I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
Paying of of a year's income tax is preferably done in quarters, though it may be done in a single payment. There are two (2) kinds of taxable years: Calendar and Fiscal. A calendar year is the year we are all familiar with. It starts from January 1 and ends on December 31. A fiscal year has a different date for starting and beginning.
Corporations are required to file their income tax returns on a quarterly basis. If the corporation chooses the Calendar Year, it must file its Quarterly Income Tax Returns in the following order:
1st return: on or before May 30
2nd return: on or before August 29
3rd return: on or before November 29
Final Adjustment Return: on or before April 15 of the next year.
If the corporation chooses the fiscal year, another date is set for the beginning of the first quarter. For fiscal years, the rule is that the 1st, 2nd and 3rd quarterly income tax returns are filed within 60 days from the end of the quarter. The Final Adjustment Return is filed on the 15th day of the 4th month after the end of the taxable year.
Remember that a quarter is three (3) months. Therefore, after the quarter ends the corporation has 60 days to pay its income tax for that particular quarter. Therefore if a corporation, for example, chooses February 1 as the beginning of its fiscal year it must file its returns on the following dates:
June 29 -1st return
September 29 -2nd return
December 30 -3rd return
May 15 -Final Adjustment Return
The incomes and expenses in each return are computed on a cumulative basis from the first to the final return for corporate income taxes. All income and expenses for the taxable year must be included in the Final Adjustment Return. If there is an excess of payment for a quarter, the taxpayer will not pay any tax for that quarter. If there is an excess in the Final Adjustment Return, however, the taxpayer can either have the excess refunded to him or credited to his taxes for the next succeeding quarter. This must be indicated in the tax return.
The Final Adjustment Return is crucial. It is where the necessary adjustments for the taxpayer's income taxes are made (which is why it's called "adjustment.")
0 comments:
Post a Comment