This article shares the process for creating the Audited Financial Statement (AFS) for submitting along with the 1701 Annual Income Tax Form which covers 2017 (and due on April 2018).
Do I need an Audited Financial Statement?
If you are using the Itemized Deduction Method AND you have a quarter where you earned more than P150,000, then you are required by the tax code to submit an Audited Financial Statement. We will send you a note separately if you need an AFS.
Doesn’t TRAIN change all that?
The Tax Reform for Acceleration and Inclusion Law is applicable for calendar year 2018 and onwards. This means that your Annual Income Tax which covers calendar year 2017 still uses the pre-TRAIN version of the tax code.
Why can’t Taxumo make the AFS?
To ensure that the auditing is done fairly, the auditor has to be an independent auditor. As such, any transaction related to working with this independent auditor must be separate from transactions with Taxumo.
Who can make that for me?
Taxumo was able to secure very reasonable rates for you from the accounting firm DJKA Accounting Services. The cost for providing the audited financial statement is P8500.00.
A separate billing will be sent to you via email and you are asked to pay using the below account details:
Bank: BPI Account Number: 1860-0054-48 Account Name: DJKA Accounting Services
Once paid, please email the deposit slip to Divine (cc: firstname.lastname@example.org) who will forward it to the accounting firm. The AFS will be prepared once payment has been confirmed.
You now need to make sure that your income and expenses for the year have been entered in Taxumo by January 26, 2018 (Friday). We will start processing your annual income tax by then – whatever is entered in the system will be considered as final.