Are you tired of looking for tips on how to avoid tax penalties or additional fees during the tax mapping in the Philippines? Here are things that you must know as a taxpayer and a business owner during tax mapping to avoid closure of your business and paying Bureau of Internal Revenue (BIR) penalties.
What is Tax Mapping?
Do you know the meaning of tax mapping in the Philippines?. It is a surprise visit to the establishment to inspect compliance of business registration and other rules and regulations of the Bureau of Internal Revenue. This surprise inspection to avoid any tax evasions and to catch any tax evaders.
Any BIR representative does this tax mapping at a random date and place. Non-compliance with the BIR regulations is subject to the penalty from one thousand pesos (1, 000) up to fifty thousand pesos (50, 000) depending on the nature of violations.
Some non-compliance to the regulation will lead to a permanent closure of the business establishments and imprisonment of the owner.
How To Avoid Penalties?
To avoid penalties during the tax mapping, you need to review these checklists.
- Make sure your business is not illegal in the BIR.
- Make your registration documents visible these are BIR Certificate of Registration (BIR Form 2303), Notice to the Public “Ask for Receipts” signage and lastly, the Annual Registration Fee (BIR Form 0605)
- Always pay the annual registration fee on or before January 31st of each year.
- Register your Cash Registered Machine (CRM) or Point of Sales Machine (POS) to the Bureau of Internal Revenue (BIR).
- Attach the original authorization sticker to any devices your business.
- Use prescribed manuals or invoices by the BIR.
- Make sure to issue receipts or invoices for every transaction.
- Maintain a registered book of accounts and record the business transactions
- Pay regularly the taxes monthly, quarterly and annually, including those withholding taxes from the employees and other withhold taxes.
Therefore, in just a few minutes, you were able to avoid paying less than fifty thousand pesos for BIR penalties. Compliance with the BIR regulations will help us to save a more significant amount of money that was having tax evasion. You might wonder, is your business needs to register in the BIR?