GLOSSARY · PHILIPPINES

Glossary of Philippine business, tax & software terms.

Plain-language definitions for BIR, payroll, HR, and enterprise software — each linked to the guide that explains it in full.

296 terms, defined and cross-referenced. Free, no signup.

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.DAT file: The prescribed electronic file format for the alphalist, generated by the BIR Alphalist Data Entry and Validation Module and submitted via eSubmission or eFPS.Read the guide →
₱250,000 zero bracket: The first ₱250,000 of annual taxable individual income, taxed at 0% under TRAIN — effectively exempting most low-income earners.Read the guide →
₱90,000 tax-exempt ceiling: The combined annual cap under the NIRC as amended by TRAIN (RA 10963) below which 13th month pay and other benefits are income-tax-exempt; only the excess is taxable.Read the guide →
13th-month pay: A mandatory benefit under Presidential Decree 851, payable to rank-and-file employees by 24 December; the first ₱90,000 of 13th-month and other benefits is income-tax-exempt under the TRAIN Law (RA 10963).Read the guide →
4PH: Pambansang Pabahay para sa Pilipino, the national housing programme under which qualified socialised-housing borrowers can access a subsidised Pag-IBIG rate as low as 3% per year.Read the guide →
8% flat tax option: An optional regime for non-VAT self-employed individuals and professionals (≤₱3M) to be taxed at 8% on gross receipts over ₱250,000, replacing graduated and percentage tax.Read the guide →
8% income tax option: An elective flat 8% tax on gross sales/receipts over ₱250,000 for eligible self-employed/professionals under the ₱3,000,000 VAT threshold, in lieu of the graduated income tax and percentage tax.Read the guide →

A

Acknowledgement Certificate: The document the BIR issues when a CAS is registered under the simplified RMC 5-2021 process, replacing the former Permit to Use; followed by a post-evaluation against BIR system standards.Read the guide →
Acknowledgement Certificate (AC): The document the BIR issues to confirm registration of a CAS or CBA. It replaced the older Permit to Use and is issued on submission of the documentary requirements.Read the guide →
Allocation of leave: The mother's option under RA 11210 to transfer up to 7 of her 105 days to the child's father or an alternate caregiver, separate from RA 8187 paternity leave.Read the guide →
Alphalist: The alphabetical list of employees and their compensation and tax withheld, filed with BIR Form 1604-C by 31 January to reconcile the year's monthly 1601-C remittances.Read the guide →
Alternate caregiver: Under RA 11210, a person (e.g., a relative within the fourth degree or the mother's current partner) who may receive the mother's allocated leave days when there is no qualifying father.Read the guide →
Amortization: One of the equal scheduled monthly payments that repay a loan. An SSS salary loan is repaid in 24 amortizations, the first due in the second month after approval.Read the guide →
Annual inventory list: The year-end inventory schedule the BIR requires under RMC 57-2015, submitted within 30 days of the close of the taxable year (30 January for calendar-year filers) with a notarised certification.Read the guide →
Annual Registration Fee (ARF): The former ₱500.00 yearly BIR registration fee, abolished effective January 22, 2024 by the Ease of Paying Taxes Act (RA 11976) and implemented by RR No. 7-2024.Read the guide →
Article 95: The provision of the Labor Code of the Philippines that establishes Service Incentive Leave, its 5-day entitlement, eligibility, and exemptions.Read the guide →
ATC (Alphanumeric Tax Code): The code on Form 2307 identifying the income-payment type and payee nature; WI denotes an individual payee, WC a corporate payee (e.g. WI010 vs WC010 for professional fees).Read the guide →
Audit trail: A system record of who entered or changed each transaction; required of a registered CAS so the BIR can verify the integrity of the books.Read the guide →
Authority to Print (ATP): BIR authorization, obtained through a BIR-accredited printer, allowing a taxpayer to have official receipts and invoices printed for issuance to customers.Read the guide →
Authorized capital stock: The maximum amount of share capital a corporation may issue, as stated in its Articles; SEC filing fees are computed largely on this figure.Read the guide →
Authorized cause: A business- or health-driven ground for termination under Arts. 298–299 (installation of labor-saving devices, redundancy, retrenchment, closure, or disease) that is not attributable to employee fault and that carries separation pay.Read the guide →
Average daily salary credit (ADSC): The 6 highest MSCs in the relevant 12-month window, summed and divided by 180. At the 20,000 cap this equals (6 × 20,000) ÷ 180 = 666.67.Read the guide →

B

Barangay: The smallest local government unit in the Philippines, headed by a Punong Barangay (barangay captain). It can levy fees on and issue clearances to businesses within its territory under RA 7160.Read the guide →
Barangay Business Clearance: A clearance from the barangay where the business operates, certifying no objection to operations; a prerequisite for the Mayor's Permit.Read the guide →
Basic salary: The fixed wage for work performed, excluding overtime, holiday/premium pay, night-shift differential, COLA, allowances, and cash-converted leave unless integrated by agreement or practice.Read the guide →
BIR accreditation: Registration of a POS or sales system with the Bureau of Internal Revenue so it may legally issue official receipts and sales invoices.Read the guide →
BIR Form 0605 (Payment Form): A general-purpose BIR form used to pay taxes, fees, charges, penalties, and deficiencies that have no dedicated return, and to make voluntary or advance payments.Read the guide →
BIR Form 1601-C: The monthly remittance return an employer files with the Bureau of Internal Revenue for income tax withheld on employee compensation.Read the guide →
BIR Form 1604-C: Annual Information Return of Income Taxes Withheld on Compensation; due January 31 of the following year, with the alphalist of employees attached.Read the guide →
BIR Form 1604-C and alphalist: The annual information return of income taxes withheld on compensation, filed with an alphalist of all employees; it must reconcile with the year's monthly 1601-C filings.Read the guide →
BIR Form 1604-E: Annual Information Return of Creditable Income Taxes Withheld (Expanded); due March 1 of the following year, with the alphalist of expanded-withholding payees.Read the guide →
BIR Form 1604-F: Annual Information Return for final withholding taxes; a separate return from 1604-C and 1604-E, with its own alphalist of payees subjected to final withholding tax.Read the guide →
BIR Form 1702 / 1702Q: The corporate income tax returns: 1702 (annual, with RT/EX/MX variants) and 1702Q (quarterly). Corporations file these; individuals use BIR Form 1701 instead.Read the guide →
BIR Form 1801: The Estate Tax Return filed with the BIR, generally due within one year of the decedent's death.Read the guide →
BIR Form 1901: The Bureau of Internal Revenue application form used by self-employed individuals and sole proprietors to register for tax purposes.Read the guide →
BIR Form 1902 / 1901 / 1903 / 1904: The four primary BIR registration forms: 1902 for employees, 1901 for the self-employed and professionals, 1903 for corporations and partnerships, and 1904 for one-time / EO 98 taxpayers.Read the guide →
BIR Form 1903: The Bureau of Internal Revenue registration form for corporations and partnerships, filed after SEC registration to obtain a corporate TIN and Certificate of Registration.Read the guide →
BIR Form 1905: The BIR form used to update registration information, transfer your RDO, or cancel a duplicate TIN. It is the correct fix if you discover you accidentally hold more than one TIN.Read the guide →
BIR Form 2000: The Documentary Stamp Tax Declaration/Return used for regular or recurring DST liabilities, including eDST affixture.Read the guide →
BIR Form 2000-OT: The DST return for one-time transactions such as a single deed of sale of real property or an isolated share transfer.Read the guide →
BIR Form 2303: The official form number of the Certificate of Registration issued by the Bureau of Internal Revenue upon completion of business or taxpayer registration.Read the guide →
BIR Form 2307: The Certificate of Creditable Tax Withheld at Source, used to claim creditable withholding taxes against the income tax due on the annual return.Read the guide →
BIR Form 2316: The certificate of compensation payment and tax withheld an employer must issue to each employee by 31 January, used in substituted filing of the employee's income tax.Read the guide →
BIR Form 2550M: The former monthly VAT declaration, discontinued effective 1 January 2023 under the TRAIN Law. VAT is no longer filed monthly.Read the guide →
BIR Form 2550Q: The quarterly VAT return filed by VAT-registered taxpayers within 25 days after the close of each taxable quarter. It is now the only VAT return.Read the guide →
BIR Form 2551Q: The Quarterly Percentage Tax Return used to report and pay Section 116 percentage tax, due within 25 days after each quarter ends.Read the guide →
BIR ORUS: The BIR Online Registration and Update System at orus.bir.gov.ph, where individuals and entities can register a TIN, update registration details, and generate a Digital TIN ID online without visiting an RDO.Read the guide →
BNRS: Business Name Registration System — DTI's official online portal (bnrs.dti.gov.ph) for searching, registering, and renewing business names.Read the guide →
Books of Accounts: The accounting records (journals and ledgers) a registered taxpayer must keep and register with the BIR — maintained manually, in loose-leaf form, or via a computerized accounting system.Read the guide →
BPLO: Business Permits and Licensing Office — the city or municipal office that processes business permit applications and renewals.Read the guide →
BPLS: Business Permits and Licensing System — an LGU system, often online or one-stop, that streamlines permit filing, assessment, and payment.Read the guide →
Build-vs-buy: The decision between licensing an off-the-shelf product and commissioning a custom system you own. Off-the-shelf wins for standard processes and small headcounts; a build tends to win when cost, process fit, ownership, and BIR exposure all favour it.Read the guide →
Business Name (BN): Any name, different from your true legal name, that you use or sign in connection with your business on receipts, signage, or agreements.Read the guide →
Business Name Certificate: The document DTI issues confirming your registered business name, valid for five years and renewable through the BNRS portal.Read the guide →

C

Calamity Loan: A loan of up to 80% of your TAV at 5.95% per year for members in a declared calamity area, repayable over up to 24 months after a 3-month grace period; requires at least 24 monthly savings.Read the guide →
Capital asset: Any property of the taxpayer that is not stock in trade, inventory, depreciable business property, or real property used in business. For individuals this usually means investment real property and shares. Only capital assets can be subject to CGT (NIRC Sec. 39).Read the guide →
CAS: Computerized Accounting System — a system that keeps the books and issues invoices; in the Philippines it is registered with the BIR (no Permit to Use required under RMC 5-2021).Read the guide →
CAS (Computerized Accounting System): In BIR terms, a system used to keep the books and issue invoices. An ERP used for accounting is a CAS and must be registered with the BIR under RMC 5-2021 and RMO 9-2021.Read the guide →
CAS Acknowledgement Certificate: The registration confirmation the BIR issues for a Computerized Accounting System under RMC 5-2021 / RMO 9-2021, replacing the former Permit to Use (PTU).Read the guide →
CAS registration: BIR registration of a Computerized Accounting System, which may be required once software generates official books of accounts or tax returns in the Philippines.Read the guide →
Certificate of Incorporation: The SEC document proving a corporation legally exists, issued once eSPARC approves the registration.Read the guide →
Certificate of Registration (BIR Form 2303): The document issued upon BIR registration listing a taxpayer's tax types and the books of accounts it commits to keep.Read the guide →
Certificate of Registration (COR): BIR Form 2303 — the document confirming a taxpayer or business is registered with the BIR, listing the TIN, registered details, RDO, and the tax types the taxpayer must file.Read the guide →
Certificate of Registration (Form 2303): The official BIR document issued after registration, showing your TIN, registered name, business address, registered tax types, and filing deadlines. It must be displayed at the place of business.Read the guide →
Chart of accounts: The structured list of every account a business uses to classify its transactions, such as cash, sales, VAT payable, and rent expense.Read the guide →
Cloud ERP: An ERP whose data and processing live on internet-reached servers, usually billed by subscription, giving head office a real-time, multi-branch view with vendor-managed hosting and updates.Read the guide →
Cloud ERP (SaaS): ERP delivered as a service from the vendor's servers and used over the internet, paid by subscription, with the vendor handling hosting, backups, and upgrades.Read the guide →
Cloud POS: A POS whose catalogue and sales data live on a central server reachable over the internet, giving head office a real-time multi-branch view.Read the guide →
CMEPA (RA 12214): The Capital Markets Efficiency Promotion Act, effective 1 July 2025, which cut DST on share issuances and debt instruments to 0.75% and exempted listed-share trades.Read the guide →
Cohabitation requirement: The RA 8187 condition that the employee be living with his lawful wife at the time of delivery or miscarriage; separation in fact can disqualify the claim.Read the guide →
Community Tax Certificate (cedula): An LGU-issued certificate evidencing payment of the community tax; commonly required when applying for a barangay business clearance.Read the guide →
Commutation (cash conversion): The conversion of unused SIL days into their money equivalent at year-end, computed using the employee's salary rate at the time of conversion.Read the guide →
Compensation income: All remuneration for services performed by an employee for an employer — salaries, wages, allowances, commissions, and benefits — taxed under the graduated rates of Section 24(A) of the NIRC.Read the guide →
Comprehensive Tax Reform Program (CTRP): The government's multi-package overhaul of the tax system. TRAIN is Package 1; CREATE is a later package covering corporate tax.Read the guide →
Computerized Accounting System (CAS): Software that keeps a business's books of accounts and issues its invoices and receipts; in the Philippines it must be registered with the BIR before use.Read the guide →
Computerized Books of Accounts (CBA): Software used mainly to keep the books — ledgers and journals — in electronic form, without necessarily issuing invoices; registered with the BIR like a CAS.Read the guide →
Contribution ceiling: The 35,000 maximum income on which SSS contributions are based. It governs contributions, not the maternity benefit, whose MSC is separately capped at 20,000.Read the guide →
CREATE Act (RA 11534): The Corporate Recovery and Tax Incentives for Enterprises Act, effective 1 July 2020, which cut the corporate rate to 25%/20%, temporarily reduced MCIT, and reformed fiscal incentives.Read the guide →
CREATE Law (RA 11534): The 2021 law that temporarily cut the Section 116 rate to 1% from July 1, 2020 to June 30, 2023, after which it reverted to 3%.Read the guide →
CREATE MORE Act (RA 12066): The law amending the Tax Code's invoicing provisions; it underpins RR 11-2025 and grants an additional deduction for the cost of adopting e-invoicing.Read the guide →
Creditable vs final withholding: Creditable tax is an advance the payee credits against income tax due and can refund or carry forward; final tax is the full and final liability on the income, which is no longer reported on the payee's return.Read the guide →
Creditable Withholding Tax (CWT): Tax withheld at source that is only an advance against the payee's income tax; the payee credits it against the tax it owes. Form 2307 is its certificate.Read the guide →
CRM (customer relationship management): The system a business uses to manage customers and leads — storing records, tracking deals through stages, and logging every interaction in one shared place.Read the guide →

D

DAEM: The Disbursement Account Enrollment Module, where an SSS member enrols the bank account that will receive loan and benefit proceeds via a PESONet-participating bank.Read the guide →
Data Privacy Act (RA 10173): The Philippine law, enforced by the National Privacy Commission, governing the processing of personal information — including data held by cloud vendors abroad on a Philippine business's behalf.Read the guide →
De minimis benefit: A small-value perk, drawn from an exclusive BIR list, that is exempt from income tax and withholding tax on compensation when given within its prescribed ceiling.Read the guide →
Demand forecasting: Predicting how much of each item will sell so the business can buy and stock the right quantities — critical in the Philippines where inter-island lead times are long.Read the guide →
Digital TIN ID: A free electronic TIN identification card generated through ORUS or the eGovPH app, accepted as a valid government-issued ID and the BIR's current standard in place of the old physical TIN card.Read the guide →
Diminishing balance: An interest method where interest is charged only on the principal still owed, so the interest portion of each payment falls over time — far cheaper than a flat rate on the original amount.Read the guide →
Documentary Stamp Tax (DST): A ₱30 tax added to every DTI business name registration, collected on top of the scope-based registration fee.Read the guide →
Double-entry bookkeeping: The method underlying accounting software in which every transaction is recorded in at least two accounts — one debit and one credit — so the books always balance.Read the guide →
DSWD: The Department of Social Welfare and Development, the national agency that administers the Solo Parents' Welfare Act and oversees issuance of Solo Parent IDs through LGUs.Read the guide →
DTI Business Name Certificate: The Department of Trade and Industry registration of a sole proprietor's trade name, used as proof of business name at the barangay.Read the guide →

E

Ease of Paying Taxes Act (RA 11976): A 2024 law that simplified Philippine tax administration, including removing the ₱500 annual registration fee and updating registration and invoicing rules.Read the guide →
Ease of Paying Taxes Act (RA No. 11976): The 2024 law, implemented by RR No. 7-2024, that streamlined several taxpayer-registration mechanics, including removing the annual registration fee.Read the guide →
eBIRForms: The BIR's Electronic Filing system using a downloadable Offline Package for taxpayers not enrolled in eFPS; it validates and submits returns and issues an emailed Tax Return Receipt Confirmation.Read the guide →
eCAR: Electronic Certificate Authorizing Registration — the BIR clearance required before estate assets can be transferred to heirs.Read the guide →
eCAR (electronic Certificate Authorizing Registration): The BIR document confirming that the CGT and DST on a transfer have been paid. The Registry of Deeds will not transfer real-property title, and a corporation will not record a share transfer, without it.Read the guide →
eCAR / Certificate Authorizing Registration: BIR clearance confirming taxes (including DST) on a property transfer are paid, required before a new title can be registered.Read the guide →
eDST System: The BIR's electronic Documentary Stamp Tax system that imprints a secure stamp and remits the tax in lieu of physical adhesive stamps.Read the guide →
eFPS: The Electronic Filing and Payment System — the BIR's web portal for large taxpayers and mandated filers to e-file and e-pay, subject to a staggered industry-group schedule.Read the guide →
EIS: The BIR's Electronic Invoicing System, to which covered taxpayers must transmit sales data under the 2024–2025 e-invoicing rules.Read the guide →
EIS (Electronic Invoicing System): The BIR system to which covered taxpayers must transmit structured electronic invoice and sales data under RR 11-2025; a paper-printed invoice without electronic reporting does not qualify.Read the guide →
Electronic invoice: Under BIR RR 11-2025, a system-generated invoice in structured data that can be transmitted to the BIR; a printout with no transmission capability is treated as a plain manual invoice, not an electronic one.Read the guide →
Employer (ER) number: The identifier SSS issues to a registered employer, obtained via Form R-1, required before an employer can enroll a My.SSS Employer account.Read the guide →
EO 98: Executive Order No. 98, which requires a TIN for transactions with government agencies. People who need a TIN only for such one-time dealings, with no other tax type, register under EO 98 using BIR Form 1904.Read the guide →
EOPT (RA 11976): The Ease of Paying Taxes Act of 2024 and its regulations (e.g. RR 4-2024), which introduced 'file and pay anywhere' and rationalized several filing rules.Read the guide →
EOPT Act (RA 11976): The Ease of Paying Taxes Act, which shifted VAT on services toward an invoice/accrual basis, allowed credit for output VAT on uncollected receivables, and unified VAT documentation.Read the guide →
ERP: Enterprise resource planning — the back-office system for inventory, accounting, payroll, and manufacturing, distinct from a CRM but typically connected to it.Read the guide →
ERP (enterprise resource planning): Software that runs a company's core operations — finance, inventory, purchasing, manufacturing, sales, and HR/payroll — on a single shared database, so every department works from the same data.Read the guide →
eSECURE: The SEC's secure online identity/credentialing system; a credentialed eSECURE account is required to transact on eSPARC.Read the guide →
eSPARC: Electronic Simplified Processing of Application for Registration of Company — the SEC's online portal for registering corporations, OPCs, and partnerships.Read the guide →
Estate tax: A tax on the privilege of transmitting a deceased person's net estate to their heirs, currently a flat 6% under the TRAIN law.Read the guide →
Estate tax amnesty: A now-closed relief (RA 11213, as amended) for estates of decedents who died on or before May 31, 2022; availment ended June 14, 2025.Read the guide →
eSubmission: The BIR facility (esubmission@bir.gov.ph) used by non-eFPS filers to submit the validated .DAT alphalist file by email and receive an acknowledgement.Read the guide →
Excess over ceiling: The portion of a de minimis benefit above its prescribed limit; it loses de minimis status and is reclassified into 'other benefits' for the P90,000 test.Read the guide →
Expanded Withholding Tax (EWT): The system of creditable withholding on specified income payments — professional fees, rentals, contractor fees and more — under RR 2-98 §2.58 (as amended).Read the guide →

F

Fair market value (FMV): For DST on real property, the higher of the BIR zonal value or the assessor's market value, used as the tax base when greater than the price.Read the guide →
Family home deduction: A deduction of up to ₱10,000,000 for the decedent's actual family home; any value above the cap remains taxable.Read the guide →
Field personnel: Employees who regularly perform duties away from the principal workplace and whose actual hours cannot be determined with certainty; they are exempt from SIL.Read the guide →
FIFO: First-in, first-out — a costing method that assumes the oldest stock is sold first, commonly used in the Philippines and reflected in inventory valuation and cost of goods sold.Read the guide →
Fill rate: The share of customer demand met from stock on hand without backorder — a core SCM metric that demand planning and safety stock are tuned to protect.Read the guide →
Final pay: The total of all amounts due to a departing employee — last salary, pro-rated 13th-month pay, leave conversion, tax refunds, and any separation pay — to be released within 30 days per DOLE Labor Advisory 06-2020.Read the guide →
Final withholding tax: Tax withheld in full and final settlement of the payee's liability on that income; it is not creditable and is certified on Form 2306, not 2307.Read the guide →
Flat 6% estate tax: TRAIN's single-rate estate tax on a decedent's net estate, replacing the old graduated schedule that reached 20%.Read the guide →
Form 0619E: The monthly remittance form for creditable income taxes withheld (expanded) — used to remit the EWT collected during the month to the BIR.Read the guide →
Form 1601-EQ: The quarterly remittance return for expanded withholding tax, filed each quarter together with the Quarterly Alphalist of Payees (QAP).Read the guide →
Form 1701Q: The quarterly income tax return for individuals, due May 15, August 15, and November 15, which is reconciled on the annual Form 1701.Read the guide →
Form 2307: The Certificate of Creditable Tax Withheld at Source, issued to the payee on or before the 20th day of the month following the close of the taxable quarter, used by the payee to claim the credit.Read the guide →
Form R-1 / R-1A: SSS employer forms: R-1 registers the business as an employer; R-1A reports newly hired or added employees to SSS.Read the guide →
Form S1905 (Registration Update Sheet): A short BIR sheet used mainly to register or update the email address tied to your TIN so you can create an ORUS account. Distinct from the full Form 1905.Read the guide →
Fringe benefits tax (FBT): A final tax on certain benefits given to managerial/supervisory employees. De minimis benefits within their ceilings are exempt from FBT.Read the guide →
FSIC: Fire Safety Inspection Certificate — issued by the Bureau of Fire Protection after inspecting the premises; required for the business permit.Read the guide →
Full pay: For paternity leave, the basic salary plus mandatory allowances the employee would have earned had he worked the seven covered days.Read the guide →

G

General ledger: The master record of all of a business's accounts, where every transaction is posted by account; the source from which financial statements are built.Read the guide →
Graduated income tax rates: The progressive individual tax table under the TRAIN law, exempting the first ₱250,000 and rising through 15% to 35% on taxable income over ₱8,000,000.Read the guide →
Gross estate: The total fair market value of everything the decedent owned at the date of death, before any deductions are applied.Read the guide →
Gross income (for MCIT): A narrow base — broadly gross sales less returns, discounts, allowances, and cost of goods sold or cost of services — used to compute the 2% MCIT under Sec. 27(E) of the NIRC.Read the guide →
Gross receipts tax: A percentage tax imposed on banks and non-bank financial intermediaries under NIRC Sections 121–122, at rates distinct from the general 3%.Read the guide →

H

HCM: Human Capital Management — a broad category of enterprise HR software (e.g. Workday, SAP SuccessFactors) covering core HR, payroll, talent, and analytics, typically aimed at large organisations.Read the guide →
HRIS: Human Resource Information System — the software that stores employee records and runs core HR work, including attendance, leave, payroll, and government compliance, from one source of truth.Read the guide →

I

Incorporators: The persons (1 for an OPC, or 2–15) who sign the Articles of Incorporation to form the corporation; may be natural or juridical persons under RA 11232.Read the guide →
Input VAT: The 12% VAT a business paid on its purchases of goods, services, or imports. It is creditable against output VAT, reducing the VAT remitted to the BIR.Read the guide →
Inventory management system (IMS): Software that tracks every item a business holds — quantity, cost, and location — and records each stock movement in real time so on-hand figures and valuation stay accurate.Read the guide →
Itemized deductions: Actual ordinary and necessary business expenses subtracted from gross income, each properly substantiated with receipts and records. Itemized-deduction filers must use Form 1701, not 1701A.Read the guide →

J

Joint and several liability: The rule that both parties to a DST-taxable document are liable; if one is exempt, the other must pay the full DST.Read the guide →
JSON Web Signature (JWS): A digital signature applied to each electronic invoice's JSON file so the BIR can confirm the document is authentic and has not been altered in transit.Read the guide →
Just cause: An employee-fault ground for dismissal under Art. 297 (serious misconduct, willful disobedience, gross neglect, fraud or breach of trust, commission of a crime, or analogous causes). Dismissal for just cause carries no separation pay.Read the guide →

K

Kasambahay (RA 10361): A domestic worker covered by the Batas Kasambahay, which grants its own 5-day annual leave after one year of service instead of Article 95 SIL.Read the guide →

L

Landed cost: The full cost of getting a product to your warehouse, including freight, duties, and handling — tracked so inventory is valued and priced correctly.Read the guide →
Large Taxpayers Service (LTS): The BIR unit overseeing the country's largest registered taxpayers, who are in the first wave required to comply with e-invoicing under RR 11-2025.Read the guide →
Lead: A potential customer who has shown interest but is not yet a closed deal; a CRM captures, routes, and tracks leads so none are dropped.Read the guide →
Local Business Tax (LBT): The tax an LGU imposes on businesses under RA 7160, typically scaling with gross receipts/sales or declared capital and line of business.Read the guide →
Locational / zoning clearance: LGU confirmation that the proposed line of business is permitted at the chosen address under the local zoning ordinance.Read the guide →
Loose-leaf books: Computer-generated entries (e.g., from spreadsheets) printed, permanently bound, and registered annually under a Permit to Use loose-leaf.Read the guide →

M

Managerial employee: An employee whose primary duty is to manage the establishment or a department, with authority to hire, fire, or effectively recommend such actions; exempt from SIL.Read the guide →
Mandatory Provident Fund (WISP): The savings program that receives the portion of salary credit above 20,000. Amounts routed here do not raise the maternity benefit.Read the guide →
Manual books: Pre-printed, bound journals and ledgers filled in by hand, registered before first use and replaced only when their pages are fully consumed.Read the guide →
Maternity notification: The notice of pregnancy a member files with SSS (through the employer, for employees) — a condition for claiming the benefit.Read the guide →
Maternity-leave allocation: Up to 7 days that a mother entitled to 105-day maternity leave may transfer to the child's father under RA 11210; funded by the mother's SSS benefit, not the father's employer.Read the guide →
Mayor's Permit (Business Permit): The LGU-issued license authorizing a business to legally operate at a specific location, valid for one calendar year and renewed annually.Read the guide →
Mayor's Permit / Business Permit: The city or municipal license to operate a business, issued by the Business Permits and Licensing Office. Requires a valid Barangay Business Clearance first.Read the guide →
MCIT (Minimum Corporate Income Tax): A floor tax equal to 2% of gross income, applicable from the 4th taxable year. A corporation pays the higher of RCIT and MCIT; excess MCIT can be carried forward three years.Read the guide →
Mid-market ERP: Software such as Odoo or SAP Business One that spans accounting, inventory and sales for growing SMEs — broader than small-business accounting tools but lighter than enterprise ERP.Read the guide →
Mixed-income earner: A taxpayer who earns both compensation income from an employer and income from a business or profession in the same taxable year. Mixed-income earners file Form 1701.Read the guide →
Module: An application within an ERP dedicated to one business function (e.g. finance, inventory, payroll). Modules share one database, so a transaction entered in one is instantly visible to the others.Read the guide →
Monthly Salary Credit (MSC): The salary bracket the SSS uses to set contributions; the total SSS contribution is 15% of the MSC (10% employer, 5% employee) under RA 11199, with a current ₱5,000 floor and ₱35,000 ceiling.Read the guide →
Multi-Purpose Loan (MPL): A cash loan of up to 90% of your TAV at 10.5% per year (1.4583% per month) on a diminishing balance, repayable over 12, 24, or 36 months, for any purpose.Read the guide →
My.SSS: The SSS online member portal at member.sss.gov.ph where members check contributions, file loans and benefits, and generate Payment Reference Numbers.Read the guide →

N

Net capital gain: For unlisted shares, the selling price less the cost or adjusted basis of the shares and directly attributable selling expenses. The 15% share CGT is applied to this figure, not to the gross price.Read the guide →
Net estate: The gross estate minus all allowed deductions (standard deduction, family home, debts, etc.). The 6% estate tax is applied to this figure.Read the guide →
Net taxable income: Gross income less allowable deductions (cost of sales, ordinary business expenses, and either itemized deductions or the 40% Optional Standard Deduction); the base for computing RCIT.Read the guide →
Night differential: Additional pay for work between 10:00 p.m. and 6:00 a.m. under Article 86 of the Labor Code (at least 10% of the hourly rate). Payroll software must apply it on top of overtime and holiday rules.Read the guide →
NIRC Sec. 32(B)(6)(b): The National Internal Revenue Code provision excluding from gross income any separation benefit received due to death, sickness, disability, or any cause beyond the employee's control — the legal basis for tax-exempt separation pay.Read the guide →
Non-convertible to cash: A leave benefit that an employer is not required to pay out in cash if unused, whether during employment or upon separation.Read the guide →
Non-cumulative leave: A leave that does not carry over to the next year; unused solo parent leave days are forfeited at year-end and cannot be added to a future year's entitlement.Read the guide →
Non-resettable accumulating grand total: A lifetime running total of sales that can never be reset to zero — at least 10 digits under RMO 9-2021. It is the BIR's audit anchor for reconciling reported sales.Read the guide →

O

Official Receipt (OR): After EOPT, a supplementary document that acknowledges payment or collection received. It is no longer the primary document for services and is not valid on its own to claim input tax.Read the guide →
On-premise ERP: ERP installed on a server the business owns and hosts, typically bought with a perpetual licence and maintained by the company's own IT team.Read the guide →
One year of service: Service rendered within 12 months, whether continuous or broken, that qualifies an employee for SIL; includes authorized absences, regular holidays, and rest days.Read the guide →
OneSEC: One-day Submission and E-registration of Companies — the fast lane within eSPARC for standard OPCs and simple corporations using templated documents.Read the guide →
OPC (One Person Corporation): A corporation with a single stockholder, allowed under RA 11232, offering limited liability — registered with the SEC, unlike a DTI sole proprietorship.Read the guide →
Open-source ERP: An ERP whose source code is openly licensed and can be self-hosted and modified, such as Odoo Community or ERPNext. It removes per-seat licence fees but shifts hosting, security, and maintenance onto your own team or partner.Read the guide →
Optional Standard Deduction (OSD): A deduction equal to 40% of gross sales or receipts that an individual may claim in place of itemizing actual business expenses, requiring no detailed substantiation of expenses.Read the guide →
Ordinary asset: Property held for sale to customers, inventory, depreciable property used in business, or real property used in the trade or business. Gains on ordinary assets are taxed as ordinary income (plus VAT where applicable), never as CGT.Read the guide →
Original issue of shares: The first issuance of shares of stock by a corporation, taxed under Sec. 174 at 0.75% of par value (or actual consideration if no par).Read the guide →
ORUS: The BIR Online Registration and Update System, the online channel for registration-related transactions, including an expanding set of Form 1905 updates such as change or transfer of RDO code. Requires an enrolled email linked to your TIN.Read the guide →
ORUS (Online Registration and Update System): The BIR's online system at orus.bir.gov.ph for registering, updating, and managing taxpayer records, including filing Form 1901 and registering books of accounts online.Read the guide →
Other benefits: Bonuses and similar items (14th month, mid-year and productivity bonuses, plus any de minimis excess) that, together with 13th month pay, are tested against the P90,000 ceiling.Read the guide →
Output VAT: The 12% VAT a VAT-registered seller charges on its sales of goods or services. It is the gross VAT before deducting input VAT.Read the guide →

P

P90,000 ceiling: The tax-exempt cap (under RR 11-2018 / TRAIN) on combined 13th month pay and 'other benefits.' Amounts above P90,000 are taxable compensation.Read the guide →
Pag-IBIG: The Home Development Mutual Fund (HDMF). Contributions are typically 2% of monthly basic salary, split between employer and employee, subject to a compensation cap.Read the guide →
Pag-IBIG / HDMF: The Home Development Mutual Fund, the government savings fund Filipino workers contribute to monthly; members can borrow from it via the Multi-Purpose, Calamity, and Housing loans.Read the guide →
Parental leave for solo parents: The 7 working days of paid leave per year granted to a qualified solo parent under RA 11861 to perform parental duties; the formal name of solo parent leave.Read the guide →
Payee: The supplier or income earner whose payment was withheld upon; the party that receives Form 2307 and claims the creditable tax as a credit.Read the guide →
Payment Reference Number (PRN): A code generated in My.SSS that identifies a specific contribution or loan payment so it posts to the correct member and period.Read the guide →
Per-employee-per-month (PEPM): A subscription pricing model where the fee scales with headcount, common to local Philippine payroll SaaS. Cheap at small scale, it compounds as the company grows.Read the guide →
Per-seat / per-terminal fee: A subscription charged for each user or till. It is cheap at small scale but compounds as terminals grow, which is why total five-year cost matters more than the monthly price.Read the guide →
Per-seat fee: A subscription charged for each user who accesses the software. Because it recurs and scales with headcount, it is the cost that grows indefinitely with the company — the main reason large operators weigh an owned build against an open-ended licence.Read the guide →
Per-seat licensing: A pricing model charging a recurring fee per user per month; cheap at a few users but a compounding annual cost at enterprise headcount, and the main cost a custom build avoids.Read the guide →
Percentage tax: A business tax on gross sales or receipts of non-VAT persons or entities, most commonly 3% under Section 116 of the NIRC.Read the guide →
Percentage tax (Sec. 116): A tax generally equal to 3% of gross receipts, paid by non-VAT taxpayers whose annual sales do not exceed ₱3,000,000, in lieu of VAT.Read the guide →
Permit to Use (Form 1900): The application a taxpayer files for each branch to legally operate an accredited POS or CRM, submitted with a sample receipt and a Z-reading.Read the guide →
Permit to Use (PTU): The former BIR authorisation to use a CAS, which required a system demonstration before an evaluation team. It was suspended in favour of the Acknowledgement Certificate.Read the guide →
Permit to Use (PTU) loose-leaf: The BIR authorization required before a taxpayer may adopt the loose-leaf method for its books of accounts.Read the guide →
Personal Information Controller (PIC): Under the Data Privacy Act (RA 10173), the party that decides how and why personal data is processed; the employer is the PIC for its HR data, while a cloud HRIS vendor is typically a Processor.Read the guide →
PhilHealth: The national health insurance fund. The premium is computed at 5% of monthly basic salary within a salary floor and ceiling, shared by employer and employee.Read the guide →
Pipeline: The set of named stages a deal moves through, from first enquiry to closed-won or closed-lost, that lets a manager see and forecast the whole sales effort at a glance.Read the guide →
Point of sale (POS): The point at which a sale is completed; by extension, the hardware and software used there to take payment and record the transaction.Read the guide →
POS (Point of Sale): The hardware and software at the till that records a sale and issues the official receipt or invoice. In the Philippines it must be BIR-accredited to be used legally.Read the guide →
Posted contribution: A monthly contribution that SSS has actually recorded and credited to your record. Loan eligibility counts posted contributions, not merely paid or intended ones.Read the guide →
Presidential Decree No. 851: The 1975 decree that mandates 13th month pay for rank-and-file employees in the private sector and sets the basic-salary ÷ 12 formula.Read the guide →
Principal-residence exemption: Relief under NIRC Sec. 24(D)(2) exempting the sale of a natural person's main home from the 6% CGT if the full proceeds are reinvested in a new home within 18 months, the BIR is notified within 30 days, and the relief was not used in the prior 10 years.Read the guide →
Private cloud / hosted ERP: ERP that runs on cloud infrastructure dedicated to or controlled by the business, giving cloud convenience without a shared multi-tenant per-seat licence.Read the guide →
Pro-rating: Adjusting 13th month pay to the portion of the year actually worked, by dividing total basic salary earned by 12 rather than assuming a full year.Read the guide →
Procure-to-pay: The end-to-end procurement flow from raising a purchase order to receiving goods and paying the supplier, run inside the sourcing layer of SCM software.Read the guide →

Q

QAP: The Quarterly Alphalist of Payees filed with Form 1601-EQ, listing each payee, the income paid, the ATC, and the tax withheld for the quarter.Read the guide →

R

RA 11210: The 105-Day Expanded Maternity Leave Law (2019), which increased paid maternity leave to 105 days for live childbirth and set the solo-parent, miscarriage, allocation, and extension rules.Read the guide →
RA 11210 (105-Day Expanded Maternity Leave Act): The 2019 law granting qualified mothers 105 days of paid maternity leave, of which up to 7 days may be allocated to the child's father or an alternate caregiver.Read the guide →
RA 11232: The Revised Corporation Code of the Philippines (2019), which introduced OPCs, perpetual corporate term, and removed the minimum-capital rule for incorporation.Read the guide →
RA 11861: The Expanded Solo Parents Welfare Act of 2022, which amended RA 8972 to broaden the definition of solo parent, shorten the service requirement to 6 months, and add new benefits.Read the guide →
RA 11861 (Expanded Solo Parents Welfare Act): The 2022 law providing qualified solo parents, including solo fathers, with additional parental leave and other benefits — separate from RA 8187 paternity leave.Read the guide →
RA 7042 (Foreign Investments Act): The law governing foreign participation in Philippine business; foreign nationals must secure authority under it before registering a sole proprietorship name.Read the guide →
RA 7160: The Local Government Code of 1991, the law giving cities and municipalities authority to require business permits and levy local taxes and fees.Read the guide →
RA 7160 (Local Government Code): The 1991 law that defines LGU powers, including the barangay's authority to require and fee a business clearance (Sections 152, 384) and to levy the community tax (Sections 156–164).Read the guide →
RA 8187: The Paternity Leave Act of 1996, granting a married male employee 7 days of paid paternity leave for the first four deliveries of his lawful spouse.Read the guide →
RA 8187 (Paternity Leave Act of 1996): The law granting a married male private-sector employee 7 days of paid paternity leave for the first four deliveries or miscarriages of his lawful wife, paid by the employer.Read the guide →
RA 8972: The Solo Parents' Welfare Act of 2000, the original law granting benefits and privileges to solo parents and their children, including the parental leave.Read the guide →
Rank-and-file employee: Any employee who is not managerial — i.e., not vested with power to set/execute management policy or to hire, discipline, or dismiss. Only rank-and-file are legally entitled to 13th month pay.Read the guide →
RCIT (Regular Corporate Income Tax): The standard income tax on a corporation's net taxable income — 25% for domestic corporations, or 20% for small domestic corporations meeting the income and asset tests; 25% for resident foreign corporations.Read the guide →
RDO (Revenue District Office): The local BIR office with jurisdiction over a taxpayer's residence or principal place of business. Your TIN is tied to an RDO, and you transfer RDOs using BIR Form 1905 when you move or change employer.Read the guide →
RDO Code: The Revenue District Office code on the COR identifying which BIR district office has jurisdiction over the taxpayer's registered address.Read the guide →
RDO transfer: Moving your TIN record from one Revenue District Office to another using Form 1905 (or ORUS), typically because you changed employer, relocated a business, or moved homes. The most common use of Form 1905.Read the guide →
Redundancy: An authorized cause where a position has become superfluous to the actual needs of the enterprise. It pays the higher separation rate of one month pay per year of service.Read the guide →
Reorder point: The stock level at which the system flags an item for re-ordering, set so replenishment arrives before stock runs out, based on usage rate and supplier lead time.Read the guide →
Retrenchment: An authorized cause involving reduction of personnel to prevent or minimize business losses. It pays one-half month pay per year of service.Read the guide →
Revenue District Office (RDO): The local BIR office with jurisdiction over a taxpayer's place of business or residence, responsible for processing registration and maintaining the taxpayer's record.Read the guide →
RR 11-2025: Revenue Regulations No. 11-2025, issued 27 February 2025, implementing the electronic-invoicing and sales-data-transmission rules under the CREATE MORE Act amendments to the Tax Code.Read the guide →
RR 26-2025: The Revenue Regulations issued in 2025 that amended RR 11-2025's transitory provisions and extended the compliance deadline to 31 December 2026.Read the guide →
RR 5-2011: The Revenue Regulation that consolidated the de minimis benefits list, later amended by RR 8-2012, RR 1-2015, and RR 11-2018.Read the guide →
RR 7-2024: The Revenue Regulations implementing the EOPT Act's removal of the Annual Registration Fee, including rules on replacing Certificates of Registration that still show the fee.Read the guide →
RR No. 17-2013: The revenue regulation prescribing a ten-year preservation period for books of accounts, with the first five years kept in original hard copy.Read the guide →
RR No. 7-2024: The BIR Revenue Regulations implementing the EOPT invoicing changes, effective 27 April 2024, as amended by RR No. 11-2024. It reclassified the official receipt as a supplementary document.Read the guide →

S

Safety stock: A buffer quantity held above the reorder point to cushion against demand spikes and late deliveries, reducing the risk of stockouts.Read the guide →
Salary differential: The difference between an employee's full salary and the SSS cash benefit, paid by the employer so the member receives full pay during leave. Tax-exempt under BIR RMC 105-2019.Read the guide →
Salary loan: A short-term cash loan a qualified SSS member borrows against their own contributions, charged 8% interest on the diminishing balance plus a 1% service fee and repaid over 24 months.Read the guide →
Sales / Service Invoice: The primary document evidencing a sale of goods or services after EOPT. It is issued upon sale or billing and supports the buyer's input VAT claim.Read the guide →
SAWT: Summary Alphalist of Withholding Taxes under RR 2-2006 — the electronic list of 2307s a payee files with its return to claim the creditable tax.Read the guide →
SC/PWD discount: The 20% statutory discount and VAT exemption for senior citizens (RA 9994 / RR 7-2010) and persons with disability (RA 10754); the VAT is stripped before the 20% is applied, and the discount is itemised on the invoice.Read the guide →
SEC: Securities and Exchange Commission — the Philippine government agency that registers and regulates corporations, partnerships, and OPCs.Read the guide →
SEC Registration: Securities and Exchange Commission registration of a corporation or partnership, used as proof of entity at the barangay.Read the guide →
Section 116 (NIRC): The provision imposing the general 3% percentage tax on non-VAT taxpayers whose annual gross sales/receipts do not exceed the ₱3,000,000 VAT threshold.Read the guide →
Section 237-A: The Tax Code provision, as amended, requiring covered taxpayers to electronically report sales data to the BIR — the statutory hook behind the EIS mandate.Read the guide →
Self-employed individual: A sole proprietor or independent professional who earns income from a trade, business, or practice of a profession rather than from an employer-employee relationship.Read the guide →
Semester of contingency: The two consecutive quarters in which the birth, miscarriage, or termination falls; eligibility and the MSC window are counted relative to this semester.Read the guide →
Separation pay: A statutory benefit owed to an employee terminated for an authorized cause under the Labor Code, computed at one month or one-half month pay per year of service depending on the cause.Read the guide →
Service fee: A one-time 1% charge on the loan amount, deducted from the proceeds at release, so the cash you receive is the loan minus this fee.Read the guide →
Service Incentive Leave (SIL): The statutory 5-day paid leave per year granted to covered private-sector employees with at least one year of service under Article 95 of the Labor Code.Read the guide →
Single source of truth: The principle that each piece of business data exists once and is read by every part of the system, rather than being duplicated across separate apps that must be reconciled.Read the guide →
SKU: Stock-keeping unit — the unique code that identifies a sellable item, so the POS can price it and deduct it from inventory.Read the guide →
Sole parental care: The standard under RA 11861 of solely providing care and support to a child; occasional gifts from a co-parent that fall short of legal support do not remove this status.Read the guide →
Sole proprietorship: A business owned and run by one person, where the owner and the business are legally the same person and share the same liabilities.Read the guide →
Solo Parent Identification Card (Solo Parent ID): The ID issued by the city or municipal social welfare office, under DSWD administration, that establishes a person's status as a solo parent and is required to claim benefits.Read the guide →
SS number: A permanent 10-digit identifier issued once by the Social Security System to each member, used for all SSS transactions for life.Read the guide →
SSS: Social Security System — mandatory social insurance under RA 11199. The combined employer-plus-employee contribution rate is 15% of the monthly salary credit as of 2025.Read the guide →
SSS maternity benefit: The cash benefit paid by the Social Security System to a qualified female member during maternity leave, based on her average daily salary credit; it is tax-exempt.Read the guide →
Standard deduction: A flat ₱5,000,000 subtracted from the gross estate of a resident or citizen decedent with no substantiation required.Read the guide →
Standard functionalities: The technical requirements a CRM/POS/CAS must meet under RMO 9-2021 — including sequential numbering, the non-resettable grand total, the reset counter, and the Z-reading — for valid registration.Read the guide →
Stock transaction tax: A 0.6% (6/10 of 1%) percentage tax under Section 127(A) on the gross selling price of shares sold through the local stock exchange.Read the guide →
Sugar-sweetened beverage (SSB) excise: A new TRAIN excise of ₱6 per liter (caloric/non-caloric sweeteners) or ₱12 per liter (high-fructose corn syrup) on covered drinks.Read the guide →
Supplementary document: A non-primary document such as an official receipt, collection receipt, delivery receipt, or acknowledgement receipt. It supports but does not by itself prove the sale for VAT input-tax purposes.Read the guide →
Supply chain management (SCM): The coordination of planning, sourcing, making, moving, and tracking goods from supplier to customer; by extension, the software used to run that flow on one connected system.Read the guide →
Surcharge and interest: Penalties under NIRC Secs. 248–249 for late or deficient payment; commonly settled through Form 0605 in their separate amount fields.Read the guide →
Sworn declaration: The payee's declaration, filed with the payor on or before 15 January, that yearly gross income will not exceed ₱3,000,000 — the condition for the 5% (not 10%) individual professional rate under RR 11-2018.Read the guide →

T

Tax Type: A category of tax shown on the COR (e.g. income tax, VAT, percentage tax, withholding tax) that defines which returns a taxpayer must file and how often.Read the guide →
Tax type end-dating: Formally closing a tax type in the BIR system so it stops expecting returns. Done through Form 1905 when dropping a tax type or closing a business; skipping it produces stop-filer notices and penalties.Read the guide →
Territorial scope: The geographic area (Barangay, City/Municipality, Regional, or National) within which a registered business name is protected and may be used; it determines the registration fee.Read the guide →
TIN (Taxpayer Identification Number): The unique number the BIR assigns to each taxpayer under the Tax Code. Every person or entity may hold only one TIN for life; it links you to all your tax types, returns, and payments.Read the guide →
TIN Verifier Mobile App: The BIR's official smartphone app ('TIN Verifier Mobile Application' on Android and iOS) for recovering a forgotten TIN (TIN Inquiry) or confirming a TIN belongs to you (TIN Validation), gated by your identity details.Read the guide →
Top withholding agent (TWA): A taxpayer designated by the BIR under RR 11-2018 that must withhold 1% on regular purchases of goods and 2% on services from its suppliers.Read the guide →
Total Accumulated Value (TAV): The running total of your own Pag-IBIG savings, your employer's counterpart contributions, and the dividends on both. The MPL can draw up to 90% and the Calamity Loan up to 80% of it.Read the guide →
Total cost of ownership (TCO): The full cost of a payroll system over its life — licences or per-seat fees, implementation, integration, and maintenance — used to compare rented SaaS against a one-time custom build.Read the guide →
TRAIN Law (RA 10963): The Tax Reform for Acceleration and Inclusion Act, signed December 2017 and effective January 1, 2018; the first package of the Comprehensive Tax Reform Program.Read the guide →

U

UMID / CRN: The Unified Multi-Purpose ID and its Common Reference Number, an SSS-recognized identifier sometimes used to verify a My.SSS account.Read the guide →
UMID-ATM card: A Unified Multi-Purpose ID card with ATM functionality that, when active, can directly receive SSS salary-loan proceeds — one of the only two disbursement channels.Read the guide →

V

Vanishing deduction: A diminishing deduction for property received by the decedent within five years before death that was already taxed, preventing double taxation.Read the guide →
VAT payable: The amount remitted to the BIR for a quarter: output VAT minus creditable input VAT. Excess input VAT carries forward to the next quarter.Read the guide →
VAT threshold (₱3,000,000): The annual gross sales/receipts ceiling above which VAT registration becomes mandatory; at or below it a business may remain non-VAT and pay percentage tax.Read the guide →
VAT-exempt transaction: A sale outside the VAT system under Sec. 109 of the NIRC. No output VAT is charged and the seller cannot credit input VAT attributable to it.Read the guide →
Virtual Pag-IBIG: Pag-IBIG's online member portal, where eligible members can file Multi-Purpose and Calamity loans and receive proceeds to a linked bank account or e-wallet without visiting a branch.Read the guide →

W

Withholding agent: The payor required by law to deduct tax from a payment, remit it to the BIR, and issue the certificate (Form 2307) to the payee.Read the guide →
Withholding tax on compensation: Income tax an employer deducts from employee pay under the TRAIN-law tables (RA 10963) and remits to the BIR each cut-off.Read the guide →
WMS: Warehouse management system — software that runs the inside of one warehouse, handling bins, picking, packing, and putaway; it plugs into SCM rather than replacing it.Read the guide →

Z

Z-reading: The end-of-day cumulative sales close a POS prints; in the Philippines it must reconcile to settlements and is retained for BIR audit.Read the guide →
Zero-rated sale (0%): A VATable transaction taxed at 0% (e.g., export sales). The seller charges no VAT but may still recover related input VAT via credit or refund.Read the guide →
Zonal value: The fair market value of real property fixed by the BIR Commissioner per location. For the 6% real-property CGT, the tax base is the highest of the selling price, the zonal value, and the assessor's FMV.Read the guide →

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