Wondering if your business needs to file taxes?
Thinking about skipping this part because it’s time-consuming?
Think twice about this crucial part of running a business. Although it can be error-prone and time-consuming, filing your business taxes is a vital process that ensures your company is complying with tax laws.
To keep your company out of trouble with the government, make sure to integrate this responsibility into your to-do list. Here are some other reasons why filing your business taxes is important:
Why File Your Taxes?
1. Keeps you out of trouble
There are tax laws in place to make sure that all businesses and companies are complying properly. Failure to file your business taxes can lead to penalties and fees.
Staying compliant with corporate tax means that you pay taxes at the right time, your business is not evading any taxes, you’re keeping accurate and complete records, and you’re dealing with your employees’ taxes right.
Filing your taxes means you understand how it contributes to the national income. However, failure to file your taxes can lead to your business being under scrutiny, or worse, it could end up facing criminal action.
2. Important in employment
Are you aware of the factors you have to consider when hiring employees, particularly after the enactment of the Tax Reform for Acceleration and Inclusion (TRAIN) Law?
When hiring employees, you must be responsible for understanding how they affect your taxes as a company. Hiring people means your business is already liable for some taxes, so it’s vital to understand which taxes need to be paid.
On the other hand, you should keep yourself updated about the new exemptions, laws, and changes in the taxation of the country.
3. It is a standard proof of income
When growing a business, you have to think long-term. What other necessities do you need in your office? Are there banks you need to go to and services you need to apply for?
Although you might be fine with cash and online payments right now, you might want to offer other payment options in the future. Registering your business and filing your Income Tax Return (ITR) does not only guarantee proof of income. It also helps you in applying for bank services.
Proofs of income are needed when applying for a credit card, phone line, and internet connection among many others.
One way to do this is to take care of your taxes so you have income-related documents on hand to show as proof that your business is operating legally.
4. Important for traveling
Flying abroad? Filing your taxes may be last on your list of priorities, but it should be at the top.
Filing your tax returns on a regular basis is a requirement for visa approval. You could lose potential clients, trips, and worse, funds, due to the lack of ITR or tax evasion.
5. For the issuance of Official Receipts
Being registered with the Bureau of Internal Revenue (BIR) gives you a Certificate of Registration (COR) which is a great way to prove that you are serious in your business.
This allows for your business to get an Official Receipt (OR), so you may be able to issue an OR to clients who need it. Established businesses do the same, and it would solidify your company’s credibility by doing the same.
Filing your taxes reflects the credibility of your company. It gives your business an air of professionalism and keeps your business afloat. Although it is not the easiest part of running a business, it is an obligation every business has to shoulder.
Failure to do means you are evading your responsibilities as a business owner, and that you are breaking the law. Evading taxes could end you up with nasty penalties, or worse, it could lead to your business’ closure.
So choose to comply, and in doing so, hire the best accountants to do the work for you.
We, at Savvi Accounting and Shared Services, specialize in tax filing in Angeles City.
Whether you are a solo proprietor, partnership, or corporation, we help you manage your tax and make sure that you are always on time when it comes to tax filing.
We also provide business registration services. We can help you set up your business hassle-free so you can focus more on growing it.
Contact us for a free service quotation today at +63917-174-7277 and email@example.com.