T.I.N.

[BudM]

Thanks FastWalk. I'm planning to use the services of a public accountant, so my company will hire a book-keeper, then once a week someone from the office of the public accountant will come for a couple of hours to get records from our book-keeper. So our monthly financial report will come from the public accountant, who will also file any necessary tax reports for us. Do you think this practice is common in the Philippines (to use outside accountant)?

My wife has the same setup for accounting and she only has a small business.  Actually she uses two CPA so she has three sets of eyes working her books.  Routine bookkeeping is local and one CPA is a friend to occasionally look over the stuff compiled and then the second CPA only once a year.  If you are required to file AIF with ITR, your CPA has to be accredited.  Her first one is not accredited, hence the second one in her instance.

[midaut]

I don't think so for very small setups,  I don't know for larger setups.   Just like any other place make sure to personally inspect often,  and verify cash flow (if that is relevant for your setup).  Will love to hear updates as it gets rolling for you.   

I will update  .

[midaut]

My wife has the same setup for accounting and she only has a small business.  Actually she uses two CPA so she has three sets of eyes working her books.  Routine bookkeeping is local and one CPA is a friend to occasionally look over the stuff compiled and then the second CPA only once a year.  If you are required to file AIF with ITR, your CPA has to be accredited.  Her first one is not accredited, hence the second one in her instance.

In Indonesia, we also have a “second CPA” who audit the “first CPA” once a year, but it is not mandatory. Moreover, big companies have “Tax Accountants”. We don’t have tax accountants as our company is not big, but we use the services of a “Tax Consultant” who works/coordinates with our accountant (the first CPA) and the book-keeper. Taxation is a complicated issue in Indonesia, hopefully it is less complicated in the Philippines.

[BudM]

In Indonesia, we also have a “second CPA” who audit the “first CPA” once a year, but it is not mandatory. Moreover, big companies have “Tax Accountants”. We don’t have tax accountants as our company is not big, but we use the services of a “Tax Consultant” who works/coordinates with our accountant (the first CPA) and the book-keeper. Taxation is a complicated issue in Indonesia, hopefully it is less complicated in the Philippines.

It doesn't matter how many people you have doing the books.  However many makes it click for you but if you make at least a certain amount, at the end you have to have an accredited CPA audit your financial records to be turned in with your ITR.

[midaut]

It doesn't matter how many people you have doing the books.  However many makes it click for you but if you make at least a certain amount, at the end you have to have an accredited CPA audit your financial records to be turned in with your ITR.

Thanks BudM, I have the feeling now that taxation is not as "scary" in the Philippines as it is in Indonesia.

[BudM]

Thanks BudM, I have the feeling now that taxation is not as "scary" in the Philippines as it is in Indonesia.

Correct. If people keep up with there taxes here, it is not scary.  I know of a couple of people who are afraid to set foot in the BIR offices.  I also know of a couple of people who were scared but then, the way I understand it, they got their act together and are no longer afraid.  Just like I guess everywhere else though, they can make it difficult for small businesses and if you don't keep up with it, you wind up paying for it more in the long run.