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Income Taxation for Individuals – Professionals, Self-Employed and Sole Proprietors

on October 18, 2012

Individuals earning income regardless of the source are required to pay income tax. Aside from Professionals in the practice of their profession, licensed or not, as well as individuals providing services online such as virtual assistants, bloggers, freelancers and other on-line professionals should also pay income taxes.

What are the advantages of paying income tax?
1. Lesser exposure to the Run After Tax Evaders (RATE) program, the BIR and DOF investigate and prosecute individuals and/or entities engaged in tax evasion.
2. Ease in securing personal transactions like applying for travel visa, bank loans, transacting with SSS, Philhealth & Pag-ibig and the likes
3. Increase in confidence in dealing with prospect business partners or engagements
On the Income Tax Guide, the personal & additional exemptions are now amended. The new amounts are as follows:
Personal exemptions (Single, Married or Head of the Family)          P50,000
Additional exemptions (for each dependent, maximum of 4)           P25,000
Income Tax Guide for Professionals

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