Setting Up a Small Business in the Philippines

Philippines is a very small country of more than seven thousand islands. It's government is considered one of the most corrupt in Asia and the people just queue and complain...  Everywhere, including the processing of small - as in $500 worth of - business' permits.

There are at least a thousand and three requirements in order to legally set up and operate a $500 worth of small business. That above is an actual checklist in a small municipality for registering a new or renewing a business permit. And you get to this list after obtaining a business name. At least, registering no longer requires having an interview with all-knowing clerks (they will decide how much is your capital in setting up the business, and some other things like your projected income.)

If you happen to register a business name and will not immediately pursue your business permit and Bureau of Internal Revenue within a month (you have to complete all those forms and their agencies' requirements before getting to BIR, no different from a madman's obstacle race), then you become an instant delinquent! But BIR will not give you any idea how to get out of the delinquent stage except to pay, pay, and pay for abstracted violations and monetized penalties.

To the BIR Commissioner, All Mayors, and the Legislative Branch of the Philippines,

Do you know that we, small business owners and taxpayers, often start up small, with about a capital of P2,000 or up to P20,000 only? Buildings or shops and establishments cannot be rented out, borrowed, or which rent was only loaned. (to be continued)...

Random Stupidity at the Government: GSIS, BIR, etc

This is an account at the 3rd Floor Retiree Lounge, GSIS main office, Pasay City.

The above forms were submitted by a representative of a retired employee, a senior citizen that is under medication of diabetes. The retiree and the representative live 12 hours away from those who need to sign the forms (at the PNP headquarters and GSIS main office), thus, the need to require a leave from work for the representative as well as incur expenses that are taxed (bus fare, meals, taxi fare, etc). The line for acquiring signature for the forms is quite long, 7 hours is usually an average. They don't accept electronic or phone or through courier requests, no, they have of course GOT a BIG CHUNK of OUR TAXES to upgrade into new age. But of course, that is only for purposes to feed these palamunins. Feed is understatement to the core. They build mansions (or buy several town-homes), buy each of their children SUVs, travel to Bangkok, Macau, or even Las Vegas OUT of our taxes!

A day after the signature, off to GSIS I go. The front desk number 20 won't take the form. She said it is expired. So I asked: "Which is more important, the signatures or the paper?"

She had the common sense to reply, "The signature. But if I accept that, the processing officer will also disapprove because the form is old."

"But it was the form given to my dad," I replied. "They (retirees) are old and are not aware of forms available elsewhere, so, how would he know the form was expired?"

She went to her chief, who also stood by her decision. But I talked to their chief, anyway. Maybe, she became a chief because she has a little more common sense than front runners...

They all stood by their decision that the new form must be filled up.

Back to the diabetic 2 days later, he said, "Their local office gave me that form just recently."

Had I known this info and had I been a maniac, the next thing I'll do is burn down the fucking GSIS building for mangling my taxes, through and through!

Then, there's another. This is another big joke that is not quite funny.

At the BIR office after going through valuation at the cashier or treasurer, or whatever that you have to go through to file taxes yearly, or quarterly... (Please bear with me when it comes to this, everyday, I look at my receipts and see the VAT or whatever percentage that goes to the bureaucracy and my blood boils, not to consider the temperature, of course... and don't snicker you! you had your share of daily taxes, too! TAXES! right, that is plural. and yes brother, that is daily. hah!)

The counter lady says, "Done. Go to counter 6..." That must be hell, what a coincidence. Because at that counter, they say the Corp owes them two thousand bucks for 2010 and 2012. What's the story morning glory? What?

But see, we were given certificates/clearance for those years 2010, 2011, 2012. What the fuck happened?

Well, taxation or BIR blabbery have always been alien language to me, what do you expect?  So the man blabbered his way to this anarchist's understanding that there is no choice but fucking pay!

And so because there are no fit words to describe how I really feel for bureaucracy, let's start burning them in our minds...

BIR & Their Magicians

Still reeling from the tax deduction which was highest in my history of being a Filipino citizen (some $135 only per month!!!), I received a call informing I had another BIR violation for a micro-mini venture in Pangasinan. The District is Urdaneta. I was penalized earlier for a violation I was not even informed about (talk about integrity, competence, etc), of which I am not allowed to contest (so, when it comes to BIR, THEY are the law, paging Judge Dredd) --- where are my effing rights???

Reason: Failure to register my business with the BIR 1 month after the SEC registration. I answered it was because I WAS NOT INFORMED. Hello? Is it now our sworn duty to memorize when and how to avoid penalties from BIR?

Did BIR exerted any effort to become EFFICIENT & COMPETENT as they claim in a large tarpaulin inside their office? Don't we the constituents have the right to be informed? Is there DUE PROCESS OF LAW here? p'a, matindi pa sila sa mga kakilala ko sa pier ah!

Aside from this, the Municipality advised me to register with them on the January of the year I am going to operate. Di ka rin naman bibigyan ng chance ng BIR na mag register without Mayor's Permit. Kaso mo, MUELTA ka day!

An'lupit 'no? OK lang naman 'yon ate kung di ini-offer ni Mrs. Soriano na siya na daw magpapa-register ng business ko with BIR. Nagkataon lang namang Revenue Officer siya sa Villasis. January ako nag-file, last week ng March niya ni-release. Pagpunta ko ng 1st week ng April sa BIR-Distrrict Office to formalize everything, sabi ni Eden Cerafica, penalty daw ako... One thousand lang naman ma'am e. sabi niya.

Sa isip ko, tugon ko: Oo nga e. Di bale, akin naman ang Central Bank e.

Hello? Kaya po kami nagbi-business kasi po you cannot provide us enough jobs para we can live properly. Hindi po para kotongan niyo!

Yan. So, dahil wala po akong budget, kelangan ulit kumayod para mabayaran ang penalty. E di delay na naman. April 28, natapos ko rin. Pati libro, journals at iba pa, sabi ko, lahatin na para wala nang problema.

Inorder ko na lahat kay Elmer, the registration officer.

May 14, eto na ang call ko. Me penalty na naman. Ang charges, wala daw akong books saka resibo according to Marylou Tan, another magician, este, collection officer ata.

Sabi ko, kasalanan kong delayed ang order ko kay Elmer? Ni hindi na nga ako humingi ng resibo for the printing saka books na worth P1,500 e. Dapat si Elmer ang kasuhan nila. Ang charge:

- accepting payment w/o issuing official receipts with BIR seal.

Isa pa lang 'yon. Nagpapakababaw palang ako Elmer. Pano, sabi ng kasama ko, pinagpipilitan niyo daw na May 14 ako nag-file. Sorry friend, pero nandito ako sa Quezon City on that date. And the last time I saw your friggin' faces is April 28. Damay-damay na 'to.

Kung di kayo makuha sa pakiusap, tabla-tabla na.

Intro pa lang 'to. Kalkalin niyo na record ko. Nakasuhan na ako ng P30,000,000 libel case (criminal pa). pauna pa lang 'yan...


My Taxes, Your Taxes (sa kinain nating Nissin's Seafoods Instant Mami), went here! Nagpapaniwala naman kayo ke Kongresman na sa kanila galing ang pondo? Hindi po! Mula po sa pinaghati-hati nating pitong-pisong napakuluang mami!

Sa ngayon po, pinag-aaralan ko po ang kagalingan ni Howard Hughes, na bukod sa isang henyo at guwaping, naiwasan niya ang kabuyaan ng mga tax collectors to think that he was a multi-bilionnaire. All tips and advice, welcome.