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5 Tips on Filing your Taxes the Right Way
It’s that time of the year again—no not the holidays unfortunately. Filing a tax return can be confusing and sometimes overwhelming, but don’t fret. Here’s a rundown on what to keep in mind when filing:
1. GET ORGANIZED
The first tip is to determine the right tax to use. Every business needs to report the earnings to the Bureau of Internal Revenue or BIR. While the type of business affects your list of required taxes, there’s a general set one usually needs to accomplish. You can check www.bir.gov.ph/index.php/bir-forms.html for the kinds of forms you need for your business. Forms 2307 (Certificate of Creditable Tax Withheld at Source) and 1701 (Annual Tax Income Return for Individuals earning Purely Compensation Income) are commonly used.
2. CHOOSE MANNER OF FILING
You must decide how you are going to file your taxes. You can use BIR’s eFPS (Electronic Filing and Payment System). But for the first time tax filers, you can ask help from your accountant to guide you on the filing steps.
3. REVIEW YOUR FILES
Avoid rushing when filling out your forms. Take one step at a time because sometimes, speeding through things can lead to mistakes. These errors will only prolong the process of filing your tax return and can end up costly for you. Make sure you double- or triple-check all the information you wrote on the forms.
4. BE UPDATED ON THE TAX LAWS
Always keep yourself updated on the changes regarding the tax laws. Keep a close eye on news that is related to taxes that might affect your business. You may also ask your accountant if there are changes in tax provisions.
5. CONSULT AN ACCOUNTANT
When things get confusing, you might want to get an accountant to make it easier for you. It may be comfortable for you to hire someone who will do your taxes because there are constant changes that make the tax code complex. Also, it’S a quick answer to avoiding penalties. Your accountant may not be a full-time employee. You can hire a freelance accountant for a one-time contract for solely filing your taxes.
Remember that things don’t have to be complicated when you’re filing your taxes, especially for the first time. Keeping These tips in mind during tax season can be very beneficial for your business.