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Exam Tax
Exam Tax
Exam Tax
1. COVID-19 has not so big effect on the Philippines’ taxation system. Yes, many people
loses their jobs, and is having a hard time earning money but that doesn’t end
everything. Mar. 14, 2020 and in view of the rising number of COVID-19 cases, the
Philippine Government was compelled to declare an enhanced community quarantine,
forcing consumers to stay at home in order to minimize the risk of transmitting the virus
and that gives a drastic change in consumers behaviour, because everyone who has the
capacity to do so, does panic buying. So in connection with the taxation system, it does
not have a big effect because as the lockdown continues many consumers became seller
who took advantage of the opportunity to end their being unemployed. And through
online selling it gives another way of having tax because in the middle of all this, the
BIR issued Revenue Memorandum Circular (RMC) 60-2020, notifying businesses earning
income through electronic and digital platforms to register their businesses and comply
with their tax obligations. Under the said issuance, businesses are given until 31 July
2020 to register or update their registration status, and voluntarily declare, file and pay
the taxes on past transactions. Failure to do so will result to the imposition of penalties
provided under the law, rules, and regulations. That only means that lockdown or not,
with covid or none the tax doesn’t got affected that much because even employees who
are working at home still pay tax. Maybe the only effect is that there are some
adjustment that the government did, like the exemption for health workers to their
compensation and other exemption coming from import duties and such and it’s not the
same as the normal but all is well.
2. For me with or without covid, taxpayers has nothing to do but to pay their tax, because
it may only cost them penalties if they will not pay their respective taxes. But not all are
maybe on time but they still pay because of it’s not easy to have money. When it comes
to online seller, I don’t think all of them pay taxes especially if they did not register their
business to the BIR and also maybe they are having difficulty earning money, and the
money they earn are just not enough so they tend to avoid paying tax. Everything
depends on the circumstances.
3. There are many differences happened between the old law and the train law. One of
these is the tax for professional or self- employed tax payers. Here’s the tax table of the
two: