to ask who are required to deduct/withhold taxes on income payments subject to creditable withholding taxes?

http://www.bir.gov.ph/taxinfo/tax_withld.htm

Good morning Atty,

Hope all is well! My question is, I bought an item in Tokyo for about Y3000 and mailed it to Manila and paid Y2050 at the Tokyo post office. I know there are taxes on imported items when sending it to via post office but I believe that's for an item more than $50.

I also believe that I paid tax for the Japanese government when I bought the item and now, customs are asking for tax duties. I know I've taken this to my Business Taxation course back in college and as i remember there is such thing to avoid being taxed for both countries which I believe the tern is double taxation. Is there such thing? should I pay the customs? The item I bought is a bamboo sword for my collection.

Thanks

double taxation refers to the same kind of tax by the same jurisdiction.

you should pay customs duties and taxes.

attyLLL wrote:double taxation refers to the same kind of tax by the same jurisdiction.

you should pay customs duties and taxes.

Thank you sir! I will pay customs duties.

Hi Atty,

I have another question.

For example I'm located here in Manila and I host websites. Then my client is in another County let say Japan. They will pay me through bank transfer. How does tax apply? Should I be taxed in Japan and here in the Philippines?

Thanks in advance!

the rule is tax is payable where the service is rendered.

gud day po.tanong ko lang po may printing business po kasi kami and 1 year na po kaming di nkabayad ng tax sa bir nong last 3 months po ngpadala cla ng notice na kailangan ko pong babayaran yong unpaid taxes ko within 10 days eh hindi ko po nkabayad non.ngayon po nagpadala uli sila ng letter its a Final Notice na po ito.sa ngayon po kasi balak ko na pong iclose nlng ung business kasi po mdjo kunti nlng ung income nmin sa dami n po ng kompetensya.ano pong gagawin ko eh 10 days lng ung binigay nila na dapat mgcomply eh di ko po kaya yong 10 days na binigay nila.talaga po bang 10 days konpenkahin na nila ung mga gamit ko?salamat po..

hindi nila makumpiska agad ang gamit mo. antagal pa niyan. me tawag tau sa law na procedural due process wherein required sila na mag follow ng procedures (like notices etc) na designed to give every parties the opportunity to hear their sides. mag issue pa sila ng tvn sau or letter of authority or anything na mag empower sa kanila to assess. kasi notice lang ang pinadala sa u. that was only a reminder and not an assessment as required by the TAX Code.

Ang assessment kasi , it must be covered by either:
1. Letter of Authority
2. Tax Verification Notice
3. Letter Notice (3rd party information)
4. Mission order (if tax verification compliance drive -TCVD just like in Tax Mapping operations kasi me instances na penalty ang iassess sa inyo in case me registration and bookkeeping violations kau during the inspection.

If ang notice sau is simple reminder lang na hindi ka nakabayad ng tax based on their STOP FILER OPERATION , harmless pa iyang notice na iyan.

ano ba iyang stop filer na iyan? ang bir kasi, me program na naka design na pag ang
1. " taxpayer regularly nagapay ng tax at nagafile ng tax returns,
sa system, nakalagay iyan monthly or as often as required sya magpay ng tax returns."

2. " if makita ng computer system or what they call "ITS- Integrated Tax System( Di ako sure s meaning ng ITS), na hindi kau naka file ng kahit isa lang, mag alert iyan sila. masali ang pangalan mo sa mga stop filer na taxpayer. kaya automatic na malaman nila na hindi ka nagbayad.

usually, ang mga BIR examiners ang naka assign jan na magpadala ng notice s taxpayer na iremind ka kung bakit ka nagstop ng file at pay s tax returns. baka lang nakalimutan mo. the taxpayer is required to explain within reasonable time after receipt of notice.

pag hindi ka pa magcomply sa notice na dapat magfile ka na at pay, di ka puwede i assess niyan agad, much more ma attach ang properties mo. kasi bawal iyan. again, you go back to the basic rule na di puwede mag assess ang bir pag wala silang authority (see abovementioned listings). otherwise, illegal exaction of tax iyan sila at puwede mo ipa ombudsman iyan sila. ganyan ka technical. so ang gawin nila, after so many times na di ka nagfile ng taxreturns (in practice, parang ang iba, 3-5 times di pa sila nakafile, letter lang ng letter ang masend ng bir. kasi ang normal practice is, you can be audited only after 2-3 months sa pagfile mo ng annual income tax return which will not be filed until april 15 of the next year. (pero s VAT, iba iyan. puwede ka na i subject agad after filing of VAT returns under the new revenue regulation ni Commissioner Henares.).

My advice is:
1. wag mo pababayaan iyan na nakatunganga iyang file mo sa BIR. Deal with it na lang. Kasi anjan na iyan.

2. Ask for the complete files na meron sila sa iyo. ask mo sino ka nakaassign na BIR examiner. request for an appointment muna kasi busy yan sila. tapos iyong files mo, ilipat mo sa kaibigan mo na practicing CPA. baka may maitutulong sya sau.

3. wag ka magmarunong sa kanila. dont argue with them. you will just catch their ire. Ikaw ang humihingi ng tulong, kaya magpakumbaba ka. pero if you have questions, tanong ka ng tanong. tapos wag ka na magbigay ng mahabang excuse. just get the files para me ma answer ka in writing later.

4. ask for an advice kung paano ka nila matulungan. not all bir examiners are greedy and corrupt.

5. if you dont mind, kindly post the exact contents of your notices.

6. pero mas maganda lumapit ka sa isang tax lawyer or practicing cpa na kaibigan mo para makatipid ka. kasi me real AT serious problem ka talaga and only they can help you.