Will Philippine stock market players need to file tax for their gains next year?

A new BIR scheme is nudging professionals to declare income which was not required in the past.

The BIR denied that hat they are asking private citizens to file a “personal” Statement of Assets and Liabilities and Net worth or SALN, which is required only of government employees.  Only government officials are required to do that.

The BIR earlier issued Revenue Regulation (RR) 2-2011, requiring individuals, estates and trusts to file their Income Tax Returns (ITR) “together with the AIR or BIR Form No. 1705, which shall include such income subject to final withholding tax and those exclusions from gross income.”  RR 2-2011, dated March 1, states that the AIR must include income subject to final withholding tax and exclusions from gross income, and must be submitted along with the usual income tax return (ITR).

Others who are also not required to file ITRs, but are now required to file AIRs, include those who earn purely from the rendering of labor or service within the Philippines, and whose yearly income is more than P500,000—on which the income tax has been withheld.  Also required to file AIRs are “individuals, estates and trusts whose sole income has been subjected to final withholding tax of more than P125,000, whether remitted or not to the BIR.”

“The term ‘individual whose compensation income has been subjected to final withholding tax’ shall include aliens or Filipino citizens occupying the same positions as the alien employees who are employed by regional or area operating headquarters, offshore banking units, petroleum service contractors and sub-contractors…including those subject to fringe benefit tax,” RR2 added.

Cagayan de Oro Representative Rufus Rodriguez filed a resolution on Wednesday March 9, questioning the BIR’s plan requiring private individuals to fill up an Annual Information Return, or AIR.  Rodriguez also pointed out that the National Internal Revenue Code did not mandate the BIR to require the filing of the AIR. “If it wants to increase revenues through the AIR, the BIR should first wait for Congress to legislate a law allowing this additional filing during the annual tax deadline,’’ said Rodriguez.

He said the BIR should establish the legality of the AIR before implementing it or else, it would be swamped with long and costly lawsuits from taxpayers.

Consulting with various sources, financemanila has learned beforehand that this AIR scheme is planned to be implemented come April 2012 (for taxable year 2011), and a lot can still happen between the present to that time.   Tell you what Philippine Government, just scrap the Lina Law empowering squatters to be compensated before they can be evicted, and you will save the government and the business and private sector a whole lot of headaches and dough.

If this indeed pushes through next year, it is no doubt a deterrent to investors of the Philippine Stock Market.

sources:
ABS-CBN, inquirer march 9, inquirer march 4,

Comments

  1. corruption!

  2. may bawas na nga mga earning sa dividend for the tax then kukunan pa ulit ng tax! kalokohan!

  3. kim is a dimwit ..

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