Optimize and streamline your tax compliance with our expert assistance

Tax Compliance

Our Tax compliance service is a critical part of any business operation, and our team of tax experts can provide clients with comprehensive tax compliance services, including tax planning, preparation, and filing. We ensure that our clients remain compliant with tax regulations and avoid any potential penalties or legal issues. With our expertise in tax compliance, clients can focus on their core business while we take care of their tax obligations.

Don't let tax obligations distract you from your goals - we'll handle it all for you.

At 2B1, we have a rigorous and professional tax compliance process in place to ensure that our clients meet their tax obligations accurately and efficiently. We start with a thorough review of the client’s financial records and tax history to identify any areas of non-compliance and potential risks. Our team of tax experts then works closely with the client to develop a tax planning strategy that maximizes their deductions and minimizes their tax liabilities. We handle all aspects of tax preparation and filing, including the timely submission of tax returns and payments to the relevant government agencies. Our goal is to optimize our clients’ tax compliance and minimize any potential exposure to penalties or legal issues.

Frequently Asked Questions About Tax Compliance

Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.

Value Added Tax (VAT for short): The VAT tax rate in the Philippines is 12%. For enterprises and organizations that sell goods and provide services, they need to tax their income according to the VAT tax rate and pay domestic tax at the end of each month or quarter. The Bureau of Revenue (BIR) submits VAT reports and tax returns.

Income tax: The corporate income tax rate in the Philippines is 30%. For enterprises and organizations engaged in business activities in the Philippines, they need to declare and pay income tax to BIR in accordance with tax laws and regulations.

Business Permit Tax: It is a local tax levied on all enterprises and organizations, but the tax rate does vary according to different local governments. Some local governments may set different tax rates, or set the tax rate as an amount rather than a percentage of income. This tax is usually collected by the local government, but needs to be declared and paid to the BIR.

In addition to the above three taxes, there are other types of taxes, such as entertainment tax, customs duty and import tax, etc. The specific tax scope and tax rate vary according to the situation. To determine what taxes you need to pay as a business, it’s best to have a professional accountant or tax advisor help you with tax planning and payment.

Annual Financial Statements which refers to the financial statements submitted by enterprises or organizations at the end of a fiscal year. In the Philippines, filing the AFS is an obligation of all registered businesses and organizations and is a requirement of the Philippine Bureau of Internal Revenue (BIR) for taxpayers.

AFS usually includes the following parts:

Balance Sheet: Shows the assets, liabilities, and shareholders’ equity of a business as of a specific date.

Income Statement: Shows a business’ income and expenses, as well as net income, during the fiscal year.

Cash Flow Statement: Shows the cash flow of a business during the financial year.

Statement of Changes in Shareholders’ Equity: Shows changes in corporate shareholders’ equity, such as increases or decreases in share capital, repayment of capital, etc.

The deadline for filing the AFS is usually within four months of the end of the financial year and needs to be filed on BIR’s eBIRForms system. Businesses or organizations can face fines or other penalties if they fail to file their AFS on time.

alance Sheet: Shows the total assets, liabilities and equity of a company as of a specific date.

Income Statement: Shows a company’s revenues, costs, and profits for a specific period.

Cash Flow Statement: Shows a company’s cash inflows and outflows, and changes in cash balances, during a specific period.

Statement of Changes in Equity (Statement of Changes in Equity): Shows the changes in the company’s shareholders’ equity during a specific period, including share capital, capital reserves, surplus reserves, and retained earnings.

In addition, some companies may provide other statements and information such as notes and management’s discussion and analysis (MD&A).

BIR Letter of Authority (LOA) is a formal letter of authorization issued by the Philippine Bureau of Internal Revenue (BIR), authorizing a person or organization to conduct an audit, investigation or review of one or more tax matters. The LOA is an important document that enables the BIR investigation agency to conduct inspections and audits to ensure that taxpayers comply with Philippine tax regulations.

The LOA will usually list the following information:

Audit scope and purpose
Auditor’s name and title
investigation period
Date and place of audit
List of documents and records requested
After receiving the LOA, the audited person or company must cooperate with the auditor’s request and provide all necessary documents and records for the audit. If the auditee refuses to cooperate, the auditor may issue another document, the BIR Subpoena, to testify or give evidence. If any violations are found within the audit period, the auditor may issue an audit report and corresponding fines to the auditee.

Tax filing process for clients/partners

How It Works

01 Collect documents

Collect documents about your income, expenditure, depreciation, tax rebates, deduction items, salary accounting, etc.

02 Calculate taxes

Review your income, expenses, and deductions to calculate the taxes you need to pay.

03 Submitting the Return

Submit the completed return and the relevant receipts and supporting documents to the Tax Office.

04 Pay taxes

Pay calculated taxes, either by cash or check at the tax office, or online at the tax office website.

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