Timeout Plan is a subscription that is specifically created for dormant businesses. It helps these businesses including those with ZERO income, ZERO expenses, ZERO Withheld Tax, keep their records updated with the BIR by filing automatic zero-forms.

If you have a Timeout Plan Subscription, Taxumo will, by itself, automatically file tax forms for you that show 0 income, 0 expenses, 0 withholding taxes. You select which tax forms you want to file. This is perfect for the business that had to be put on hold for a while. If you have any income, any expenses, or any withheld taxes you want reported in your tax submissions, the other Taxumo subscriptions would be more suitable for you.

Following are the forms that you can activate for automatic filing in the Timeout Plan:

• Income Tax Forms (1701/1701A/1701Q and 1702 for corporate entities)
• Percentage Tax (2551Q)
• Expanded Withholding Tax (0619E, 1601EQ, 1604E)
• Value Added Tax (2550M, 2550Q)
• Withholding Tax for Compensation (1601C)

The cost of the Timeout Plan subscription is ₱200 per month billed annually or a total of ₱2,400 one-time payment for a 12 month subscription.

Congratulations on successfully bouncing back! Since the Timeout Plan can only be used for zero-filings, you will need to shift into the regular Taxumo subscription plans.

The Timeout Plan is for individuals, partnerships, or corporations who are dormant — zero income, zero expenses, zero withheld. If you’re someone who wants to “pick up” your business again once the pandemic is over or someone who just wants to delay closing their business (closing is arguably more costly and requires more effort than opening a business), then Taxumo Lifeline is for you.

You can definitely do that! However, remember that you must keep abreast of all the tax code changes, process changes, and new forms that the BIR releases; to give you an idea, the BIR released 224 Revenue Issuances in 2019 alone. If you have the time and energy to do that, then filing for yourself is an option.

Yes, you can. As part of the business closure process, the BIR will audit your books to ensure they didn’t miss a centavo of potential tax revenue. Aside from that, there are procedures that you will need to comply with (notices to suppliers, customers, etc) that you will need to take care of. It’s quite a lengthy process.

If you want to go through this process and don’t think you’ll get back to your business later, then closing your business is definitely an option. Contact us at customercare@taxumo.com and we may be able to refer you to one of our partner accountants who can assist you with this.