Debts, Death and Taxes

Today’s issue of the Philippine Daily Inquirer published a column with the heading “Delay in corporate income tax cut looms; Congressmen want relief for individuals instead”. This news, as for me in the corporate taxation field, could only shake my head in disappointment. With all the mounting rise in costs of business, the reprieve that a lowered corporate tax would have meant the much needed help for thriving businesses especially those in the export industry. A break on the 35% income tax on corporations would have meant lowered prices for products and services or such savings could have been shifted to employee salary increase.

On a personal note though, this news brings joy to salary earners as there is a pending proposal in Congress that additional personal deduction be raised from Php.32,000, for married individuals, to Php.75,000 each. In a lot of ways, this would help families. This will therefore lower the taxable income of married individuals which directly will increase net take home pay as this would then require lower monthly withholding taxes. This is great help especially those whose salaries would even be not enough to provide the basic needs of the family. Among which would mean bigger budget for food on the table, a more stable budget for savings, or a wider source for funding to pay up Homeowner Loans. Hopefully this would see the light of a addendum to the present tax laws. The citizens have long been waiting for this news and it would be about time.