5 Tips to Beat Bureau of Internal Revenue's (BIR) April 15 Annual Tax Deadline

By Go EntrePinay 12:04:00 PM Business Mngmt

Once again, the deadline for filing Bureau of Internal Revenue (BIR) annual income tax returns (ITR) hovers with the month of April trudging in. As the April 15 annual income tax deadline nears, businesses rummage through financial records to beat this date.

Photo courtesy of www.efile.com via Flickr Creative Commons

While corporations and partnerships may just breeze through this task, single proprietorships are most commonly saddled with income tax return preparations due to the usual basic and grassroots nature of operations. Especially if you're a start-up single proprietor entity, ranging from a freelancer, work–at-homer, or small business entrepreneur, you'll definitely be relieved from major headache when the tax season falls due with these simple tips in mind.

1. Take note of the schedules.

You'll face penalties with late filing of tax returns. Hence, take seriously the schedules of income tax filings. Oftentimes, some business applicants fail to attend the orientation seminar, which is usually set before the release of Certificates of Business Registration and Authority to Print (ATP) receipts. But it is during this time when the different tax filing schedules are specified for VAT and non-VAT taxpayers. Hence, others end up misguided and faced with huge penalties later on when they've already started with their businesses.

Aside from the April 15 annual income tax filing, non-VAT taxpayers are also required to file on these timings:

Monthly: every 20th of the month
Quarterly: April 15, Aug 15, Nov 15
Annual Registration: on or before Jan 31

Photo courtesy of kaboompics via Pixabay

2. Keep financial records organized.

Keep in place and in order your records of sales, expenses, investment costs, etc., with necessary back-up receipts and transaction documents to serve as reference attachments, if needed. Maintaining your monthly income statements updated will also be most helpful to facilitate an easy and fast computation of annual income tax due at the end of the year.

3. Understand the computation process.

Filling up correctly the income tax return forms may not be achieved at one time only. You may need to do a draft first, especially if you're a first-time taxpayer, and finalize it later after reviewing it several times. Not only do you need to understand the computational procedure, but you may likewise have to look up some terminologies, too.

4. Be time-conscious.

Nothing beats an early bird so work in advance. Preparing records and doing computations at the last minute are everything you won't need. These will only build up stress and costs, apart from the hassle of joining in the long lines at BIR offices and accredited banks.

Photo courtesy Public Domain Pictures via Pixabay

5. Seek professional assistance.

Lastly, if you think numbers and accounting stuffs are beyond your working realm, don’t hesitate to get professional help. It's better to pay for some additional fees for the extra help, than not accomplishing the tax returns and being penalized later on.

Business Mngmt