TOPIC: Taxes on Lanshop Business

Taxes on Lanshop Business 09 Mar 2008 22:03 #78229

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I-start ko lang itong topic na ito para maging malinaw sa ating lahat kung ano ang mga buwis na dapat bayaran ng isang lanshop owner.

I saw the need to start this thread because of the following out-of topic posts on \"Price War Issue\":

phazeddl wrote:

out of topic: open ko lang po kase ako nag apply lang basta tapos ayun na simula na ng kalbaryo ko sa pag babayad ng BIR na hindi ko naman alam kung san napupunta ung binabayad natin.....
ano ba parusa kung walang BIR?
at san na pupunta ung binabayad natin?

to which I replied....

Bakit mo natanong ito? Wala bang kalsada sa inyo? Ospital? Public School? Bumbero? Pulis? Kung meron naman, siguro tama lang na magbayad tayo ng buwis.

May mga siyudad at bayan na hindi nagbibigay ng business permit sa mga negosyong hindi rehistrado sa BIR. Ang worst case scenario ng nagnenegosyo nang hindi nagbabayad ng buwis ay makasuhan ng tax evasion.

and

phazeddl wrote:

alam ko po yun sir xico! pero ang ibig ko lang sabihin sa tanong ko eh bakit kailangan pa hiwalay porsiento sa atin ng gobyerno porseinto ng munisipyo at porseinto pa ng BIR...

yun nalang kita sa atin ng isang munisipyo,..
aba\" malaki nayun ah.. pag pinag samasama ung lahat ng may negosyo sa isang lungsod!

Sorry, kosang phazeddl, for my being a bit rude on my reply. Let me say that it was not the first time I replied to queries similar to yours. I'm just somewhat peeved when someone asked about taxes that way.

Anyway, let me start by enumerating the various taxes that a lanshop owner (in connection with the business only) must pay if he decides to do business the legal way all the way. I enjoined everybody to add their comments, queries and other information about the subject.

A) Community Tax Certificate (CTC) - dating tinatawag na Residence Tax o cedula, we pay P5.00 Basic Tax plus P1.00 for every P1,000 revenue for the previous year. This is equivalent to 0.10% of gross lanshop sales if we don't include the P5.00 Basic Tax that the LGU collect from even those without income like me.

B) Local Tax - Depending on the current local revenue code of a city or municipality, a lanshop owner must pay a minimum of 2.00% of his gross sales. I heard some LGUs charge as high as 4 to 5%. I think we should check the Local Government Code as to how much can an LGU charge us.

C) Percentage Tax - If the gross income of a lanshop does not exceed P1.5M in a year, the business will be registered with the BIR as non-VAT and the owner will pay 3.00% of gross sales or revenue. Those lanshop earning P1.5M and more per year will be charged 12% Value-Added Tax.

D) Income Tax - To be paid also to BIR and depending on the lanshop owner's net income, percentage ranging from 5 to 32% will be charged.

Based on the above, magbabayad ang isang lanshop owner ng minimum na 5.10% ng gross revenue niya, kahit siya ay walang kinita o nalugi sa negosyong ito.<br><br>Post edited by: xicowner, at: 2008/03/10 01:06

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Re:Taxes on Lanshop Business 09 Mar 2008 23:43 #78241

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xicowner wrote:

I-start ko lang itong topic na ito para maging malinaw sa ating lahat kung ano ang mga buwis na dapat bayaran ng isang lanshop owner.

I saw the need to start this thread because of the following out-of topic posts on \"Price War Issue\":

phazeddl wrote:

out of topic: open ko lang po kase ako nag apply lang basta tapos ayun na simula na ng kalbaryo ko sa pag babayad ng BIR na hindi ko naman alam kung san napupunta ung binabayad natin.....
ano ba parusa kung walang BIR?
at san na pupunta ung binabayad natin?

to which I replied....

Bakit mo natanong ito? Wala bang kalsada sa inyo? Ospital? Public School? Bumbero? Pulis? Kung meron naman, siguro tama lang na magbayad tayo ng buwis.

May mga siyudad at bayan na hindi nagbibigay ng business permit sa mga negosyong hindi rehistrado sa BIR. Ang worst case scenario ng nagnenegosyo nang hindi nagbabayad ng buwis ay makasuhan ng tax evasion.

and

phazeddl wrote:

alam ko po yun sir xico! pero ang ibig ko lang sabihin sa tanong ko eh bakit kailangan pa hiwalay porsiento sa atin ng gobyerno porseinto ng munisipyo at porseinto pa ng BIR...

yun nalang kita sa atin ng isang munisipyo,..
aba\" malaki nayun ah.. pag pinag samasama ung lahat ng may negosyo sa isang lungsod!


xicowner wrote:
Sorry, kosang phazeddl, for my being a bit rude on my reply. Let me say that it was not the first time I replied to queries similar to yours. I'm just somewhat peeved when someone asked about taxes that way.

Based on the above, magbabayad ang isang lanshop owner ng minimum na 5.10% ng gross revenue niya, kahit siya ay walang kinita o nalugi sa negosyong ito.<br><br>Post edited by: xicowner, at: 2008/03/10 01:06



Salamat po for being patience to answering absorbed questions like this coming from a absorbed person like me That’s why am idolizing people like you and sir bien, mods & the rest of the people sharing their knowledge here in ULOP !

xicowner wrote:

Based on the above, magbabayad ang isang lanshop owner ng minimum na 5.10% ng gross revenue niya, kahit siya ay walang kinita o nalugi sa negosyong ito


nalugi kana binaon kapa!

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Re:Taxes on Lanshop Business 10 Mar 2008 00:40 #78251

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actually inde naman tau mababaon sa tax kasi nga business tau, naggegenerate tau ng income, ang problem lang talaga sa ating mga lanshop owners (not everybody of course but a vast majority) ay ang mga kolorum, mga di nagbabayd ng buwis at di rehistrado sa munisipyo. kasi nga in any business transaction to be able to come up with the correct saleable price dapat nafactor na rin ung taxes sa cost analysis, for example ung vat di naman sinasalo ng business ung vat kundi its a tax na pinapatong mo on top of your selling price in a sense separate cya sa profit margin, the vat tax burden should be passed onto the consumers. essentially what im pointing out is that the taxes should have been factored during deliberations on how we price our services, kaso nga ang dilemna sa atin lahat naman ay ang mga nagbabagsakan ng price to the point na such tax costs are already dipping through the profit margins. baligtad kasi pag iisip ng marketing strat ng icafes, peg the price now then calculate the costs later. there should be no quarrel betwen the govt and business people, the taxes are being used to improve infrastructures which may indirectly/directly affect business climate kaso nga lang sana nga inde na kinukurakot. taxes are there for a reason, its just not working for us icafes because of poor accounting practice. the burden of tax was never intended to be passed onto business owners solely.<br><br>Post edited by: lligot, at: 2008/03/10 03:41

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Re:Taxes on Lanshop Business 10 Mar 2008 19:23 #78323

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Paano nila malalaman yung Gross? ano ang ipapakita resibo?

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Re:Taxes on Lanshop Business 11 Mar 2008 17:46 #78452

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perbiu wrote:

Paano nila malalaman yung Gross? ano ang ipapakita resibo?

Magandang tanong ito. In a straightforward society, what a businessman will declare as his gross income will be the basis of his taxes. But sad to say, such is not the case in many situations we see everyday.

Normally, if a lanshop business is registered with the BIR, the book records will be the bases of all the taxes enumerated above. If a lanshop, for whatever reason, is not BIR-registered the LGU may question the gross income declared by its owner and make their own calculations. Usually, the P100/PC/day is the figure being used by an LGU.

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Re:Taxes on Lanshop Business 12 Mar 2008 18:49 #78651

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I want your opinion, mga kakosa. Okey ba sa inyo yung ina-assume ng mga LGU na ang gross revenue ng isang lanshop ay P100/PC/day?

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Re:Taxes on Lanshop Business 12 Mar 2008 22:10 #78672

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kosang xico, ok lang sana kung more than 15 ang units...
pano ung mga shop na mababa pa sa 15units?
talo.....!!!

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Re:Taxes on Lanshop Business 12 Mar 2008 23:46 #78689

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xicowner wrote:

I want your opinion, mga kakosa. Okey ba sa inyo yung ina-assume ng mga LGU na ang gross revenue ng isang lanshop ay P100/PC/day?


talo tayo diyan...mataas masyado

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Re:Taxes on Lanshop Business 13 Mar 2008 02:09 #78710

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Thank you for replies, kosang phazeddl and skin.

If you could please check the breakdown of the amounts you paid for your 2008 Business Permit, you will find there an item \"Sales Tax\" and if you divide the figure by your number of units and the quotient comes out to be between P700 to P800 then your LGU is using P100/PC/day as estimated gross revenue factor. This is, of course, based on the assumption that you declared your correct number of units and that your LGU charges 2% of gross revenues as local sales tax.

phazeddl wrote:

skin wrote:

xicowner wrote:

I want your opinion, mga kakosa. Okey ba sa inyo yung ina-assume ng mga LGU na ang gross revenue ng isang lanshop ay P100/PC/day?

talo tayo diyan...mataas masyado

kosang xico, ok lang sana kung more than 15 ang units...
pano ung mga shop na mababa pa sa 15units?
talo.....!!!

<br><br>Post edited by: xicowner, at: 2008/03/13 05:27

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Re:Taxes on Lanshop Business 13 Mar 2008 02:55 #78717

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Let me explain a little about the P100/PC/day based on our experience here in Marikina City.

A) The factor is used by our Business Permits & Licensing Office (BPLO) to compute the local tax due of I-Cafe owners whom they suspect to underdeclare their gross sales or revenues.

B) The figure can be earned by a lanshop charging P20/hr. if a PC gets occupied 5 hours a day, by 7-hrs occupancy rate if P15/hr. and in 10 hours if P10/hr.

C) The factor is applied to all immaterial of the number of units in a lanshop.

D) A question arise when BPLO wanted to use 365 days in getting the total annual gross revenue of a lanshop. Our association's stand is that only 300 days must be used to factor in downtime due to maintenance, internet disconnections, brownouts, etc.

Personally, I believe P100/PC/day is reasonable and fair to use. If you are not getting that figure in your operation of a lanshop, you should seriously consider ways of improving your revenue.

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