My friends have been complaining that I don't update my blog anymore so, today, I'm going to write about taxes.
Benjamin Franklin once said that nothing is certain, except death and taxes. Obviously he is right on both counts. However, let's concentrate on the taxes part of this famous quote. I don't think I've ever met anyone who doesn't resent having to pay taxes (and see it wasted by our corrupt government). I also suspect that quite a lot Filipinos cheat on their income tax returns.
Taxes are something to be informed about, educated about and prepared for. By taking the time to inform yourself, then you'd have no reason to lie in your ITR. There are many legal ways to lower the amount you are required to pay.
The following are some of the possible exclusions or deductions from gross income:
- Life insurance
- Amount received by insured as return of premium
- GSIS/SSS, PHIC/Medicare or other similar contributions (pension, health insurance, etc.)
- Compensation for injuries or sickness
- 13th month pay and other such benefits (bonuses over 30K will be taxed, however)
- Gains from redemption of mutual fund
- Bad debts
- Charitable contributions
- Rent/mortgage
- Other expenses (if you keep your receipts)
And if you still think you're paying too much, get a Buy and Sell and look for an accountant. There are a lot of them offering their services to do your taxes for you for approximately 1000 - 1500PHP. Better yet, visit your RDO and talk to the officer of the day. The BIR is very willing to teach you how to lower the amount you have pay,
legally, and all you have to do is ask.
