Frequently Asked Questions

Gatchallan Tangalin & Co., CPAs – Main Branch is located in Unit 1709 Antel Global Corporate Center, Doña Julia Vargas Avenue, Ortigas Center Pasig City, NCR Philippines 1605.

Gatchallan Tangalin & Co., CPAs - Provincial Office is located in Ganaden Street, MacArthur Highway, Lingsat, City of San Fernando, La Union.

Bookkeeping takes time and costs money. The Company can utilize the time to focus on other important business matters. The Company can cut manpower cost if it avails outsourced bookkeeper/accountant rather than hiring full time personnel. Also, the Management will be up to date on the latest government issuances and memorandums

All taxpayers are required to maintain six/four books of accounts depending on the registration. These books of accounts must be registered with BIR. a.) General Journal This where all the transactions are first recorded using the debit and credit principle. b.) General Ledger This is a summarized list of transactions per account. c.) Cash Receipts Journal This is a special journal that summarizes all the cash inflows of the Company. d.) Cash Disbursement Journal This is a special journal that summarizes all the cash outflows of the Company. Additional books are required to be maintained by VAT registered companies: e.) Subsidiary Sales Journal This is a special journal that summarizes the sales transactions of the Company. f.) Subsidiary Purchase Journal This is a special journal that summarizes the purchase transactions of the Company.

When the Company is registered to the Bureau of Internal Revenue (BIR) it is already required to file taxes listed on its Certificate of Registration (BIR Form 2303).

Once the BIR has issued the Certificate of Registration, the Company is required to file the taxes listed on the certificate even if the Company has no transaction.

Filing of taxes is a requirement and the obligation of all taxpayers. If the Company failed to file, it will be required to pay penalties and surcharges per RMO 7-2015.

For starters, there are 3 types of taxes they are required to file: a.) Income Taxes – if you are a sole proprietor or a registered professional, your business income is subject to graduated income tax from 20% to 35%. b.) Business Taxes – if the taxpayer’s total aggregate amount of actual gross sales or receipts exceeds three million pesos (Php3,000,000), the taxpayer is subject to 12% valued added tax otherwise 3% percentage tax based on gross sales or receipts. c.) Withholding Taxes – applicable to those taxpayers with registered employees and third party contractors.

Taxpayers are required to file once they are registered as evidenced by the issued BIR Certificate of Registration (BIR form 2303).