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The Positive Way To Define Tax

Tax is an expense.  It is a cash outflow.  Most taxpayers don’t recognize the other side of the equation.  You feel the inconvenience of big tax expense if you have the convenience of big taxable income.

So you can positively define tax as:

Tax is the convenience of having a big taxable income.

8 Tips To Pay Taxes Without Paying A Single Centavo "The Legal Way" Part 3 Tax Incentives

Tax incentives for employers to provide persons with disability, equal opportunity for employment and equal remuneration for work of equal value. Towards this end, the State shall facilitate access of persons with disability to labor market information, capacity building programs, and wage employment.

1. Private entities that employ qualified disabled persons either as regular employee, apprentice
or learner shall be entitled to an additional deduction from their gross income for the taxable
year, in an amount equivalent to 25% of the total amount of paid as salaries/wages to disabled
persons, over and above the total allowable ordinary and necessary business deductions for
said salaries and wages.     – Rev Reg no. 8-93          

10 employees                                     10 PWD employees
Annual Salary                                       Annual Salary
180,000 X 10 = 1,800,000.00              180,000 X 10 = 1,800,000.00
Deduction 100%                                  Deduction 125%
Salary Expense  1,800,0000.00          Salary Expense  2,250,0000.00 
                                                         Addition Salary deduction 450,000.00         

2.  Private entities that improve of modify their physical facilities in order to provide reasonable accommodation for PWDs shall be  entitled to an additional deduction from their net income, equivalent to fifty percent (50%) of direct cost of the improvements or modifications. This Section, however, does not apply to improvements or modifications of facilities required under B.P Blg. 344 

Improvements                                       Improvements beyond the required modifications under B.P 344
1,000,000.00                                       1,000,000.00
Deduction 100%                                  Deduction 150%
Expense  1,000,0000.00                      Expense  1,500,0000.00 
                                                         Additional deduction 500,000.00         

Section 7. Implementation of One Percent (1%)

7.1 For Government Agencies
At least one percent (1%) of all regular and non-regular positions in all government agencies shall be reserved for persons with disability.
Should there be fraction in coming up with the sum of at least one percent (1%) of the total plantilla position in a government agency, the same shall be considered as one (1) position reserved for persons with disability.

Government agencies that are currently employing PWDs with at least 1% of the total positions shall be considered compliant with this IRR. However, nothing in this rule shall prevent compliant government agencies from hiring more PWDs, nor shall allow them to diminish the number of currently employed and qualified persons with disability.

However, in cases where no qualified PWD applies for the available position, the concerned agency has the option to hire non-PWD applicant.

We can help PWD to exercise their right to be employed reserved for persons with disability.

7.2 For Private Corporations
Private corporations with more than one hundred (100) employees are encouraged to reserved at least one percent (1%) of all positions for PWDs. However, nothing in this rule shall prevent private corporations with less than 100 employees from hiring PWDs.

                  3 Steps to avail the tax incentives

a.Submit a request letter  to DOLE that your company is requesting a Certification of Employment of PWDs. Dole representative will visit your company to check if the working environment is PWD friendly before they can issue the Certification of Employment of PWDs
Certification of Employment of PWDs (TI-Form 1)

This form shall serve as proof for establishments employing PWDs and shall be
submitted to the Bureau of Internal Revenue (BIR) for availment of tax incentive.

b.Employment Report (TI-Form 2)
At the end of the year, the employer shall submit to the DOLE Employment Report.  


Employment Report.

2.     BIR RR No. 8-93

a.     File the Certification of Employment of PWDs (TI-Form 1) at the BIR Assessment division.
Attached a letter that your are availing the 125% Salary deduction based on RR 8-93.
b.     File the certified schedule of actual expense for improvement of facilities to accommodate disabled persons.
c.    Certification by the local government building inspector and the NCWP, Provided that the additional deduction allowed shall not apply to improvement of facilities required under Bp. No. 344

3.        Audited Financial Statement

Your auditor should  also disclose the basis of 125% pwd employee salary and 150% improvement expense  is based on RR8-93.

To view all the applicable laws on PWD employment, Please click the link below
Employers have recognized for some time that it's smart business to have a diverse workforce - one in which many views are represented and everyone's talents are valued. Well, disability is part of diversity.  - Thomas Perez

8 Tips To Pay Taxes Without Paying A Single Centavo "The Legal Way" Part 2 Don't Misuse Public Properties

Respecting public facilities is respecting all the taxpayers who paid for all the public facilities. Misuse of government resources is a waste of your government fund. Treat  govt properties as your own.

. Don't misuse public properties

Free Government Resources

If you are a government employee,utilities in the office is free for all to use. Proper  use of available resources, close the lights if your not using them. Office supplies should have proper monitoring to avoid any wastage.
Don't open the air-conditioning system if the weather is not hot or at least close the air condition 1hr before the office close or during breaks. 

As a taxpayer any help  we  get from the government should be properly utilize or share with other people.Start with yourself, save by not wasting any government resources. 

Proper Maintenance of Government Properties

 Protect government properties/ taxpayer properties from being misuse. Report problems that need repair in your area to prevent any big repairs. If you have the capacity to do minor repairs  or just clean your canals and proper waste management to prevent floods in your area.  Government don't have to allocate big budgets in times of calamities and proper maintenance of all public properties

Educate other people to use all government properties for the long term so it take many years before any repairs. Governments properties are taxpayer's properties if you don't take good care of the available resources,  you will also pay for the construction and repairs of the infrastructure using taxpayer's fund.

Public–Private Partnership

Public-Private Partnership (PPP) is defined as a contractual agreement between the Government and a private company to finance, design, implement and operate infrastructure facilities and services that were traditionally provided by the government. It minimize cost while realizing project objectives. 

Government projects should have proper feasibility studies with qualified consultants. Government projects need big fund and funded by taxpayer's money.  If your company can do the projects, you can submit your proposal with the heart of service for your fellow countrymen. Successful projects will be resource efficient and effective to serve all people.

Any savings is less disbursement from our government fund. Not creating any wastage is an efficient use of the current fund.  Lawmakers don't have to create new taxes  to  increase government fund and plug any wastages.

The reason why men enter into society is the preservation of their property. - John Locke

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