What's before closure are unimaginable hardships. What's after it is pure bliss.
This applies to almost everything including closure of business account in the Bureau of Internal Revenue (BIR) in the Philippines.
Yep. If you're from the Philippines and were self-employed, whether you literally own a business or working for an institution with no employee-employer relationship, you can totally relate to this (esp. if you know that you have penalties due to lack of information🙃 but we know that ignorance is not an excuse so it sucks).
I worked for a government institution with a no employee-employer relationship. This means that I am not an employee so I will not be subjected to benefits and some other things that are meant for employees. I am self-employed but I don't own a business so this means I fall under as a 'professional' with 5% witheld tax every month.
I signed my contract thinking that the no employee-employer relationship connotes a different meaning. I thought it was about romantic relationships so I signed it laughing at the thought that they have to write that down.
Well, I'm not laughing anymore. Every month, a 5% tax was witheld by the institution. I thought that was it. My take home pay was high. However, this happiness is short lived. I saw one of my co-workers holding an envelope. I asked her where was she going and she told me the nightmare I'm still living until now. 🙃
I'm complacent to the fact that I have to pay the remaining 35% (or 15% 🤔😌 I'm still confused). We'll compute the penalties later 😖
This January, I have to close my account because there will be a transition from job orders/contractuals to a manning agency. I have to write about this in a separate article because this transition is a band-aid solution that the government implemented to scrap contractuals and make them regulars. 🙄
So, here's my own estimate of my penalties in PhP:
1,000 x 20 months = for late monthly filing (which I didn't know until recently)
1,000 x 5 = for late quarterly filings.(same reason)
1,000 = no ATP
1,000 = no Book of Accounts
1,000 = didn't pick up COR
16,000 = quarterly tax to be paid since 2016
Imagine those penalties and I don't even have savings. 😔
I'm waiting in line as of now. Let's hope for the best. Gambate self. Hoping for a system glitch. 😂 Joke onle. Good luck to everyone here in BIR RDO 039.