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Tuesday, July 11, 2017

Your Income Tax May Soon Be Lower or Even 0% - See Duterte's Tax Reform Program

TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.   A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.  VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.   Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.   President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.   The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  To see the current and future projects by the government that will be funded by the increased revenues, follow the link below. Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.






TRAIN: Tax Reform Acceleration and Inclusion.
This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.

The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.



PERSONAL INCOME TAX

The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.
TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.
Proposed Tax Brackets With Corresponding Rates


The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.
TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.

This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.



Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.


TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.


 
TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.



TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.



ESTATE TAX and DONOR'S TAX
TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.

A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.




VALUE ADDED TAX

This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).


TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.

TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.


Among the previously exempted entities that will need to pay VAT are:
  • Domestic shipping importation
  • power transmission
  • low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot)
  • lease of residential units (with monthly rent of over P10,000/month)
  • boy and girl scouts
  • other entities exempted via special laws.
This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.



OIL EXCISE TAX
Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.

Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:
TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.

The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol. 


AUTOMOBILE EXCISE TAX
The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:
TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.


One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.


President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.


The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.




TRAIN: Tax Reform Acceleration and Inclusion. This is a Tax Reform program initiated by the Duterte Administration, to change the old tax system in the Philippines and make it simpler, more fair, and efficient.  The current tax system in the Philippines is both complex and unjust. TRAIN will change this, by reducing personal income tax, simplify estate and donor tax, expand Value-Added Tax coverage and increase oil and automobile excise taxes. Let us look at each of these components.   PERSONAL INCOME TAX The proposed Tax Schedule under TRAIN will benefit 99% of the taxpayers. That's more than the percentage of voters who chose Duterte to be President. Based on the table below, the new tax rates will increase take-home pay of most workers and increase the purchasing power of the family or individual. Also, all bonuses not exceeding P100,000 will stay tax-free! Also, by 2020, the tax rates will be even lower.  The current income tax rate in the Philippines is actually higher than most of its neighbors. Information gathered showed that Filipinos pay the 2nd highest tax rate in the Asean countries, with also a lower income threshold.  This table shows that if you earn P500,000 in Singapore, you don't have to pay income tax. In the Philippines, that's 32% rate. Compare that to Indonesia, where you pay 30% only if you earn three times more than in the Philippines. In Thailand, you pay 35% rate, but only if you earn 11 times more than in the Philippines.  Let us see some projected calculations and comparisons of present and proposed tax rates based on worker's salaries, from minimum wage earners to a call-center agent.  ESTATE TAX and DONOR'S TAX TRAIN proposes that Estate Tax be fixed at 6% of the estate's net value. There will also be a standard deduction of P1 million and exemption of up to P3 million for family homes. This means that for inheritance with value below standard deduction, and for family homes valued at less than the exemption, no estate tax shall be paid. Only inheritance of rich families will be taxed.  A similar scheme is applied for Donor's Tax. A single rate of 6% of the net donations for gifts above P100,000 yearly, will be applied. This is regardless of relationship.   VALUE ADDED TAX This part of the TRAIN is least understood and often misrepresented by many. Actually, the VAT  system in the Philippines has the most number of exemptions (people, companies, cooperatives and other institutions exempted from paying VAT).  TRAIN will expand the tax base by limiting exemptions to necessities - raw food, education, and health. Cooperatives with gross sales of more than P3 million pesos will not be exempted from VAT. Only smaller cooperatives and those that produce raw agriculture products will be VAT exempt.  Among the previously exempted entities that will need to pay VAT are: Domestic shipping importation power transmission low cost and socialized housing (if value is more than P1.5M for lots, P2.5M for house and lot) lease of residential units (with monthly rent of over P10,000/month) boy and girl scouts other entities exempted via special laws. This will raise more funds for the poor and vulnerable. Senior Citizens and Persons With Disabilities will still enjoy exemptions.  OIL EXCISE TAX Oil excise will be raised by P6 gradually over three years. The rates will be adjusted yearly after the third year. The last time the oil excise tax was adjusted was in 1997.  Increasing the petrol price via excise tax will not necessarily affect the savings of the majority. In fact, fuel consumption is higher for the wealthiest Filipino. Take this graphic below:  The graphic above shows that the top 10% wealthiest Filipinos use more than half of the fuel for vehicles. The poorest 10% only use 0.6%. The middle group use only about 5%. This means that the wealthiest will be affected more by the price increase in petrol.    AUTOMOBILE EXCISE TAX The tax rates for cars will be increased, more for luxury cars than basic cars. This makes the wealthier people pay more tax than the middle class. The wealthiest are the ones who usually buy or own more than one car. An example of computation is shown below:  One of the main concerns of the public is the effect of the increased taxes on goods and transportation costs. The government however believes that the net savings for each worker will be greater due to the lower income tax. Also, a percentage of the revenues will be allotted for the poorest Filipinos to help them keep up with any price increase.  President Duterte's Tax Reform agenda is vital to the improvement of lives of the Filipino, one that the President vowed to leave behind after his term of office. The current tax system is already 20 years old. If passed into law, the comprehensive tax reform bill is estimated to raise (P)162 billion in net revenues every year. This is vital for the advancement of the economy.  The Tax Reform Acceleration and Inclusion program is vital to President Duterte's ten-point socioeconomic agenda. The revenue will be used to improve existing infrastructure and accelerate building new one, providing jobs and better services to people and help move the economy forward.  Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.
To see the current and future projects by the government that will be funded by the increased revenues, follow the link below.
Note: The values and tax rates stated herein are subject to change because the bill on tax reform has not been approved yet in the senate.


Your Balikbayan Box is TAX FREE - Here's What You Need To Know (With Tagalog)

The "balikbayan box" remains Tax Exempt. The rules governing the privilege is under the Customs Modernization and Tariff Act (CMTA). This law was passed last June 2016 and was implemented December 2016.  According to CMTA, the following are qualified to avail of the tax free privilege: OFWs registered with the DOLE/POEA Filipino who has dual citizenship Filipino businessmen, investors working or students studying abroad Filipinos who are temporarily staying abroad for not less than six months  To avail of the Tax Free privilege, the sender must submit a copy of hi/her passport (identity page). A Philippine or foreign passport may be used. In case of dual citizenship, a copy of proof of dual citizenship must also be submitted.  An information sheet provided by the Bureau of Customs must be filled up. Three copies must be furnished for each box or package to be sent. This will serve as the packing list of your cargo.  Items that are new and costing P10,000 and above must have the corresponding receipt, invoice or any proof of payment attached to the Information Sheet. Used items do not need receipts, and you may list them with an estimated price that is lower than the original price.  For a "balikbayan box" to remain tax free, it must only contain personal or household items. The quantity must not be commercial, and the purpose should not be for resale, barter or rental use.  A qualified Filipino may "balikbayan boxes" up to three times per calendar year (Jan 1 to Dec 31). The maximum total combined value of the tax free goods must be P150,000 for the whole year.  To avail of the tax free benefit, the "balikbayan box" recipient should be a family member or relative. This is to prevent smugglers from abusing the privilege intended for Filipinos.  A Filipino who is coming back to the Philippines "for good" has a higher maximum value cap for his cargo (with conditions): P350,000 if his/her stay abroad is ten years or more P250,000 if his/her stay abroad is five to almost ten years.  So if you want to send your balikbayan boxes Tax Free, Prepare a copy of your passport Prepare the Information Sheet (pages 1 & 2, three copies per box) Calculate the total amount of your cargo, making sure it does not exceed P150,000. Remember, if your cargo's value is less than P10,000, it automatically exempts it from tax, and the cargo does not count towards your limits in value or privilege use.  The BoC insists that the rights of OFWs are foremost in their minds, and that protecting the "balikbayan box" is the main purpose of these guidelines. Customs Commissioner Faeldon further reiterates that the boxes will not be opened, as ordered by President Duterte. Unless of course if the x-ray inspection shows something suspicious is in the box.  You may read Commissioner Faeldon's Clarification below:  STATEMENT ON THE BALIKBAYAN BOX ISSUES: Good morning po mga kababayan lalo na sa ating mga OFW, May balikbayan box program po tayo na TAX EXEMPTION para sa mga Pilipino na nais magpadala ng balikbayan box para sa kanilang pamilya. Hindi po ito mandatory. Para lang po ito sa mga nais mag avail ng BALIKBAYAN BOX TAX EXEMPTION. Pero yun gustong manatiling magbabayad ng buwis ay okay lang po yun kasi nakakatulong po kayo sa ating bayan sa pamamagitan ng inyong binabayad na buwis. June 2016 pa po naisabatas ng Kongreso ang Customs Modernization and Tariff Act (CMTA) at December 2016 pa po nailabas ang guidelines regarding balikbayan boxes. Naka apat na po kaming extension sa pagpapatupad nito. Just to clarify po ang pagffill up po ng information sheet at pagpprovide ng resibo, para lang po yun sa mga Pilipino na magpapadala ng balikbayan box sa kanilang pamilya na nais mag avail ng tax exemption under Sec 800 (g) ng CMTA. Mas makakatipid po kayo kung mag aavail po kayo ng tax exemption na ito kasi po under the balikbayan box program, tinanggal po ang buwis na babayaran nyo. Ang balikbayan box program po ay nagbibigay ng pagkakataon sa mga OFWs na magpadala ng P150,000 worth of household and personal effects sa loob ng isang taon na walang bayad na buwis. Ngayon po, ang information sheet ay kailangan fill up pan. Ito po ay parang packing list ngunit mas comprehensibo upang makasiguro kayo na tama ang matatanggap ng inyong pinaldalhan. Ngunit di po kailangan ang passport kung di po kayo mag avail ng tax and duty free exemption. Doon naman po sa mga nais mag avail, nakasaad po sa batas na kung ikaw ay Pilipino at nais mong magpadala sa iyong pamilya o kamag-anak, tax free po ito hanggang P150,000 sa loob ng isang taon. Ang paglilista po ng items nyo ay para po sa proteksyon ninyo. Ito po ay para masiguro na ang ipinadala nyo ay yun din ang matatanggap sa Pilipinas. Hindi po kailangan ng resibo pag used items, groceries, regalo, at sa mga bagay na mas mura Sa P10,000.00. Ang inyong kailangan ilagay ay tansya or approximate amount lamang. Halimbawa, ang t-shirt na una'y nabili ng P500.00 at gamit na ay pwedeng ideclara ng P100.00 pesos. Kailangan lang po ng resibo pag brand new at nagkakahalaga ng higit Sa P10,000.00 ang isang bagay. Ito po at pribileyiho at isang regalo ng gobyerno sa ating mga kababayan. Kaya po tayo'y nananawagan at umaapela sa likas na kabutihan ng ating mga kakababayan na wag po itong abusuhin. Para sa TUNAY NA PAGBABAGO. Maraming salamat po.

source: Inq, BetterBuwis, Abante, BIR


In Videos: 10 Business Ideas For You - Choose Now!

Filipinos are by nature business minded. However, most people simply do not start a business for various reasons, most common is the lack of capital. Others fear the possibility of losing money due to a failed business. These next ten entrepreneurs however did not let hardship, tragedy and even disability to stop them from succeeding in their own business venture. Watch and learn from these 10 success stories. 1. PEANUTS BUSINESS Description: Peanuts, Banana Chips, Sweet Potato Chips, and many more. Business Tips: Do not underestimate cheap products, they offer big profits. Do not be ashamed to do business, as long as it's legal. Food products are stable since people need to eat.  2. HOME-MADE SAUSAGE Description: Home-made sausage, sold online or supplied to restaurants. Business Tips: Start small, introduce your food product on food fairs and expos Look for a unique market, one that is not overcrowded with similar business. Find ways to reduce overhead costs like rent. Work at home business is a good example. Advertise online, it's mostly free!  3. BIG BURGER Description: Huge delicious juicy burgers - any questions? Business Tips: Any business needs patience. Observe the needs of the business. Maintain the food quality. Make your product unique among similar products, bigger and better. Team work is good for business.  4. LOMI HOUSE Description: Lomi - a timeless Filipino delicacy and good for breakfast, snack or dinner. Business Tips: Good taste, affordable and healthy. Offer a healthier alternative to customers. Make your own food components to maintain quality. Expand your business by putting up branches with good location. Be patient, some business takes time to be a hit.  5. COTTON GARMENTS Description: Cotton Garments - because everyone needs clothes. Business Tips: Look for the demand on the market. Help your employees work, they work hard if you do too. Know and understand every part of your business.  Not all China products are cheaper - you can compete with these. Always deliver on your promise to clients, even if you have to finish orders yourself.  6. FASHIONABLE SHOES Description: Fashionable shoes - from pageants to school shoes. Business Tips: Take inspiration from your clients. Use locally sourced as well as indigenous materials for unique designs but low cost. Maintain product quality. Compete against cheap products using good quality.  7. FURNITURE BUSINESS Description: Unique and artistic furniture made from wood scraps. Business Tips: Turn your passion into business. Look for value into things that are usually thrown away or neglected. Product quality is foremost. Put your creativity to make unique and  beautiful pieces.  8. CHILI SAUCE Description: Chili sauce - usually for siomai, but can be added practically to any food item (except sweets), because Filipinos love spicy food too. Business Tips: Don't let anything stop you, not even disability. Don't be content waiting for blessing, seek it. In everything you do, give your best.  9. ONLINE STORE Description: Online store - selling anything under the sun, from beauty products to electronics.  Business Tips: Maximize your time. Build trust among your clients. Educate yourself on your products. Always take care of your products especially when shipping them out.  10. INTERNET/GAMING SHOP Description: Internet cafe or gaming cafe. If you can, define and separate the two computer shop types apart. Business Tips: Education is the key to success. Don't be content waiting for blessing, seek it. In everything you do, give your best. Use the most money-efficient equipment, and always upgrade at the right time.


In September of 1990, the United Nations General Assembly approved and adopted the Declaration of the Rights of the Child. Among the rights of a child acknowledged is the right of the child to preserve his or her identity, including nationality, name and family relations as recognized by law without unlawful interference.  The Philippines, as signatory to this declaration, has done its share to promote this right, especially in cases where the child is considered illegitimate by law. Who are considered illegitimate children in the Philippines? Children born to couples who are not legally married or of common-law marriages; Children born of incestuous, bigamous, or adulterous relations; Children born of void marriages; Children born of couples below 18, even if they are married (which is actually void).  So in a case where a child is born out of wedlock, which surname should be given to him/her?  Over the years, the law on illegitimate children's surname has shifted several times - pre-EDSA Revolution, in 1988, and lastly in 2004. Here are the following basic principles.   Born before August 3, 1988: Prior to the Family Code (1988), an illegitimate child has the right to bear the surname of the parent recognizing him. Recognition shall be made in the record of birth, a will, statement before a record, or in any authentic writing. If recognition is made by only one of the parents, he or she shall not reveal the name of the person with whom he or she had the child.  An illegitimate child who is not recognized or acknowledged by both parents in accordance with law shall be registered under the surname of the mother.   Born on or after August 3, 1988 up to March 18, 2004: By law, an illegitimate child shall use the surname of the mother. The father of an illegitimate child who wishes to have his name indicated in the Certificate of Live Birth shall execute an affidavit of Admission of Paternity in lieu of the affidavit of acknowledgement. The purpose of affidavit of admission of paternity is for the support and succession only, and it does not automatically entitle the illegitimate child to use the surname of his father.   Born from March 19, 2004 up to present: According to Republic Act No. 9255, illegitimate children shall shall be under the parental authority of their mother, and shall be entitled to child support from the father.  Illegitimate children may use the surname of their father if the paternity is established by any of the following: filiation has been expressly recognized by the father through the record of birth appearing in the civil register - Certificate of Live Birth or Municipal Form No. 102; when an admission in a public document or private handwritten instrument is made and duly signed by the father; any other means of establishing paternity as allowed by the Rules of Court and special laws. For those born from August 3, 1988 to March 18, 2004, the rules of RA 9255 stated above cannot be used by the child until after a court decision.  So what is the right and legal process for an illegitimate child to use his or her father's surname?  Terms to Remember:  Certificate of Live Birth (COLB) - for children born in the Philippines Report of Birth (ROB) - for children born outside the Philippines Affidavit to Use the Surname of the Father (AUSF) Private Handwritten Instrument (PHI) Local Civil Registry Office (LCRO) Philippine Foreign Service Post (PFSP) - Philippine embassies , missions , consulates general.   What to File? The following documents shall be filed at the LCRO or PFSP for registration:  Certificate of Live Birth (COLB)/Report of Birth (ROB) if available Affidavit of Admission of Paternity Private Handwritten Instrument (PHI) Affidavit to Use the Surname of the Father (AUSF)   Who may file? The following persons are authorized to file at the LCRO or PFSP:  The father, mother, the person himself , if of age, or the guardian,  may file the Affidavit of Admission of Paternity. The father , mother, the person himself, if of age, or the guardian , may file the AUSF. The father shall personally file the PHI, if  the proof of filiation is through a PHI, at the  LCRO/PFSP for registration. The mother, the person himself, if of age, or the guardian, may file the PHI if the father is already deceased. The PHI can be accepted provided there are supporting documents to prove filiation.   Where to register?  For births that occur in the Philippines, the Affidavit of Admission of Paternity, PHI or AUSF executed in the Philippines shall be registered at the LCRO of the place of birth. For births that occur within or outside the Philippines, the Affidavit of Admission of Paternity, PHI or AUSF executed outside the Philippines shall be registered at the PFSP of the country of residence, or where there is none, to the PFSP of the country nearest the place of residence of the party concerned. For births that occur outside the Philippines, the Affidavit of Admission of Paternity, PHI or AUSF executed in the Philippines shall be registered at the LCRO of the place of execution.    When to Register?   The Affidavit of Admission of Paternity, PHI,  or the AUSF shall be registered within twenty (20) days from the date of execution, otherwise, the rules on late registration of birth will apply.   How to Register?  The City/Municipal Civil Registrar (C/MCR) or the Consul General (CG) shall accept and examine the completeness and correctness of entries in the COLB/ROB, and the supporting documents . If there are inconsistencies, the C/MCR or Consul General will not accept the documents for registration. The C/MCR or the CG shall record the entries of the COLB/ROB in the Register of Births, Affidavit of Admission of Paternity, PHI and the AUSF in the Register of Legal Instruments. The C/MCR or the CG shall annotate the COLB/ROB and enter the annotation on the  Remarks portion of the Register of Births. The C/MCR or the CG shall distribute the annotated COLB/ROB, registered  Affidavit  of Admission of Paternity, AUSF, or PHI including any supporting document as follows:  first copy to the CRG; second copy to the LCRO/PFSP where the event was registered; third copy to the registrant/owner of the document; fourth copy shall be retained for filing by the LCRO/PFSP. The C/MCR or the CG shall issue certified copies of COLB/ROB with annotations and certified copies of the Affidavit of Admission of Paternity, AUSF, and PHI.  Conditions to Remember: As a rule, an illegitimate child not acknowledged by the father shall use the surname of the mother. Illegitimate child acknowledged by the father shall  use the surname of the mother if no AUSF is executed. An illegitimate child aged 0-6 years  old acknowledged  by the father shall  use the surname of the father, if the mother or the guardian , in the absence of the mother , executes the AUSF. An illegitimate child aged 7 to 17 years old acknowledged by the father shall use the surname of the father if the child executes an AUSF fully aware of  its consequence  as attested  by the  mother or guardian. Upon reaching the age of majority, an illegitimate child acknowledged by the  father shall use the surname of his father  provided that  he executes an AUSF without need of any attestation.


The government is planning to put in place a national ID system within President Rodrigo Duterte's term. This will help improve the delivery of social services according to one of his economic managers.  The plan is to replace all government-issued identification cards with the National ID. The passport and drivers' license will have to remain separate. Budget Secretary Benjamin Diokno said the ID will contain biometric data and will be issued at birth and renewable when the citizen turns 18.  According to the secretary, an executive order is being drafted for the national ID. It will be issued to all 105 million Filipinos "within two years of the enactment of the proposal."  "We intend to give all Filipinos a national ID that will also function as a social welfare card." The ID's will contain an EMV - a chip-based technology that is similar to the ones used in credit cards for secure transactions. This will enable public transports, shops, hospitals and other public service places to determine who can avail of discounts on transportation, medicine and health care services, Sec. Diokno said.  The government plans to prioritize senior citizens and the poorest 5 million households in the registration and distribution of the National IDs.  A similar bill on National ID has been passed at the committee level of the House of Representatives last month, while two other bills are currently being discussed in the Senate as well.   Duterte's predecessors had unsuccessfully pushed for a national ID, following criticism that it could invade privacy. The first to try was Fidel Ramos back in 1996. However, his initiative was struck down by the Supreme Court on the ground that legislative approval is required for the scheme. The closest the country came to a National ID was the Unified Multi-Purpose ID Card (UMID) that is issued to the members of SSS, GSIS, Philhealth and Pag-ibig.  If the government's plan is approved, then we could expect smoother transactions in the future. Abusing social services will also be a thing of the past since the National ID will differentiate between citizens who are qualified for government support. Finally, the security of society in general will be improved since all Filipinos will be required to register for a National ID - which in turn will be required, among other things, to open bank accounts (no fictitious accounts), register sim cards (bye bye text scams) and for voting in the elections (flying voters go away).  Do you agree on President Duterte's plan to implement a National ID system? Comment now!


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