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August 14, 2014

TMAP report shows Filipinos pay the highest tax in ASEAN

The Tax Management Association of the Philippines (TMAP) reports that in all of the ASEAN region the Philippines is the country with the highest income tax. They’re currently in the process of appealing to the Congress to cut down the tax rate for Filipinos.

"You cannot expect the BIR to collect from air, you will have to reduce the revenue goal." - BIR

“You cannot expect the BIR to collect from air, you will have to reduce the revenue goal.” – BIR

Rina Manuel, President of TMAP, mentioned that now is the time to lower the tax bracket or amend it to make it equitable. “Corporations are only subjected to 30% tax rate while individuals are taxed 32%. Ang corporations may deductions pa, while ang empleyado personal exemptions lang at additional for the Children,” Manuel voiced out.

Philippine tax vs. other SEA countries (for Php500,000 income):

Philippines: 32% income tax
Vietnam: 20% income tax
Cambodia: 20% income tax
Laos: 12% income tax
Malaysia: 11% income tax
Thailand: 10% income tax
Singapore: 2% income tax
Brunei: 0% income tax

In addition, TMAP is also proposing that minimum wage workers should be exempted from paying tax, so long as they are truly earning minimum wage salary. If there is additional income (no matter how small in excess of the minimum wage) then it qualifies to be taxed by the government.

The side of Bureau of Internal Revenue (BIR) gave a warning that smaller tax collections would affect government spending used to “drive economic growth”. They said that along with the reduction of tax there should also be reduction of revenue goal.

“So if the final decision is to reduce tax rates, you cannot expect the BIR to collect from air, you will have to reduce the revenue goal. It is like a household, if someone decide to stop working, you cannot keep on spending the way you use to do because eventually you will go bankrupt or you do not expect people to keep on lending to someone who is a credit risk,” BIR said.

{Source}

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27 Responses to “TMAP report shows Filipinos pay the highest tax in ASEAN”

  1. taxpayer says:

    kaya nga ang yaman nila no?

    • archie says:

      Pinas ang may pinakamahal na electricity rates sa Asia.

      Tayo lang ang bansang may “travelling fee” sa mga airport.

      Ang bansa lang natin ang may MRT at highways na pagmamay-ari ng private companies na kailangan pang magbayad ng toll fee para madaanan.

      Wala tayong National ID na nakasulat na ang lahat ng NBI, SSS, at TIN No. Kailangan pa nating kumuha ng ID kung saan-saan para maging valid ang transactions natin.

      Nag-eexpire ang birth certificates na ginagamit natin sa document filing. Pag lumampas sa isang taon, kailangang kumuha ulit sa NSO na pwedeng ilagay na lang ang birth data sa magnetic stripe ng National ID.

      Nadadagdagan ang overhead expenses ng pagpasok ng foreign products sa bansa dahil kahit legal ka at may tamang documents, di ka pa rin ligtas sa panghihingi ng mga taga-custom. Isa rin ito sa dahilan kaya mahal ang mga gadgets sa Pinas. May kapitbahay akong secretary lang sa port area pero mamahalin ang suot at naka-latest iPhone pa.

      Tapos ngayon lang nila na-raise ang issue na mataas ang income tax natin? Kung sasabihin pa rin nila na hindi corrupt ang govt. natin, ewan ko na lang.

    • pinoyadobo says:

      @archie, indi nage-expire ang birth certificate as clarified by NSO. Its just that the companies require applicants updated NSO-certified birth certificates. Posible kasi na merong mga updates sa birth details (like birthdate, correction of name, etc.) at the time of application. Pero, tama ka, kung may national ID, reflected na yung changes dun sa card and no need to apply for NEW birth certificate. This saves time and money.

  2. duh@ says:

    not surprising. dahil pinas ang pinaka corrupt sa asia, ganun lang yun.

  3. Jason says:

    Tama lang na bawasan yan. Hindi pa ba sapat na tinatax ang lahat ng produktong bibilhin natin? Besides wala rin namang napupuntahan ang Bilyon-bilyon na kita ng gobyerno sa atin.

    • Anonymous says:

      Anong walang napupuntahan? Eh di ninanakaw!

      Kung walang napuntahan, eh nasaan na ang pera?

  4. johnonline says:

    Hindi nmn flat out 32%.. graduated table yan.

    Pero i agree.. reduce personal income tax, now na!

    • boggart says:

      the premise of the report focused on 500,000 pesos taxable income. it did not mention anything about those under 500k.

  5. billyboompanis says:

    The lower the tax, means the harder the government works to feed its nation. To me, it seems like it’s the government feeding itself from the PH tax! iboto pa natin ang mga gahaman at walang alam!

  6. RaM says:

    “BY 2015, the 10 nations that make up the Association of Southeast Asian Nations envisions an “Asean Economic Community,” which will establish “a highly competitive single market and production” through the integration of their economies.

    The question is, are we prepared to meet the competitive challenges in terms of integrating with other countries in the region?”

    Answer: NO

  7. kunsel says:

    Napaka luma na ng tax rates na yan. Kailangan na ng revision. Imagine if 500k plus ang yearly mo after deducting statutory deductions, personal exemptions at additional exemptions ang base tax mo 125k agad plus 32% in excess ng 500k? Grabe. Magkano na lang matitira para sayo at sinusuportahan mo? No wonder madaming OFWs.

    • boggart says:

      i have suggested to sonny angara through his fb page to just add another zero to the figures in the tax table – yung 10,000 becomes 100,000 at the bottom of the rung, and on top yung maximum na 500,000 becomes 5,000,000. mas plausible naman i-tax ng 32% ang limang milyon kaysa kalahating milyon di ba?

  8. bugz says:

    tayo lang napakalaking tax,merong vat,sin tax, income tax. tapos kunti pa ng sahod. iba’t iba pang deduction. ilan nlang ang natitira nilang sahod? kaya nga de umaasinso ang iba nating kababayan dahil meron din iba mas mababa pa sa regular minimum wage. tsk3

    • Anonymous says:

      Hindi lang yan. At nagmamahal pa ang mga bilihin. Pati na ang kuryente, tubig, gasolina. Walang paki ang ating gobyerno kung magdusa tayo. Malaki naman kasi ang kubra nila para mapaghatian, kung di man masolo.

  9. Benchmark says:

    and the actual amount that only goes to the Filipino people is about 10% or less. The rest, in the rich and corrupt officials.

    • pinoy says:

      agree ako dyan. im working very hard para maka ambag sa kayamanan ng beloved politician ko. para mas yumaman pa sya at d magutom.

    • Harhar says:

      Dito pumapasok mga ill gotten wealth ng mga opisyales natin gusto pa ng BIR na magtax kahit sa transpo allowance..barrier talaga ng pag asenso ng Pinas itong magagaling na lider natin

    • boggart says:

      kaya nila gustong i-tax pati allowances dahil sa ginagawang “creative accounting” sa mga kumpanya na imbes na isama sa sweldo dapat tina-tax ginagawang tax shield o shelter. nabisto na ito ng bir.

    • Ronald says:

      Lahat na lang may tax! OT, Incentive bonus, performance bonus. Nila pa nila ng ceiling na upto 30K lang ang non taxable sa mga bonuses and incentives. So ibig sabihin after ng 30K lahat ng ibibigay syo ng company mo dahil sa magandang performance mo ay makikiamot pa ang gobyerno. Hindi naman sila ang nagtrabaho para sa incentives na yun!

      Tapos kapirasong kalsada lang hindi pa magawa ng tama! Bako-bako pa rin. Mga manhole puro wlang takip.

  10. anokamo says:

    “It is like a household, if someone decide to stop working, you cannot keep on spending the way you use to do”

    This is only true if the government is spending our taxes properly.

  11. Hen-Sheen says:

    This article should be in the Financial section of the internet… Anyway, BIR should never advertise Doctors as villains; an extremely low blow to those people who worked in the medical field no thanks to their “Brainless Campaign”. From 12%, went up to 32% (PhG did the math); those guys from the BIR are “Jabroni’s” who rely too much on taxpayers money. Our Government is Over-hyped and Overrated! I should buy a T-Shirt that has the phrase: “AbandonPHShipandfindBetterLand”…..

  12. Rainbow Rat says:

    Masakit ito sa normal na empleyado kase bawas na kagad yung sweldo mo pagdating ng payday. Pero yung milyon milyon yung kinikita yearly sila pa ang hindi nagbabayad ng ayos. Buti sana kung may napupuntahan ang pera na binawas sa iyo.

    I am hoping and dreaming that I get to choose where my tax would go to. For example, I will be oblige to help 1 family or send several kids to school. At least, I know that my earnings go to a good cause instead of seeing fat politicians on their classy cars or their kids blogging on social media – posting their LVs and the fancy places they had been to.

  13. Senatonggresssman says:

    Mataas ang tax para malaki ang kukurakutin ng mga hinayupak na mayor, governor, tongressman, senatongs, cabinet sec at mga galamay nila!

  14. steelicon says:

    Agree or disagree?

    Paying taxes to a corrupt government is not patriotic; it is slavery.

  15. jj abrahams says:

    typical gov’t employees; working mon to fri only (from 9-4pm, minsan earlier pa), full benefits, higher net pay and petiks work environment because of newly appointed boss na walang alam sa ginagawa nya (napasok lang dahil sa kakilala si ganito) haha
    no doubt economy is getting worse, the rich richer, the poor poorer..

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Kevin Francisco is the Senior Editor and Video Producer for YugaTech. He's a Digital Filmmaking graduate, a music junkie, and a superhero by night. Follow him on Twitter for more tech updates @kevincofrancis.

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