5 Common Tax Mistakes Filipino Business Owners Make — And How to Avoid Them
Introduction
Running a business in the Philippines is exciting — but when it comes to taxes? Medyo nakaka-stress, ‘di ba? 
Many small business owners and freelancers unknowingly make tax mistakes that could lead to BIR penalties, audits, or even business suspension.
At NumberWorks, we’ve seen it all — so here’s a quick Taglish-style guide to the 5 most common tax filing mistakes, and how you can avoid them.
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1. Late or Missed Filing ng BIR Forms
The Mistake:
Nakalimutan ang deadline, or feeling mo okay lang kasi “wala naman akong kita this month.”
Why It’s a Problem:
Kahit “no income,” required ka pa ring mag-file. BIR charges ₱1,000 penalty plus 25% surcharge of your supposed tax due.
How to Avoid It:
Gamitin ang eBIRForms or consult an accountant to track your monthly/quarterly deadlines.
Tip: Set Google Calendar alerts for every 25th and 30th of the month.
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2. Filing Wrong BIR Forms
The Mistake:
Nag-file ng 2551M kahit dapat pala ay 2551Q. Or used 1701 instead of 1701A/1701Q.
Why It’s a Problem:
Wrong form = invalid filing = penalty pa rin.
Minsan, naka-file nga pero mali ang form — sayang.
How to Avoid It:
Know your tax type. Are you VAT-registered? Non-VAT? Mixed income earner? If unsure, ask a professional.
NumberWorks offers free tax type checks for new clients!
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3. Not Keeping Receipts or Books of Accounts
The Mistake:
“Wala pa akong OR printer,” or “nawala na ‘yung resibo,” or worse — “lahat naka-GCash lang.”
Why It’s a Problem:
If you get audited, BIR will ask for proof of your expenses and sales. No receipts = disallowed expenses = higher tax due.
How to Avoid It:
Always issue and keep receipts — even digital. Log your transactions in a Book of Accounts (manual or digital), and register it with the BIR.
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4. Mixing Personal and Business Funds
The Mistake:
Sweldo ni ate, tuition ng anak, at bayad sa supplier — lahat sa iisang GCash o bank account lang.
Why It’s a Problem:
Hard to track business expenses = hard to compute deductible costs = higher income tax.
How to Avoid It:
Open a separate bank account or GCash for business use. Always separate income and expenses.
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5. Doing DIY Tax Filing Without Proper Knowledge
The Mistake:
Ginawa lahat ng tax filing sa YouTube tutorial or TikTok tip — tapos mali pala.
Why It’s a Problem:
Incorrect filings can cause red flags in BIR. Worse, di mo alam may utang ka na pala sa tax or penalties.
How to Avoid It:
Let professionals handle it, or at least consult with one.
At NumberWorks, we offer affordable monthly bookkeeping + tax filing packages for small businesses and freelancers.
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Final Thoughts
Managing taxes doesn’t have to be scary — basta tama ang ka-partner mo.
Avoiding these common mistakes will save you money, time, and headaches down the road.
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Need Help? Let NumberWorks Handle It.
Whether you’re just starting or already in business, we’re here to help you file the right forms, avoid penalties, and keep your books in order.
Free consultation available
Message us today or visit our Contact Us page