This is very clear. Thank you so much ,I understand a lot. keep making videos sir! it's very inspirational to all small business around the Philippines
@@gerardcarpizo You're welcome, sir. Really love how you explain everything in your videos especially the ones related to Ph taxes. Before, had a hard time understanding them all 😍
No, for taxpayers they can choose how to pay income tax and have an option if they would be required to pay percentage tax... Not the other way around.
Hi James. You are correct, such as a corp., for tax purposes the LLC will pay business and income tax while as an owner/shareholder taxable on income recieved i.e. dividend or others.
Hi Reynaldo. If the tutor works for himself, he will be classified as self-employed. The individual needs to maintain books of accts and be registered with BIR.
Hi, Sir Gerard. How do we signify our intent for choosing 8% income tax? Me separate form po bang dapat gamitin for the BIR to know our intent of choosing the 8%-income tax? Me deadline din po ba for that?
Meaning po, habol pa po ako ngayon for the 8% income tax since May 15 pa po yung 1st quarter filing? Need pa po bang gumamit ng Form 1905 to signify my intent of choosing 8% tax? Thank you, Sir.
hi sir, i like how you explain these things, but i still wanted to know, what about seasonal business (part time business)? do we really have to file any of those to BIR?
Hi Gerard. Great video! I'm a content creator and I run ecommerce online business and my clients are everywhere in the world. I am Italian but I live 8 months a year in the Philippines. Under Italian law you can be considered resident abroad if you live abroad for more than 183 days. Since my income is produced by clients all over the world, wouldn't I be taxed in the Philippines? I don't need to pay taxes also in Italy if I am fiscal resident in the Philippines? Thanks and happy new year! Thank you very much for your response!
Hello sir, I just got my Cor today, I opt to 8% tax, but my Cor stated to file 1701 and 1701Q aside from registration fee form 0605. May I ask Po why I have double individual income tax? Im not a mixed earner Po.
Hello Sir, My question po ako. Im part time online Freelancer if mag file ako sa BIR para sa Part time Freelancer ko ano need ko gawin? kasi if self employed na bracket cxa papasok.. matatawag mo ba cxa na self Employed while company employed ako? salamat sa pag sagot
Hi Rheza, those employed while also doing business/practicing prof would be considered as mixed income earners. They need to update their registration and they are now the ones who file thier taxes. You can visit the nearest BIR office and inquire from the officer of the day for the exact steps.
@@KirbsPH Annual income tax is P22,000. Forgot to mention quarterly percentage tax of P2,700 wc will be multiplied to 4 quarters. Total annual tax liability will be P32,800. This is if the taxpayer opt for graduated income tax rates.
Hi, I'm an indie game developer. All my sales will be recorded from my Steam developer page. Is that something I can show to BIR as a statement of account/ book of accounts? I'm also going to release the game with no registered company name, just under my name. Would that consider me a freelancer?
Hello Ranicorn, businesses registered as BMBE are exempted from income tax. Although, they are still liable for business tax of either 3% percentage tax or 12%VAT.
Sir you stated na if a person will choose 8% standard deduction for his income tax, no need to pay for the 3% percentage tax, one is a tax on income while the others is a tax to in conducting a business. what is the basis I may ask? or need pa din to pay the 3% even if 8% ang tax rate so long as below 3m ang annual income? tnx
Sir online seller po ako tapos ang kinikita kulang is 20pesos or 300 minsan wala kailangan ko parin pa g mag file ng income tax???hindi kasi ako familiar sa mga tax..salamat sa kasagutan..
Sir, about sa mga youtuber or freelancer? d nmn sila matawag na business, paano po ba? gusto ko mag bayad ng tax pero gusto ko ung tama ung binabayaran ko, at tsaka wala pa daw batas para sa mga freelancers, baka darating ang panahon at nakakabayad ako tapos mag iba ung plan ng taxation, baka ipapabayad sakin muli :( I really want to help the government pero sana meron maayos na batas talaga :( hindi ung macocorrupt lang
Similar to what I talked about in my videos, as an individual earning income other than compensation you are classified as self-employed. Income from online platforms such as youtube could be taxable using graduated income tax table table/8% tax rate and 3% percentage tax.
Hi Anja, it would be your choice. Online would be the most convenient. You can also pay via authorized agent banks (AABs). For more info you can check the eFPS website: efps.bir.gov.ph/home.html
Awww super clear. Love your explanations! I have last question. I only have one source of.income leasing property.so it means i will file same on both income and percentage, double tax? 😣😣😣 thanks in advance
The whole amount paid shall be recognized as expense (no input VAT). You can check out my video on the following: Input VAT: th-cam.com/video/fjS_ayy3t8o/w-d-xo.html VAT : th-cam.com/video/R4wDlRGYk1w/w-d-xo.html
If beyond 250k ang sales po Sir but below 1M what is the best tax rates to use? Some suppliers have receipts and some don't have. Thanks in advance po.
Hello Sir. I'm employed and plan to start a small online business on the side. Im sure that I will earn 250k below annually in this business. So I will be choosing 8% then no need to file taxes and just pay the annual reg fee? Is that correct?
Hi sir sana po matulungan niu po aq, kakaregister q lng ng online business q on March 15, 2021 since then hindi pa po aq nkakapagfile ng income tax, anu po magandang gawin, wala po akong knowledge sa mga ganyan, pwede pa ba makahabol on annual basis? sana po mapansin niu, at anu po mgndang gawin pra mkaless aq sa income tax q, huhuhu
Hi sir, question, what if 7mos lng tinagal ng business and homebased lang, and sa 7mos na yun 6k lng kinita, pwede ko padin ba ifile kahit year 2020-21 pa cia..pano ko ififile yun? Not also registered(Milktea business)
The 8% optional income tax rate is related to business income. For employees they only taxed using graduated tax rates. You can watch my other videos to learn more.
The 8% optional income tax rate is applicable if you are subject to 3% percentage tax. You can avail of the 8% tax rate on filing your first quarter income tax.
Hi po. How to apply for a TIN as unemployed. Ang purpose ko lang po sa TIN ay para maprocess ko yung Google Adsense Tax Info. at magbenefit sa Tax Treaty?
Thank you sir, Gerald. zero knowledge ako sa mga terms or any related topics about tax. :( Nahihirapan akong maintindihan. I like the way you explain pero yung grasp ko lang talga is very slow lalo na pag walang examples (parang elementary lang haha) pero gusto gusto ko talagang matutu :(
Hello! I started out with zero knowledge too. With practice and study you'll also learn taxation. You can watch my other videos to widen your tax info.
![14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off]](/img/n.gif)
Thank you dito sir Gerard! I really like how you discuss taxation topics and superb ang quality ng videos!
Thank you, I am encouraged by your comment. 👍
Galing classmate very well said 100% True. I’m one of those taxpayers. ❤️❤️❤️ Para sa bayan. 🎉
Thank you 👍
Lit vid! 🔥🔥🔥
Clear, concise, and very timely!
Thanks, I appreciate the comment. ☺
Thank you for this Gerard! This is very helpful!!!
You're welcome 🙂
Sir on your videos.marami kang natutulungan.tnx
Thank you, I'm glad this helped alot.
This is great info! Just what I needed!
Happy to help Kylo 👍
Can you create a video explaining the computation of tax and duties when importing goods from other countries to PH.
Hi Jericho, thanks for suggesting the topic. Will try to make one in the future 👍
Helpful Sir. Thank you
Thank you as well, glad it helps.
sir saw the explanation in one of your videos tyvm.. okay na :)
Glad to have help you out.
Very informative thank you so much
Hi Venus, you're welcome 👍
Thanks Sir. 👍
You're welcome. 👍
This is very clear. Thank you so much ,I understand a lot. keep making videos sir! it's very inspirational to all small business around the Philippines
Thank you, I'm very happy this helped. 👍
thanks sir, please make a tagalog version of this video para mas madali natin matiintindihan. .
Thanks, will consider it in the future.
❤❤❤
New subscriber here 😊
Thanks for the sub 😊
@@gerardcarpizo You're welcome, sir. Really love how you explain everything in your videos especially the ones related to Ph taxes. Before, had a hard time understanding them all 😍
Can you choose to pay the percentage tax instead of income tax?
No, for taxpayers they can choose how to pay income tax and have an option if they would be required to pay percentage tax... Not the other way around.
@@gerardcarpizo is it true that online sellers earning less than 250k annually are tax-exempted?
If the taxpayer's gross reciepts does not exceed 250k and opted for the 8% optional income tax rate.
Just to clarify things. If you are registered as an LLC your business will pay tax and you as a separate entity will also pay income tax?
Hi James. You are correct, such as a corp., for tax purposes the LLC will pay business and income tax while as an owner/shareholder taxable on income recieved i.e. dividend or others.
We can choose if we want 1701Q or 1701A?
1701Q is for quarterly, 1701A is for annual.
sir how about online tutorial services alin po ang applicable na tax.
Hi Reynaldo. If the tutor works for himself, he will be classified as self-employed. The individual needs to maintain books of accts and be registered with BIR.
Can you please make a video about the 12% vat on digital trabsactions here in ph please? what’s the better approach from this?
Hi Jiji, that's a good topic. Will make a video on that in the future. Thanks for suggesting
Hi, Sir Gerard. How do we signify our intent for choosing 8% income tax? Me separate form po bang dapat gamitin for the BIR to know our intent of choosing the 8%-income tax? Me deadline din po ba for that?
Hi Grace. You may signify your intent of the 8% option with your 1st/initial quarter of filing income tax.
Meaning po, habol pa po ako ngayon for the 8% income tax since May 15 pa po yung 1st quarter filing? Need pa po bang gumamit ng Form 1905 to signify my intent of choosing 8% tax? Thank you, Sir.
hi sir, i like how you explain these things, but i still wanted to know, what about seasonal business (part time business)? do we really have to file any of those to BIR?
Hi RC, yes, even if income from seasonal business is below 250k, we still need to file to BIR tho nothing pay in terms of income tax.
Hi Gerard. Great video! I'm a content creator and I run ecommerce online business and my clients are everywhere in the world. I am Italian but I live 8 months a year in the Philippines. Under Italian law you can be considered resident abroad if you live abroad for more than 183 days. Since my income is produced by clients all over the world, wouldn't I be taxed in the Philippines? I don't need to pay taxes also in Italy if I am fiscal resident in the Philippines? Thanks and happy new year!
Thank you very much for your response!
Hello sir, I just got my Cor today, I opt to 8% tax, but my Cor stated to file 1701 and 1701Q aside from registration fee form 0605. May I ask Po why I have double individual income tax? Im not a mixed earner Po.
Hi Cherry. The 1701Q is for the quarterly while the 1701 is the Annual. Also, you may update your RDO in case there are tax type you want to change.
Do you still need to file taxes even if you make below 250k a year?
Hi Cloyd, yes you need to file to the BIR eve if your gross revenue is below 250k.
@@gerardcarpizo Thank you sir!
Hi sir, just to be clear.. If i make below 250k annually, the only thing i thave to pay is 500 pesos plus 8% of which?
Choosing 8% income tax rate will not make you liable to pay 3% percentage tax. The 500php is annual registration fee.
Pag online reseller Po wla pong hawak na products need to ba Ng permit sir
Hello Ivy. Yes, any form of online selling business regardless if there are inventory on hand, needs to be registered.
Hello Sir,
My question po ako. Im part time online Freelancer if mag file ako sa BIR para sa Part time Freelancer ko ano need ko gawin? kasi if self employed na bracket cxa papasok.. matatawag mo ba cxa na self Employed while company employed ako? salamat sa pag sagot
Hi Rheza, those employed while also doing business/practicing prof would be considered as mixed income earners. They need to update their registration and they are now the ones who file thier taxes. You can visit the nearest BIR office and inquire from the officer of the day for the exact steps.
Magkano po kaya kaltas sahod sa youtuber sir? for example 30k/month po?
Using the 2nd bracket of the updated graduated income tax table, P22k.
@@gerardcarpizo 22k/month ang alin po?
@@KirbsPH Annual income tax is P22,000. Forgot to mention quarterly percentage tax of P2,700 wc will be multiplied to 4 quarters. Total annual tax liability will be P32,800. This is if the taxpayer opt for graduated income tax rates.
@@gerardcarpizo thanks for taking time to answer me sir, Godbless!
You're welcome 👍
Hi, I'm an indie game developer. All my sales will be recorded from my Steam developer page. Is that something I can show to BIR as a statement of account/ book of accounts? I'm also going to release the game with no registered company name, just under my name. Would that consider me a freelancer?
Question po sana pwd ba mag register as bmbe and 8%? At wala ng tax na babayaran?
Hello Ranicorn, businesses registered as BMBE are exempted from income tax. Although, they are still liable for business tax of either 3% percentage tax or 12%VAT.
@@gerardcarpizo Thank you sir.
Sir you stated na if a person will choose 8% standard deduction for his income tax, no need to pay for the 3% percentage tax, one is a tax on income while the others is a tax to in conducting a business. what is the basis I may ask? or need pa din to pay the 3% even if 8% ang tax rate so long as below 3m ang annual income? tnx
Klaruhin ko lng po sir,,pg online seller no need n po business permit/mayors permit?dti lng tapos bir n po?
Yes, per BIR checklist mayor's permit is not required. For online sellers, DTI registration is needed.
Sir Gerard, ano po ang tax type na pwede kapag online seller na vlogger?
Ayon sa BIR, they are classified as self employed.
Sir online seller po ako tapos ang kinikita kulang is 20pesos or 300 minsan wala kailangan ko parin pa g mag file ng income tax???hindi kasi ako familiar sa mga tax..salamat sa kasagutan..
Strictly speaking, if your business is registered with the BIR you need to file even if your result is zero tax base.
Hello po. Online seller po ako at nag file ako ng Non-vat business. Bali quarterly na lang po babayaran kong tax?
Hi Thoper, yes generally quarterly filing of income tax and percentage tax (if you opted to be income taxed ung graduated tax table).
@@gerardcarpizo online din po ba pag file nun ?
@@gerardcarpizo online din po ba pag file nun ?
@@gerardcarpizo saka ask ko lang po kung pwede mag file kahit 0 income ang business ko. Bali mag start na ako sa daeating na January?
You still need to file even if you are zero income to avoid being classified as open case.
Sir How do you set up percentage tax payable when recording on Cash receipts book? I am a non-vat entrep. Thank you
Sir, about sa mga youtuber or freelancer? d nmn sila matawag na business, paano po ba? gusto ko mag bayad ng tax pero gusto ko ung tama ung binabayaran ko, at tsaka wala pa daw batas para sa mga freelancers, baka darating ang panahon at nakakabayad ako tapos mag iba ung plan ng taxation, baka ipapabayad sakin muli :( I really want to help the government pero sana meron maayos na batas talaga :( hindi ung macocorrupt lang
Similar to what I talked about in my videos, as an individual earning income other than compensation you are classified as self-employed. Income from online platforms such as youtube could be taxable using graduated income tax table table/8% tax rate and 3% percentage tax.
Sir yung quarterly income tax filing ba for small online business owners pwedeng online? Or manual filing mangyayari?
Hi Anja, it would be your choice. Online would be the most convenient. You can also pay via authorized agent banks (AABs). For more info you can check the eFPS website: efps.bir.gov.ph/home.html
Awww super clear. Love your explanations! I have last question. I only have one source of.income leasing property.so it means i will file same on both income and percentage, double tax? 😣😣😣 thanks in advance
Leasing (rental income) is subject to expanded withholding tax. Stay tune for my new video on that. 👍
awww ok. gotcha
For rental income / staycation business ,if I chose 8% on gross sales , exempted parin sa percentage tax even if more than 15k Ang monthly income ?
Kung 8% optional income tax, in lieu na po jan ang filing ng percentage tax.
Hi sir, We are Vat registered and we purchased on a non-vat registered. How can we record it to our expenses?
The whole amount paid shall be recognized as expense (no input VAT).
You can check out my video on the following:
Input VAT: th-cam.com/video/fjS_ayy3t8o/w-d-xo.html
VAT : th-cam.com/video/R4wDlRGYk1w/w-d-xo.html
I can't hear it, ang hina po nung audio. 😭
If beyond 250k ang sales po Sir but below 1M what is the best tax rates to use? Some suppliers have receipts and some don't have. Thanks in advance po.
I'd way 8% optional income tax rate because of its simplicity.
Sir may small business canteen kami sa public market ano bang need gamitin? At pwede bang sa RDO ako or sa BIR ng municipal hall magbayad?
Hello Sir. I'm employed and plan to start a small online business on the side. Im sure that I will earn 250k below annually in this business. So I will be choosing 8% then no need to file taxes and just pay the annual reg fee? Is that correct?
HI Sir. Pano po kapag employed at the same time online seller? Separate TIN? Thanks
Hi Jeffrey, generally if your online business is a sole-proprietorship setup, use the same TIN. You can check my video on TIN for more info. 👍
@@gerardcarpizo thank you Sir
@@jeffreyfajardo1958 You're welcome. 👍
Hi sir sana po matulungan niu po aq, kakaregister q lng ng online business q on March 15, 2021 since then hindi pa po aq nkakapagfile ng income tax, anu po magandang gawin, wala po akong knowledge sa mga ganyan, pwede pa ba makahabol on annual basis? sana po mapansin niu, at anu po mgndang gawin pra mkaless aq sa income tax q, huhuhu
Sir mag sisimula palang po ako ng online business ko less than 250k. Ano po ba yung best option Graduated or 8%?
Kung hindi ka manurong mag bookkeep, mas simple 8% optional rate kesa sa graduated.
Hi sir, question, what if 7mos lng tinagal ng business and homebased lang, and sa 7mos na yun 6k lng kinita, pwede ko padin ba ifile kahit year 2020-21 pa cia..pano ko ififile yun? Not also registered(Milktea business)
Thank you sir! Baka po pwede example po ng calculation ng percentage tax and income tax thank youuu
You can watch either of this videos: th-cam.com/video/EdcF5ZdOgs4/w-d-xo.html
Here is the second one th-cam.com/video/HXhc3T2nSis/w-d-xo.html
Sir ask ko po, pag international door to door delivery po ba need pa magbayad ng tax ang reciever?
Hello po. Do you mean po choose to be taxed at 8% is as an employee (income tax)? How to do it po? thanks a lot. This is a big help.
The 8% optional income tax rate is related to business income. For employees they only taxed using graduated tax rates. You can watch my other videos to learn more.
@@gerardcarpizo Thanks a lot!
Happy to help
sir i just registered my online business. and the certificate had percentage tax, can i still change and choose for the 8%?thanks
The 8% optional income tax rate is applicable if you are subject to 3% percentage tax. You can avail of the 8% tax rate on filing your first quarter income tax.
Sir baka po pwede pagawa po tagalog version neto🥹
tanong lang din po kung lahat po ba na nag registered BIR ay kailangan mag file tax quarterly?
Depede po sa naka lagay sa certificate of registration (COR) ng BIR kung quarterly or annually.
Pag 250k below ang income, ano pong gagamitin? 8% po ba. Thanks
Hi Edwin, if your income is below 250k its best to.use the 8% optional income tax rate. I explained it in the video.
Hi po.
How to apply for a TIN as unemployed. Ang purpose ko lang po sa TIN ay para maprocess ko yung Google Adsense Tax Info. at magbenefit sa Tax Treaty?
Hi Adrian, you can use BIR Form 1904, applying under EO 98.
@@gerardcarpizo Thank you po😊
@@AdrianDiPh happy to help
Thank you sir, Gerald. zero knowledge ako sa mga terms or any related topics about tax. :( Nahihirapan akong maintindihan. I like the way you explain pero yung grasp ko lang talga is very slow lalo na pag walang examples (parang elementary lang haha) pero gusto gusto ko talagang matutu :(
Hello! I started out with zero knowledge too. With practice and study you'll also learn taxation. You can watch my other videos to widen your tax info.
250k a year po ba sir ang tinutukoy nio po
Yes, below 250k ang threshold ng walang income tax due.
Sana tagalog nlang
3 years ago na content na yan. Watch nio nalang yubg mga latest videos para sa tagalog content.
Thank you for the tips sir
You're welcome, glad it helps.