Senate gives 2 simple options for self-employed, professionals in paying taxes under new bill
There won’t be any excuses now for them to avoid paying the right duties.
The Senate Committee on Ways and Means has come up with their own version of the tax reform bill submitted by the Department of Finance, and part of the new sources of revenues that it wants to explore is by having more self-employed Filipinos to pay their taxes correctly.
Unlike company-employed workers, professionals are given two options in computing their annual dues: they can either follow the new tax brackets imposed on all employees or pay a flat rate of 8% of their income.
Under Senate Bill 1592 which is now set to be tackled at the plenary, those earning P150,000 annually will be exempt from paying taxes, as well as the first P82,000 of bonuses and P100,000 for four dependents.
“SEPs (self-employed and professionals) are given the option of either the flat 8-percent tax or the schedule of new income tax rates we have outlined for compensation earners. They can basically choose the tax regime more favorable to them. This acknowledges that different entrepreneurs face different realities in different industries. And hopefully, incentivizes them to pay their taxes correctly,” Senator Edgardo “Sonny” Angara said in a statement.
Now that the law is adjusting for their convenience, will it be enough impetus to push them to come forward and pay their taxes?