Saturday, January 22, 2011

How is it to Own A Small Business in the Philippines

This is me, busy with my small business a sari-sari store.
      Sorry I was not posting much lately, but I was busy this week with the processing of my permits and taxes. Its January again, and time to renew  business permits and pay the taxes for those who have a business over here in the Philippines. For those of you who don't know, we have a small business called a Sari-sari store (Mini Grocery).  We have this business for 3 years now, and for the first 2 years, business was doing really well. My sales everyday could get up to 5,000 pesos or  $115 more or less. Its not a bad business at all for just a small sari-sari store, so I was okay with paying the taxes and did not question anything. The first year I register my Business was 2008, over here you can just hire someone to process your papers for registering or renewing  your permits, for one thousand pesos ($25) they will do the waiting in line for you, and imagine thousands of people who wants to pay their taxes. So that's what I do that time, and the guy who process my permits is working in the City Hall, so you can think that its like bribing lol. What frustrates me that time is he didn't tell me everything that I need to know about the paperwork.  First he didn't tell me that I should have a book of accounts, well I know about it but I just ignore because I was thinking my sari-sari store is exempted, because to think of it I only sell everyday needs to the consumer, so I thought its okay.  I learned differently when the BIR, (Bureau of Internal Revenue) came to check, they found out I don't have a book of accounts, so they give me a fine of 5,000 pesos but I was able to get it reduced to 2,500 pesos
    After that,  I was the one who process all my taxes, because I want to learn how to do it myself and not to hire anyone who doesn't care and just want money from your pocket. This year it just took me 2 days and I was done with all my renewal of my business permits, I was happy, last year it took me almost a week to finish it. But I'm not yet done, I have my disappointments and complaints.  This year was not so good for my business, for almost a month we closed the store because my nephew contracted Dengue Fever and had to spend time in the hospital. Because of this,  my sales for the entire year is just half compared to my sales in 2009. Foolishly, I thought maybe my taxes that I will pay this year would not be as much as last year.  I was wrong! The taxes were more than last year! it so unfair, my taxes are higher, even though my sales were less last year. They did not even look at my book of accounts to see my sales last year, I was really disappointed and discourage how our government change their rules whenever they want to. They don't base your tax through your sales for the year, but on how much your sales were your first year of business. What if your sales is not the same this year? that's what I ask them, and of course they don't care, they base it on the first year sales of your business, and they expect it to keep growing. Well someone teach me a trick to lessen your taxes, but I'm not gonna post it on here;  I don't want to cause trouble. But I'm sure that's what I'm gonna do next year. If they think they are wise, well I'm wiser lol.


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