#passive income

Passive Income and Financial Intermediary Taxation Act (PIFITA) Bills concerned: House Bill No. The pandemic has accelerated a number of technology-driven passive income options, like those conducted by online means, and the passage of PIFITA may affect how much of these would be taxed. Experts such as those from Taxumo assume that cryptocurrencies are likely to be taxed in the Philippines only when they generate income, i.e., when converted to fiat currency such as the Philippine peso. However, in the possibility that legal definitions for cryptocurrency in the country would expand to further clarify taxation coverage, e.g., treating them like stocks or properties, then PIFITA might be a way to begin since it covers taxation on both passive income and financial intermediaries. A new tax reform bill is being pushed at the House of representatives to further lower the personal income tax of Filipinos. France castro (ACT) and other members of the Makabayan bloc, aims to put the maximum income tax to just 20% (current income tax rate is 32% tops). In the previous administration, the TRAIN Law and the CREATE Law have already passed and effectively reduced business and personal income tax. Numbers are in and according to SEC filings of PLDT and Globe, the two telcos made a combined net income of Php21.5 billion for the first half of 2016, ending June 30, 2016. Read more in our articles including "New Economic Reform Bills: Impact on PH Tech" and "New Tax Bill pushing for 20% cap; free for Php400k and below".