#AskTheTaxWhiz: How do I know which tax I should pay?

I have been hired by a company as a consultant. I was asked to register with the Bureau of Internal Revenue (BIR). How do I know which tax to pay and when to file?

You actually determine which taxes are applicable to you whether as a consultant, sole proprietor or marginal income earner when you accomplish BIR Form 1901 or Application for Registration.

Upon registration, BIR will issue Form 2303 or Certificate of Registration (COR) where the tax types you are required to file and to pay are enumerated. A reminder of the deadlines for filing and payment is also printed at the bottom part of your COR:

a. Income Tax Return is due within 60 days after the end of each quarter while annual return is due every April 15.
b. Value Added Tax is due monthly on or before the 20th of day of the succeeding month and quarterly on or before the 25th day following the close of each taxable quarter
c. Withholding Tax – Expanded, Compensation and Final is due on or before the 10th day of the month following the month the withholding was made.

What is an open case? How do I avoid it?

An open case refers to a BIR return that you failed to submit on time. Make sure to file required returns on or before the deadline.

Am I still required to file even if I don’t have any tax due?

Yes. With or without tax due, monthly returns are required to be filed to avoid open cases.

Got a question about taxes? #AskTheTaxWhiz! Tweet @rapplerdotcom or email us at business@rappler.com. – Rappler.com

Mon Abrea is a former BIR examiner and an advocate of genuine tax reform. He serves as chief strategy officer of the country’s first social enterprise, the Abrea Consulting Group, which offers strategic finance and tax advisory services to businesses and professionals. Mon’s tax handbook, “Got a Question About Taxes? Ask the Tax Whiz!” is now available in all bookstores nationwide. Follow Mon on Twitter: @askthetaxwhiz or visit his group’s Facebook page. You may also email him at consult@acg.ph.

Background photo and BIR form from Shutterstock