ACPAPP Tax Bulletin No. 01-2023
The deadline of our Annual Income Tax Return (AITR) filing for taxable year 2022 is fast approaching and many taxpayers are beating the April deadline. Once the ITRs has been filed, taxpayers should start preparing for possible audit investigations that may be set by the Bureau of Internal Revenue (BIR). This is why it is important to determine the taxability of our transactions.
The Fiscal Incentives Review Boards (FIRB) has issued FIRB Advisory No. 3-2023 regarding the correct basis of the penalty imposed to Registered Business Enterprises (RBEs) engaged in Information Technology and Business Process Management (IT-BPM) for non-compliance with the work from home (WFH) threshold.
The Bureau of Internal Revenue (BIR) and the Department of Finance (DOF) have expressed a shared goal to increase taxes collected as a percentage of GDP of 14.6% in 2022 to 17.1% by 2028. They confidently expect to meet this goal as it will be driven primarily by economic growth and by offering taxpayers convenience through tax digitalization programs. While it is accurate to claim that the BIR will derive more revenues with a stronger economy and by providing more convenient avenues for taxpayers to pay their dues, taxpayers know well what this means – an upsurge of BIR assessments across all industries.
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Contacts
Should you have any comments or questions arising from this publication,
please contact ACPAPP Secretariat.
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ACPAPP is a united professional organization of CPAs in public practice that promotes professional excellence and ethical practice towards providing relevant services to the business world.
This communication contains general information only.
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