GLIMPSE OF A CPA'S MIND

  What you need to know about filing BIR Form 2551Q or Quarterly Percentage Tax (QPT)? What is BIR Form No. 2551Q. Who are required to file BIR Form No. 2551Q. How to compute for Quarterly Percentage Tax. When and where to file Quarterly Percentage Tax. How to pay Quarterly Percentage Tax. Penalties imposed for failure of filing or non-compliance. Taxation in the Philippines has undergone major transformations and new laws were implemented at the beginning of the fiscal year 2018. For those that use a n   online tax calculator in the Philippines , don’t be too alarmed. We’re sure companies will learn to adapt and change their algorithm appropriately. That said, even if you do use online tax calculators or don’t handle your own taxes, you still have to remain informed. The  TRAIN law  changed a lot of things regarding tax computations and filing. One change in particular and the one we’ll be discussing today is the revised BIR Form No. 2551Q or the quarterly...

OVERVIEW This is effective for financial years beginning on or after January 1, 2019, IFRIC 23 ‘Uncertainty Over Income Tax Treatments ’ (‘the Interpretation’) requires entities to consider the potential for adverse tax determinations being made by taxing authorities while under a hypothetical tax review – and record a liability (and expense) where such a finding is considered “probable”. Many entities may not experience a financial impact as a result of this, but the Interpretation remains applicable and certain disclosures may be appropriate. WHAT TAXES DOES IFRIC 23 APPLY TO? IFRIC 23 applies to any tax that is an ‘income tax’ as defined by paragraph 2 of PAS 12 ‘Income Taxes’, which states that income taxes include all domestic and foreign taxes which are based on taxable profits. Income taxes also include taxes, such as withholding taxes, which are payable by a subsidiary, associate or joint arrangement on distributions to the reporting entity.’ INITIAL TAX ASSESSMENT Once a tax ...

Hi everyone! Do you have quick books installed on your computers but you're worrying because the trial period is about to expire? Well, I have a solution to your problem which will benefit your entire life on using your quick books. There are several options on how to validate and register your quick books software as follows: (1) Online registration using your PRODUCT LICENSE NUMBER and PRODUCT CODE and; (2) Activation through VALIDATION CODE. Note: For list of FREE QuickBooks License, just lick here . USING PRODUCT LICENSE NUMBER AND PRODUCT CODE Here are the steps on registering using your own license number and product code: (a) On the CD case of your purchased quick books software, you will see a 15-digit code that represents as product license number. Also, there is a 6-digit code that represents your product code. Each quick books software is designed specifically with a unique license number and product code, so we cannot install a quick books software in y...

Government, any of its political subdivision, instrumentality, or agencies, including government-owned or controlled corporations (GOCCs) is also subject to value-added taxes in the Philippines, unless otherwise exempted. Sales to Government of goods, properties, or services are subject to 12% value-added tax. However there are special rules that accountants and businessmen must be aware of in dealing with the government sales. (1) Final withholding VAT on sales to government in the Philippines, and; (2) Accounting & filling-out VAT return forms in the Philippines. FINAL WITHHOLDING VAT ON SALES TO GOVERNMENT As a rule, government or any of its political subdivision, instrumentality, or agencies, including GOCCs are mandated to withhold 5% (out of 12% regular VAT) on VATable sales upon payment to to value-added tax sellers of goods or services. Such 5% withholding tax shall represent net VAT payable by the seller to government . This would mean that the seller will not b...

Overview IAS 38 Intangible Assets outlines the accounting requirements for intangible assets, which are non-monetary assets which are without physical substance and identifiable (either being separable or arising from contractual or other legal rights). Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised). IAS 38 was revised in March 2004 and applies to intangible assets acquired in business combinations occurring on or after 31 March 2004, or otherwise to other intangible assets for annual periods beginning on or after 31 March 2004. History of IAS 38 Date Development Comments February 1977 Exposure Draft E9 Accounting for Research and Development Activities July ...