the ahon pinoy party-list group on friday vehemently opposed plans by the bureau of internal revenue to remove the income tax privileges currently enjoyed by overseas filipino workers (ofws), the group's primary constituency.
dante francis ang ii, ahon pinoy's lead nominee, said that although revenue commissioner mario c. bunag had been quoted as saying there has been no "definite decision" on whether to push for the removal of ofws more income tax exemptions or not, "the plan itself sends chilling signals to the millions of our workers abroad."
ang said removing the ofws tax privileges is not the solution to the government's fiscal problems.
. . .
some 8 million filipinos are currently working abroad, remitting a record $12.76 billion back to the philippines in 2006. they remitted $10.69 billion in 2005.
although commissioner bunag said the contemplated levy would be meted only on professionals such as bank employees and doctors "who make so much money." ang said that those people the bir is targeting are already paying income taxes in the places where they are employed.
taxing ofws will require an amendment of the national internal revenue code of 1997, which provides that "an individual citizen of the philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income from sources within the philippines."
btw, professionals include nurses.
i don't agree with the "who make so much money" part--straight conversion from gross income to philippine pesos might seem like a lot, but taxes take up a large part of us income, and the cost of living is much higher in the us.
i hope this plan does not push through, or ofws coming back to manila might be welcomed with...charges by the bir for tax evasion.
Specializes in Geriatrics/Ambulatory/Med/Surg/Ortho.
now that we have all the information we need to know...
what can we do to stop this nightmare from happening?!
we certainly do not want taxes be paid to the very corrupt government!
let alone pay triple tax! this is really unjust. they should stop collecting taxes and start giving us back what they stole. now i feel that the only reason why the political candidates are running for position is because they can steal more! sad...but true...
Specializes in Med-Surg,OPD ER,School/Clinic,Teaching.
Every time I hear something foolish like this I am always reminded of what former President Quezon said decades ago. Forgot the exact words but it is something like "I rather have the Philippines run like hell by Filipinos than run like heaven by the Americans". How prophetic.
Hehehe...Indeed. He should have given us a choice; that would have been our easy way to US citizenship.
Specializes in Med-Surg,OPD ER,School/Clinic,Teaching.
now that we have all the information we need to know...
what can we do to stop this nightmare from happening?!
we certainly do not want taxes be paid to the very corrupt government!
let alone pay triple tax! this is really unjust. they should stop collecting taxes and start giving us back what they stole. now i feel that the only reason why the political candidates are running for position is because they can steal more! sad...but true...
we need to have an information campaign, because i believe only a few know about these proposals; haven't even seen it on tv or heard of it in the radio.
next, we need to have one voice and voice out our concerns to the legislative branch, judicial and executive branches of government to scrap or veto such bad proposals.
that is why there is really a need to choose candidates wisely; and there should always be a check-and-balance(in the government) run by different independent agencies.
Specializes in Med-Surg,OPD ER,School/Clinic,Teaching.
I've been reminded of my history class base on the Philippine history books there was once a congressman in the 60's era lobbying for a law to ask the United States of America to declare Philippines as the 51st state. Wow! Is this for real? I forgot the name of the congressman, he was the laughing stock of his colleagues but he is very much right.What's the use of singing the national anthem where infact our stomachs and hearts longs for other lands.
Immigration wouldn't be a problem if his proposal was seriously considered in the past.
re-imposing the income tax on those with annual gross incomes of at least $6,000
how many ofws earn less than $6,000 annually? that's $500/month.
considering that taxes take up around 1/3 of gross salary, that's $333/month, or around php 16,000/month.
note that the ofw has to pay for room & board, and food.
how do you survive on this amount?
how many ofws qualify???
nurses definitely earn more than $6,000 gross annually, so we will surely be taxed if (when?) they pass this revision to the tax code.
but before they count their chickens, let me break down the harsh reality:
let's say a nurse earns $24/hour. 1/3 of that goes to taxes, so that's $16/hour net after taxes. assuming you work 40 hours per week, that's $640/week, or $2,560/month.
does $2,560/month sound like a lot?
factor in board of around $1,000/month, plus electricity of $40, plus water/sewage of $40...this leaves $1,480 per month.
how much do you think you'll spend for food? assuming you spend $20/day on food, that's $600 food expenses, leaving $880/month. (i think the average remittance is $500/month.)
now if (when?) the philippine government collects income tax on the nurse, assuming it's the standard 1/3...this leaves $8/hour or $1,280 net per month.
after paying for your board and utilities, you won't even have enough to feed yourself.
now these are just rough calculations based on speculations at this point.
what can we do?
we can do what they did back in 2004: the ofws and their families launched protests, and the government had to back down.
i don't think protests will do much good this time around though.
:angryfire What? I felt very much dismayed on the fact that this agency of the Government plans to extract OFW's of another tax. First and foremost an overseas worker had already been taxed from filing of documents until out of the way to the airport! Then these immigration personnel would ask you for any remaining peso that you have in your pockets when you are about to qeue for passport validations.They always think that if you are leaving to states you'll be an instant millionaire. Where are the brains of this BIR people, thinking that these OFW's such as doctors and accountants in banks would have bigger earnings? They really assume it big because they convert it to pesos. Common sense, people of the world! Remittances are also tax deductable. My grandpa would send me $100, when I will claim it in the bank I would just get $89. Come to think of it? $11 deduction is already big then how much more if they tax you with your earnings? Is that the way this benevolent government helps us? Where in fact we in our own yard we can't find a sustainable wage? We gamble ourselves, expose to radiations, descriminations, beatings, rapes and all other bad scenes beyond our wild imaginations. Then these BIR or this kind of government per se would milk us again.
I would be glad if these people will come as soon as possible for our aid in times of crisis. Look at what happened on Lebanon War. Filipina OFWs in Lebanon are cramping on Churches for shelter because the government can't send relief efforts as soon as possible, even C-130 planes can't reach them for evacuation. Our helpless countrymen were begging from other nationalities. Is this where our taxes go? If this would be pushed through, Filipino citizens would be an extinct lot. Many would be discourage to gamble for abroad because it's still the same. What you earn there is taxed and also taxed by your own country. The opinions of my fellow nurses here are right. OFWs are called new heroes but the BIR would shout tax evaders.
They are sharpening a double blade stance to cut us into pieces.
I've been reminded of my history class base on the Philippine history books there was once a congressman in the 60's era lobbying for a law to ask the United States of America to declare Philippines as the 51st state. Wow! Is this for real? I forgot the name of the congressman, he was the laughing stock of his colleagues but he is very much right.What's the use of singing the national anthem where infact our stomachs and hearts longs for other lands.I hate to write this but what is the point of promoting our serious nationalism, where in fact the solons who stick to it wears I love new york shirts. We are living hypocrites of our times. Furthermore, majority of filipino families have their own country of patronage such as Japan, Saudi Arabia, U.K., USA and etc except planet Mars. We can't blame them because we can't deny our colonial mentality that is ingraine in our hearts and souls. You can't be a Filipino moviestar nowadays if you have no foreign blood. We are against pacifist Japan in the yester years. Our grandparents detest them but now we have the guts to send our ladies and gents to exploit the land of the rising sun for survival. Then those old people never knew that what they ate is from the very people who bayonetted their babies and love ones in old times. I'm not instigating sentiments here, my point is we are not much sure of our identity as Filipinos. Survival is the priority. Why not we let Uncle sam colonized us once again after all the majority wanted to stay alive, joke only.
Finally, If bad things had been taking place, then worst scenes are coming up, I predict that Filipinos will be an extinct lot in the coming years. The government has it's foolish ideas of serving the people of our country. :angryfire
how many ofws earn less than $6,000 annually? that's $500/month.
considering that taxes take up around 1/3 of gross salary, that's $333/month, or around php 16,000/month.
note that the ofw has to pay for room & board, and food.
how do you survive on this amount?
how many ofws qualify???
nurses definitely earn more than $6,000 gross annually, so we will surely be taxed if (when?) they pass this revision to the tax code.
but before they count their chickens, let me break down the harsh reality:
let's say a nurse earns $24/hour. 1/3 of that goes to taxes, so that's $16/hour net after taxes. assuming you work 40 hours per week, that's $640/week, or $2,560/month.
does $2,560/month sound like a lot?
factor in board of around $1,000/month, plus electricity of $40, plus water/sewage of $40...this leaves $1,480 per month.
how much do you think you'll spend for food? assuming you spend $20/day on food, that's $600 food expenses, leaving $880/month. (i think the average remittance is $500/month.)
now if (when?) the philippine government collects income tax on the nurse, assuming it's the standard 1/3...this leaves $8/hour or $1,280 net per month.
after paying for your board and utilities, you won't even have enough to feed yourself.
now these are just rough calculations based on speculations at this point.
what can we do?
we can do what they did back in 2004: the ofws and their families launched protests, and the government had to back down.
i don't think protests will do much good this time around though.
if that were applied in the us, everyone will be included because if i'm not mistaken, $500 a month is even less than the minimum wage in any given state.
we can just see how much of a superficial research has been done so far. the ballpark figure is way off and they failed to factor in that diff. countries has a diff. tax system and has a diff. cost of living and diff. wages.
but i think, in this rare occasion, the politicians seems to agree w/ the masses that such measures is indeed foolish. just hope they don't change their minds after they have won the elections.
if that were applied in the us, everyone will be included because if i'm not mistaken, $500 a month is even less than the minimum wage in any given state.
exactly.
you'll have to earn $3.125/hour or less to qualify for the exemption.
no wonder they described bank employees and doctors as professionals "who make so much money."
they pegged the amount to less than the minimum wage, ergo nobody's exempt.
like how they changed the definition of "living below the poverty line": the government lowered the amount, hence "less" people are living below the poverty line in the philippines today.
why not run after multi-million tax evaders in the country? could it be that it's easier to make money out of law abiding citizens who are trying to earn a decent living than make huge, "protected" businesses pay what is really due? you can't help but also wonder where the collections really go (other than the pockets of those in position).
i've lived and paid taxes for many years in the country and i've seen first hand how bir people "audit"...i have nothing good to say about them.
defensor vows to reinforce tax-exempt status of ofws
04/23/2007
at the same time, he said the next congress should require the philippine overseas employment administration (poea) to produce an admissible "proof of personal income" for ofws, as earlier proposed by a labor group.
. . .
defensor acknowledged that in order to address the problem, the poea should produce a valid "personal income certificate" for individual ofws.
double-edged sword.
they can use this "proof" later if they decide to implement the income tax scheme.
krave
11 Posts
now that we have all the information we need to know...
what can we do to stop this nightmare from happening?!
we certainly do not want taxes be paid to the very corrupt government!
let alone pay triple tax! this is really unjust. they should stop collecting taxes and start giving us back what they stole. now i feel that the only reason why the political candidates are running for position is because they can steal more! sad...but true...