Registration, Taxation & Accounting Compliance of Construction Industry
Registration, Taxation & Accounting Compliance of Construction Industry
Registration, Taxation & Accounting Compliance of Construction Industry
ACCOUNTING COMPLIANCE OF
CONSTRUCTION INDUSTRY
MARGIE R. DE CASTRO
OIC-Chief, Assessment Section
RDO 038 – North, Quezon City
November 13, 2020
Bureau of Internal Revenue
LOCAL NATIONAL
GOVERNMENT GOVERNMENT
Department of Single
Barangay Trade and
Proprietor
Industry (DTI)
Securities and
Exchange Partnership /
Municipality Commission Corporation
(SEC)
City Bureau of
Internal Revenue
Government (BIR)
BIR REGISTRATION
R EGISTRATION
I NVOICING
B OOKKEEPING
F ILING
P AYMENT
REGISTRATION
Sec. 236(A) of the National Internal Revenue
Code of 1997 (NIRC of 1997), as amended
requires that all business entities, even tax-
exempt ones, regardless if sole proprietorships
or corporations, must be registered with the
Bureau of Internal Revenue.
REGISTRATION
Primary Registration (Initial Stage)
TIN Application
Registration Fee (BIR Form 0605) – P 500.00
Certificate of Registration
Secondary Registration
Invoicing
Bookkeeping
PRIMARY
REGISTRATION
A. TIN APPLICATION
Partnership/Corporation SEC issues
/ Association the TIN
RMC 57-2020
FOR SELF-EMPLOYED (SINGLE PROPRIETOR)
RMC 57-2020
FOR PARTNERSHIPS AND CORPORATIONS
FILING AND PAYMENT
OF TAX RETURNS
FILING AND PAYMENT OF TAX RETURNS
VAT Registered
CONTRACTORS
(Electronic Filing and
Payment System)
eFPS Filer
*e-File and e-Pay
FILING AND PAYMENT OF TAX RETURNS
FACT (True/Correct)
ACCOUNTING
COMPLIANCE
WHAT IS GAAP?
Financial Statements (Income Statement /
Balance Sheet / Cash Flow) should be
prepared and complied based on Generally
Accepted Accounting Principle (GAAP)
which are common set of accounting
principle standards are procedures that
govern how accountants measure, process,
and communicate financial information.
FINANCIAL STATEMENTS:
1. INCOME STATEMENT
-report of the revenue & expenses for a period of time
2. BALANCE SHEET
-report of Assets, Liabilities and Capital at particular point
in time
Consortium
is formed by contract which delineates the
rights and obligations of each member.
Joint Venture
is formed for undertaking construction projects
is not taxable as a corporation if it complies
with the conditions set in RR No. 10-2012:
RR 10-2012
1. The JV partners must be licensed local contractors
and/or foreign contractors with a special license as
a contractor by PCAB with the construction project
being certified by the appropriate government
office as a foreign-financed/internationally-funded
project;
2. the JV itself must be duly licensed by PCAB;
3. such qualified JV shall not be subject to corporate
income tax and 2% CWT;
4. will not be required to file quarterly and final
adjustment returns.
CONSORTIUM & JOINT VENTURE
MARGIE R. DE CASTRO
OIC-Chief, Assessment Section
RDO 038 – North,Quezon City