Course Description
This comprehensive course is designed to equip participants with the essential skills for preparing accurate income tax returns. The session covers an overview of the income tax system in the Philippines, focusing on the taxation of individuals and corporations, including commonly used BIR forms, tax rates, deductions, and credits. Participants will learn how to prepare income tax returns for individuals using BIR Forms 1700 and 1701, covering compensation earners, business owners, and mixed-income earners. The session also delves into corporate tax return preparation with step-by-step guidance on completing BIR Form 1702 for regular and non-regular corporations, as well as handling special corporate tax regimes. Additional topics include addressing common issues such as misclassification of income, overlooked tax credits, and filing extensions, along with advanced topics like transfer pricing, related-party transactions, and tax planning strategies. This seminar provides a thorough understanding of the tax return preparation process, ensuring participants are well-prepared to comply with tax filing requirements.
What You'll Gain:
Learn how to accurately prepare and file income tax returns for individuals and corporations, avoiding common mistakes.
Discover legal strategies to minimize tax liabilities and take advantage of allowable deductions and incentives.
Stay updated with the latest tax laws, deadlines, and documentation requirements to ensure full compliance and avoid penalties.
Gain hands-on experience through real-world scenarios, enhancing your ability to handle complex tax situations with confidence.
Meet Our Speaker:
Atty. Arnold A. Apdua, CPA
Managing Partner of AAA and Co., CPAs
Former BIR Revenue Officer, Resource Speaker of various CPD Seminars and Webinars, Author of the book, "1000 Tax Questions ...To Save You Millions."
Course Outline
FIRST SESSION: February 11, 2025 | 8:00 am - 12:00 pm (4 Hours) I. Introduction to Income Tax Return (ITR) Preparation • Overview of Income Tax System o Importance of tax compliance for individuals and corporations o Understanding income tax returns and their role in the taxation process o Overview of the Bureau of Internal Revenue (BIR) guidelines and requirements • Key Income Tax Forms o Commonly used BIR forms for individuals (e.g., BIR Form 1700, 1701, 1701-A) o Commonly used BIR forms for corporations (e.g., BIR Form 1702-RT, 1702-EX, 1702-MX) o The role of supporting documents in filing tax returns II. Taxation of Individuals • Individual Income Tax Overview o Types of income subject to taxation (e.g., compensation, business, professional income) o Taxable and non-taxable income for individuals o Income tax rates for individuals (graduated rates vs. flat tax rates) • Taxable Income and Deductions o Common deductions for individuals o Itemized deductions vs. optional standard deduction o Tax credits and their application (e.g., tax withheld, foreign tax credits) • Filing Requirements and Deadlines o Filing deadlines for individual taxpayers o Overview of the annual income tax return filing process o Filing extensions and penalties for late filing III. Taxation of Corporations • Corporate Income Tax Overview o Types of income subject to taxation for corporations (e.g., regular income, passive income) o Taxable vs. non-taxable income for corporations o Corporate income tax rates: Regular Corporate Income Tax (RCIT) vs. Minimum Corporate Income Tax (MCIT) • Corporate Deductions and Exemptions o Deductible business expenses (e.g., salaries, rent, utilities, interest) o Depreciation and amortization of assets o Tax incentives and exemptions (e.g., registered business activities under the Special Economic Zone Act) • Filing Requirements and Deadlines for Corporations o Overview of corporate income tax return filing process o Filing deadlines for corporate taxpayers (e.g., quarterly, annual returns) o Filing extensions and penalties for corporations IV. Preparation of Income Tax Returns for Individuals • Step-by-Step Preparation of BIR Form 1700 o How to fill out BIR Form 1700 for compensation earners, business owners, and professionals o Computation of gross income, deductions, and taxable income o Application of income tax rates and credits o Filing and submitting the individual income tax return • Preparation of BIR Form 1701 o For mixed-income earners (combination of compensation and business/professional income) o Computing gross income and allowable deductions o Final tax payment and remittance o Filing process and deadlines for mixed-income earners _________________________________________________ _________________________________________________ SECOND SESSION: February 11, 2025 | 1:00 pm - 5:00 pm (4 Hours) V. Preparation of Income Tax Returns for Corporations • Step-by-Step Preparation of BIR Form 1702 o How to fill out BIR Form 1702 (corporate income tax return) for regular and non-regular corporations o Computing gross income, allowable deductions, and taxable income o Applying the correct tax rates (RCIT or MCIT) o Filing and submitting the corporate income tax return • Special Corporate Tax Regimes o Tax treatment for small and medium enterprises (SMEs) o Corporate tax incentives (e.g., for export businesses, registered enterprises under the Tax Code) o Preparation of BIR Form 1702-EX for corporations entitled to income tax exemptions VI. Common Issues and Challenges in Income Tax Return Preparation • Incorrect or Missing Documentation o Identifying and resolving common documentation errors o Importance of accurate records for deductions and credits • Misclassification of Income and Deductions o Common mistakes in classifying income types (e.g., passive income vs. active income) o Errors in applying deductions and exemptions • Overlooking Tax Credits o Commonly missed tax credits (e.g., tax withheld, foreign tax credits) o How to properly claim tax credits to minimize tax liabilities • Filing Extensions and Late Filings o How to apply for filing extensions o Penalties and interest for late filing and payment VII. Advanced Topics in Income Tax Return Preparation • Transfer Pricing and Related Party Transactions o Basic understanding of transfer pricing and its impact on tax returns o Documentation and reporting requirements for related-party transactions • Tax Planning Strategies o Tax-saving strategies for individuals and corporations o How to optimize deductions and credits for tax efficiency o Managing tax liabilities through proper planning Download the COURSE OUTLINE here: https://bit.ly/4jDuMvB