April 16 is the deadline for the filing of income taxes for private individuals. As a saying goes, nothing is certain in this world except death and taxes. I know it is quite painful to part with your hard-earned money only to lose it to corruption. I am going to set aside personal rants on government services and focus more on my perceived benefits in paying taxes (after all this is my blog. hehe!). It is easier for me to understand why I should give it freely to the government when I know I will get something in return. (In some cases, I expect and demand something in return, all within the bounds of law.)
1. Accounting knowledge. Little knowledge, they say, is dangerous. I believe zero knowledge is fatal. Ha! I have a lovely mathematics degree tucked under my belt. Ask me about quadratic equations, limits and double integration, I
will might be able to explain them (with the help of a textbook because calculus was 18 years ago. hehehe) Ask me to input an amount on a columnar book and immediately emailed my cousin on how to do it. Ha!
2. Proof of income. If you need a loan from banks and other financial institutions, the income tax return is commonly required to show that you are earning something. For those who apply for visas to travel, embassies require the income tax return to show that you are earning and you will return to the country because you have a lucrative job or business here. While I do not think I will need a loan anytime soon, I have an itchy feet and I want to travel the world. I am not yet sure with the lucrative income but I am single with no parents, no siblings and no child (how sad no? ), I can definitely fend for myself and travel a little. I am slowly trying to reach my dream of travel.
3. Budgeting tool. Paying taxes allows me to track how much I earn for the month. Sometimes, I wonder where my money went and realize I used a chunk of it on snacks. (Ha! I know I need to lose weight soon.) By knowing how much I earn per month, I can anticipate future expenses and plan personal projects.
4. Complaints leverage. Because I pay taxes, I believe it gives me the right to complain about inefficient government services. It is quite tedious for freelancers like me because we pay taxes monthly and file returns quarterly and annually. I slowly become aware of the procedures and learn what works and what does not. Dealing with government bureaucracy is a test in patience. In the US, there are online tools that help taxpayers fill up forms like the tax preparation software here. Different income brackets have different tax rates and there is an income guide available online.
5. Peace of mind. In the US, a vice president resigned due to tax evasion chargers. A mafia leader was jailed due to tax evasion. In the Philippines, several prominent personalities are pursued by BIR for tax evasion. When my aunt asked why I bother to pay taxes, I replied, “Ayokong guluhin nila ako pag Judy Ann Santos level na ako.” (I don’t want them to bother when I am as rich as Judy Ann Santos.) I know it is quite a long shot and quite improbable. However, the law excuses no one.
isa lang ang masasabi ko…you are a good citizen of the Philippines. lol the last time I paid my income tax was when I was working (erm, 8 years ago). tagal na noh?
oh yes…. tax season na naman… im an employee so i dont care about my own income tax…. but my company’s income tax is my major responsibility….
I like your post thanks for sharing this. We already done are tax return couple days ago. Since me and my husband worked, tax return is very low:(
tax season, busy time for accountants… hehe
Oo nga, tax season. The accountant that my mom hires is super busy. She’s overloaded and very much in demand which makes me wish one of my kids will become an accountant. Oh! But the headache!
i like this post and i so agree with all that you listed. yeah, sometimes it’s really sad to think that despite the fact that you’re a good citizen paying your taxes, you don’t see some improvements, in fact corruption is just around the corner all the time. tsk tsk.
interesting thoughts about paying taxes!
nyhahahaha. i love your excuse! i agree!
Since I’m an employee, my taxes are automatically deducted and paid by the company. The HR and Finance group already did the computation and because there are changes with the formulas some had deficit while others have refund. In my case I’m one of the lucky few to get a refund of P2.50.. hehehe..
Hay, taxes! We (taxpayers) wants to feel your “returns”.hehe
You have a Math degree? Gaaah. *okay*
Anyway, thanks for reminding us about the deadline! I’m having a bit of trouble now with taxes since I turned into freelancing. I’m not sure how much I should declare. 🙁
You can always to go to BIR. In fairness to BIR in my area, the employees are accommodating.
Nice yan! Travel muna while single! Also at least you looked on the brighter side of paying taxes. Kasi sometimes I wanna throw the paper before whenever we see our payslip! kamote yan!
I am trying make it a pleasant experience.
I’m not really sure about taxes. But here in UAE, the government is already applying it in all sources. We just don’t feel like paying it because it’s part of the receipt already.
I don’t want to talk about taxes…Some said that tax will be lessen when you got kid/s but seems nothing happened when I had Matt under my name. Ganun pa din kalaki ang tax sa salary ko. kainis…
Hi, ang laki siguro ng income mo. 😀 mas malaki tax pag nagincrease ka ng bracket.
The BIR is actually making great efforts to make tax filing easier. They have these interactive forms which will make filling up the form a whole lot easier. http://www.bir.gov.ph/birforms/form_itr.htm#1701 .(that’s for professionals/single proprietorships). I think employees are the ones who are always “lugi” when it comes to taxes kasi tax is withheld on their gross taxable compensation income after deducting only the personal and additional exemptions. For single proprietors, they can deduct a 40% optional standard deduction aside from the personal and addl exemptions or come up with expenses related to business before computing the income tax. Same with corporations. tax is on net income at a fixed rate of 30% of taxable net income or 2% of gross income
Thanks for the link! I realize nga na mukhang mas mura tax ko ngayon. mas malaki deductions. 😀
It’s okay to pay tax as long as it will go to really helpful projects. But in our country, that’s a big question. Well, I agree with you, since I pay my taxes, I have the right to voice out any complaint against any misuse of government funds.
“Ayokong guluhin nila ako pag Judy Ann Santos level na ako.” pak! yun yun eh..
hehe! Forward thinking!
The advantage in paying taxes is with the government. It’s a must for most nations.
Taxes, so hard to live with them but cannot live without them. There sure is a bad reputation around taxes, especially when we don’t see the good results.
Well said. As a good citizen, we do need to pay what is due. I still have to talk to an accountant since I just came back to the Philippines. Last time I filed my ITR was 2000 pa.
How I wish we could enjoy tax-free living in the Philippines someday!
I do not need to do my taxes this year as it is automatically included by the employer. I agree that learning where your money go is important.
done paying taxes last january, its part of my routine to pay ITR, real estate tax and business tax payments before january ends; also here in QC, i like to avail the 20% discount, for early birds…sayang din di ba?
done paying taxes last january – ITR, real estate tax and business tax payments also here in QC, i like to avail the 20% discount for early birds…sayang din di ba?
I’m working from home now and I have to fill out the form soon. I don’t even know how to start 🙁 Thanks.This was helpful!
Oh yes, tax season! Sakit sa bulsa time na naman hahaha I just wish in this administration, we can feel our taxes.
Proof income is always one of the biggest advantage of paying taxes. It’s a requirement for almost every kind of loan (housing and car) available around the market.
I aggree with those advantages presented and that is also the reason why I always complain.. cant help it haha
Well, it’s really interesting to know more things when it comes to paying taxes and you’re right about the exercising your right. I think the working class should know more things about taxes because the working class is the most on time payer of taxes. hahaha!
That is so true… pay up or pay the fines and deal with the extra headache. Informative post. 🙂
Oops! That last comment has my other blog address. Apologies. Anyway, April 16th is almost here and this is important advice to keep in mind. 😉
What I like the best is #5, Peace of Mind. Who wouldn’t want it right? I laughed also at Judy Ann level.. yan din worry ko eh! hehehe!