WE'VE BUILT

A SUITE OF SERVICES SPECIFICALLY FOR YOUR NEEDS

FAQ

Full Suite was created to encourage a culture of entrepreneurship in the Philippines. We provide back-end solutions for companies and allow business owners to focus more on revenue-generating activities. We work with start-ups, entrepreneurs and small-to-medium-sized companies. We partner with the dreamers, doers, and the courageous who want to breathe life into their ideas even if they are not sure how to go about it, and the experienced who want to keep their businesses running seamlessly. Full Suite will make it sure you accomplish your goals.

Full Suite accompanies entrepreneurs and their businesses in each step of the way:

•Business setup, that includes taking charge of the paper works and compliance with the legal needs of their businesses
•Business sustainability including bookkeeping, accounting and tax return preparation, as well as annual business permit renewal.

Full Suite is the right choice for you if you are looking for efficiency. It is the right place to go to if you want to save on costs and especially, time. With the amount of activities surrounding your workplace, you will surely need to focus on your core activities and this is where Full Suite becomes the right place to go to. We also wrote some articles on our blog about outsourcing. We wrote about common myths and disadvantages of outsourcing. They may help you make the right decision.

Currently, the only payment methods available are cash and check. We are still improving our website. After which, online payments will be made available. PayPal and credit cards will soon be available.

Our team is well equipped to mind your business so that you can focus on growing it. You can consider us as the complete package that would alleviate the cargo on your shoulders. Our team is composed of experienced, talented and brilliant professionals who aim to deliver nothing but pure excellence: our finance team who would let you envision clearer pictures of possibilities as you project opportunities by helping you monitor your finances; the human resource team who sets the benchmarks for aspiring applicants who want to be a part of your company high enough to meet the company’s standards and that your lineup is well taken care of; and the admin team who does all the groundwork to ensure your enterprise is operating smoothly.

Each service differs from one another. We categorised them in an easy-to-understood manner.

Just like with costs, each service differs from one another, but generally, we follow a 5-step process to ensure we do our due diligence to determine our fit. The five steps are as follows:

1. Paperwork
2. Requirements
3. Assessment
4. Service
5. Payment

We go through this very rigorously because we want to make sure that we understand your situation so we can come up with the right one. And if we cannot provide you with a solution, at least, we can point you in the right direction.

We cover the Metro Manila area. Most of our clients are from: Makati, Manila, Muntinlupa, Parañaque, Pasig, Quezon City, and Taguig.
Unfortunately, we do not service clients outside Metro Manila at this time.

Currently, the only payment methods available are cash and check. We are still improving our website. After which, online payments will be made available. PayPal and credit cards will soon be available.

What Entrepreneurs and Professionals Frequently Ask Full Suite

Before you can file taxes, you must first obtain a Tax Identification Number (TIN) from the BIR.

A TIN is necessary for proper taxpayer identification and is required on all the forms for filing returns, such as income tax returns, VAT returns, percentage tax returns, and others. A TIN card can also be used as proof of identity and may be required as well by other private or government agencies.

Individuals and entities must have their TIN and this includes 1) employees earning purely compensation income, 2) self-employed individuals, 3) mixed income earners, 4) one-time taxpayers and individuals registering under EO 98, 5) corporations, partnerships and Government Agencies and Instrumentalities (GAIs), Local Government Units (LGUs), 6) estates and trusts, and 7) nonresident citizens or Overseas Contract Workers and Seamen.

The first four types listed above can apply for a TIN online. Those that don’t fall into these categories can apply at the appropriate Revenue District Office (RDO).

The BIR Forms required for TIN application vary depending on the type of taxpayer. BIR Form 1901 is used by self-employed individuals, single proprietors, and professionals. BIR Form 1902 is for those earning purely compensation income. BIR Form 1903 is the application form for registration of Corporations and Partnerships, including GAIs and LGUs, while BIR Form 1904 is for the one-time taxpayer and those registering under EO 98.

The documentary requirements and application process vary depending on the type of taxpayer as well. An annual registration fee, certification fee, and documentary stamp tax will be charged.

Businesses, whether they are sole proprietorship, partnerships, or corporations cannot operate without a business TIN. Aside from obtaining a TIN, they are also required to register their books of accounts and request for a permit to print and issue receipts and invoices.

Unlike employees, freelancers are required to take care of their tax liabilities themselves. Knowing how to do such establishes their legitimacy as a freelancer and protects their business as well.

Aside from registering at the BIR, freelancers are also required to issue official receipts and maintain books of accounts. Freelancers must also ensure proper and timely filing of taxes including VAT and Percentage Tax, Expanded Withholding Tax, Income Tax, and local taxes.

Freelancers are required to pay business taxes regardless if they’re earning or not. This is paid through the BIR Form 2550M (VAT) and BIR Form 2551M (percentage tax) on the 20th and 25th of the month respectively, following the applicable month. Expanded withholding tax is remitted to the BIR monthly.

Filing and payment of income tax is on or before the 15th of the month, after the end of the applicable quarter. The annual income tax is filed on or before April 15 after the end of the applicable year. BIR Form 1701 and 1701Q are used to pay the annual and quarterly income tax.

Freelancers can also make use of the eBIRForms when filing their returns and can do their filing online.

Business permit and annual community tax certificates for your business are paid at the local government office.

All entrepreneurs must familiarize themselves with the different types of taxes their business needs to pay to the Bureau of Internal Revenue (BIR).

A form of sales tax, the Value Added Tax (VAT), is defined by the BIR as “a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines.”

The BIR imposes a sales tax on registered Philippine businesses and is computed based on the business’ gross sales or gross receipts. The tax rate used for the computation on Sales Tax depends on whether the business is VAT or Non-VAT. The range falls between 3% – 12%.

VAT vs non-VAT sales

VAT and non-VAT Sales Tax differ in terms of the type of business, nature of the business, annual sales, tax rate, the responsibility of payment, and deductibility of the tax on purchases and payments.

Type of Business

•Business ownership determines if the company will be registered as VAT or non-VAT. Sole proprietors can either be VAT or non-VAT, depending on the nature and size of their business.
•Partnerships and corporations are usually VAT registered—unless their business is VAT Exempt or Zero-Rated.

Nature of Business

•The nature of the business’ products and services will also help determine if it should be registered as VAT or non-VAT. Some industries such as export sales or those with BOI Certificates are VAT Exempt or Zero-Rated and are not required to pay VAT.
•Zero-Rated, however, is different from non-VAT.

Annual Sales or Gross Receipts

•BIR rules state that businesses earning an aggregate amount of actual gross sales or receipts exceeding one million nine hundred nineteen thousand five hundred pesos (PHP 1,919,500.00) are subject to VAT.

Tax Rate

•VAT registered businesses are subject to sales tax referred as VAT or Output Tax. A 12% VAT is imposed on gross sales or receipts.
•On the other hand, non-VAT businesses are subject to sales tax known as Percentage Tax, which is computed at the rate of 3% on gross sales or receipts.

Responsibility of Payment

•VAT is an indirect tax, which means that it can be passed on to the customers.
•Payment of the percentage tax, on the other hand, is the sole responsibility of the business and cannot be passed on to the customers.

Deductibility of Tax on Purchases and Payments

•Businesses can use input Tax, which is the VAT due on sale, lease, or exchange of taxable goods or properties in the computation of their VAT. Businesses with a significant amount of VAT inclusive purchases or payments (Input Tax) can use those as a deduction from its computed Output Tax.
•The difference is called the VAT Payable, which is the remaining amount to be paid by the business. Non-VAT businesses are not allowed to make this type of deductions.

These are the factors that differentiate VAT from Non-VAT transactions. Understanding them is a must to ensure proper compliance with the rules and regulations set by the BIR.

Businesses are allowed by the BIR to claim some expenses as deductions for tax purposes. However, wrongfully claiming unqualified expenses will result in an increase on your tax bill.

Claiming deductions that are later disallowed by the BIR will force you to pay the basic deficiency tax plus 20% interest. To reduce your tax risks, you must understand the BIR rules on tax deductible expenses.

Accepted Receipts

The criteria for claiming an expense as a deduction are as follows:

•it is ordinary and necessary;
•it is paid or incurred during the taxable year;
•it has been paid or incurred as part of the trade or business operations of the taxpayer;
•it is supported by receipts, records, or other pertinent papers;
•it is not contrary to law, public policy or morals;
•the appropriate amount of withholding tax on the expense has been withheld and remitted to the BIR.

Expenses must be supported by the original copy of the official receipts (OR) and other adequate records. In the absence of original receipts and records, the taxpayer can present other evidence such as payment vouchers, checks, and certified true copies of the official receipts.

When is non-issuance of receipts allowed?

The Tax Code states that invoices must be issued for each sale of goods, while an official receipt must be issued for services rendered valued at PHP 25.00 or more.

VAT-registered taxpayers are required to issue invoices and official receipts for all transactions. All the required information must also be indicated in the invoices or official receipts. Additionally, the necessary authorization for the printing of receipts and use of cash registers or point of sale systems must be complied with.

The BIR can issue a suspension of business operations or temporary closure of the business establishment should the business fail to issue invoices and official receipts.

The BIR, through Revenue Memorandum Order No. 3-09, launched Oplan Kandado, which aims to intensify the agency’s enforcement operations in imposing the applicable administrative sanctions for non-compliance, including the non-issuance of invoices and receipts.

To avoid penalties and sanctions, businesses must take note of the above-mentioned rules and regulations.