Category Taxation in Philippines

Tax Stamps Coming to Alcohol in Philippines

July 13, 2017 Taxation in Philippines

Taxes on alcoholMANILLA – The Philippines will try to crack down on untaxed alcohol by extending the tax stamp system to such drinks, and not just to tobacco.

Finance Secretary Carlos G. Dominguez III of the Philippines has stated that from next year the government will require that tax stamps be affixed to alcohol, in order to better track whether appropriate levels of excise tax are being paid on alcohol.

The tax stamp system was raised approximately 5 years ago, as part of the government’s sin tax reform, which saw greater levels of taxation being levied on goods and products deemed to be harmful.

So far the tax reform has been concentrated on the application of tax stamps to cigarettes and tobacco, and the struggle to minimise the illicit use of fake tax stamps on these products.
However, some poli...

Read More

Lotto Winnings May be Taxed in Philippines

March 1, 2017 Taxation in Philippines

Taxes on lottoMANILLA – Lotto winners in the Philippines may soon see a portion of their winnings shaved of by the taxman, unless the government listens to the Sweepstakes Office’s pleas.

On February 28th Jose Jorge E. Corpuz the chair of the Philippine Charity Sweepstakes Office (PCSO) said that his department opposes a new proposal to drop the tax exemptions currently available on winnings from lotto, sweepstakes and horse-racing.

If the proposal is passed, winnings would see taxes of up to 20 percent.

Jose Jorge E. Corpuz claimed that the number of people participating in lotto and similar activates would drop significantly after consumers felt the effects of the tax on their winnings.

Explaining this possible effect, the chair of the PCSO said “…if you’re looking to win, for example, P132 million ...

Read More

Car Tax Hikes Loom in the Philippines

February 20, 2017 Taxation in Philippines

Taxes on cars in the PhilippinesMANILA – Taxes on cars sold in the Philippines may soon be doubled, and, unsurprisingly, the possibility is facing opposition.

Over the course of the last week significant controversy has arisen over a proposal by the government of the Philippines to introduce a new tax on the sale of automobiles in the country.

The new tax was proposed as part of a wider plan by the government to shift the national tax system to a low-rate wide-base system, which would see taxes charged at a lower rate but on a greater number of items and transactions.

The government hopes that by raising the taxes on cars, it will be able to reduce the taxes levied on personal incomes.

Currently the taxes on the sale of cars in the Philippines are staggered, with a base fee determined by the value of the car, and an ad...

Read More

Duterte Wants to Tax Idle Land

February 7, 2017 Taxation in Philippines

idle land PhilippinesMANILLA – The President of the Philippines wants to push land developers to either use their properties or face paying a hefty tax.

On February 6th the President of the Philippines Rodrigo Duterte announced that he intends to see greater levels of taxation on “idle land” in the country.

Idle land is property which is intentionally left undeveloped by its owner, in the hopes that the value of the property will rise at a greater rate than the potential profits to be drawn from development work.

The President did not specify how much he will raise taxes, but did say “…I will tax idle lands heavily. If it hasn’t been developed for 10 to 20 years, I will double its real estate tax or triple unless you are willing to lend it to somebody or to the barangay for the people to use it.”

Read More

Philippines Eases Microbusiness Taxes

February 1, 2017 Taxation in Philippines

fish vendors from a local wet marketMANILA – Microbusinesses in the UK may soon enjoy a reduced tax rate and greatly eased filling requirements.

On January 31st at a hearing of the Senate Ways and Means Committee of the Philippines, the Finance Undersecretary Karl Kendrick Chua announced that the national Department of Finance is proposing new tax rules which would see microenterprises taxed at a rate of only 8 percent.

Under current regulations businesses of all sizes face a corporate income tax of 30 percent.

The greatly reduced tax rate of 8 percent would be calculated on a business’s gross sales, if the level of sales is PHP 3 million or less per year.

Alongside the reduced rate, businesses taking advantage of the new rules would also only need to file tax returns once a year, instead of quarterly.

It is believed that...

Read More