Tax Exemption

Bam: Tax exemption for PWDs and Families with Dependents

Senator Bam Aquino has filed the Amendments to the Magna Carta of PWDs, which provides PWDs and families with PWD dependents a yearly uniform P25,000 tax exemption, giving them a reprieve from the daily challenges they face.

In addition, PWDs will be exempted from value added tax, in addition to their regular personal deductions if the measure is enacted into law.

“The exemption will help augment PWDs and families with PWD dependents from their expenses, from wheelchairs, hearing aids, nurses and caregivers, and learning disability tutors, among others,” added Sen. Bam.

Explaining his bill, Sen. Bam said the PWDs have found it difficult to find employment and earn income for themselves and for their families.

Aside from this, they have also had to worry about their daily expenses for medicine and rehabilitation.

“Such accommodation for our PWD sector is part of our larger reform efforts in pushing for a society that is inclusive for the poor and most vulnerable sectors.  It is one of our courses in our journey towards achieving a fully abled nation,” the senator explained.

In his measure, Sen. Bam also hailed the contribution of the PWDs in shaping the country’s history and to the advancement of good governance.

Tax Exemption for Business Virgins – Sen. Bam

Senator Bam Aquino has filed a measure granting start-up businesses tax exemption from operations for two years.

Aquino said Senate Bill 2217, also known as the Start-Up Business Bill, would provide these enterprises the proper time to stand on their own as they try to create a niche in the market.

“The intervention provides the opportunity for these start-ups to get organized, establish their business operations and market base,” said Aquino, chairman of the Committee on Trade, Commerce and Entrepreneurship.

The measure proposes a tax exemption from operations for two years, given that these enterprises are not an affiliate, a subsidiary or a franchise of any existing company.

Also, these start-ups must not have any other existing registered company in case of a sole proprietorship.

“They should have at least five percent share with no nominal stockholders and a in case of a corporation, a venture capitalist should only have up to fifteen percent of total outstanding shares,” Aquino said.

The senator believes that the passage of his bill will legitimize the start-ups’ role in the economy and the acknowledgement of the State’s commitment to innovation.

“Start-ups have the potential to spur and spread such innovation.  As these enterprises have likewise the appetite to take on more risks, they would fuel creativity and challenge existing ways of doing business,” he said.

Aquino added that the growth of start-ups would be beneficial for more Filipinos who have the innate talent of working with limited resources but able to fashion out contemporary ideas.

“Let them grow, and by the end of two years, they will be able to pay the right taxes and join the formal economy,” the lawmaker stressed.

“The idea is not to exempt businesses, but to give them space to grow,” he said.


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Sen. Bam hits BIR’s ‘Anti-Poor’ Circular, Files a Bill to Exempt Small Businessmen from Taxes

Senator Bam Aquino has filed a bill seeking to exempt Marginal Income Earners (MIEs), including farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs, from payment of income tax.

In Senate Bill 2227, Aquino said MIEs, or self-employed individuals who earn not more than P150,000 annually, should be spared from paying income tax, just like minimum wage earners.

“Granting income tax exemption to minimum wage earners while subjecting our small businessmen to income tax is contrary to the mandate of the Constitution, there being no substantial distinction between them in terms of earning capacity,” Aquino said in his measure.

Aquino made the move after the Bureau of Internal Revenue released a memorandum circular — Revenue Memorandum Circular (RMC) No. 7-2014 — compelling micro entrepreneurs to pay income tax returns.

The circular said MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

“Charging taxes does not help them in any way. Rather, it becomes a burden to a sector that is situated below the poverty line,” Aquino said.

“Imposing income tax on our small businessmen is tantamount to confiscating what little income they are able to make on a daily basis,” he added.

The bill classifies MIEs as self-employed individuals – working neither for the private sector nor the government — deriving gross sales/receipts not exceeding P150,000 during any 12-month period, which will be used principally for subsistence or livelihood.

If enacted into law, the bill allows the BIR to adjust the income cap on the gross sales of the small businessmen to match any increase that minimum wage income earners may receive.

Aside from income tax, MIEs shall be exempt from 12 percent value-added tax and any percentage tax imposed under the National Internal Revenue Code of 1997 because they are not engaged in trade for which these taxes are imposed.

“Such a measure provides an enabling environment for our Filipino people to thrive and be given a chance to succeed.  It further continues our campaign in achieving true inclusive growth for everyone, even for the poor and marginalized,” Aquino said.


Photo source: biogprawny

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