Understanding the different types of taxes: In the Philippines, there are different types of taxes such as income tax, value-added tax (VAT), estate tax, and donor’s tax. Understanding these taxes and their corresponding rates can help you plan your finances better.
Taxable income: Taxable income is the amount of income subject to taxation. It is important to know what constitutes taxable income in the Philippines, such as salaries, wages, and bonuses. Other types of income, such as capital gains and passive income, may also be subject to taxation.
Tax deductions and credits: Knowing the tax deductions and credits available to you can help you reduce your tax liability. The Philippines offers several tax deductions and credits such as personal exemptions, medical expenses, and educational expenses.
Filing taxes: The Philippine tax system has various tax forms that must be filed depending on your income and business activities. It is important to understand the requirements and deadlines for filing taxes to avoid penalties and interest.
Tax compliance: Tax compliance is important to avoid penalties and legal consequences. It is important to keep accurate records and pay taxes on time.
Tax planning: Tax planning involves managing your finances in a way that minimizes your tax liability. This can involve making smart investments, using tax-advantaged accounts, and taking advantage of tax deductions and credits.
Tax incentives: The Philippine government offers tax incentives to encourage certain activities, such as investments in priority industries, environmental protection, and social development programs. It is important to know the tax incentives available to you and how to qualify for them.
Overall, having a basic understanding of the Philippine tax system and its regulations can help individuals and businesses make informed financial decisions. Although these topics may not be taught in schools, it is important to take the time to learn about them on your own or seek the advice of a tax professional.