Owing to the loopholes in local and international taxation, it was noticed that there are multinational companies that seek to minimize the tax payments between and among their related entities so they can maximize their net income as a group, rather than as individual entities.
As an entrepreneur, it is important to know how to address different kinds of accounting challenges your business may encounter during the COVID-19 pandemic.
Accounting reports show a simplification of your company’s financial performance, helping you make sensible financial decisions for growing your business.
Many startups have limited budgets and operate on thin profit margins. There isn’t much room for error, and handling finances strategically is critical to success.
The roles of an accountant are not limited to a handful of functions such as tax preparation, maintenance of accounting records, and regulatory compliance with the Bureau of Internal Revenue (BIR) and the Philippine Economic Zone Authority (PEZA). Some accountants can also devise strategic plans and come up with other advice to help sustain the company’s finances such as creating a forecast to determine your business health.
Companies follow a common set of accounting principles to ensure the accuracy of their financial statements and books of accounts. However, some businesses still face several challenges with their accounting processes.
During his fourth State of the Nation Address, President Rodrigo Duterte requested the Congress to pass the “Tax Reform for Attracting Better and Higher-quality Opportunities” bill, more commonly known as TRABAHO bill.
Choosing the right accounting services to avail depends on the needs and progress of the business. Initially, small businesses avail compliance services for filing, paying, and submitting their tax returns on time.
Each year, businesses and entrepreneurs file their Income Tax Returns (ITRs) on or before the deadlines set by the Bureau of Internal Revenue (BIR) for their tax type and associated tax return. However, some taxpayers are still confused with the filing and payment process.
It has become simplier for non-residents to enjoy preferential withholding tax rates for dividends, interest, and royalty earnings from domestic sources. The Bureau of Internal Revenue has issued new procedures to claim preferential tax treaty benefits for nonresidents covered by tax treaties signed by the Philippines with other countries.