As 2015 comes to an end, most taxpayers are already spending the last few days of the year with their families and friends, away from work. With all the excitement and festivities of the holiday season, it is no wonder that some taxpayers tend to overlook deadlines for compliance with certain tax requirements at the start of the year. To avoid this, here are some important reminders that you can mark on your calendars to ensure a smooth start to the new year.
Bureau of Internal Revenue (BIR) annual registration fee (January 31, 2016)—An annual registration fee of P500 should be paid on or before the end of the first month of the new year.
Renewal of LGU registration (January 20, 2016)—The renewal of business permit with the local government unit (LGU) comprises of, but is not limited to, barangay clearance, community tax certificate, fire safety certificate and payment of local business tax, mayor’s permit fee, sanitary fee, garbage fee, signboard fee, engineering fees and other charges as imposed by the LGU.
Annualization and refund of excess withholding on compensation (January 25, 2016)—This process encompasses the determination of any deficiency or excess withholding tax on the annual compensation of the employees at year-end. Any excess tax withheld on compensation should be refunded to the employees on or before January 25, 2016. Otherwise, employers who fail or refuse to refund shall be liable to corresponding penalties as prescribed in the related Tax Code provision or issuances.
Annual information return of income taxes withheld on compensation (January 31, 2016)—The annual information return and alphabetical list (alphalist) of employees must be submitted on or before the end of January, with the alphalist as a required attachment of BIR Form 1604-CF. The alphalist should be submitted following the prescribed mode as mandated by the BIR in the related issuance. Failure to submit the alphalist in the prescribed mode may be a ground for the disallowance of the related expense for income tax purposes.
Employees’ withholding statements (January 31, 2016)—All employees, including those who qualify for substituted filing or as minimum wage earners (MWE), must be provided with a copy of the corresponding BIR Form 2316 on or before January 31, 2016.
The BIR requires all employers/taxpayers registered with the Large Taxpayers Service (LTS) to submit the scanned copy of BIR Form 2316 on DVD-R to the BIR not later than February 28 following the close of the calendar year. Failure to comply with the submission of BIR Form 2316 for two consecutive years shall be subject to a penalty as prescribed by the related BIR issuance. Non-LTS taxpayers, on the other hand, may opt to submit their BIR Form 2316 stored in DVD-R, but once this option is chosen, it becomes irrevocable.
Filing of monthly and quarterly tax returns—Monthly filing refers to the regular filings of withholding taxes on income payments subject to expanded withholding tax (EWT), final withholding tax (FWT), final withholding on value-added tax (FVAT), and withholding tax on compensation (WTC) for the month of December of the previous year, including the related Monthly Alphalist of Payees (MAP). The deadline for filing the monthly withholding tax returns is on January 15, 2016, except for FVAT return, which is due on January 10, 2016. For eFiling and Payment System (eFPS)-filers, however, the filing deadlines are based on their groupings, except for FVAT return, which is due on January 10, 2016.
On the other hand, the quarterly filing pertains to fringe benefits tax (FBT) return and quarterly VAT return, which is due for submission on January 15 and January 25, 2016, respectively. In filing the quarterly VAT, a Summary List of Sales and Purchases (SLSP) are required to be submitted on or before January 25, 2016 through the required format as prescribed in the related issuances.
Submission of books of accounts (January 15/January 30)—This includes the submission of computerized books of accounts and permanently bound computer-generated/loose-leaf books of accounts.
Loose-leaf books of accounts—The deadline for submission of loose-leaf bound books of accounts for taxable year ending December 31, 2015 is on January 15, 2016.
Computerized books of accounts—The deadline for submission of computerized books of accounts and other accounting records in CD-ROM or other optical media for the year ending December 31, 2015 is on January 30, 2016.
Submission of inventory list (January 30, 2016)—Taxpayers are required to file an inventory list of finished goods, work in progress, raw materials, supplies, and stock-in trade not later than 30 days after the close of the taxable year. Therefore, taxpayers with taxable period ending December 31, 2015 should file their annual inventory list on or before January 30, 2016.
The foregoing may not be an exhaustive list of forthcoming deadlines for all taxpayers, but it is with hope that the same may be of assistance as we welcome 2016.
Merry Christmas and a Happy New Year!
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The author is a Senior Manager with Deloitte’s Tax & Corporate Services Division. About Deloitte Southeast Asia. Navarro Amper & Co. is a local member practice of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee (DTTL”). Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries. It has more than 220,000 professionals worldwide, including those in Deloitte Southeast Asia Ltd., which covers Brunei, Cambodia, Guam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.