Author: Mark Virgil Lofranco

For many VAT-registered businesses, Value-Added Tax (VAT) is more than just a tax collected from customers—it is also a potential tax asset. Companies engaged in exports, zero-rated sales, or businesses with significant capital expenditures often accumulate millions of pesos in excess input VAT that can be recovered through tax credits or VAT refunds. Unfortunately, countless…

The digital economy has opened countless opportunities for Filipino entrepreneurs, freelancers, exporters, and content creators to earn income from clients and platforms around the world. However, earning income across borders often creates a significant tax concern: double taxation. Imagine paying income tax to a foreign country because your earnings originated there—and then paying Philippine income…

Every business experiences challenging years. Economic downturns, unexpected market conditions, natural disasters, or major capital investments may result in operating losses. While business losses are never ideal, Philippine tax law provides a valuable mechanism that allows eligible taxpayers to convert today’s losses into tomorrow’s tax savings. This mechanism is known as the Net Operating Loss…

Many corporations are surprised when they report little or no taxable income but still receive an income tax assessment. The reason is the Minimum Corporate Income Tax (MCIT), a special tax imposed under the National Internal Revenue Code (NIRC) to ensure that corporations with substantial gross income pay at least a minimum level of income…

Every year, thousands of Philippine businesses unknowingly overpay their income taxes. Ironically, many of these overpayments are not caused by incorrect tax computations—they result from businesses failing to properly claim their Creditable Withholding Taxes (CWT). If your customers withheld taxes from your income and issued BIR Form No. 2307, those taxes are not additional taxes.…

One of the most expensive tax mistakes in real estate transactions is the improper classification of property as either an ordinary asset or a capital asset. A simple error in classification can increase tax liabilities by millions of pesos—or expose a taxpayer to costly Bureau of Internal Revenue (BIR) assessments, surcharges, and penalties. Many taxpayers…

As businesses grow, their original corporate structure may no longer be the most tax-efficient. A company that begins as a single operating corporation often reaches a point where separating investments, operations, and ownership can improve risk management, succession planning, and tax efficiency. Fortunately, Philippine tax laws provide legitimate opportunities to restructure businesses while remaining fully…

Business growth often requires restructuring. Whether you’re incorporating a sole proprietorship, creating a holding company, consolidating affiliated corporations, or transferring family-owned assets into a corporation, one concern immediately arises: taxes. Without proper planning, a single transfer of property may trigger multiple taxes—income tax, capital gains tax, value-added tax (VAT), documentary stamp tax (DST), and even…

Many businesses focus on reducing taxes, but few realize they already own valuable tax assets sitting on their balance sheet. These assets, if properly managed and documented, can significantly reduce future tax liabilities, improve cash flow, and even result in tax refunds. The Bureau of Internal Revenue (BIR) recognizes several forms of tax assets that…

Starting a business often begins with a great idea, a valuable product, or a specialized service. However, many entrepreneurs focus heavily on generating sales and attracting customers while overlooking one of the most important aspects of long-term business success: legal compliance through proper business registration. Some business owners delay registration because they view it as…