Duration 2 Days – 14 hrs.
Overview
This course provides an updated and practical understanding of key Philippine tax laws, regulations, rulings, and compliance requirements affecting businesses and individual taxpayers. It covers recent developments involving income tax, value-added tax, withholding taxes, percentage tax, documentary stamp tax, tax administration, invoicing, filing, payment, and audit procedures.
Participants will examine how recent tax changes affect day-to-day transactions, reporting obligations, internal controls, and business decisions. Practical examples and case exercises will be used to help participants apply the updates and reduce the risk of penalties and non-compliance.
Learning Objectives
- Explain recent developments in the Philippine taxation system.
- Identify tax updates relevant to their organization and business transactions.
- Apply updated rules on income tax, VAT, percentage tax, withholding taxes, and other applicable taxes.
- Understand current invoicing, registration, filing, payment, and record-keeping requirements.
- Recognize common tax-compliance errors and their possible consequences.
- Review business processes and documentation for potential tax exposures.
- Prepare more effectively for BIR examinations and tax assessments.
- Develop practical action points for improving organizational tax compliance.
Target Audience
- Accountants and bookkeepers
- Tax and finance professionals
- Finance managers and controllers
- Business owners and entrepreneurs
- Payroll and human resources personnel
- Internal auditors and compliance officers
- Treasury and accounts-payable personnel
- Procurement and administrative personnel
- Corporate officers and department heads
- Professionals responsible for tax reporting or business compliance
Prerequisites
- Basic knowledge of Philippine taxation
- Familiarity with accounting and financial transactions
- Experience in tax filing, bookkeeping, payroll, or compliance
- Awareness of their organization’s current tax processes
- Participants are encouraged to bring sample scenarios or questions from their organization, excluding confidential taxpayer information.
Course Outline
Day 1 – Major Philippine Tax Updates and Business Application
Module 1: Philippine Taxation and Regulatory Update
- Overview of the Philippine tax system
- Roles of the Bureau of Internal Revenue and other relevant agencies
- Hierarchy of tax laws, regulations, circulars, and rulings
- Summary of recent tax reforms and important regulatory developments
- Effective dates and transitional provisions
- Determining which updates apply to an organization
Module 2: Income Tax Updates
- Updates affecting corporations, partnerships, and individuals
- Corporate income-tax considerations
- Minimum corporate income tax
- Tax treatment of common income and expense items
- Deductibility and substantiation requirements
- Net operating loss carry-over
- Fringe benefits and employee-related tax considerations
- Preferential tax treatment and available incentives
- Common income-tax compliance issues
Module 3: Withholding Tax Updates
- Creditable withholding tax
- Final withholding tax
- Withholding tax on compensation
- Classification of payments and applicable tax treatment
- Duties and liabilities of withholding agents
- Certificates, returns, remittance, and reconciliation
- Common withholding-tax errors
- Practical withholding-tax scenarios
Module 4: VAT and Percentage Tax Updates
- VAT registration and coverage
- Output VAT and allowable input VAT
- VATable, zero-rated, and exempt transactions
- Percentage tax coverage and compliance
- Timing and documentation of VAT recognition
- Input-tax substantiation and allocation
- Recent rules affecting VAT refunds and zero-rating
- Common VAT and percentage-tax risks
- Case exercise: identifying the appropriate transaction tax
Day 2 – Compliance, Documentation and Tax Risk Management
Module 5: Invoicing and Record-Keeping Requirements
- Current invoicing requirements
- Required information in invoices and supporting documents
- Treatment of sales of goods and services
- Electronic invoicing and digital-record considerations
- Preservation of accounting records
- Books of accounts and registration requirements
- Correction and cancellation of invoices
- Consequences of incomplete or erroneous documentation
- Documentation-control checklist
Module 6: Filing, Payment and Administrative Compliance
- Tax registration and updating taxpayer information
- Filing and payment channels
- Applicable tax returns and compliance deadlines
- Amendments and correction of filed returns
- Handling overpayments and underpayments
- Penalties, interest, and compromise penalties
- Tax clearance and closure-related considerations
- Compliance-calendar preparation
Module 7: Other Relevant Tax Updates
- Documentary stamp tax
- Estate and donor’s tax overview
- Tax considerations for employee benefits and payroll
- Related-party transactions and transfer-pricing documentation
- Tax incentives and special registrations
- Local tax considerations and interaction with national taxes
- Digital transactions and emerging tax issues
- Industry-specific updates, where applicable
Module 8: BIR Audit and Tax Assessment Management
- Overview of the BIR audit process
- Letter of Authority and examination procedures
- Common audit findings and priority risk areas
- Notice of Discrepancy and preliminary assessment
- Formal assessment, protest, and administrative remedies
- Document preparation and audit-trail management
- Responding to BIR requests
- Preventive controls to reduce tax exposure
Module 9: Practical Workshop and Action Planning
- Case studies based on common business transactions
- Identifying tax treatment and documentation requirements
- Tax-compliance health check
- Identification of possible gaps and exposure areas
- Preparation of an organizational action plan
- Questions, clarifications, and key takeaways
