FAQs

Everything You Need to Know

Understand our process, pricing, and how we support your business every step of the way.

Do I need to register my business with the BIR even if I’m just starting?

Yes. Under the National Internal Revenue Code, any person engaging in trade or business must register with the BIR before commencing operations. This includes freelancers, online sellers, and sole proprietors.

What taxes do I need to file as a sole proprietor?

This depends on your registration, but typically includes:

  • Percentage Tax (if non-VAT) or VAT

  • Income Tax (quarterly and annual)

  • Withholding Taxes (if applicable)

The exact obligations are defined in your Certificate of Registration (BIR Form 2303).

What happens if I miss a tax filing deadline?

Late filings are subject to penalties under BIR rules, including:

  • 25% surcharge on the tax due

  • 12% annual interest

  • Compromise penalty

These are mandated under the Tax Code and related revenue regulations.

Is bookkeeping required by law?

Yes. All registered taxpayers are required to maintain Books of Accounts. These must be registered with the BIR and kept updated for inspection when required.

Do I need to issue official receipts or invoices?

Yes. Businesses are required to issue BIR-registered Official Receipts or Sales Invoices for every transaction. Failure to do so can result in penalties and possible closure under BIR enforcement programs.

Can I operate my business without registering with DTI or SEC?

No.

  • Sole proprietors must register with the DTI

  • OPC, Partnerships, and corporations must register with the SEC

Operating without proper registration may result in legal and tax compliance issues.

When should I register with SSS, PhilHealth, and Pag-IBIG?

Employers are required to register with these agencies upon hiring employees. Self-employed individuals are also required to register and contribute based on applicable laws and regulations.

Do I need to file taxes even if I have no income?

Yes. Registered businesses are generally required to file tax returns even with zero income, depending on their tax type. This is called “no payment” or “zero filing,” and failure to file can still result in penalties.

Can I change my business from Non-VAT to VAT?

Yes. You may apply for VAT registration if your gross sales exceed the VAT threshold (₱3,000,000) or voluntarily register. This requires updating your BIR registration.

How long should I keep my accounting records?

Under Philippine tax regulations, books of accounts and accounting records must generally be kept for at least 10 years, with specific retention formats required depending on the year.

YTA BMS

"All-in-One Business Operations Solution."

We handle DTI, BIR, LGU, PhilGeps, SSS, PHIC, HDMF, Bookkeeping, Accounting, Tax Filing, Email, Social Media, Sales Funnel for Sole Proprietors, Online Sellers, and Freelancers.

You may contact us via Facebook, Messenger, WhatsApp, email, phone call, or text so we can discuss your concern and provide you with direct assistance.

ytabms@hotmail.com

+63 909 911 6947

Stay Updated With Our Newsletters

Copyright © 2024 All Rights Reserved

Proverbs 3:5-6 NKJV