15% income tax to expats, when applicable?

Revenue Memorandum Circular No. 41 – 2009 dated July 23, 2009 (RMC 41-2009) was issued to clarify the meaning of “Managerial and Technical Positions” under Section 25(C) of the Tax Code, as amended. This RMC sets out the qualifications and requirements in order that an alien employee (or Filipino employees) of a Regional Headquarters (RHQ) or Regional Operating Headquarters (ROHQ) of a multinational corporation shall be eligible for the 15% income tax rate on its gross compensation income. Hereunder is the summary of the RMC.Compared to the normal tax rate of 5-32% bracket 5-32%, if a resident alien or non-resident alien engaged in trade or...

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Why are penalties imposed by the BIR?

At present, doing business is a bit an inch of perfection, if not a mastery of craft, in order to maximize the use of its finances for success. Many promising undertakings could be made on the funds wasted on penalties. Sometimes, no matter how and what measures are employed not to overlook some reportorial requirements, that they simply occurs unnoticed. This may prove that, sometimes, simple errors are big headaches in business. The question is why these penalties have to be imposed, even on honest mistakes and simple inadvertence?Taxes are the lifeblood of the government, without which, it cannot subsist. This dictates that taxes owing to...

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What benefits can persons with disability enjoy?

Republic Act No. 9442 or otherwise known as “AN ACT AMENDING REPUBLIC ACT NO. 7277, OTHERWISE KNOWN AS THE “MAGNA CARTA FOR DISABLED PERSONS, AND FOR OTHER PURPOSES” (RA No. 9442) had been approved on April 30, 2009 and is implemented by BIR Revenue Regulations No.: 1-2009 dated Feb. 17, 2009 (RR No. 1-09). The amendment introduced specific benefits and privileges to persons with disability in relation to its purchases of certain goods or services, protection from public ridicule (making fun or contemptuous initiating or making mockery of persons with disability whether in writing or in words, or in action due to their impairment/s) and from...

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What you should know about ROHQ?

Regional Operating Headquarters (ROHQ) (Section 2(3), RA No. 8756) means a foreign business entity which is allowed to derive income in the Philippines by performing the following qualifying services to its affiliates, subsidiaries or branches in the Philippines, in the Asia-Pacific Region and in other foreign markets: general administration and planning business planning and coordination sourcing and procurement of raw materials and components corporate finance advisory services marketing control and sales promotion training and personnel management logistic services research and development services and product development technical support...

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Tourism Act of 2009, a new WOW Phils.?

Republic Act No. 9593 otherwise known as "Tourism Act of 2009" was approved into law on May 12, 2009. This declares Philippine Tourism as an indispensable element of the national economy and an industry of national interest and importance. This is a present major step that is expected to create major changes and developments in the tourism industry gearing towards socio-economic development expected to generate new jobs and massive investments.Along with this law, Department of Tourism as the implementing and regulating agency is bombarded with enough powers, strength, and capitalization for the effective furtherance of its purpose and implementation...

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How can the BIR increase collections?

At present, we read on papers the many faces of financial crisis, budget deficit, failure to meet collection target, and the likes. Philippines in on a budgetary system where collections and expenditures are budgeted ahead. Expenditure is quite easy to meet as they simply spend on many things and in many ways, while collection targets are quite hard to attain. Instead of simply reading them, what about if we try to explore on ways and means where in our thinking, could help the BIR reach their targets. Presently, the legislature had passed some tax measures providing for some incentives that may negatively affect reaching collection targets...

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Allowable Deductions - Powerpoint

In computing the taxable income, certain deductions are allowed by the Tax Code to be deducted from the Gross Income. This is crucial to know because once you commit a mistake in deducting one that is not allowed, then you will made to suffer the penalties of 25% surcharge, 20% interest and compromise penalties. Take time to view those allowable deductions in this powerpoint presentations with references to the provisions of the Tax Code, as amended, or the corresponding implementing regulations.Allowable deductions.feb.2011View more presentations from Phil Taxation.For more free powerpoint presentations, please CLICK HERE!"Taxes affect lives,...

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Director's Fees, how taxed?

Director’s fees is not entirely new in the business industry. Directors are the minds of the Corporation for it is the corporate governing body. Normally, they are not entitled to compensation, other than reasonable per diems, in the absence of an express provision in the By-laws. This is because directors are stockholders holding majority shares in most cases, and as such, more share of income goes to them through dividends. In other words, even without compensation, they will receive more through their considerable stock holdings and any mismanagement adversely affects them. In case the By-laws would provide compensation, the same shall not...

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Other Percentage Taxes - Powerpoint

As a rule, value added tax (VAT) is imposed on every sale, barter, or exchange of goods or services and on importations. However, there are instances where the same does not apply because the transaction is subject to other percentage taxes (OPT) by nature. Find out the find lines of their distinctions in this presentation. You will likewise have an overview of documentary stamp tax (DST), excise tax, community tax certificates (CTC)Opt extensive and overview of excise tax. dst and ctc.feb.2011View more presentations from Phil Taxation.For more free powerpoint presentations, please CLICK HERE!"Taxes affect lives, care for taxes and save liv...

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Corporate Income Taxation - Powerpoint

Should you wish to know the answers to the following questions by yourself, you need to take a quick look at the presentation:(a.) How are corporations and ordinary partnerships taxed on their income?(b.) How do you distinguish corporate income tax from individual income tax?(c.) How are corporations classified for income tax purposes?(d.) What income tax types applies to particular taxable income of corporations and ordinary partnerships?Corporate income tax.feb.2011View more presentations from Phil Taxation.For more free powerpoint presentations, please CLICK HERE!"Taxes affect lives, care for taxes and save liv...

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Income Taxation of Individuals - Powerpoint

Do you wish to learn how an natural person is being taxed on its income? Well, take time and relax while self-learning on the powerpoint presentations for individual income taxation and answer the following basic questions:a. How are individual income tax differs from corporate income tax?b. How are individual taxpayers classified for income tax purposes?c. What income tax types applies to particular taxable income?Find out the answers in the following powerpoint presentation.Individual income tax.feb.2011View more presentations from Phil Taxation.For more free powerpoint presentations, please CLICK HERE!"Taxes affect lives, care for taxes and...

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Introduction to Income Tax - Powerpoint

Help yourself understand the basic things you need to understand about income taxation and answer the following basic questions:a. What is income is taxable?b. How are income taxes classified?c. What other factors affect the taxability of an income?Find out the answers in the following powerpoint presentation.Income tax intro topics.feb.2011View more presentations from Phil Taxation.For more free powerpoint presentations, please CLICK HERE!"Taxes affect lives, care for taxes and save liv...

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What is an income for tax purposes?

Income refers to all wealth which flows to the taxpayer other than a mere return of capital (Revenue Regulations No. 2). It is a flow wealth that goes into the taxpayer within a specified time, arising from the use of capital, use of labor through either physical and/or intellectual faculties, and from other sources where after the transaction, the taxpayers becomes more wealthier than before the transaction. In general, the question is: Did the taxpayer become wealthier after the transaction or event? Let us take up the following to emphasize the point:a. In the sale of goods purchased at P100 for P150, P50 is the increase of wealth.b. In rendering...

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