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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Global culture
Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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Learning & development
At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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In the community
Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Fresh Graduates
Fresh Graduates
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Students
Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
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Experienced hires
P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
Revenue Regulations No. 08-2018 for individual taxpayers
27 Feb 2018The passage of Package 1 of the Tax Reform for Acceleration and Inclusion (TRAIN) law is considered by many a welcome change, particularly to individual taxpayers. After almost two decades, individual income tax rates were finally adjusted. Although the adjustment is said to be the most popular provision in the TRAIN law, there are other rules which an individual taxpayer must take note of.
Implementing rules, computations, and examples are shown in the recent Revenue Regulations (RR) No. 08-2018 in relation to the taxation of individuals. What are the salient points in these regulations that an individual taxpayer should be cautious about?
1. Employees who are NOT qualified for substituted filing
When an employee is qualified for substituted filing, it means that the employee is no longer required to file a separate income tax return. On the contrary, if not qualified for substituted filing, a separate income tax return filing has to be made.
According to RR 08-2018, all individuals deriving compensation income, regardless of amount, from two or more concurrent or successive employers at any time during the taxable year, are not qualified for substituted filing. Thus, they are still required to file a return.
The above rule could mean that even when an employee earns a compensation income not exceeding P250,000 in a taxable year, but such income came from two or more employers in the same taxable year, he should still file his separate income tax return. A question, however, may arise, on whether this is consistent with the intended simplification of tax procedures for those earning less income.
2. P3,000,000 threshold — a number to remember
If you are a self-employed individual, you should always remember the P3,000,000 threshold. This threshold pertains to the self-employed individual’s total sales/gross receipts within a taxable year.
If the total sales/gross receipts do not exceed the threshold, the following are the consequences:
* There is an option to use the 8% income tax rate in lieu of graduated income tax rates and percentage tax. The 8% income tax rate is imposed on the amount exceeding P250,000.
RR No. 08-2018 provides that the intention to opt for the 8% income tax rate must be expressed by the taxpayer in the 1st quarter income tax return or the initial quarter return of the taxable year when the taxpayer commenced business. Such election shall be irrevocable; and thus, the option chosen can no longer be changed. If the choice is not properly made, the individual loses the option to use the 8% tax rate; and thus, they will be subjected to graduated income tax rates.
* The individual, when filing the annual income tax return, is no longer required to attach financial statements to the tax return.
* If an individual does not exceed the threshold, certain types of individual taxpayers are still unqualified to choose the 8% income tax rate. First, this option is not available to VAT-registered taxpayers and taxpayers subject to Other Percentage Taxes. Second, this option does not apply to partners of General Professional Partnerships (GPPs) with respect to their distributive shares. This point is extensively discussed and illustrated in RR No. 08-2018.
* In case the individual avails of the 8% income tax option, but subsequently, earns gross sales/receipts exceeding P3,000,000 during the taxable year, the individual shall automatically be subject to the graduated rates. Any quarterly payments under the 8% income tax rate option may be allowed as tax credit from income tax due.
3. No crossover of the P250,000 tax exempt portion for a mixed income earner availing of the 8% income tax rate.
In the new income tax table, the first P250,000 is not subject to income tax. But what if an individual taxpayer, opting to avail of the 8% income tax rate, both has compensation income and business income? For example, the compensation income is only P200,000 in a taxable year; while his business income is P100,000 in the said year. In this case, to determine the taxable compensation income, the amount of P250,000 tax-exempt will be used; there will be no taxable compensation income, as it is fully covered by the tax-exempt amount. However, the question is whether the “unutilized” P50,000 (P250,000 tax exempt less P200,000 compensation income) can be deducted against the business income.
To answer the concern above, the illustration in RR No. 08-2018 shows that the “unutilized” exempt income is not allowed as a deduction against the business income. The Bureau of Internal Revenue (BIR) explained that the P250,000 tax exempt income is not applicable to the business income of a mixed income earner availing of the 8% income tax rate option, since it is already incorporated in the first tier of the graduated income tax rates applicable to compensation income.
4. Itemized Deduction and Optional Standard Deduction (OSD) is not an option for individuals availing of 8% income tax rate
The computation of 8% income tax is based on gross sales/receipts without deductions, except for sales returns/allowances and sales discounts, subject to certain criteria. Hence, itemized deductions or OSD are not available to individuals availing of the 8% income tax rate.
The lower personal income tax rates offered by the TRAIN law are indeed a pleasant reform for individual taxpayers. As popular as the said provision is, an individual taxpayer should not forget that there are other rules to take note of in order to know their rights, their options, and the related consequences.
Flourence Kathrine S. Enriquez is a manager of the Tax Advisory and Compliance of P&A Grant Thornton.
As published in BusinessWorld, dated 27 February 2018