People have been talking about it and now, new businesses want to register because of the lowered tax rate. Want to know the CREATE Law Percentage Tax Changes? If you are filing your Percentage Taxes using Taxumo, you’ll have a convenient time filing with the changes that were brought up with CREATE Act or RA No. 11534 (Corporate Recovery and Tax Incentives for Enterprises Act). For those who want to read the law, here is the link to the CREATE law.
The Comprehensive Recovery and Tax Incentives for Enterprises (CREATE) Act (Republic Act 11354) is a bill that seeks to assist businesses as a response to the pandemic situation, with retroactive provisions and lower tax rates. This was enacted to law last April 11, 2021.
CREATE Law Percentage Tax Changes
Hooray for those who are paying Percentage Taxes, the Bureau of Internal Revenue will now accept just 1% of your gross earnings for Percentage Tax (submitted via the 2551Q). From the usual 3% tax rate, taxpayers can now use the new 1% rate for their taxes. What’s tricky is that this new 1% rate is a retroactive tax rate that can be applied for all due taxes starting from July (Q3) 2020 (last year).
Taxumo is CREATE-ready for Percentage Tax Changes
The great thing about this is that for Taxumo users, this 1% tax code change has been applied to our 2551Q forms and your due taxes will be computed using this new tax code. The system also fixed this to be the default now so even new Taxumo subscribers can utilize the 1% rate with our 2551Q forms. There’s no need to worry about re-calculating stuff to take advantage of this.
This is the advantage really of being a Taxumo user. For changes like this in any computation, Taxumo makes necessary adjustments and helps you through the transition.
For example, if you filed your Quarterly Percentage Tax forms for 2020 Q3 and Q4 in Taxumo, Taxumo will compute the excess you paid and then use those as credits starting 2021 Q1. To do that, simply file your Quarterly Percentage Tax form (2551Q) for 2021 Q1, due this coming April 23 (Taxumo’s Deadline is earlier), and Taxumo will automatically compute it for you.
If you’ve already filed your 2551Q form for 2021 Q1 thru Taxumo, simply file an amendment filing by clicking either of the links below:
Super easy! So if you are still not yet using Taxumo for computing, filing and paying taxes, you may want to sign up now and try it out! This is the perfect time to start using Taxumo.
Sign up here: https://www.taxumo.com
PS. Here is an article that I create before that might help you get started: https://mommyginger.com/a-freelancers-and-consultants-guide-to-using-taxumo.html