BIR Compliance Session PCP Annual Convention May 13, 2014

FAQ

1.     Optional Standard Deduction (OSD) vs Itemized Deduction
{slider Q:  Would you advise to use OSD if you’re earning millions?  Noting that expenses per month may vary at some point.  What kind of insurance can be used as expenses?  Life insurance is still arguable by BIR as expenses.  Is it true that one way to lessen your tax is to get all the 2307 from HMO, hospital etc.?|closed|icon}

A: Yes. The PCP-Committee on BIR Compliance would advise you to use OSD if you are earning millions. It will simplify your tax filing. AND, it would not matter what insurance you use because it is already included in the 40% deduction from your gross income. Yes, you should get your 2307 to claim your withholding tax and subtract this from your tax payable during each quarter and at the end of the year.

{slider Q:   If initially you are using Optional Standard Deduction, can we still shift to itemized? Related Q: How can we convert OSD to itemized deduction?|closed|icon}

A:  You choose the manner of deduction when you file your income tax during the first quarter and you cannot change this during this taxable year. Thus, if you choose Optional Standard Deduction for the first quarter, you cannot shift to itemized deduction during this taxable year. However, you can shift to itemized deduction the following year.
 

Section 7 of BIR RR 2-2010(http://www.bir.gov.ph/images/bir_files/old_files/pdf/49723RR%202-2010.pdf)

“Once the election to avail of the OSD or itemized deduction is signified in the return, it shall be irrevocable for the taxable year for which the return is made.

The election to claim either the OSD or the itemized deduction for the  taxable year must be signified by checking the appropriate box in the income tax return filed for the first quarter of the taxable year adopted by the taxpayer. Once the election is made, the same type of deduction must be consistently applied for all the succeeding quarterly returns and in the final income tax return for the taxable year. Any taxpayer who is required but fails to file the quarterly income

tax return for the first quarter shall be considered as having availed of the itemized deductions option for the taxable year.”

 

{slider Q:  Can we use itemized expenses for input deductions in monthly EVAT computations, but use OSD in filing the annual Income Tax Return (ITR)?|closed|icon}

A: The input tax in the VAT form (2550M and 2550Q) comes from the profession related expenses paid to VAT entities. For example, if you paid P1,000 for your clinic internet and Globe billed you (P 892.86 + P107.14 VAT ), then you can claim the P107.14 as input tax to be deducted from your VAT. However, if you bought a Globe prepaid card to load your internet and the store where you bought the Globe load issues a Non-VAT receipt, then you cannot claim this for your input tax.

All the Input tax you claim should be itemized by encoding the details in your Summary List of Sales and Purchases (SLSP) encoded in the BIR RELIEF data entry system. (If you are a VAT taxpayer and your accountant does not submit your SLSP, it’s time to change your accountant). There is NO OSD for VAT. There is no OSD box in the forms 2550M and 2550Q.

Individuals receiving purely compensation income cannot avail of OSD as a method of deduction. It is only in the income tax forms 1701Q, 1701, 1702-EX, 1702-MX, 1702-RT, and 1702Q that you can choose itemized deduction versus OSD.

{slider Q:  Good morning. Standardized deduction for expenses is 40%, is it the same with itemized?  What is the maximum rate for itemized deductions?|closed|icon}

A:   There is no maximum rate for expenses for itemized deductions.  It can even go higher than the income.  However, the BIR expects that any professional practice (including medical practice) is earning and the expense should be valid, actual and reasonable, and incurred related to the profession.

{slider Q:  Are there limits to the allowable deductions? For example, gas and transportation allowance, entertainment, salaries, etc?Closed|icon}

A:   There are limits to certain allowable deductions.

The ceiling on “entertainment, amusement and recreational expenses is 1% of net revenue BIR RR 10-2002 http://www.lawphil.net/administ/bir/rr/rr10_02.pdf

The ceiling on charitable donations is 10%.

It should be 10% for individuals of the donor’s income derived from trade, business or profession as computed without the benefit of this deduction.

BIR RR 13-98 Section 3http://www.cof.org/sites/default/files/documents/files/Philippines/Philippines%20Revenue%20Regulations.pdf

SECTION 3. Donations to Accredited Non-stock, Non-profit Corporations/NGOs

Donations to accredited non-stock, non-profit corporations/ NGOs shall be entitled to the following benefits:

a. Limited Deductibility

- Donations, contributions or gifts actually paid or made within the taxable year to accredited non-stock, non-profit corporations shall be allowed limited deductibility in an amount not in excess of ten percent (10%) for an individual donor, and five percent (5%) for a corporate donor, of the donor's income derived from trade, business or profession as computed without the benefit of this deduction.

 

{slider Q:  Maximizing expenses is apparently good for net taxable income.  Doesn’t that also point to a poor financial management on your part given you have more expenses than income?|closed|icon} A:  If you are a doctor and your ITR shows you have more expenses than income, no one will believe you, least of all the BIR. This will increase your chances of being audited by the BIR.

The BIR expects that any professional practice is earning and the expense should be valid, actual and reasonable, andincurred related to the profession.  Likewise, the BIR has a benchmark for voluntary VAT compliance which is 6% based on sale of services.{/sliders}

2.     Value Added Tax (VAT) related questions
{slider Q:   What is the income criteria that will change your status from NON-VAT to VAT? Can I convert from Non-VAT to VAT? When can I shift if I already started as NON-VAT ever since I started paying?|closed|icon}

A:   From http://www.bir.gov.ph/index.php/tax-information/value-added-tax.html
 

http://www.bir.gov.ph/index.php/tax-information/value-added-tax.html

WHO ARE REQUIRED TO FILE VAT RETURNS

Any person or entity who, in the course of his trade or business, sells, barters, exchanges, leases goods or properties and renders services subject to VAT, if the aggregate amount of actual gross sales or receipts exceed One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00).


{slider Q:   Good afternoon.  Is there any process on how can a NON-VAT be converted to VAT?  I heard it has a long process.|closed|icon} A:  The consequence of relying solely on your accountant for tax information is as dismal as a doctor relying solely on pharmaceutical companies for medical information. There is conflict of interest. Thus, doctors should learn how to access independent sources of information. For information on taxes, familiarize yourself with BIR website. It is the PUBMED of tax information.

Go to http://www.bir.gov.ph/. Click on “Tax Information”  button. You will get a drop down menu. Click on Value-Added Tax.  You will find yourself on this page http://www.bir.gov.ph/index.php/tax-information/value-added-tax.html

At the bottom is the FAQ section where you will find this information:
 

http://www.bir.gov.ph/index.php/tax-information/value-added-tax.html

When is a new VAT taxpayer required to apply for registration and pay the registration fee?

New VAT taxpayers shall apply for registration as VAT Taxpayers and pay the corresponding registration fee of five hundred pesos (P500.00) using BIR Form No. 0605for every separate or distinct establishment or place of business before the start of their business following existing issuances on registration.

Thereafter, taxpayers are required to pay the annual registration fee of five hundred pesos (P500.00) not later than January 31, every year.

{/sliders}

Senior citizens
{slider Q:   How do you add VAT to fees to senior citizens?|closed|icon}


A:  Senior Citizens are exempted from VAT.

Thus, if you are a VAT registered doctor and your professional fee is P500, non-senior citizen patients will be paying P500 + 12% VAT = P560; for senior citizens, you will charge P500 less 20% = P400.{/sliders}

3.     Tax Mapping
{slider Q:   During a tax mapping drive, can the tax mapper look at your books?|closed|icon}

A:  Yes, but only to check if your books are BIR registered and your Cash Receipts Book has updated entries e.g.  if the last OR number in your clinic receipts are listed in your Cash Receipts book.

Here is a BIR flyer on what to expect during a tax mapping activity: 
http://www.bir.gov.ph/images/bir_files/old_files/others/annex_d_page1.jpg

And here is the Code of Conduct to be Expected from a BIR personnel doing audit operations (Every doctor should read this in order to understand the high standard of ethical practice expected from BIR personnel. If the BIR personnel falls short of this standard, you can gently remind him.)

BIR RMO 53-2010 Promulgates and implements the Revised Code of Conduct for BIR officials and employees 

http://www.bir.gov.ph/images/bir_files/old_files/pdf/51960Revised%20Code%20of%20Conduct%20for%20BIR%20officials%20and%20employees%204-22-10.pdf

BIR personnel will avoid situations which might be construed as harassment of taxpayers:

“K. Harassment of Taxpayers by Revenue Officials or Employees

The following may be considered as incidents of Harassment of Taxpayers by a Revenue Official or Employee who is charged with the duty to conduct an audit examination:

(1) Improbable and / or arbitrary assessment determined by the Assessment Division in the Regional Office, or by the Assessment Service in the National Office, as the case may be;

(2) Arrogance and / or non-observance of punctuality in appointments with taxpayers;

(3) Indiscriminate and unauthorized issuance of letter conferences;

(4) Unreasonable / unjustifiable delay in the investigation and processing of tax cases; and

(5) Requiring the taxpayer to prepare working papers, and other documents which he / she has already filed with the BIR."

{/sliders}

4.     Accountant Blues

{slider Q:  My gross annual income is 700k, do I really need a BIR accredited auditor as advised by my accountant.?   Auditor’s fee is 5k Related Q:   How can doctors protect themselves from irresponsible accountants? I had my accountants audited by another accountant only to find out my own accountant did not pay my monthly taxes during other months so I had open cases for 3 years.|closed|icon}

A:  From http://www.bir.gov.ph/index.php/tax-information/income-tax.html

Account Information Form (AIF) or the Certificate of the independent CPA with Audited Financial Statements if the gross quarterly sales, earnings, receipts or output exceed P 150,000.00

If you understand the tremendous amount of work that goes into auditing the documentary requirements to formulate and substantiate an audited financial statement (all 2307s, all official receipts issued for the year, all official receipts used for tax deduction, all tax forms filed, all books of account, etc.), you will appreciate that not only is that P5k extremely reasonable, it is also a bargain.

Maybe you should also be asking if you need a BIR accredited tax agent, and the answer is a resounding YES.
 

RMC 6-2013 http://www.bir.gov.ph/images/bir_files/old_files/pdf/68057RMC%20No%20%206-2013.pdf

“the BIR, in accordance with the above RR, can refuse to transact official business with tax agents/practitioners who are not accredited before it. Therefore, all taxpayers are enjoined to ensure that the tax agents/practitioners whom they will engage are accredited with the BIR. Further, taxpayers should be aware of their responsibilities which are as follows: 

1.Before engaging the service of a tax agent/practitioner, they should secure a copy of his/its BIR certificate of accreditation and take note of the following:

a. Taxpayer Identification Number (TIN);

b. Accreditation number;

c. Date of issuance; and

d. Date of expiry “


If your taxes are filed by a tax agent who is NOT BIR accredited, he has no accountability and has NO standards to maintain.  More often than not, these tax agents could not keep up with the new BIR regulations and issuances which are turned out almost every month or at the very least, every quarter. They also tend to be not too computer savvy and make a mess of encoding information in BIR e-forms and software.

If your tax agent is BIR accredited, he is equally liable for any penalties or criminal charges hurled against you.
 

From BIR RR 5-2014http://www.bir.gov.ph/images/bir_files/internal_communications_1/Full%20Text%20RR%202014/RR%205-2014.pdf

“Finally, unless a longer period of retention is required under the NIRC or other relevant laws, the independent Certified Public Accountant (CPA) who audited the records and certified the financial statements of the taxpayer, equally as the taxpayer, has the responsibility to maintain and preserve electronic copies of the audit ed and certified financial statements including the audit working papers for a period of ten (10) years from the due date of filing the annual income tax return or the actual date of filing thereof, whichever comes later.”


The taxpayer and the accountant are now equally responsible and liable for whatever figures reported in the financial statement. Thus, tax evasion cases against taxpayers are also filed against the CPA who formulated the audited financial statement.

Check out these tax evasion cases:
http://www.dof.gov.ph/?p=9960
http://www.philstar.com/business/660223/bir-files-tax-evasion-charges-against-rice-     importer-and-her-accountant

{slider Q:   Should our accountant also issue us an official receipt for their services rendered?|closed|icon} A:  Yes, your accountant should issue an official receipt. You should withhold 10% or 15% from his professional fee and file a 1601E. If he has not advised you about this, you can gently remind him of his responsibilities.
However, if your accountant is a General Professional Partnerships (GPP), it is exempted from Expanded Withholding Tax (EWT).

{slider Q:  Can we include payment for the services of our accountant in our expenses to be deducted in our income tax?|closed|icon}
A:   If you choose itemized deduction for your income tax, yes you can claim this as a profession related expense. If you choose Optional Standard Deduction, it is assumed that this is already included in the 40% deducted from your gross sales.

{slider Q:   I had to pay arrears for 3 years. I was advised at the Regional District Office (RDO) to complain to Professional Regulation Commission (PRC) about this accountant and to have a service contract with next accountant.  I decided not to hire anymore and just do my own accounts.|closed|icon}

A:  Good for you! More doctors should have a hand on attitude towards tax filing and its documentary requirements. However, you may get a reputable accountant to audit your tax forms and books, while still doing all the forms yourself. Sometimes, while encoding numerous figures, you can err in encoding some figures so a third party reviewer can pick out these little details.{/sliders}
5.    Tax filing for professionals


{slider Q:   This is just airing my views:  why are we taxed more than any other professionals?  For every patient, we are taxed, at the end of 1 month, another tax, after 1 quarter, another tax, after 1 year, another tax!!|closed|icon}  
A: All professionals are taxed in the same way depending on income bracket and income source. Doctors are not singled out in terms of having more taxes. We have been singled out in terms of not paying the proper taxes. But we are working towards correcting this impression by educating doctors on BIR compliance. {/sliders}

6.     PHIC related issues
{slider Q:   On Philhealth, I received their 2307 after 6 months, is this correct?|closed|icon}

A: Since they implemented the all case rates method, the PHIC does not withhold tax for doctors. It is the hospital processing the PHIC payment which receives the doctor’s professional fee and issues the 2307.{/sliders}

7.      HMOs (Healthcard Maintenance Organization)
{slider Q:  There are HMOs which withhold taxes but do not give Forms 2307 despite asking for one.  I know I need to issue a receipt, but how can I claim the tax withheld? Medicard does not issue Form 2307).|closed|icon}

A:  In an ideal world, there is no private HMO since this poses a conflict of interest. The private HMO is a business enterprise. The government should be the one to shoulder the cost of health care. However, at present, doctors who choose to deal with HMOs will have to make the extra effort to demand a 2307 from these HMOs. The HMO should withhold tax and issue a 2307.

Professional organizations should make a united stand to “ban” HMOs which do not issue 2307.  A hotline is suggested for complaints. Though, this is added work on the organization.
 

BIR RR 30-2003 on withholding on taxes

ftp://ftp.bir.gov.ph/webadmin1/pdf/601rr03_30.pdf

 (I) Professional fees paid to medical practitioners.

– Any amount collected for and paid to medical practitioners (includes doctors of medicine, doctors of veterinary science and dentists) by hospitals and clinics, or paid directly to the medical practitioners by patients who were‘admitted and confined’ to such Hospitals or Clinics, or paid directly to such medical practitioners by health maintenance organizations (HMOs)

and/or similar establishments which is likewise covered by Section2.57.2(A)(1) - Fifteen percent (15%), if the income payments to the medical practitioner for the current year exceeds P720,000; and Ten percent(10%), if otherwise.

a)It shall be the duty and responsibility of the hospital, clinic or HMO to remit taxes withheld from the following:

1. Professional fees paid by HMOs to medical practitioners


{slider Q:  When working in outpatient clinics with HMO patients, are you allowed to give them your Official Receipt (OR) booklets for them to issue receipts to themselves? Do you have to issue OR yourself?  Thanks.|closed|icon}
A:   Yes there is no problem with this as long as you issue OR with amounts the same with what you received or collected.  If you did not receive any amount, you are not required to issue OR.

If the HMO receives the money, then the HMO should issue the OR.  Then you will issue OR to the HMO, which in turn paid you for your professional services. {/sliders}

8.     BIR Audit
{slider Q:  If your family is well-known in the financial world, will you be more likely to be audited?  Will itemized deductions invite the BIR to do audit if the payment is very low?|closed|icon}

A:  Not necessarily. The BIR has come a long way in making their audit criteria transparent. They have set a criteria for prioritizing entities for audit. It is not an arbitrary process.

From the BIR website, you can check out
 

BIR RMO 4-2013(ftp://ftp.bir.gov.ph/webadmin1/pdf/69014RMO%204-2013.pdf)

The BIR has identified the following taxpayers to be given priority for tax audit:

“2.Priority shall be given to the following taxpayers:

a. Professionals and sole proprietorships whose –

·income tax due is less than two hundred thousand pesos

(P200,000.00) per annum;

·gross revenue is less than forty percent (40%) compared to the

previous year’s reported gross revenue;

·tax payment for each tax type is less than thirty-five percent (35%) as compared to the previous year’s tax payment”


Furthermore, they previously identified the following as last priority in tax audit:
 

BIR RMO 3-2011ftp://ftp.bir.gov.ph/webadmin1/pdf/55945RMO%203-2011.pdf

3. Last Priority status for income tax audit shall be accorded to those taxpayers with an effective income tax rate of eighteen percent (18%) (Gross Income X 18%).

Taxpayers with the following effective VAT rate are also last in the priority for VAT audit:

•3% or higher for sale of goods; and

•6% for sale of service.

3.1An exception to the Last Priority status shall be those taxpayers where there are findings / suspicions of under-declaration of sales / revenues.

{/sliders}

9.     Downloading BIR forms
 

{slider Q:  Good day. I am from Bulacan, RDO 25B.   I must go monthly to the municipality to pay for printing of 2551M because it cannot be downloaded.  It is very inconvenient.|closed|icon}


A:  The BIR webpage http://www.bir.gov.ph/  has provided several links to download the eBIR forms. Click on any of these links (To Download offline eBIR forms, Alternative sites to download eBIR forms). If you still have difficulty, check your internet connection. More often than not, the younger members of the family can sort out the technical glitches. 

Yes, it happens.  We suggest that you use the offline BIR forms.  You just have to print the form then pay directly to the BIR accredited banks.Afterwards, you can enroll for the online E-BIR forms.{/sliders} 

10.     Professional fees for fellow doctors
{slider Q:    How do we go about if our fellow doctor gets admitted?  How do we file for the tax? Related Q: For patient you charged zero Professional Fee (PF), do we still need to issue an Official Receipt (OR)?|closed|icon}

{slider Q:    What do you put in the receipt if you will not charge, like for fellow doctors or their parents, 100% discount?|closed|icon}

A:   In an ideal world, we do not charge our fellow doctors any professional fee.  To comply with BIR requirements for instances where no professional fee is charged, we need to execute an affidavit-declaration that no professional fee has been charged by the medical practitioner.

Check this out:
 

RR 14-2013 http://www.bir.gov.ph/images/bir_files/old_files/pdf/75497RR%20No%2014-2013.pdf; Annex A ftp://ftp.bir.gov.ph/webadmin1/pdf/75497Annex%20A-rr14_13.pdf

“Section 2 (b)  The withholding tax herein prescribed  shall not apply whenever there is proof that no professional fee has in fact been charged by the medical practitioner and paid by his patient. Provided, however, that this fact is shown in a sworn declaration jointly executed by

the medical practitioner, and the patientor his duly authorized representative, in case the patient is a minor or otherwise incapacitated. This sworn declaration, to be executed in the form presented in Annex "A" of these Regulations, shall form part of the records of the hospital

or clinic and shall constitute as part of its records and shall be made readily available to any

duly authorized Revenue Officer for tax audit purpose. Provided, further, that the said administrator of the hospital or clinic shall inform the Revenue District Office having jurisdiction over such hospital or clinic about any medical practitioner who fails or refuses to execute the sworn statement herein prescribed, within ten (10) days from the occurrence of such event.”


Thus, to simplify matters and save time which is better spent taking care of patients than going through this paperwork, we can just charge our colleague a token amount of P100.{/sliders}

11.      General  Professional Partnerships (GPP)
{slider Q:   Can GPP be registered by a group of doctors in a clinic?|closed|icon}

A:   Generally Yes.  We do not know of any SEC restriction on this. However, it is recommended that you consult also a lawyer for a second opinion to check for some other restrictions, if any.

{slider Q:   Is there a limit as to the number of member in general professional partnerships?|closed|icon}

A:   At least 2, but there is no limit if more than 2.

{slider Q:   Is there a limit to the number of GPPs that you can create?  What if you are practicing in different clinics?|closed|icon}

A:  None. We do not know of any possible restriction in creating many GPP with the same partners.

Although theoretically, there is no limit as to the number of GPPs that a professional can join, the legal limitation consists in whether joining a new partnership will breach the fiduciary duty of the partner in his other partnerships. A partnership involves people carrying on a common business for profit. Partners in a partnership are fiduciaries to each other. This relationship means that they owe each other, and the business, certain basic duties.

Partners stand in a fiduciary relation to one another in all matters pertaining to the partnership. The partnership relation is one of trust, loyalty and confidence. It imposes upon the partners the highest standards of good faith, the duty to act for the common benefit of all partners in all transactions relating to the business and the duty to refrain from taking any advantage of one another by the slightest misrepresentation, concealment, threat or adverse pressure of any kind.

Partners are required to disclose fully all information relating to the business. This fiduciary relationship partners bear to each other means that if a partner gets any benefits from the partnership, he or she must share them with the other partners according to the terms of their partnership agreement. 

Thus, if forming the new partnership will run into conflict with the aforementioned duties, then the partner faces the risk of being sued by his other partners. 

{slider Q:   Can a doctor form a GPP with a spouse who is a non-medical professional?|closed|icon}

A: A GPP is always formed to engage in only one line of profession (i.e., either medical, accountancy or legal profession).  I have not heard of three different professionals (with three different licenses) forming a GPP to pursue a single line of profession. But if a person has all three licenses (i.e., he is an M.D., a CPA and an Atty. all rolled into one) then he can always join a GPP which has been created to engage in the practice of any one of the professions where he is a legitimate member. 

{slider Q:   Regarding creation of partnerships, you said that under the law, they have 0% income tax, but it has of course expenses. Clarification, you mean to say you can declare the expenses under the partnership as your expense?|closed|icon}

A:   GPP can declare income and expenses.  The net income is not subject to income tax.   Then, GPP will distribute the profits to the general partners subject to 10% to 15% Expanded Withholding Tax (EWT).  The expenses claimed by the GPP will no longer be claimed as expenses by the individual partner.{/sliders}

12.      Mixed income
{slider Q:   The University I am working with withholds tax automatically from my salary.  I also pay tax from my income from my clinical practice.  What is the best way to pay tax as I noticed I am paying very large tax?|closed|icon}

A:  Very subjective question as the answer is dependent on the amounts.  A tax plan should be done.

{slider Q:    What would be the best option for a physician who also has business?|closed|icon} 
A:   Very subjective question as the answer is dependent on the nature of business.  Generally the best form of organization is Corporate.  If practice of profession – GPP.   A tax plan with numbers should be done.

{slider Q:    If you are receiving government salary and at the same time active in private practice how do you file your annual ITR?|closed|icon}

A:    Mixed income declaration in the ITR (only 1 ITR). BIR form 1701.  Both are taxable.

{slider Q:   My accountant does not include my compensation tax when filing my annual ITR, because he said that 2316 stands on its own.  Is this correct?|closed|icon} 
A:   NO, it should be consolidated as mixed income in the annual ITR (BIR form 1701) since tax is based on consolidated income.

{slider Q:    I mix my compensation & percentage tax only when filing our annual income tax.  Is this okay?|closed|icon}

A:    Percentage tax (form 2551) is different from income tax (Form 1701).  You need to prepare and file both.   Percentage tax is filed on a monthly basis at 3% of revenues while 1701 is filed on a quarterly and an annual basis.

For Income tax, income can be from employee or practice of profession.  In this case you need to file BIR form 1701 (mixed income).{/sliders}

13.      Multiple Clinics
{slider Q:   If you have clinic at different RDOs, say you have clinic in RDO 39 and another clinic at RDO 50, do you have to file at both RDOs?|closed|icon}

A:   NO.  Report is consolidated in the Head Office.  However, each branch should maintain books of accounts (sales book for income) for monitoring purposes.

{slider Q:   I would like to ask, if you have several clinics as different branches, do you file annual ITR collectively?|closed|icon}

A:  Yes.  All branches should be consolidated in one tax return.{/sliders} 

14.      Tax filing for Residents and Fellows in training
{slider Q:   Do you have procedures or guidelines on how residents and fellows should file and pay their taxes for the allowances they received (usually income is P12,000-P18,000 monthly)?  BIR is requiring even trainees to register as professional and file monthly.|closed|icon}

A:  If they are receiving money as salary, they are not required to file anything.  The 2316 (withholding tax certificate on employees) issued by the employer will suffice.   If they are receiving allowances not as employees, Yes, they are required to register as professional.{/sliders} 

15.      Joint filing of taxes for spouses
{slider Q:  Is it ok to combine with my husband in filing the annual ITR?  He is a government medical officer and also having private practice.|closed|icon}

A:   Yes.  There is no problem with this.{/sliders}

16.       Unlibooks software
{slider Q:   How much is the Unlibooks software?|closed|icon}

A:   P1,999 per month but PCP members are granted 50% discount.

{/sliders}
 

Neil U. Sison of Sison Corillo Parone & Co.  is our resource person for Accounting related questions. The SCP profile can be viewed at http://www.scp-ph.com/

If you have questions about BIR related issues, you can email This email address is being protected from spambots. You need JavaScript enabled to view it.. 

When they email back, you can print this and show it to your local BIR officer. You can also call the BIR hotline (02) 981-8888. They will answer your query and give you a reference number. Write this down so you can cite this when you discuss the issue with the local BIR officer.

TFI Series