How to compute separation pay in the Philippines?

If you’re a business owner who employs people, you must know how much is the minimum legal amount of separation pay you must give to your employees who are leaving your company. Likewise, if you’re an employee who has been terminated by your boss for whatever reason, you may also need to have an idea if you are entitled to separation pay or not. The law understands the need of employees when they become jobless for reasons covered by Article 283 and 284 of the Labor Code. Separation pay gives employees a livelihood after he leaves his former company and while he is looking for a new job. Read more

How to compute Percentage Tax in the Philippines

This article aims to guide businessmen and professionals in computing their percentage tax payable to the BIR. Your humble friend here is also subject to percentage tax. Accordingly, I’m also paying percentage tax every month aside from quarterly and annual income tax payables. Percentage tax, like Value Added Tax (VAT), is also considered as a business tax rather than an income tax. This means that whether you generate income or incur a loss, as long as you have sales or revenue, you must pay a percentage tax. This is because business taxes are taxes based on gross sales or receipts rather than based on net income (before income tax). Read more

The Philippines BIR mission, vision, principle and values

I just finished my two articles about the registration of a business / corporation in the Philippines. In collecting important data to support my articles, I have visited the website of the Bureau of Internal Revenue (BIR), the government agency (under the power of the Department of Finance) which is responsible for the collection of the internal revenue taxes of the Philippine government. As every organization has its own core principles, mission, vision and values, the agency also has its own. They are published in the BIR “about us” webpage that caught my strong attention. You can read them below: Read more

How to register a corporation in the Philippines (SEC)

So you have already decided to register a corporation? If you’re not yet sure, then you might need to read our article about the advantages and disadvantages of forming a corporation over sole proprietorship and partnership. But if you have already finalized your decision and you believe it is best to incorporate your business, you need to follow the following basic steps in registering a corporation with the Philippines (SEC) Securities and Exchange Commission.

1. Verify and reserve your Corporate Name

If you already got the perfect name for your business to be incorporated, you need to verify it immediately and have it reserved before others take it. You can verify the availability of your proposed name and reserve it online at the SEC-iRegister website, a quick, affordable, and user friendly service that is available to the public 24 hours a day, 7 days a week. There, you need to register and have your username and password to be able to log in. Once logged in, you can verify your desired name if it’s still available. If it’s still available, you can pay the reservation pay and get a Name Verification Slip. The slip is submitted together with the other requirements. Read more

How to register thy business in the Philippines

How to start and register your business in the Philippines? You maybe landed on this page in search for the answer of that question. Having a business that earns substantial profit is a dream for everyone. On the other hand, having a legitimate business that shares income with the government is a noble one. There are four common forms of business in the Philippines. They are sole proprietorship, partnership, corporation and cooperative. Each form of ownership may have a different process of registration. The following are the government agencies that you must deal with to legitimize your ideal business. Read more

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