‘Taglish’ tax forms for MIEs gaining support-A A +A
Friday, March 28, 2014
THE business organization of micro, small and medium enterprises (MSMEs) welcomes the plan of the Bureau of Internal Revenue (BIR) to issue a simplified version of the income tax return (ITR) next year for marginal income earners (MIEs) such as balut (duck egg) vendors and small sari-sari stores.
Reports said the simplified ITR covers the use of Taglish, a colloquial form English that mixes English with Tagalog words. The new ITR, according to the BIR, would encourage the MIEs to pay taxes.
“This is a welcome development. We support this move because somehow the BIR is making it simpler for MIEs to understand tax and its policies,” said Filipino-Cebuano Business Club Inc. president Rey Calooy in a phone interview. “If we are to be consulted, we would want it in Tagalog so everybody would understand it.”
He stressed that every Filipino citizen who earns income has obligations to the country, and paying the right taxes is one of those.
Calooy noted putting the sector in the tax net is more of an advantage, saying that their ITRs can be used when securing financial assistance from micro-finance institutions. Access to capital remains one of the top challenges of the MSME sector in growing their businesses.
Under Revenue Memorandum Circular No. 7-2014, the tax authority states that MIEs are liable to pay the income tax, but are exempted from the value-added tax and from the business tax.
MIEs are defined in the circular as individuals who are self-employed and earning not more than P100,000 in any given 12-month period.
The MIEs include but are not limited to agricultural growers or producers selling directly to consumers, small sari-sari stores, small carinderia or turo-turo, drivers or operators of a single-unit tricycle, excluding licensed professionals, consultants, artists, sales agents, brokers and others whose income is subject to withholding tax.
The circular was part of the BIR’s tax campaign to plug leaks and increase tax collections. The BIR is targeting to collect P1.46 trillion this year, about 16.8 percent more than last year’s target.
Published in the Sun.Star Cebu newspaper on March 29, 2014.