MANILA, Philippines – Bureau of Internal Revenue (BIR) Commissioner Kim Henares is reminding employees and self-employed professionals to file their income tax returns before the April 15 deadline.
Henares advised those employed whose income taxes aren’t withheld by the company to save up for the tax payments to avoid coughing up a large one-time payment.
“My advice is that every time you get your paycheck, you already set aside the notional amount of taxes you will pay so that you don’t have to cough it up at one chunk on April 15. Do a savings already because it is not withheld from you,” she said on ANC’s “On The Money.”
“File your income tax return on or before April 15, you state there all your compensation, fill up the form and then whatever is the tax due, you go to the bank and you pay there,” she added.
For self-employed individuals, Henares said you must first register yourself as a business and get a receipt.
Henares noted that self-employed individuals have more obligations than those employed by a company.
Those self-employed are required to file a percentage tax return every month, release of sales and purchases every quarter, and income tax returns every quarter.
“Then on April 15, you have to file an income tax return also, you have to keep books and you have to get an accountant to prepare a financial statement,” said Henares.
She said taxpayers who do not want to line up can enroll and register for BIR’s electronic filing of income tax returns to avail of the service.
“If you want to do it online, you just have to enroll yourself. You go to your revenue district office, enroll to file electronically, and pay through the banks,” she said.
She added that the tax agency will launch another online facility wherein taxpayers can file and pay online.
A new form will be available at the BIR website before the end of March.
“You can download it, fill it up and print it. You can also enroll online, however, the payment facility is limited only to two banks, but eventually we will connected to the government payment gateway,” she said.
2014 collection target
The BIR’s revenue collection target for 2014 is P1.456 trillion with excise tax and tax compliance of sole proprietors being the key drivers.
Henares noted that the new sources of revenues for 2014 are the rationalization of fiscal incentives and the mining revenue reform bill.
“Those I believe are the only two measures because we’re not really asking for new taxes with the understanding that the legislative don’t give away money by granting exemptions. Because if they do, we will be forced to go to them and ask for new tax measures, which we have been trying to avoid except for the sin tax,” she said.