BIR Tax Deadlines

BIR Tax Deadlines

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BIR Process Flow Chart for Inventory Taking

BIR Process Flow Chart for Inventory Taking

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BIR Process Flow Chart for Oplan Kandado

BIR Process Flow Chart for Oplan Kandado

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BIR Process Flow Chart for Tax Mapping

BIR Process Flow Chart for Tax Mapping

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BIR Process Flow Chart for Letter Notice

BIR Process Flow Chart for Letter Notice

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BIR Process Flow Chart for Electronic Letter of Authority (ELA) or Letter Of Authority (LOA)

BIR Process Flow Chart for Electronic Letter of Authority (ELA) or Letter Of Authority (LOA)

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Proper Recording for Sales and Receipts Entries

For easier determination, reporting and schedules preparation of sales or receipts, it is better to use the titles listed in BIR Form 2550Q, to wit:

• Vatable Sales - Private
• Sale to Government
• Zero-Rated Sales
• Exempt Sales

In actual practice, usually, the entries made is as follows:

dr   Cash or Receivables    xxx

cr            Sales                            xxx

cr            Output Tax                    xxx

Why not segregate them right away, so it is easy to extract and breakdown what type of sales/receipts are made. Your entries may be broken down as follows:

a. For Sales to Private Entities

     dr   Cash or Receivables               xxx

     cr            Vatable Sales - Private           xxx

     cr            Output Tax                              xxx

b. For Sale to Government 

     dr   Cash or Receivables              xxx

     cr            Sale to Government                xxx

     cr            Output Tax                              xxx

c. For Zero-Rated Sales

     dr   Cash or Receivables              xxx

     cr            Zero-Rated Sales                   xxx

d. For Exempt Sales

     dr   Cash or Receivables             xxx

     cr            Exempt Sales                       xxx

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Income Tax Return amounts LIFTED from Certified FS and BOA

According to Sec 232 of National Internal Revenue Code, the numbers, figures or amounts in your Income Tax Returns (ITR) and Annual Information Form (AIF) are copied from or lifted from your Certified Financial Statements like Balance Sheets, Profit and Loss Statements or Income Statements, and related schedules. 

In your Statement of Management Responsibility (SMR) for BIR, the Management (you, the Taxpayer) affirms that what you inscribed or entered as entries in your Books Of Accounts which are the basis or foundation of your Financial Statements which later you copied, transferred or lifted to Tax Returns are True, Correct and Complete.

Illustration :