What are the year-end tax compliance requirements of the Bureau of Internal Revenue (BIR)? When is the deadline for each requirement? Will I be penalized if I fail to pay on time?
Listed below are the BIR’s year-end tax compliance requirements, with their corresponding deadlines.
Non-compliance will be subject to compromise penalties ranging from P1,000 to P50,000 each, applicable to non-payment of returns and failure to fulfill compliance requirements.
I just started my business in December 2021. Do I still need to comply with all the BIR requirements even if my business has just started?
Unfortunately, yes. Immediately the following month upon registration, monthly and quarterly compliance are required already, including annual renewal and filing of the income tax return. The same applies to those who registered during the last month of the year, whether or not there are sales/income or operations.
Are there other year-end requirements set by other government agencies that I need to comply with for my business? When is the deadline for the renewal of business permits?
Yes. Aside from the BIR requirements, you also need to secure a barangay clearance from the barangay hall, and a business permit (or mayor’s permit) from the city hall or municipal hall where your business is registered.
The deadline for the business permit was on January 20, 2022, but for businesses under the jurisdiction of the cities of Manila and Marikina, the deadline has been extended until March 31, 2022, and February 28, 2022, respectively.
To know your business’ tax compliance risk level, avail of our free Annual Tax Health Check! Register through this link or by scanning the QR code below. You may also email us at email@example.com or contact (+63)9178010191 to book a consultation.
Mon Abrea, CPA, MBA, is the co-chair of the Paying Taxes-EODB Task Force. With the TaxWhizPH mobile app as his brainchild, he was recognized as one of the Outstanding Young Persons of the World, an Asia CEO Young Leader, and one of the Ten Outstanding Young Men of the Philippines because of his tax advocacy and expertise. Currently, he is the chairman and CEO of the Asian Consulting Group and trustee of the Center for Strategic Reforms of the Philippines – the advocacy partner of the Bureau of Internal Revenue, Department of Trade and Industry, and Anti-Red Tape Authority on ease of doing business and tax reform. Visit www.acg.ph for more information or email him at firstname.lastname@example.org and download the TaxWhizPH app for free if you have tax questions.