Amidst the busyness of starting the new year, we taxpayers must be mindful of our duties in completing compliance standards. This means keeping up with the reporting requirements established by both the Bureau of Internal Revenue (BIR) and the Local Government Units (LGU).
Read more to learn about the deadlines:
The BIR Compliance
- Annual Returns (BIR Form Nos. 1604-C, 1604-F, and 1604-E) alongside the Annual Alpha List of Employees/Payees
Employers must file these forms according to specified deadlines, considering various factors such as annualizing employee compensation. Additionally, employers are required to provide BIR Form No. 2316 to employees.
Check the table below:
| BIR FORM | DEADLINE |
| Annual Information Return (1604-C) | On or before January 31st |
| Alphalist Attachment (.DAT File) | On or before January 31st |
| Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Taxes (1604-E) | On or before March 1st |
| Annual Information Return of Income Payments Subjected to Final Withholding Taxes (1604-F) | On or before January 31st |
| Certificate of Compensation Payment 2316 to your employees | On or before January 31st or on the employee’s last wage |
| Certificate of Compensation Payment 2316 to the BIR | On or before February 28th |
- Books of Accounts
This depends on the registered method of the taxpayer. The process involves registration and submission within specific deadlines. For electronic filers, awareness of the availability of updated forms in the electronic filing and payment system (eFPS) should be strongly considered.
- Manual books of accounts – shall be registered/stamped before use. As a result, a new manual book must be registered if the old books are nearing the end of their consumption at year-end.
- Permanently bound loose-leaf books of accounts – shall be submitted annually, within fifteen (15) days after the end of each taxable year or 15 days from the closure of business operation.
- Computerized Books of Accounts – shall be submitted annually, within thirty (30) days after the end of each taxable year or 30 days from the closure of business operation.
- Submission of Inventory List and Other Schedules
Taxpayers who keep inventories must provide soft copies of the yearly inventory list and associated schedules, along with a notarized and signed sworn declaration, within 30 days of the end of the fiscal year. This helps in preparing a reconciliation of the inventory list with records, allowing for easier explanations during possible tax audits.
Local Government Units Compliance
The annual renewal of business or mayor’s permits with the local business tax (LBT) is required by the LGU. This is payable on or before January 20, which will officially be moved to January 22, 2024, because January 20 is a Saturday.
Businesses also have the option to pay the LBT quarterly within the first 20 days of January and the first month of each subsequent quarter. While registered business enterprises (RBE) subject to the 5% gross income tax are exempt from local taxes under the CREATE law, they must still fulfill financial obligations, including fees imposed by LGUs.
Failure to satisfy LBT payment dates may result in penalties and monthly interest. Noncompliance could result in the taxpayer’s establishment being closed down by the LGU. Understanding LBT rates and being up to date on LGU statements about assessment letters and payments is a must for taxpayers.
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Source: BusinessWorld, published on December 5, 2023.