Tax on OFW Remittances

Posted by Analyse at 2:54 PM

Sunday, April 22, 2007

An email which was forwarded to me last Friday has awakened me in my dormant status about Philippine news. I've read too much anger, hatred and some violent reactions about the news. Sino ba naman ang hindi?

Does the government help these OFWs financially during the process? No? So why the heck do they want to get their part of the cake?

Does the government evaluate the risks that our fellow kababayans take when they leave the country? They can't even eradicate all those illegal recruiters who not only go away with the hard-earned money but worst, the hopes and dreams of some kababayans.

And anyway, it's simply N O N S E N S E ! Why do we have to pay taxes on earnings from outside the Philippines? According to the National Internal Revenue Code of 1997, an individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income from sources within the Philippines. That's logical. So why do we have to amend it and again, be the center of mockery of all the other nationals?

And by the way, don't they know that these OFWs already pay taxes in the country where they work? That's double taxation! Naman! If only we have a clean government, I won't think twice. If it's the way I could help the country out of poverty, why not. But you don't even know where you're money goes after taxation. Honestly, I've read the news, I probably missed some lines, I saw the taxation proposal and saw no exact program nor plan. Great!

Eto pa: The study suggested that these same remittance incomes pouring into the country had nurtured dependence, contributed indirectly to the contraction of industries and developed a culture of migration among Filipinos.

- had nurtured dependence : that's personal. It's their choice. I don't send monthly remittance to my family so I don't think I nurtured such dependency.. but well, I'm not an OFW. I'm just a concerned citizen who feel bad about the news.
- contributed indirectly to the contraction of industries. I don't think so. There are still a lot of Pinoys willing to work in the country. And besides, being an OFW is not for everybody. Not everybody has carabaos and a piece of land to sell just to move out of the country. .. and hello, if you listen to foreign investors, you could hear corruption, under-the-table business, government instability and terrorism as the main reasons, not the massive migration of the Filipinos.
- developed a culture of migration among Filipinos. Oh yes, if only the country could offer jobs to the Filipinos! A job which could offer him a decent living. A job which could help him send his kids to school.

How dare you blame the remittances for the above-mentioned reasons - the same remittances which kept the Philippine economy survive. Pinoy nga naman.


Here's to lighten up the atmosphere. Louna's Image of the Week. I left her with some apple slices and came back with this image. Picture-worthy.


Heart of Rachel said...

It's sad that our government takes advantage of OFW instead of helping them.

It seems as if Louna wants more of those apple slices. :) So cute!

dexie said...

i wonder where the taxes REALLY go to. not for the country's progress of course. :(

your daughter's personality cracks me she's so feisty :)

Lucille said...

nakakalungkot isipin for the part of OFWs... i just hope phil. gov will really use it to help the improvement in our country...not in gov official's own pocket!

Hahaha her expression seems kulang yong apple slices. And how about those legs on the table? haha nagrebelde yata si little miss! she wants more.

babybee said...

Toddlers have got some good table manners, don't they? Gotta love your daughter's pose and expression. :)


Christianne said...

Bwisit naman ang tax na 'yan. I don't send remittances too, but I occasionally send money for plane tickets when I invite my family to come visit us and it sucks that that money will be taxed. Pagtatawanan nga tayo ng mga ibang bansa. Pero wanna bet that Pinoys will find ways around it? Magpapadala na lang siguro sa mga kaibigan o bibigyan ng supplementary credit card ang relatives sa Pinas.

And LOL at your little angel's pose and facial expression. Picture-worthy nga!

Analyse said...

Rachel, oo nga. kainis.

Re: Louna. She definitely wanted more hehe.

Dexie, haha, that made me laugh.. feisty louna, bagay!

Lucille, asa ka pa. I don't know but I just can't trust the government.

actually, tawa ako sa kanya when i saw her legs on the table. kulit!

Irene, thanks ;). I've checked your site, wow, you've got a collection of very good photos!

Christianne, oh yeah, they will again push pinoys to do it the 'hidden' way.. asar no?

i actually ran get the camera when i saw her hehe..

dangkin said...

whattttt????? kulang pa ba ang taxes na binabayad ng mga karaniwang empleyado dun???? kung tutuusin, halos kalahati ng sahod ng isang simpleng empleyado ay napupunta sa TAX!

eto cguro ang rason bket kailangan nila ang pera: 1) para mapag-paaral nila ang mga anak nila sa ibang bansa! 2) para makapag-shopping ang mga misis at kabit nila sa ibang bansa. 3) para makapamili pa sila ng mga lupa sa kung saang lugar man sa pinas. 4) para mapagpatayuan nila ito ng MANSYON bago manlang sila masibak sa pwesto. 5) para may panustos sila sa mga anak sa labas! at mapagpagawan na rin ng kahit maliit na mansyon! hayyyy pinoy!

dangkin said...

oo nga pala, kailangan ni louna ng marami pang apples!! bilisan mo sa pag slice! he.he.

KK said...

What?!! The Philippine government want to tax income derived from outside the Philippines. That's too greedy! OFW's remmittances keep the dollar reserve where it is now and that is enough help already.

That's such a cute picture of Louna. Looks like she wants to get on the table.

Princess said...

Buti pa si Louna, walang problema sa taxes sa Pinas. She seems to be saying: "baka naman tumaas pa ang blood pressure mo, mommy".
Pero talaga namang nakakapanggigil, di ba?

Plain_Jane_Too said...

Thanks for this post. I did not know at all about this tax amendment proposal.

I need to follow this proposal - I was thinking of acquiring back my Filipino citizenship for dual citizenship. Depending on the details and eventual settlement of this proposal, I may not go for my dual citizenship. (I do know that in my alumni group, a number of those that had acquired Canadian or US citizenship have started to apply for dual citizenship - this tax amendnent is a critical piece of decision-making.)

An advantage of being a dual citizen is that I will be able to buy property in the Philippines and own it 100%; however if my current income is going to be taxed too, well, that is a deal-breaker.

I will need to ask my "contact" in the Philippines on this issue. The article was not clear on whether the proposal is going to tax only the remittances or the overseas income of those officially labeled as "OFW" by the Phil. govt or if taxation also applies to those who have dual citizenships. Devil is in the details...

Thanks again.

analyse said...

Dangkin, hay naku. nakakagalit talaga ang news.. the law is not amended yet, sana di matuloy.. if you count all the taxes and all the other revenues in pinas, magtataka ka talaga kung saan napupunta lahat ng pera dun.. kelan kaya magbabago ang pilipinas.. i mean, the filipinos governing the philippines.

KK, buti na lang pala i posted it here.. it seems na maraming katulad ko na di na nagbabasa ng news a hehe.. huli ka ;) ... kakaasar na news no?

Princess, kakagigil talaga. that should mean that if ever i buy a property there, i should pay taxes na naman, aside from the taxes i paid here? gulo! aba, as in di na talaga makakaahon sa kahirapan ang middle class citizens (yes i say middle class citizens!)..

Plain Jane, you're welcome. at least, it served my purpose to reach out..

yeah, ill be checking on this news too, as you said, it's not clear. they're talking about remittances and at the same time talking about salary bracket of $6000 and above (net or brut??).. so will it be limited only to the actual money sent or the whole salary? gulo!... but well, i hope it won't pass..

nao said...

baklaaaaaaaaaaaaaaaaa, asa Pinas na ko super init shets! super cute naman ni bebe sa pic, pa blow up mo bading! mwah!

julie said...

Hmm... these remittances keep the country's economy well and if they tax these incomes, I just don't know what will happen. About nurtured dependence, that may be true. I am a firm believer of not just giving a person fish to eat but teaching this person how to fish. But then, one of the reasons why we have OFW is because the income from working abroad will help the family survive. Others kasi, they rely solely on money sent their way and won't lift a finger to work because of the monthly remittance they get. You're right, OFW take risks working abroad so why make them suffer more by taxing them?

By the way, nice expression there by Louna, :D

boks said...

yeah, "ang pinoy nga naman..."

salut, ana!
ça va?

am glad that I got to read PLAIN_JANE_TOO's comment... naman kasi, I just talked to someone from the Philippine embassy (minutes ago lang) and she said na once daw na makuha ko French citizenship ko (be having it this June, most probably), i-acquire back ko raw Pinoy citizenship ko, she told me about the advantages but didn't mention anything about the "disadvantages", lol. Maintenant, ja'i un doute...

Louna's sooooooooo cute! look how she's grown!

hey, we need some rain, non?! on a un printemps bizarre, tu ne trouves pas???


Analyse said...

Nao, badinnnng! musta ka na? haze and i were just wondering how you're doing on our chat last night, and now you're here! till when will you be there? i will be there by june, andun ka pa ba nun?

Julie, im a follower of that too.. i hate spoon-feeding too.. but well, it's not reason enough to tax OFWs.. and it's a family affaire already, out of their jurisdiction di ba?

Boks, long time no see!!!! comment vas-tu? hmmm, on the issue, renseignes-toi bien avant.. mahirap na..

oui, elle a déjà bien changé, ma coquine.. comment elle a grandi!.. et ate clems? ça va? donne moi qqs nouvelles!

hmmm, je n'ai même pas vu les printemps passer.. il fait trop chaud!

AL said...

I would willingly pay taxes to the Philippines IF I would be able to have a social security when I retire.

Anyway, it is next to impossible to implement this law. How would they be able to do this practically? Honestly, the Philippine government could not even keep track of all the tax evaders in the Philippines but they could track down all of those who are willing to pay under the table.

I am really really annoyed by this actually. The Overseas Workers has contributed a great deal to Philippine Economy from collapsing totally. The reality is : the Philippines is very dependent on the remittance coming from the OFW's.

:) Louna is such a doll!!!
Have a nice week!

mitsuru said...

@#$%&*! just like you and everybody else, pare- pareho ang ating pag- unawa at damdamin sa bagong buwis na ipapataw sa mga Pinoy OFWs.

baka nagkukulang pa sila sa mga kinukurakot nila at gusto pa nilang huthutan ang mga kababayang nag sasakripisyo sa ibang bayan.

and they're also now blaming OFW's for the brain drain, unemployment and migration sa bayan natin? whoever made this kind of rationale should be shot in the head so we can see if there's really something inside it.

and to think that the ofw's remittances greatly contributes to why our economy is still afloat despite all the disastous programs that the govt has implemented which are usually anti- people.

nao said...

june 2 ang flight ko pabalik bakla! naku mabisita nga rin si haze :)

ann said...

"Makabagong Bayani" raw ang mga OFW pero bakit pahihirapan sa tax? Nakaka upset yung news na yun pero bumawi naman sa pix ni Louna...hehehe.

ana said...

i would agree not to disagree on this tax plan for OFW remittances if and only if there is confidence that the money will go to the people and majority will benefit out from it. sadly to say, i don't have such dependence to our government due to rampant corruption everywhere. trust is a big word among us filipinos and it's nowhere to be found nowadays especially if will hear the word government. they can't blame me and the rest of other OFW's or migrants all over the world for having such thought, it's them that install this allegation to them selves. nor they can blame filipinos leaving the country, on simple reason of providing the basic need for one's self and family.

but again rolling-up the situation, there is still no other place like the Philippines...and eventually me and other kapinoyans need and will go back. what im only hoping at that time is that there is a total rebump to my ever dearest country....hay,hay,hay, ano na ang nangyari sa bayan kong mahal!

auee said...

Massively unfair. Aminado na nga ang gov't na if not for OFW remittances matagal nang nag-crash ang economy tapos gusto pa nilang kuhanan ng dugo?

They're asking for trouble. Kapag pa nagkaproblema ang OFW nakakatulong sila? Dito nga sa UK, if not for NGO efforts some kababayans will remain in slave-like conditions. May ginawa ba ang Phil Emb? TSE!

Nag-init ulo ko ng mabasa ko post mo... Then natawa ko nung nakita ko si Louna hehe So cute.

analyse said...

Al, giving you a social security when you retire is not even in their plan, and i'm just wondering if that idea crossed their mind.. malamang kai, pinoy govt ot.

annoying really. now they contemplate to kill the goose that lays the golden egg..

;) she's my fave kulit doll.

Mitsuru, ang masaya pa, they just took a study done by la salle students and want to implement it as a law. i dont know who proposed the idea, where the fire started. pero o di ba, saan ka naman. onli in da pilipins. in some countries, government economist will conduct surveys, studies, etc and dissect every data available before they propose a law. it will then be debated etc etc up to the highest form of govt. dito sa france, welga na buong nation nyan... aba, sa pilipinas, studyante lang pala ok na.. i don't judge naman yung work ng mga estudyanteng to, malamang super brilliant sila to come up with such conclusion, di ko nga naisip na pwede pala yun.. but applying the concept sa work ko na lang for example, studies done by students are being counterchecked before implementation on my process, if ever it will be implemented..

Nao, ngek, di na magtatagpo kagandahan natin nyan, ill arrive at a later date.. balita naman dyan, your blogfriends must be wondering how you've been..

Ann, mahal ng maging bayani ngayon hehe... kaya nga nilagay ko si louna sa dulo e, para maging lighter naman ang atmosphere.. i know kasi na this post would steer anger from the readers, yan kasi na feel ko when i read the news.

Ana, again, thanks for sharing the news. yes, you're right. trust just doesn't match with the philippine government.. i hope we could find a good catalyst one day, to be able to make philippine government react and cross-link with the word trust..

analyse said...

Auee, naku sinabi mo pa. kakakulo talaga ng dugo.

nilagay ko talaga si louna dyan, stress reliever hehe..

sexy mom said...

sad, sad...but thanks to Louna! how she lights up not onl your day, but ours as well!

Airwind said...

baka naman kasi kulang na ang pondo ng mga kurakot ... wehehhe ... dito nga lang sa pinas ang laki ng ng tax na binabayaran wala naman kaw makitang pinupuntahan. gipit lang siguro yung ibang pulitiko.

Analyse said...

Sexy Mom, my stress reliever ;)

AirWind, haha, nice hypothesis.. oo nga naman, baka gutumin sila dahil bitin na nakukurakot nila di ba.

Francesca said...

very well said, ana, aba eh, laban na ba sa pag ka presidente, lol!

okey tong pang ending photo ah! after ko mabasa, (na nang gagalaiti rin sa inis sa taxations etc etc) napabulahaw ako sa tawa!

Louna is really a lady there eh! cool! teka san ba nag mana yan huh!
walang sasagot...

duke said...

hay naku! just thinking about this bill is making my blood boil! gobyerno talaga!grrrr

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