Bsp philippines forex exchange
The BIR has actually released a system called eFPS or e-Filing and Payment System that pretty much automates this for you, but in case you aren’t able to enroll or you prefer to do your own taxes, the slideshow below should give you a visual presentation of how to compute for your income tax returns. Many thanks to freelancer_babe for providing a bsp philippines forex exchange example of how to compute for ITR and to Mark for sharing this with me. I hope you’ll find the slideshow useful and a resource to go back to when computing for your ITR. If you have specific questions about filing for your taxes, it’s always best to ask a BIR officer-of-the-day at your nearest RDO.
Thanks for this very informative post. In that case, wouldn’t the BIR investigate him for the past years he’s already working as freelancer and have not payed the due taxes? Lots of freelancers have similar concerns, but in my case I simply approached the BIR as someone interested in starting her business. I didn’t have to tell them that I’ve freelanced before. So long as I complied with the requirements and attended the seminar, I was good to go. If a freelancer who is getting paid by clients outside the Philippines, and so all of the transactions to receive payments is via online transactions via remittances directly deposited to the bank. Freelancers are still required to issue receipts as these are proof that you are making sales.
What do you write on the invoice, USD or equivalent PhP? I’m just thinking, it can be complicated because of the forex rate at the time you got paid and the time you filed your tax payments. I write the USD amount in the description portion, and the PHP equivalent in the breakdown. If I’m not mistaken you would use the forex rates at the time of issuance when writing the PHP equivalent, but I’ll ask again for confirmation. I have another question: What about if you get paid like say today in USD in a certain Forex rate for your service but you didn’t withdraw it yet.
Then you withdraw that fund from Paypal to your local bank the following week in a different Forex rate than the date you received the payment. What should be written on the invoice in that case? Stef I’m sorry for asking questions on technicalities on taxes. I know it’s best to consult an accountant on my questions but I just thought that you are doing it already and so I would like to know how you do it in your case. Unfortunately I haven’t been able to get a response yet, so if you need the information immediately, it may be best to consult an accountant, especially one that specialises in tax filing. I’ll get back to you as soon as I have the right answer.
On the flip side, if you are able to get an answer to your question, I’d appreciate it if you could share it in the comments for other freelancers to reference to. Use the forex rates at the time of issuance. Bank rates are net of income by the bank and other charges. It should be PDEx rate, that is from the Philippine Dealing Exchange. On the invoice part, you should denominate it using the transaction currency.
BIR, you have to record everything using your functional currency, which is peso. Now, invoicing in dollar and recording it in peso in your books have complications. The question is, when will the dollar be actually realized? Maybe I can help you more on these matter, just feel free to contact me. A freelancer may hide using the bank secrecy law. TIN like insurance, real property or a car, there’s a document trail left behind which the BIR may track down.
If there’s no filed income tax returns to back up those purchases, then tax evasion is probable. Raul, I think there are local governments that require PTRs even for non-PRC licensed professionals like freelancers. Thank you for this informative and useful piece, Stef. Hi Stef, Thank you for this.