Revised BIR Form No. 2305 (Certificate of Update of Exemption, and of Employer and Employee's Information

Revenue Memorandum Circular (RMC) No. 42-2017 has issued by the bureau recently circularizing the Revised BIR Form No. 2305 (Certificate of Update of Exemption, and of Employer and Employee's Information) April 2017 ENCS to reflect the provision of Revenue Regulations (RR) No. 5-2017 implementing Republic Act No. 10754, entitled "An Act Expanding the Benefits and Privileges of Person with Disability (PWD)" relative to the tax privileges of person with disability.

The revised BIR Form No. 2305 will be used by individuals to update their civil status, additional exemption which now includes PWD as an additional exemption/dependent of a benefactor, if applicable, and employer's information.

Click https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/ANNEX%20A%20RMC%2042.pdf to download revised BIR Form No. 2305.

Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No.%2042-2017.pdf of the full text of RMC No. 42-2017. 

New Versions Of The Update Of Exemption Of Employee (UEE) Data Entry Module In Filing Of The BIR Form No. 2305 (Certificate of Update Of Exemption And Of Employers And Employee's Information) And 2305 Batch File Validation Module

The bureau has issued Revenue Memorandum Circular (RMC) No. 43-2017 recently with regard to the availability of the updated versions of the UEE Data Entry Module and Batch File Validation Module in the filing of BIR Form no. 2305 in relation to RMC No. 59-2015.

Updates in the new versions include the acceptance of Persons with Disability (PWD) pursuant to Republic Act (RA) No. 10754. The following work around procedures shall be followed to allow the data entry of a qualified PWD dependent as an additional exemption:

1. In the Part III - Additional Exemptions of BIR Form No. 2305, encode the name and birthdate of the qualified PWD dependent;
2. Tick the "Mark if PWD/Mentally/Physically Incapacitated" box; and
3. Click the save button after encoding all the required information.

To download click the following:

1. Update of Exemption of Employees Data Entry Module: https://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/BIRF2305_v2.accdb

2. 2305 Batch File Validation Module (ZIP): https://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/BIRF2305ValidationM_v2.zip

3. Job Aid - Batch Entry Module: https://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/job_aid_batch_entry_annex_b.pdf

4. Job Aid - Batch Data Entry Module: https://www.bir.gov.ph/images/bir_files/downloadables/BIRF2305/job_aid_data_entry_annex_a.pdf

Please refer: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20No.%2043-2017.pdf of the full text of RMC No. 43-2017. 

Do You Consider Tax Planning As Part Of The SparkUp or Growth For The Next Generation Of Business People?

Financial, Marketing, Sales and Human Resources Planning are one of the important factors to consider for the growth of business entity. However, I also consider Tax Planning as part of the growth for the Next Generation of Start-Up and Business People.

For three decades of award-winning economic reportage, BusinessWorld, the country's leading business newspaper, introduces its newest successor in the age of disruptive innovation: SparkUp.

Right: Lucien C. Dy Tioco, Executive Vice-President of Philippine Star Media Group

The digital-first multimedia platform SparkUp is a space for the community of young, passionate, and wildly aspiring go-getters. It assets include the website sparkup.ph, social media pages including Facebook, Instagram, and Twitter @SparkUpPH, and a quarterly published magazine.

Readers will expect original content for the next generation of business people. A daily content hashtag categorizes the stories:

#MoneyMonday - Tips on money management with the latest news on saving, investing, and spending;

#TrendingTuesday - Insights on the latest trends and their impact on entrepreneurs and consumers;

#WorkingWednesday - Workplace stories and tips for the Gen Y and Gen Z's work ethics and career outlooks;

#TakeoverThursday - An insider tour of a day in the life of the members of the Sparkommunity;

#FreshFriday - Stories on the lighter side of business.

Besides, SparkUp will also deliver insights from industry icons called Sparkfluencers who are young and trending business influencers who made it to the top. SparkUp also introduces Sparktionary to boost awareness of business terms. This built-in dictionary provides digestive definitions through interactive executions readily available for every reader.

Signing up to SparkUp via http://sparkup.ph/signup/ will give users additional capacities, such as contributing their own content, highlighting passages of interest, taking down notes, bookmarking stories, and participating in a gamified platform.

SparkUp will also regularly hold a series of events aimed at empowering the Sparkommunity. Among these events are entrepreneurial summits, pocket forums, campus activations, start-up competitions, and case-study activities. These will enable members of the Sparkommunity to learn, meet up, network and find potential partners.

To know more about SparkUp, visit www.sparkup.ph and follow @SparkUpPH. 

Types of Withholding Taxes, Duties & Obligations of a Withholding Agent and Time of Withholding

In my previous blogs, I mentioned about the importance of withholding tax system, persons exempt from withholding tax and persons required to deduct and withhold. This day, the  topics are Types of Withholding Taxes, Time of Withholding and Duties & Obligations of a Withholding Agent.

Types of Withholding Taxes

1. Withholding Tax on Gross Compensation

2. Expanded or Creditable Withholding Tax Service Income. Service Income and Purchases of goods)

3. Final Withholding Tax (Passive Investment Income) - Interest, Dividends, Royalties, Prizes, Winnings and Capital Gain

4. Withholding Tax on Government Money Payment (Income Tax, VAT and Percentage Tax)

5. Quarterly Withholding Tax (Individual Engage in Business or Profession and Corporation)

Duties & Obligations of a Withholding Agent

1. To register

2. To deduct and withhold

3. To remit the tax withheld 

4. To file withholding tax returns

5. To issue withholding tax certificate

Time of Withholding

Ordinarily, the obligation of the payor to deduct and withhold arises:

1. At the an income payment is paid or payable. 

2. Income payment is accrued or recorded as an expense or asset, whichever is applicable in the payor's books, whichever is come first.

The topic was discussed by Dr. Ruperto P. Somera, Ph. D. DBA, DBE, CPA, a resource speaker of Philippine Institute of Certified Public Accountants (CPAs) of a Seminar on Issues, Problems and Solutions in Tax Audit and Investigation; Comprehensive Discussion of Withholding Tax last May 25, 2017.