Welcome to Orlando Calundan’s page!


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Every business, no matter how big or small, needs accounting in order for the owners to know whether they are making profit or just burning their resources out of it.  The accounting extends not only to financial reporting but also to compliance with various internal and external requirements.  I acknowledge the role of accountants in every business that is why it is important to keep them updated with the latest in the profession.

This page is especially designed to give updates on accounting and related fields such as auditing, taxation, labor and other laws and regulations.  I want to give you the newest and hottest important updates relevant to accounting and accounting profession.  To know more about Orlando Calundan, click here!

In these pages, you can explore on:

I hope to help you out in these areas as we help each other learn from each other!  Welcome and happy browsing!

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I value your feedback and we hope to hear from you!  Please leave a reply on the form provided below should you have anything to say.

Disclaimer:  Orlando Calundan is a private individual and does not represent any group, organization or company in this website, unless otherwise indicated.  Information presented in this web blog are acquired personally from various sources, including results of online researches.  I do not guarantee correctness of my personal views and completeness of gathered information but I guarantee that everything in this blog is faithfully represented.

Some of the contents are public documents posted in public domains.  I do not post copyrighted content unless available for public viewing, which are posted with attribution and are, sometimes, linked to the source URLs.

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48 thoughts on “Home

  1. Your doing great thing, helping us who do not have time making research. Please continue your good deeds.

    Posted by Chris | May 28, 2013, 4:45 am
  2. Very Informative worth sharing to others. Keep up the good work.

    Posted by Vernie Chris | July 17, 2013, 2:29 am
  3. If the deposit for future stock subscription is treated as liability and if the increase in capitalization is not approved by SEC, can the corporation pay the demand of the stockholders for an interest on the deposit?

    Posted by Norberto M. Manuel | July 27, 2013, 1:08 am
  4. Interest is a matter of agreement so if the Agreement/Contract provides for an interest conditioned upon the disapproval of the SEC increase of capitalization, then, be it. Thanks.

    Posted by Belle | August 4, 2013, 2:43 am
  5. Just want to ask a question re freelance work. If I were to render programming work with about 100K cost for the work, is it acceptable to bill my client company with a non-BIR-registered invoice and no Official Receipt? I dont want to register with BIR regarding my freelance work since I am employed and just doing this as a one time thing.

    Posted by Anthony | October 8, 2013, 10:35 am
  6. good morning po!in computation of 1701Q, if the 1st quarter was net loss of 10,000 and 2nd quarter was net income of 13,000.was my taxable income for 2nd quarter is 3,000 only?thanks

    Posted by rochelle | October 10, 2013, 3:17 am
    • Yes, the taxable income of P3,000 is the taxable income “to date”. That is your basis in computing the tax due. But I think for the purpose of 1701Q, you need to separately present the current quarter income with the previous quarter loss and those will be net out in the “to date” income.

      Posted by leecpa | October 10, 2013, 4:58 am
      • thanks for the reply, what if the 1st quarter was net loss of 10,000 and 2nd quarter was net income of 8,000, still have loss “to date” of 2, need to pay tax due?

        Posted by rochelle | October 10, 2013, 5:08 am
      • Yes, no tax due. This is for individual right? For corporations, they have this “minimum corporate income tax” which is not based on net income but based on gross income. You have to make sure though that all of your expenses are deductible.

        Posted by leecpa | October 10, 2013, 9:28 am
  7. yes sir, its for individual.Thank u very much sir

    Posted by rochelle | October 12, 2013, 7:44 am
  8. Hi Sir! Just to ask po. Is Sick Leave Conversion taxable? Thanks po:)

    Posted by Jane | October 17, 2013, 5:24 am
  9. Hi sir,

    What are the requirements for an expatriate to be considered as resident alien here in the Philippines? Thank you!

    Posted by Gerard Cruz | November 11, 2013, 2:29 pm
  10. Hi Sir! I have a rental property. What can I put on #29A Cost of Sales/Services on form 1701Q? I started paying percentage tax for August. I did repainting on the house July to August. Can that count under #29?
    Is that different from#33 Deductions (I opted for OSD)?
    Thank you!

    Posted by raissa | November 12, 2013, 8:01 am
    • Yes you may deduct that as cost of services. Renting it out is the income and the cost related to renting it out that can be directly attributable to generating that income are costs of services, with limitations.

      Posted by leecpa | November 22, 2013, 9:37 pm
  11. Hi again!
    I don’t understand #35A on form 1701Q. Why tax the previous quarters when you’ve paid them already? Isn’t that paying double and triple? Thanks!

    Posted by raissa | November 12, 2013, 8:05 am
    • Hi Raissa,

      If I may answer – it’s not a double or triple taxation. The tax computation is on a year to date basis (e.g. 3rd Quarter is from January to September). The computed tax is then deducted with the previous tax payments. It’s a double taxation on the initial thought, but if you analyze it further, you’ll understand it better and you’ll appreciate it. 🙂

      Posted by Cendrick | November 22, 2013, 6:56 am
  12. hi sir! i saw the link to your blog from stef’s site. I have a question with regards to BIR registration. I used to work with PGH as a resident physician then as a fellow-in-training. That’s were i got my TIN number, too. Now, after graduating from my training, i do house calls/home visits to cancer patients. I don’t have a clinic of my own yet. Still waiting for a friend to graduate since we promised to practice together and have a clinic sharing set-up. My concern now is that I need to register so I can issue receipts to my clients when I charge them for my professional fee, right? That’s what I want to be my primary registration. Now Healthway is hiring me to be their consultant in a clinic branch. The thing is, i need to have a certificate of registration posted in my future clinic in there. They also told me that they will give me the certification of hiring or contract (not that sure but they asked me to present it to BIR). so does this mean I have to be registered 2x? is that possible? is healthway a branch or something? im really confused. Hope you could be of help with my dilemma 🙂

    Posted by purple_md | January 16, 2014, 2:02 pm
    • Hi! Thank you for dropping by. You are right, you need to be registered to be able to issue ORs. If you want to put up your own clinic, there is no question, you really need to register that. For healthway, will you be acting as if you are practicing your own/ doing your own business or will you be acting as an employee that will be paid with salary? If you will be practice your own, paid by your patients professional fees, then you should also register it, and yes, as a branch, using your TIN. A taxpayer can only have one TIN.

      Posted by leecpa | January 16, 2014, 3:21 pm
  13. great and helpful site

    Posted by Cynthia Canete | February 18, 2014, 5:45 am
  14. idol

    Posted by loyddizon | February 24, 2014, 12:09 am
  15. hello sir orlando,

    i work as a freelancer online.
    is there a way for me to obtain a TIN even if i don’t have an actual employer here in the philippines? my clients are all abroad.

    how much tax am i to pay when i don’t have regular income and mostly just minimum? i hear we might need to have invoices printed out but i think those are just going to be useless since i don’t send invoices to my clients.

    i am so confused and the last time i went to BIR, the employees there were just as confused. they didn’t know where to put me and what to do with me thus i wasn’t able to get a TIN

    Posted by ellie | February 24, 2014, 5:12 pm
  16. Hi Mr. Orlando,
    I would like to ask if a “collection receipt” is valid for claiming input tax?. Thanks much. 🙂

    Posted by elaine | March 17, 2014, 3:41 am
  17. Hi Mr. Orlando. I know that you could help me out with this concern. I’m a freelancer, so I really don’t receive documents whenever I get paid. I have TIN from my previous company years back. My questions are, can i still use the same TIN to pay up my annual tax return? Which BIR Form should I take? Do I have to submit any proof of my monthly compensation? Finally, would I be able to request for IITR, visa requirement, once i paid?
    I hope to hear these from you Sir.

    Posted by glen Valenzuela (@GlenValenzuela) | April 10, 2014, 11:56 am
    • Hi Glen, yes you can use the same TIN. We are only allowed to have one TIN. Is your compensation in a form of salary or professional fee? If salary, use 1700. If professional fee, use 1701. For the VISA, I am not aware of the requirements, but if income tax return is a requirement, then you can use any of the forms I mentioned, depending on the type of compensation you receive. Thanks! Sorry for late reply…

      Posted by leecpa | April 22, 2014, 5:30 am
  18. Hi Sir! I would just like to confirm what I need to do, I am currently employed and will start a new business. My TIN is registered in a different RDO from where I’m planning to start my business. I was informed that I need to use 1905 to transfer my TIN as an employee to the RDO where the business is located. However, I wanted to know what would be the implications of having a single TIN since I am still employed and will now venture into business? Would that be a conflict with my employer since I’m going to transfer my TIN to a new RDO? and is it possible to have my TIN as an employee and register a new TIN under the name of my business? just to separate my income tax from the business tax… Please advise… Thank you!

    Posted by msj | May 27, 2014, 1:14 pm
    • Hi Ms. J!

      Thanks for dropping by. Are you planning to resign or be employed at the same time have a business? You can only have one TIN. You can have another TIN for your business if you form a corporation instead of becoming a sole proprietor.

      For the transfer, RR 7-2012 states that your TIN should be transferred to the RDO where your business is situated. Following are some excerpts from the said RR.

      Registered Employee Who Intends to Engage in Business or Practice of Profession – An individual who is registered as an employee in one BIR district office but subsequently applies for registration as a business taxpayer / professional in another BIR district office shall submit the proper form to the BIR district office having jurisdiction over his business address. The transfer shall then be performed by the BIR district office where the application was submitted.

      I think it would be safer if you visit the RDO so that you could learn more, as you would visit them anyway to file your business registration and for some tax briefings.

      Inform me if you would need something more soon and if you finally put up your business. Best of luck! 🙂

      Posted by leecpa | May 27, 2014, 5:30 pm
  19. Is an electronic filing of BIR returns an option or mandatory?

    Posted by Norberto Manuel | May 28, 2014, 12:10 am
  20. Financial lease companies are not subject to 12% VAT but percentage tax. If the client is a vatable entity, and you purchase a car on financial lease and later own it, will you have an input tax on every amortization of lease and in paying the residual value as deduction from VAT? Where will you base your input tax on the amortization as it includes both the payment of interest and the principal?

    Posted by Norberto Manuel | May 29, 2014, 12:17 am
  21. Great to find your site Sir! I’m thinking of accepting an invitation to volunteer as an accountant for a newly registered non-stock, non-profit organization, though I have never had exposure to such. Where do I find guidance for the job in your site? Thank you!

    Posted by ecasynaman | July 11, 2014, 1:58 am
    • Hey Edel! Nice dropping by. Unfortunately, I have not written articles on accounting for nonstock nonprofit organization yet. I only publish updates applicable to them as they come to my attention. 🙂

      Posted by leecpa | July 11, 2014, 2:42 am
  22. Can I have your office land line number?

    Posted by Lyn | February 9, 2015, 8:28 am
  23. Hi sir, Is it still required in the Notes to disclose the date of Board approval for issuance of FS? I read some audited FS and I can no longer find it in the first note – corporate information. Before it is disclosed there which must coincide with the date of audit certificate.

    Posted by Chris | February 14, 2015, 9:43 am
  24. Hi sir,

    I am a graphic designer and have been freelancing for 5 years and I want to register with the BIR to straighten things up. My income really depends on the work that comes in. Sometimes there is, sometimes there isn’t. My question is, I’m afraid the penalties would be steep I won’t be able to afford it, what would be your best recommendation to move forward with it? Also, I have previous clients who have issued me Form 2307 Certificate of creditable tax withheld at source (because I don’t issue receipts). What do I do with these? I am really clueless when it comes to taxes, hope to have some enlightenment on this matter.

    Thank you in advance. Looking forward


    Posted by Paul | February 16, 2015, 5:00 am
  25. Hi Sir,

    Regarding penalties (interest, surcharges and comprised) are not allowable deduction or only surcharges and compromise are not allowed as deduction.

    How about the LOA, LN, VATag or considered as special assessment tax, can I treat them as not allowable deduction including interest?

    Please help, I cant find any RR relative to my queries.

    Many Thanks In Advance,

    Posted by Aaron | March 31, 2015, 10:21 am

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