Laguna University – Junior Philippine Institute of Accountants (LU-JPIA) summoned two professional alumni for the part two of the webinar series themed “Future CPA’s: Rising Solidarity Amidst Pandemic” on October 22, 2021 via Zoom and LU-JPIA Facebook live.
At the start of the event, Ms. Jiralden Natabio led the prayer followed by opening remarks from Ms. Marian G. Magcalas, Officer In-Charge of Bachelor of Science in Accountancy (BSA) and Bachelor of Science in Accounting Information System (BSAIS). She expressed her gratitude to all the viewers including the faculty of College of Business Administration and Accountancy (CBAA) and the students and introduced the resource speakers—both are LU alumni.
“Taxation plays a big part in the (board) exam,” he said. He reiterated that subjects like Law and Taxation, typically overlooked courses in the undergraduate accounting program, are referred to as killer subjects in the board exam.
Alluded to the latest issues on taxation related to social media, he said, “BIR (Bureau of Internal Revenue) reminds and clarifies and reminds the tax obligations of social media influencers.”
He also clarified updates in Capital Gains Tax (CGT), “That is a tax imposed to those gained of selling of capital asset”.
Furthermore, he said that under Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, capital, regardless of amount, whether Domestic Corporation (DC), Resident Foreign Corporation (RFC) or Non-Resident Foreign Corporation (NRFC) will be subject to 15% rate.
He tackled the changes in the Corporate Income Tax (CIT) and listed down the rates of taxable income for DC: The DC old and new rates are 30% and 25%, respectively, effective July 1, 2020; the Minimum Corporate Income Tax (MCIT) for DC is 2% and 1%, respectively, effective July 1, 2020 to June 30, 2023; the DC with net taxable income not exceeding Php5 million and total assets not exceeding Php100 million old and new rates are 30% and 20%, respectively, effective July 1, 2020; and the last Non-profit proprietary educational institution and hospitals is 10% and 1%, respectively, effective July 1, 2020 to June 30, 2023.
Moreover, he provided list of taxable income rate for RFCs: old and new rates are 30% and 25% of gross income, respectively, effective July 1, 2020; MCIT is 2% and 1%, respectively, effective July 1, 2020 to June 30, 2023; the NRFCs are 30% and 25%, respectively, effective January 1, 2021; and Regional Operating Headquarters (ROHQs) is 10% and 25%, respectively, effective January 1, 2022.
Apart from these, he also reviewed adjustments in the rates of Final Withholding Tax, Business Tax, and Other Percentage Tax (OPT).
On the other hand, Mr. John Benvers A. Malabanan, CPA, MM, Chief Accountant at University of the Philippines Open University, laid out review recommendations for Licensure Examination for Certified Public Accountant (LECPA) and shared his journey on becoming a Certified Public Accountant (CPA).
Encouraging the students to take the LECPA, he outlined the steps in becoming a CPA wherein students should seek an accounting program, complete all prerequisites, graduate with a Degree in Accountancy, review for the CPA board exam, pass the LECPA, and begin a professional career.
LECPA rate last October 2021 marked down at 15%. With this, he expounded on why only few passed the exam—failure to understand the requirements and problems, lack of knowledge on testing materials, inability to apply the solutions approach, lack of an exam strategy, sloppiness, computational errors, failure to proofread and edit.
To mend the mishaps of LECPA, he revealed numerous secrets of successful examinees. “The great formula of passing the CPA board exam ay manggagaling din mismo sa acronym ng CPA—consistency, preparation, and attitude,” Mr. Malabanan said. On a final note, he stressed the better future that awaits successful CPA professionals.
Concerns and other clarifications were addressed during the question-and-answer session at the end of each discussion. Atty. Jill Manangkil-Benitez honored the respective speakers with Certificates of Appreciation before Prof. Marian G. Magcalas ended the ceremony on behalf of Dr. Norayda M. Dimaculangan, Dean of College of Business Administration and Accountancy.
Ms. Mary Joy S. Asis of BSAIS-4A hosted the event.
By: Lalaine Luz S. Betuin