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Lyceum of The Philippines University Cavite Legal and Taxation Aspects 1.1 Legal Aspects
Lyceum of The Philippines University Cavite Legal and Taxation Aspects 1.1 Legal Aspects
CHAPTER 1
Entrepreneurs should ensure that they adhere to all the legal requirements of
running a business before starting a new venture. Financial principles, tax obligations,
and employment laws are just some of the legal requirements for new firms and startups.
overseer.
its public service by utilizing online business registration through the Company
4. Upload all the relevant documents, which are listed and shown
in the system.
6. Pay the filing fees and save a copy of your receipt in CRS.
8. Wait for the SEC to send you an email requesting the release of
date.
Philippines. They supervise the finance, taxation and monetary policy as well
as collecting internal revenue taxes, fees, and charges. All forfeitures, penalties,
and fines to individuals or organizations that fail to file their taxes are also
imposed by them. Registering with BIR for tax collection purposes and
as follows:
Accredited Printer
• Job order
• General Journal
• General Ledger
• Cash Receipt
• Cash Disbursement
Here are the procedures that must be done to register a business at DTI:
Permit from the Local Government Unit (LGU) where their business is
located. Cities and municipalities are examples of LGUs, and the procedures
for acquiring a permission may differ depending on the local statutes and
regulations that the city or municipality choose to enact. Every year, business
licenses are renewed. The first month of the calendar year is normally the
Certificate
• Photocopy of By-laws
corporation.
(optional)
program that covers workers in the private, professional, and informal sectors.
The Social Security System (SSS) was founded by Republic Act No. 1161, also
known as the Social Security Act of 1954. In 1997, Republic Act No. 8282 was
passed, amending the law. The Social Security System mandates and obliges
businesses and employers to ensure that their hired employees or laborers are
Registration Form (SS Form R-1), along with the Specimen Signature Card (SS
Form L-501) and the original and photocopy of the SEC-approved articles of
Within thirty (30) days of hiring, the employer must submit the initial
Employment Report Form (SS Form R-1A) to report his or her employees. The
1A.
Industry (DTI)
Here are the procedures that must be done to register a business at DTI:
1. Fill out the Registration Form, which can be obtained from the
2. Obtain the claim stub that shows the certificate's release date.
company that oversees the National Health Insurance Program. It offers health
insurance coverage to ensure that all Filipinos have access to reasonable and
affordable health care. Under Republic Act 7875, also known as the National
register their business. It will no longer be necessary to submit papers after they
have enrolled in that system. If the employer fails to register through the PBR,
Authority
prerequisites for filing for a Mayor’s Business Permit in the country. They are
their offices.
3. Show your SSS card and proof of your company's existence, such as:
withdraw their total savings (TAV) plus dividends from the HDMF, which also
government activities such as public works and services. Governments require long-
term funding opportunities for social programs and public expenditures to promote
economic growth and development. Health, education, infrastructure, and other services
programs are critical to achieving the common aim of a successful, functional, and
harmonious community.
The money collected through company taxes is used as a source of revenue for
cost of goods sold (COGS) and income depreciation. In the Philippines, all
enterprises, whether domestic and foreign, are required to pay corporate income
tax (CIT).
employee's pay and gives to the government directly. The amount withheld is
applied as a credit against the employee's taxable income for the year. It's also a
Code of 1997 (commonly known as the Tax Code), percentage tax is a type of
Philippines (except for insurance companies, which are calculated based on the
Income Tax is the tax on the annual profit earned from property,
profits and the like. It is also the conduct of business or on the pertinent items
of gross income specified in the Tax Code of 1997 (Tax Code), as amended.
30% income tax rate are given for both domestic and resident foreign
tax (MCIT) in the Philippines of two percent (2%) of the gross income is
fourth (4th) taxable year immediately following the taxable year in which such
whenever such
minimum-corporate income tax is greater than the normal income tax due from
lease of goods, properties, and services in the Philippines. VAT is also applied
indirect tax, as the statutory taxpayer for a transaction The VAT Rate in the
price of goods and properties and on the gross value of receipts from services
the Local Taxation and Fiscal Matters, Title 1 of the Local Government
Raising Powers of Local Government Units, Article 6 Section 156– the cities or
the said article. Moreover, under Section 158 or the Juridical Persons Liable to
Community Tax, tackles that every corporation that has a business in the
Php 500.00 and an annual additional tax, which, in no case, shall exceed to Php
10,000.00.
The capital gains tax is a tax levied on the profit made from an
investment when it is sold. Capital gains taxes are exclusively levied on capital
assets such as stocks, bonds, jewelry, coin collections, and real estate. When a
stock or other taxable assets are sold, the capital gains or earnings are referred
to as "realized." Because the tax does not apply to unsold assets or "unrealized
capital gains," stock shares will not be taxed until they are sold, regardless of
how long they are kept or how much their value increases.