PacMan's Corner

[agentjackbauer]

Eto, sure na. Section 23 of Republic Act No. 8424:

 

 

Section 23. General Principles of Income Taxation in the Philippines. - Except when otherwise provided in this Code:

 

(A) A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines;

 

(b ) A nonresident citizen is taxable only on income derived from sources within the Philippines;

 

( c ) An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income derived from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker;

 

(D) An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;

 

(E) A domestic corporation is taxable on all income derived from sources within and without the Philippines; and

 

(F) A foreign corporation, whether engaged or not in trade or business in the Philippines, is taxable only on income derived from sources within the Philippines

Edited May 9, 2009 by agentjackbauer

[grail80]

I believe the tax bracket still applies although Im not sure since I dont practice tax law. Pero Im a lawyer and hindi lang 10% ang tax ko. I dont know if its because Im employed in a law firm (so employee rin). Pero it doesnt make sense for lawyers who are individual practitioners to be taxed only a flat 10% rate while those in law firms or corporations are taxed at a higher rate based on their monthly income.

 

 

 

Ahh in my experience kasi 10% lang taxed sa akin if you go solo (I went freelance dati, but current tax rate is about 32%). Kaya siguro you are taxed higher is because you have a permanent employment, hence a fixed income. Professionals, as classified in our tax system, are those without regular income: those who need to find their own projects to make a living. Case in point: Willie Revillame. I think the declared annual income is 400M pesos, and he got taxed 40M.

 

There are special benefits to those who earn their money abroad, both corporations and individuals (OFWs) alike, and their income are tax-free. Maybe that could apply to Pac as well.

 

 

 

----

 

 

posted this before I read your post. It seems I'm wrong on the corporation.

Edited May 9, 2009 by grail80

[agentjackbauer]

Hindi pasok si Pac sa exception eh. Hindi sya OFW . Paminsan-minsan lang sya pumunta abroad para lumaban. At resident sya ng Pinas.

Edited May 9, 2009 by agentjackbauer

[grail80]

Hindi pasok si Pac sa exception eh. Hindi sya OFW. Paminsan-minsan lang sya pumunta abroad para lumaban.

 

Yun nga lang. The taxes wouldn't help the economy at all. Sa bulsa lang ng pulitiko mapupunta yan hehehe

[agentjackbauer]

Bottom-line, mayaman na mayaman na si Pac. Kahit ilang Ara Mina (o higit pa), kaya nyang bayaran.

[grail80]

Bottom-line, mayaman na mayaman na si Pac. Kahit ilang Ara Mina (o higit pa), kaya nyang bayaran.

 

 

Teka I forgot about it: Pacman was BIR's model taxpayer. So malamang taxed nga ang earnings nya from boxing. I thought it was from his many businesses.

 

 

International Star na si Manny, baka international na rin ang kabit nya hahaha

[djrs]

Hindi pasok si Pac sa exception eh. Hindi sya OFW . Paminsan-minsan lang sya pumunta abroad para lumaban. At resident sya ng Pinas.

 

he is somewhat like OFW-Expat hindi taxable sa philippines ang kinita nya sa boxing(laban sa U.S.).. pero sa u.s. taxable yung kinita nya...

 

actually kakafile lang ni pacquiao last january ng ITR nya for 2008.. bakit? kasi lahat ng kinita nya sa local endorsement/TV appearance nya is considered as LOCAL INCOME and it is Taxable. even the contract sa solar sports taxable din yun...

 

actually pacquiao is one of the good example of TAX payer.. kasi di sya nag papalate at nagbabayad sya ng tama sa tax nya...

 

--

 

 

how do i know? nakapag trabaho ako sa POEA. hehehehe.

 

Tax Exemption

 

Filipinos overseas are exempted from paying taxes on their earnings from foreign sources.

 

hope this one clear things up...

Edited May 9, 2009 by djrs

[agentjackbauer]

Djrs,

 

Sorry but Pac is not an OFW, as defined by law. I guess we just have to agree to disagree.

 

 

 

Grail,

 

It seems the 10% tax is the EVAT. So every amount paid to a professional such as lawyer for his fees are subject to a 10% final tax. Then, that same professionalis still subject to income tax based on his gross income (using the tax bracket).

Edited May 9, 2009 by agentjackbauer

[djrs]

Djrs,

 

Sorry but Pac is not an OFW, as defined by law. I guess we just have to agree to disagree.

 

 

 

Grail,

 

It seems the 10% tax is the EVAT. So every amount paid to a professional such as lawyer for his fees are subject to a 10% final tax. Then, that sme lawyer is still subject to income tax based on his gross income (using the tax bracket).

 

so ano sya? san ba yung source of income nya pag lumaban sya sa U.S.?

[grail80]

Djrs,

 

Sorry but Pac is not an OFW, as defined by law. I guess we just have to agree to disagree.

 

 

 

Grail,

 

It seems the 10% tax is the EVAT. So every amount paid to a professional such as lawyer for his fees are subject to a 10% final tax. Then, that same professionalis still subject to income tax based on his gross income (using the tax bracket).

 

 

Interesting how the government steals our money eh? The way I look at it, my work from January to April is done to pay my taxes. I then pay e-VAT for all products I purchase and services I use. That means almost half of my salary actually goes to the government! Sheeet!

[djrs]

Boxers income from advertising consumer products were already subjected to withholding tax.

 

Pacuiao Guaranteed purse was subject for 30 percent cut by the Internal Revenue Service in the US.

[djrs]

Interesting how the government steals our money eh? The way I look at it, my work from January to April is done to pay my taxes. I then pay e-VAT for all products I purchase and services I use. That means almost half of my salary actually goes to the government! Sheeet!

 

 

Philippines is the most TAXED Country.. one of the highest... considering na 3rd world country tayo..

[djrs]

pero kung gross income ang pag uusapan taxable ng 32% si pacman...

[dragonei]

Bottom-line, mayaman na mayaman na si Pac. Kahit ilang Ara Mina (o higit pa), kaya nyang bayaran.

 

Kaya nga sarap maging kasama sa entourage ni Pacquiao. Actually aside from taxes, ito ang isa sa me pinakamalaking kurot sa kita ni Manny. Ang dami dami dyang freeloaders sa team pacquiao. Lumilipad sila kasama ni pacquiao, and they stay in the US with him for the duration of the training till the end of the fight, kahit wala naman sila naiaambag. Ang iba dyan religious and political adviser kuno na di nya naman kailangan. At kung at some point kailanganin nya man sila, hindi naman dapat all the time nakabuntot sila sa kay manny. Isipin mo sagot ni manny pamasahe nila, board and lodging, me sweldo sila, at ang mga kupal me kwarto pa sa mandalay bay hotel.

 

Hay pag sikat ka nga naman, kung sino sinong linta ang kumakapit sayo.

[oracle_man]

Djrs,

 

Sorry but Pac is not an OFW, as defined by law. I guess we just have to agree to disagree.

 

 

 

Grail,

 

It seems the 10% tax is the EVAT. So every amount paid to a professional such as lawyer for his fees are subject to a 10% final tax. Then, that same professionalis still subject to income tax based on his gross income (using the tax bracket).

 

I would have to agree.

 

He is not OFW so he will be taxed. Just like me, I currently work here in Japan on a business visa (90 days maximum stay) and my salary in the Philippines is still taxable. However, there is one way Manny would not be taxed - he has to stay/work overseas for at least 183 days within the year. In this case, he will be taxed only on the salary he earned when he was in the Philippines.

 

Edited to add: That's cumulative 183 stayed days within one year.

Edited May 10, 2009 by oracle_man