The Department of Finance has just released more info on proposed tax reform proposals it aims to be approved next year, and yes it includes much lower income tax rates. How much lower? How about as low as 1%? Have I got your attention? But just who are qualified under… Read MoreIncome tax rate of just 1%?
Should Filipino freelancers pay income tax?
Without divulging my age, let’s just say I was once a patron of prepaid internet ISP cards during the dark ages where people back then would have freaked out if someone had showed them the IPhone. Anyone remember anticipating that fax sound to end so we could finally start surfing, only to have your sibling pick up the phone extension in the other room? Oh that was so annoying…
But technology and the internet has come a long way. It has even disrupted the very employment landscape and allowed Filipinos to compete for virtually any job in the world, right at the comfort of home. Graphic design, bookkeeping, virtual assistants – the list is endless, and out of this technological revolution an ever growing community of online freelancers has emerged. Some describe online freelancing to be a bit similar to working abroad, only this time you get to do it even in pajamas.
It therefore is not surprising for some online freelancers to think they enjoy the same “tax exempt” status as OFWs, and if not, why not? Why not us too?
Read MoreOFWs Don’t Pay Income Taxes. Shouldn’t Online Filipino Freelancers Be Exempted, Too?