As I am writing this article, Philippines is experiencing a triple taxation phenomenon, with both corporate tax and personal tax levies increasing to 25 percent.
While the tax is not a problem for all, many Filipinos are taking it as a sign of hope that the country is on the right track to achieving a more progressive tax system.
Here are the ways to avoid double taxation in the Philippines.
Be Smart about Double Taxations in Your Country.
It is well known that the Philippines has one of the highest taxes in the world.
However, the country has been slow to address the double taxation phenomenon and it is a big problem for many Filipinas.
The Philippine Government does not want to be perceived as being in favor of double taxation and it has been known to do this.
For example, during the presidential election campaign in 2017, Philippine President Rodrigo Duterte promised to abolish double taxation.
However in reality, he has been trying to keep it and has not done much to curb it.
It’s not uncommon to find double taxation even in a country with a relatively low rate of taxation.
For instance, there are a number of companies, such as a Chinese company, that have been making investments in the Philippine economy and that is double taxation, because they are taxed at a rate of 35 percent.
It doesn’t matter how many times a company or individual has invested in the country, if they earn income from a particular country, they are double taxed.
So when you invest in a Philippine company or business, you are double taxing it.
A lot of people in the media are saying that they should be exempt from the double tax, but in reality they are not exempt.
They are just paying tax on the amount they invest in the economy.
Know What You Will Get from Your Investments in the Economy.
It would be very easy for Filipinos to invest in things that are not profitable in the eyes of the government.
For this reason, it is important to know what you will receive in the future.
The Philippines has a high rate of tax, so there are many companies that have paid tax at a higher rate than what they should have.
If a company has a tax rate of 15 percent, they will get a 5 percent tax reduction in the amount of the tax paid.
But if a company gets a tax of 25 percent, it will get double the amount, which is double the tax rate.
For many companies, this means that they pay a higher tax rate than the rate they should.
For these reasons, it would be best to know the tax rates in the company’s company name before investing.
Understand Double Tax on Your Income.
The most common reason that people are double taxation is because they invest and save too much.
If you invest more than the tax should be paid on your income, you may not be able to make the money back.
This is where double taxation can occur.
In other words, your investment may not even be tax deductible.
For investors, double taxation will happen when they save too little or invest less than what is taxed on their income.
It may take years before the investor realizes the full benefit from their investment.
In fact, there have been cases where investors have already lost millions of pesos because of double tax.
Know About Your Taxes in the Country.
Many Filipinos believe that there is a special tax on dividends, interest and other income from foreign companies.
These foreign companies do not have to pay taxes on their profits in the United States and the Philippines because they pay their profits to the Philippines instead of paying taxes in their own country.
So in effect, they have no tax burden because they have been paying a tax that is only levied in the place where they have the profits.
Invest In the Philippines If you are planning to invest abroad, it might be wise to look into tax-free investments in other countries.
Foreign investment companies can be taxed only at a flat tax rate, which means that foreign investors are taxed on income they receive.
These investments are tax-exempt in the tax-friendly Philippines.
Make sure to Know Your Taxes Before You Invest In The Philippines.
Many investors and people in general think that the tax system is not complicated.
However the Philippines is not an easy place to make investments in and a lot of Filipinos have not made investment decisions because of the double taxes that have become a reality.
If an investment company has paid taxes in one country, but has not paid taxes to the country in another country, it may be that the company does not have a company name in the other country and the taxes are not fully paid on the investment.
Also, some investments may have been approved by the Philippine government, but the taxes have not been fully paid.
In addition, it could be that there are taxes levied on foreign investment funds that are held by an entity that has no presence in the US, but which is not the owner of the investment fund.
Finally, some investors