From GC-

-Marami ang income na kinukohanan ng tax, may mga taxable na income meron din hindi.
- This is Philippine data of 2017 ngayon kasi wala nang Tax 21k below I think, just verify it.. Pero for tge purpose of discussion okay lang 2017 pa ang data
- So yung nag iincome ng 25k up ay taxable nayun sila.
- Tax can be observed both in micro level and macro level.. Again, kapag microeconomics yung yung decision making ng individual consumers, yung macroeconomics naman ay
decision ng bigger state, bigger business firm, even a country..

Philippines - Income Tax

Tax returns and compliance
When are tax returns due? That is, what is the tax return due date?
The Philippine Annual Income Tax Return (BIR Form 1700) is filed and taxes are due to the Philippine Bureau of Internal Revenue on
or before 15 April of the year following the applicable calendar year.

What is the tax year-end?

The tax year is a calendar year which ends 31 December of each year.

What are the compliance requirements for tax returns in the Philippines?
Residents and non-residents
Every individual citizen, alien residing in the Philippines, and every non-resident alien engaged in trade or business in the Philippines,
who is receiving income, whether it constitutes the sole source of their income or in combination with salaries, wages, and other fixed
or determinable income, is required to file an income tax return on or before 15 April of each year covering income for the preceding
taxable year. The tax year runs from 1 January to 31 December of each year. The tax return to be filed declares the total amount of
income earned by the individual and any unpaid tax is settled at the time the return is filed. A citizen or a resident alien is not required
to file the annual individual income tax return if they qualify for the substituted filing. A non-resident alien engaged in trade or
business, however, does not qualify for substituted filing.

Substituted filing applies to citizens or resident individuals who meet all the following conditions:

 the employee receives purely compensation income

 the employee receives the income from one employer in the Philippines
 the amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer
 the employee's spouse, if earning income, also complies with all the three conditions stated earlier
 the employer files the Annual Information Return of income Taxes Withheld on Compensation and Final Withholding Taxes (BIR Form Nos.
1604C and 1604F)
 the employer issues the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) to each employee.
Tax returns need not be filed by the following categories of individual:

 those earning purely compensation income whose taxable income does not exceed two hundred fifty thousand pesos (250,000.00
Philippine peso (PHP))
 those whose sole income has been subjected to final withholding tax such as interest, prizes, winnings, royalties, and dividends
 non-resident aliens not engaged in trade or business on their compensation income
 minimum wage earners as defined under the Tax Code.

Tax rates
What are the current income tax rates for residents and non-residents in the Philippines?
The income tax rates on employment income and from a business or exercise of a profession are as follows.

Residents
Income tax table for 1 January 2018 to 31 December 2022

Taxable income bracket Total tax on Tax rate on

income below income in bracket
bracket

From PHP To PHP PHP Percent

0 250,000   0

250,001 400,000 0 20

400,001 800,000 30,000 25

800,001 2,000,000 130,000 30

2,000,001 8,000,000 490,000 32

8,000,001 Over 2,410,000 35

Non-residents
Same graduated rates apply as per section above, except non-resident aliens not engaged in trade or business
in the Philippines which are subject to a flat rate of 25 percent based on gross income.

Residence rules
For the purposes of taxation, how is an individual defined as a resident of the Philippines?
For tax purposes, an individual may be classified as one of the following:

 resident citizen
 non-resident citizen
 resident alien
 non-resident alien engaged in trade or business
 non-resident alien not engaged in trade or business.
A resident citizen is taxable on all income derived from worldwide sources. For the other categories, the
individual is taxable only on income derived from sources within the Philippines. For employment income, the
source of income is the place where the services are rendered, regardless of the place or manner of payment,
the place where contract was negotiated, or the payer’s place of residence.

A non-resident alien is deemed engaged in trade or business if, in any calendar year, they stay in the
Philippines for an aggregate period of more than 180 days. If the non-resident alien individual’s stay for an
aggregate period of 180 days or less during any calendar year, then they are deemed not to be engaged in
trade or business.

For resident citizens, non-resident citizens, resident aliens, and non-resident aliens engaged in trade or
business, income tax is calculated on the basis of net taxable income at graduated rates ranging from 0
percent to a maximum of 35 percent. (Please see the discussion on General Deductions from Income for what
constitutes net taxable income.)

Non-resident aliens not engaged in trade or business are subject to tax at 25 percent of their gross income.

Is there, a de minimus number of days rule when it comes to residency start and end date? For
example, a taxpayer can’t come back to the host country/jurisdiction for more than 10 days after their
assignment is over and they repatriate.
Aliens on assignment in the Philippines for a period of more than 2 years are generally considered as residents
at the start of their assignment in the Philippines and remain as such until departure from the Philippines at the
end of the assignment.

What if the assignee enters the country/jurisdiction before their assignment begins?
If the assignee arrives in the Philippines prior to their assignment, their actual days spent in the Philippines
(that is, physical presence in the Philippines) will determine their residency/non-residency status,
notwithstanding the start date of their Philippine assignment.

Termination of residence
Are there any tax compliance requirements when leaving the Philippines?
An alien who has acquired a resident status in the Philippines for tax purposes retains such tax status until they
actually depart from the Philippines at the end of their assignment. There are no special requirements to be
observed for tax purposes on leaving the Philippines other than those described in the section above.

What if the assignee comes back for a trip after residency has terminated?
If the assignee comes back to the Philippines after their residency status in the Philippines has terminated, the
determination of their new residency status will commence from the day the individual actually arrives in the
country/jurisdiction.

Communication between immigration and taxation authorities

Do the immigration authorities in the Philippines provide information to the local taxation authorities
regarding when a person enters or leaves the Philippines?
No. However the two agencies may coordinate on certain transactions such as visa renewal. The immigration
authorities may also require the submission of income tax return filed with the tax authorities.

Economic employer approach

Do the taxation authorities in the Philippines adopt the economic employer approach to interpreting
Article 15 of the Organisation for Economic Co-operation and Development (OECD) treaty? If no, are
the taxation authorities in the Philippines considering the adoption of this interpretation of economic
employer in the future?
Yes, the economic employer approach is being adopted by tax authorities such that when there is a recharge
of remuneration cost to the Philippine entity, then the host entity is considered to be the economic employer
and the employee cannot claim tax exemption, regardless of the duration of their stay in the Philippines.
De minimus number of days
Are there a de minimus number of days before the local taxation authorities will apply the economic
employer approach? If yes, what is the de minimus number of days?
None. Theoretically, the compensation charged to the local employer is taxable to the employee regardless of
the number of days they are present in the Philippines during the fiscal year.

Types of taxable compensation

What categories are subject to income tax in general situations?
 
Gross compensation income is defined as taxable income arising from an employer/employee relationship and
includes the following:

 salaries, wages, compensation, commissions, emoluments, and honoraria

 bonuses and other benefits exceeding PHP90,000
 allowances for transportation, representation, entertainment, and other similar items
 fees (including director’s fees paid to a director who is at the same time an employee of the payer)
 taxable pensions
 taxable retirement pay
 other income of a similar nature, including compensation paid in-kind.
Intra-group statutory directors
Will a non-resident of the Philippines who, as part of their employment within a group company, is also
appointed as a statutory director (i.e. member of the Board of Directors in a group company situated in
the Philippines) trigger a personal tax liability in the Philippines, even though no separate director's
fee/remuneration is paid for their duties as a board member?
a)   Will the taxation be triggered irrespective of whether or not the board member is physically present
at the board meetings in the Philippines?
No.

b)  Will the answer be different if the cost directly or indirectly is charged to/allocated to the company
situated in the Philippines (i.e. as a general management fee where the duties rendered as a board
member is included)?
Yes, the director’s fees constitute an income for the Board of Directors (BOD), and as such, subject to income
taxes. For tax purposes, the tax rates would depend on whether or not the BOD serves as a Director only or as
a Director and employee of the company.

c)   In the case that a tax liability is triggered, how will the taxable income be determined?
Generally, the amount recharged to the Philippine entity is taxable regardless of the number of days they are
present in the Philippines during the year.

Tax-exempt income
Are there any areas of income that are exempt from taxation in the Philippines? If so, please provide a
general definition of these areas.
Gross income subject to tax does not include the following:

 Proceeds of life insurance policies

 Amount received by insured as return of premium
 gifts, bequests, and devises
 compensation for injuries or sickness
 income exempt under treaty
retirement benefits, pensions, and gratuities, etc.
 Miscellaneous items:
o Income derived by foreign government
o Income derived by the government or its political subdivisions
o prizes and awards exempted by law
o prizes and awards in sports competition
o 13th month pay and other benefits subject to the PHP90,000 limit
o GSIS, SSS, Medicare and other contributions
o Gains from sale of bonds, debentures, or other certificate of indebtedness with a maturity of more than
5 years
o Gains from redemption of shares in mutual fund.
Certain employer provided housing allowances (employer’s contribution to rent)
Housing allowances provided to expatriates are generally considered as fringe benefits subject to FBT. If the
housing allowance is higher than the actual rent, the excess is considered as part of compensation subject to
withholding tax on compensation.
Certain employer provided housing allowances (cost of utilities)
The full amount of the utilities paid by the employer to or on behalf of the employee is a taxable fringe benefit. 

Living away from home allowance (LAFHA)

The full amount of the LAFHA paid by the employer to or on behalf of the employee is taxable compensation
subject to withholding tax on compensation.

Certain employer provided tax reimbursements

The grossed-up tax is included in the taxable compensation of the expatriate-employee.

Certain employer provided relocation reimbursements

Airfare and other transportation expenses incurred by the taxpayer for moving from old post to new post (such
as the Philippines) as well as the costs of shipment of household goods and personal effects are generally
exempt from tax, subject to certain substantiation requirement. On the other hand, moving allowance or
unsubstantiated expenses are taxable.

Home leave
The full amount of the home leave paid by the employer to or on behalf of the employee is a taxable fringe
benefit.

Certain employer provided education costs

The cost of the educational assistance to the employee which is borne by the employer shall, in general, be
treated as taxable fringe benefit. However, a scholarship grant to the employee by the employer shall not be
treated as taxable fringe benefit if the education or study involved is directly connected with the employer's
trade, business or profession, and there is a written contract between them that the employee is under
obligation to remain in the employ of the employer for period of time that they have mutually agreed upon. In
this case, the expenditure shall be treated as incurred for the convenience and furtherance of the employer's
trade or business.

The cost of educational assistance extended by an employer to the dependents of an employee shall be
treated as taxable fringe benefits of the employee unless the assistance was provided through a competitive
scheme under the scholarship program of the company.

Certain bonus payments

13th-month pay and other benefits such as productivity incentives and Christmas bonus up to ninety thousand
pesos (PHP90,000) are considered an exclusion from gross income. The portion thereof in excess of
PHP90,000 forms part of taxable compensation.

Benefits received by an employee by virtue of a collective bargaining agreement (CBA) and productivity
incentive schemes shall be considered as de minimis benefits not subject to income tax provided that the total
annual monetary value received from both CBA and productivity incentive schemes combined do not exceed
ten thousand pesos (PHP10,000) per employee per taxable year.

Certain interest subsidies

If the employer lends money to their employee free of interest or at a rate lower than 12 percent per year, such
interest foregone by the employer or the difference of the interest assumed by the employee and the 12
percent interest rate shall be treated as a taxable fringe benefit.

Certain auto allowances

A cash auto-allowance provided to the employee will form part of their taxable compensation income unless it
is shown that the allowance is used by the employee in the performance of their duties, in which case the
allowance is considered as ordinary and necessary business expense of the company.

Health insurance
The cost of life or health insurance and other non-life insurance premiums borne by the employer for the group
insurance of their employees are treated as non-taxable fringe benefit and likewise not included in the taxable
compensation of the employee.

Expatriate concessions
Are there any concessions made for expatriates in the Philippines?
None.

Salary earned from working abroad

Is salary earned from working abroad taxed in the Philippines? If so, how?
Citizens who are working abroad are generally considered non-resident citizens of the Philippines and hence
are exempt from Philippine income tax on salary earned from working abroad as well as other income from
foreign-sources. An alien individual, whether resident or not of the Philippines, is taxable only on income from
sources within the Philippines; hence, aliens are exempt from Philippine income tax on salaries earned from
working abroad.
Taxation of investment income and capital gains
Are investment income and capital gains taxed in the Philippines? If so, how?
Business income, which is a broadly defined term covering all gains, profit and income of whatever kind and in
whatever form derived from any source within the Philippines is generally taxable at graduated tax rates of 0
percent to 35 percent.

Gains arising from the disposal of capital assets are also subject to income tax. Capital assets are defined as
property held by the taxpayer (whether or not connected with their trade or business), but do not include stock-
in-trade of the taxpayer or other similarly held property or property used in trade or business of the taxpayer,
real or personal, which may be subject to allowance for depreciation.

If the property which is disposed of by a taxpayer has been held for not more than 12 months, the gain is taxed
in full. If held for more than 12 months, only 50 percent of the gain is subject to tax.

The following capital gains are not subject to a holding period and are subject to special capital gains tax rates:

 capital gains realized from the sale, exchange, or disposition of shares of stock in any domestic corporation are
subject to a final tax rate of 15 percent.
 on shares of stock listed and traded through a local stock exchange, the rate is 0.006 percent of the gross selling
price.
 capital gains from the sale of real property located in the Philippines classified as capital assets by individuals are
subject to a capital gains tax of 6 percent based on gross selling price or the current fair market value,
whichever is higher at the time of sale.
Dividends, interest, and rental income
On sources from within the Philippines, certain passive income like interest from any Philippine currency bank
deposit and yield or any other monetary benefit from deposit substitutes, trust funds and similar arrangements,
royalties, prizes exceeding PHP10,000, and other winnings are subject to a final withholding tax of 20 percent.
The tax is 25 percent if the recipient is a non-resident alien not engaged in trade or business.

Dividends from a domestic corporation or the share of an individual partner in a partnership subject to tax
received by citizens and residents are subject to income tax at 10 percent and 25 percent if the recipient is a
non-resident alien not engaged in trade or business.

Interest income received by an individual taxpayer (except a nonresident individual) from a depository bank
under the expanded foreign currency deposit system shall be subject to a final income tax at the rate of 15
percent of such interest income. Provided that interest income from long-term deposit or investment in the form
of savings, common or individual trust funds, deposit substitutes, investment management accounts and other
investments evidenced by certificates in such form prescribed by the Bangko Sentral ng Pilipinas (BSP) shall
be exempt from the tax. Provided further that should the holder of the certificate pre- terminate the deposit or
investment before the fifth (5th) year, a final tax shall be imposed on the entire income and shall be deducted
and withheld by the depository bank from the proceeds of the long-term deposit or investment certificate based
on the remaining maturity thereof.

On rental income, please see previous discussion under the taxation of investment income and capital gains.

Gains from stock option exercises

Generally, gains from stock option exercise are considered as taxable if they are attributable to services
rendered in the Philippines. Gains derived from stock options granted to managerial and supervisory
employees shall be treated as fringe benefit subject to fringe benefit tax. On the other hand, the gain shall be
subjected to income tax if the recipient is a rank and file employee.

Moreover, for migrating rank and file and non-rank and file employees, a portion of the income from the
exercise of stock option would be considered as taxable subject to Philippine income tax and fringe benefit tax,
respectively, if at any time during the period between the grant and vesting dates, the employees had
performed personal services in the Philippines (such as assigned in the Philippines).

Residency status Taxable at:

  Grant Vest Exercise

Resident N N Y

Non-resident N N Y

Other (if applicable) N/A N/A N/A

Foreign exchange gains and losses
In relation to business income of the taxpayer, only those that are realized are taxable gains and tax deductible
losses. 

Principal residence gains and losses

See discussion on capital gains from sale of real property under the taxation of investment income and capital
gains.

Capital losses
Losses resulting from the sale or exchange of capital assets shall be allowed as deduction only to the extent of
the gains from such sales or exchanges.

Personal use items

See discussion on gains arising from the disposal of capital assets under the taxation of investment income
and capital gains. 

Gifts
Gifts are subject to donor's tax. The tax is levied, assessed, collected and paid upon the transfer by any
person, resident, or non-resident, of the property by gift, at a flat rate of six percent on total donations for gifts
above PHP250,000 yearly regardless of relationship to the donor.

Additional capital gains tax (CGT) issues and exceptions

Are there additional capital gains tax (CGT) issues in the Philippines? If so, please discuss?
None.

Are there capital gains tax exceptions in the Philippines? If so, please discuss?
The Philippines has tax treaties with several countries/jurisdictions. Under these tax treaties, capital gains
derived by residents of the other contracting states from the alienation of properties (other than immovable
properties) are not taxable in the Philippines.

Pre-CGT assets
Not applicable.

Deemed disposal and acquisition

Not applicable.

General deductions from income

What are the general deductions from income allowed in the Philippines?
Net taxable income is determined by deducting the allowable deductions from gross income. For individual
taxpayers who earn solely compensation income, they are entitled to deduct from their gross earnings the
PHP90,000 maximum exclusion of their 13th month pay and other benefits.

Individuals deriving business income are allowed to deduct all the ordinary and necessary expenses paid or
incurred in carrying on or which are directly attributable to the carrying on of the development, management,
operation, and/or conduct of their trade, business, or profession.

Tax reimbursement methods

What are the tax reimbursement methods generally used by employers in the Philippines?
Most multinational companies in the Philippines adopt the tax equalization policy on their inbound and/or
outbound assignees.

Calculation of estimates/prepayments/withholding
Pay-as-you-go (PAYG) withholding
There are no tax estimates/prepayments in the Philippines. Generally, the employer withholds taxes upon
payment of the compensation to the employee based on a graduated withholding tax table with rates from 0
percent to 35 percent on net taxable compensation, effective 1 January 2018.

PAYG installments
The Philippines adopts the pay-as-you-file system with regard to income taxes.

When the tax due is in excess of PHP2,000, the individual taxpayer may elect to pay the tax in two equal
installments. The first installment shall be paid at the time the return is filed (on or before 15 April) and the
second installment is paid on or before 15 October following the close of the calendar year.

When are estimates/prepayments/withholding of tax due in the Philippines? For example: monthly,
annually, both, and so on.
 
Local employers are responsible for the withholding and remittance of the correct amount of tax from the
compensation income of their employees. The tax withheld has to be remitted to the BIR within 10 days after
the close of each calendar month, except for the withholding tax for the month of December, which must be
paid not later than 15 January of the following year, to the authorized agent bank or collection agent of the BIR.
However, if the local employer is enrolled under the Electronic Filing and Payment System (EFPS), the
deadline for electronically filing the applicable withholding tax returns and paying the taxes due thereon shall
be 5 days later than the deadline set above. If the employer fails to withhold and remit the correct amount of
tax, such tax shall be collected from the employer together with the penalties or additions to the tax otherwise
applicable.

The local employer is required to report the amount of compensation income tax withheld for the year using
BIR Form 1604CF (Annual Information Return of Income Tax Withheld on Compensation and Final
Withholding Taxes) on or before 31 January of the year following the taxable year.

The amount of taxes withheld by the employer is creditable against the annual income tax due of the
employee.

Relief for foreign taxes

Is there any Relief for Foreign Taxes in the Philippines? For example, a foreign tax credit (FTC) system,
double taxation treaties, and so on?
 
In case of tax resident citizens of the Philippines, the amount of income taxes paid during the taxable year to
any foreign country/jurisdiction may be used as credits against Philippine income taxes.

The Philippines has tax treaties with 43 countries/jurisdictions. There are complex regulations and rates vary
depending upon the status of the recipient and the nature of the income. Tax treaty relief, however, is not
automatic. A tax treaty relief application process should be complied with.

General tax credits

What are the general tax credits that may be claimed in the Philippines? Please list below.
Tax credits that may be claimed in the Philippines are:

 compensation income tax withheld by the employer

 income taxes paid by resident citizens to any foreign country/jurisdiction.

Sample tax calculation

This calculation assumes a married taxpayer resident in the Philippines with two children whose 3-year
assignment begins 1 January 2018 and ends 31 December 2020. The taxpayer’s base salary is 100,000 US
dollars (USD) and the calculation covers 3 years.
Principles, Tools, and Techniques

A. Competition

Principles of Competition -

Competition is the quest for achieving superior results, the best results in a specific field, in business, in sports, or in social activities, the best results compared to others.
Competition is the fight for a limited resource, for a prize or for an award. The fighting around abilities and skills often takes place as a somehow organized contest with rules that
are agreed upon to be followed in order to accurately measure the results.Other competitions are based on rivalry — two parties are fighting to dominate a market, or they are
fighting for the first place in a race in sports, or in science.

Competition usually involves two or more competitors with the goal of determining a clear winner. It is the simultaneous demand for a reward or for a resource that causes
competition.

Now, what about competing with yourself? You are the winner in every competition you participate in and still declare yourself the loser. This is where excellence comes into play,
success in competition is about being the best while true excellence is about being your best.

The main difference between being the best and being your best is the lack of competition. You are only competing with yourself, specifically with your past self.

Competition is about finding out who is the best. But you don't have to find out. I tell you who is the best. You are. You wouldn't participate in any competition if you weren't sure
that you are the best? Would you participate when you knew you wouldn't be able to give your best? In order to compete you have to prepare yourself for the competition. You train
and you strive to excel. The goal is to be your very best. Now, being your best, why do you need to compete with others? You aren't getting any better anymore, anyway. And since
you trained until achieving personal excellence, you aren't getting worse than yourself either.

You are the best. That's it. There is no competing with others. What is the point in finding out who is better when the competitors are each at their absolute, personal best?
Other than vanity?

Find out your best. Build on top of past successes or, even failures, competing only with yourself. It's the most humble form of competition and the hardest one at the same time.

Discover how to be better than yourself. Chase excellence in whatever you do. In pursuing excellence, creativity is freed from competition and everything is focused on the act of
creating. Only then do you arrive at your very best.

Do not hesitate to help your competitors achieve their best as well. In order to determine the real best, do everything to have every participant in any competitive situation to
excel. Do not celebrate rivalry. Participate in any competition only for fun.
Excellence beyond competition is not being better than anyone else. Excellence beyond competition is the necessity of giving your very best in every situation and without
competing for an award or profit or whatever reward you are usually fighting for.

Excellence beyond competition is boxing without weight limits, it is small business competing with big business. You are not going to abstractly win but to give all that you are,
whatever it takes. Win not against somebody else, not even against yourself, but win being yourself.

One more thing: Never say I give my best, never use giving your best as an excuse, never mention that you are in fact and always giving your best. Just do it. And win.

Tools of Competition -
Comparing your business to competitors is a great way of seeing where you are in the market. For example, who is your biggest competition? Is their customer base growing
faster than yours? Do they have the majority of the market? How does your market share compare?

Typically companies have relied on SWOT methods for competitor analysis — strengths, weaknesses, opportunities, and threats. It's a great way of pinpointing internal and external
factors that affect your company. You can find threats, work on weaknesses and promote your strengths, allowing you to get your market share of the business.Unless you're the
only company doing what you do, or offering a service, you will never completely resolve threats, which is why you need to keep an eye on your competition.

 Positioning Comparisons - This is a matter of branding and general positioning. How does your brand behave, act and present itself in the market? And how does your
competitor? By comparing both, you can tell where are the strongest features of your brand and have insights on how to develop them furthermore. (Tools: Gartner Magic-
Quadrant is the name of a series of market reports. The reports contain a vast amount of research done on four types of technology providers in fast-growing markets: Leaders,
Visionaries, Niche Players, and Challengers, allowing a broad view of your competitors and market share.)
 Product Comparisons - Advertising campaigns, discounts, and specials are common knowledge, easily found on websites, brochures, TV advertising, etc. What are you competitors
offering that you aren't? What discounts or prices are working for them and how do yours compare? (Tools: What Runs Where- is a handy tool for monitoring your competitors'
ads. It covers many ad networks and countries, allowing you to track competitors worldwide.)
 Websites - These days, customers google your business or go directly to your website before you even know they're a customer. So, analyzing your competitor's website is a great
place to start. "Is their website user-friendly?" "How many pages do they have?" "What's on their home page?" "How does your site compare?" And most importantly, "how do
you know whether their website is successful?". (Tools: WooRank- helps to better your website based on the results of a project analyzing either your site or your competitors.)

• SE0 - There are numerous tools to help determine how your website performs. There are also ways of measuring keywords and key terms, all of which drive site visits. If you
can measure something, you can improve it. To get a better view of your market share, you can analyze your competitor's site traffic too. "Where do your competitors rank in a
Google search?" , "How many more website visits do your competitors receive?".(Tools: Google Insights- to understand industry trends, consumer insights and content
possibilities. It's a good way to compare yourself to the market and see where your brand is placed.)

• Social Media - A key factor in this marketing climate is analyzing the integration of social media into their marketing strategy. "Does their website have social media share
buttons?" , "Does your competition have an Instagram account followed by millions?", "What are they posting and why?" , "Do they engage with customers through Facebook or
Twitter?", "How often do they post, when do they post, and what do they post?". The above things to monitor aren't important solely in themselves, but monitoring their social
media followers — and the growth of this following — will give you an insight into whether your competitor's marketing strategy is working. (Tools: InfiniGraph- keeps you up to
date with trends in your specific industry. It's beneficial for both competitor analysis and improving your own content.)

• Blogging - "Is your competitor driving website traffic by blogging?", "How often do they blog?", "Does the content represent solely their products or spread industry
knowledge?". Subscribe to your competitors' blogs. Check out customer engagement through shares and comments. Are your main competitors' blogs full of dynamic well-written
pieces worth sharing, or pictures and fun stories? Find out what makes their blogs successful. (Tools: SocialMention- focuses on blogs and social media, tracking keywords and
company names, allowing you to keep track of what's said across social platforms - and with what sentiment.)

Techniques of Competition -

• Technique #1: Create Utility and Usefulness with your Product - The first marketing technique you can use to beat your competition is to create utility, usefulness, and satisfy
the needs of your customers to achieve a specific result. This requires that you offer them something they need and can use to accomplish their other goals. Look at your market
today. What will your customers and potential customers want, need, and be willing to pay for in the months and years ahead? What are the trends in customer demands in your
market? If you can answer this accurately, you can often leapfrog over your competition and dominate a new market even before it emerges.

• Technique #2: Change Your Pricing - A second approach to sales and marketing is by changing your pricing. By bringing your goods and services into the price range of your
customers, you can open up entirely new markets that do not today exist. How could you price your products or services so that more customers could afford to buy them? Many
companies have been able to achieve market leadership by focusing on bringing their prices into the affordability range of more customers. What we have found is that the
greater your market share, and the lower your cost of production, the lower is the price that you can charge.

• Technique #3: Emphasize Your Product's Key Benefit to the Customer - adapting to the customer's reality, both social and economic. The ultimate aim of your marketing plan is
to make selling unnecessary. But this is seldom achieved. The product almost always needs to be sold to the end customer. As it turns out, each product offers a "key benefit"
that is the primary reason why the customer would buy. Each product or service also triggers a "key fear," which is what holds the customer back from buying the product or
service in the first place. Customers are terrified of risk. They are afraid of paying too much, getting the wrong product, losing their money, and getting stuck with something that
is inappropriate for their purposes. This is the main reason that qualified prospects hold back from buying any product or service, at any price.

• Technique #4: Deliver True Value of Your Product to Your Customer - The fourth approach to marketing plan is for you to deliver what represents "true value" to the customer.
True value is something that can only be identified by working closely with your customers. What represents true value to your customers? How could you structure your product
or service offerings in such a way that people would be more comfortable purchasing them from you rather than from your competitors?

B. Customers

Principles of Customers - Performance in any field is guided by a few core principles. Say you want to improve at swimming. One way would be to go for a daily swim at your
local lake. Will you improve? Sure. But only until you reach a certain plateau. A deep understanding of a field's core principles sets you up for an autonomous and continuous
path of improvement.
• Speed- Speed or responsiveness shows up in almost all studies as a main determinant for service quality. According to a Warwick University study, responsiveness has the
highest impact on both customer satisfaction (fast response) and dissatisfaction (slow response).

• Accuracy- Besides being fast, your service answers should, obviously, be correct. Johnston's study shows that customers regard accuracy as the minimum. It won't raise
customer satisfaction, but inaccuracy definitely causes dissatisfaction.
• Transparency- "What the hell is taking so long!?" We all recognize this feeling. Not knowing what is happening or why makes us feel uneasy. Which is why transparency is just
as critical to service as speed and accuracy.

• Accessibility- If your customer has a problem, how easy is it for him or her to get in touch? For a long time, the entire customer service theory focused on delighting the
customer — on exceeding expectations. A research by CEB, however, showed that it pays off more to focus on reducing customer effort instead. While effort also depends on
factors like speed and accuracy, accessibility is its biggest hurdle.

• Empowerment- We all like to feel in control. A good service offers this feeling to its customers.

Flexibility. The reason we hate bureaucracy is because it lacks

flexibility. When there's a corner case issue, and there always is, a bureaucratic machine jams. That's again why empowered employees are crucial.

Ratings/comments. If you've just received the best or worst service of your life, you want to express that. Besides providing valuable feedback to the company, a service rating
gives customers a sense of control.

Self service. There are few things more empowering than taking care of things yourself. Some people don't like to be assisted at all. For them, well structured self service options
are crucial.

Transparency. "Knowledge is power." Not knowing what is happening or why makes you feel powerless, which makes transparency worth repeating here.

• Friendliness- There's one major downside to eCommerce. It has stripped away most of the human interactions that used to be commonplace in everyday transactions. Service
experiences are one of the few remaining moments of humanity. Yet plenty of companies manage to ruin that as well by making their service entirely inhumane. They speak in
overly formal language, use service cliches, withhold service rep identity, etc.

• Efficiency- You can have the world's best service, but what's the use when it's eating up all of your profits? Efficiency will always be a crucial factor in customer service. What
has changed is technology; some tools let us bypass yesterday's trade offs.Take speed and costs. Back when phone was the only channel, you couldn't offer fast service at low
costs. To offer instant service, you'd have to maintain an army of idle phone reps to cover for peak times. Queueing was the only way to press costs.

Tools of Customers -

More and more organizations are providing customer service tools to encourage consumers to have greater interaction with their brand.

1. Online communities - Statistics show that 25% of people choose to engage with brands because they "want to join the community of brand fans." Online communities allow
customers to engage with other customers, give direct feedback on products, and share their passion for your product or brand. Maintaining online communities is the company's
opportunity to monitor customer feedback and improve brand experience. Online communities can be accessed via social media and there are also several marketing applications
that can help you build your own online community (ahem, like our Community Cloud).

2. Discussion Forums - A forum is a specific type of online community that creates an opportunity for crowdsourcing. Here, you can collect and respond to customer feedback.
Popular forums will quickly grow in popularity and become a place where product experts who many not even work for your company can combine forces with your own customer
service agents, creating a community that can chime in about a products or help to resolve issues in a much more timely matter. You get the benefit of seeing a lot of customer
feedback, and you can see how customers react to the solutions that are provided in the community.

3. Social Media - Social media is an essential tool for businesses of any size. Maintaining a static social page is not enough. Nowadays an inactive social media profile is the online
version of having an empty store. Create a social media presence and use it to engage with customers, connectig with them and responding to their problems or issues on a
timely basis.

4. Automatic callback - We've all had the unpleasant experience of being put on hold for an annoyingly long period of time. By the time an operator is able to assist you, you're
already irritated at having had to wait for X amount of time. If your service system allows a user to enter their phone number for an agent to call them back without losing their
place in the service queue, even better.

5. Live chat - As more people shopping online, there are people are looking for online support. Offering a live chat option (like the one included in the Salesforce Service Cloud) is
another way to foster a good online experience for your customers. Live chat options can be used for more than just customer service questions—it's also a good way to provide
information that might encourage a purchase decision. For example, clothing retailers often offer live chat with a "style consultant", and department stores sometimes offer a live
chat for help with gift registries.

6. Customer satisfaction surveys - Customer satisfaction surveys are important at various touch points, such as after a sale or after an issue is resolved. Allowing your customers
to give feedback provides you with valuable information on how to build a better customer journey, and it can help instill trust in your brand. This trust is important to build,
because it can cost five to 15 times more to acquire a new customer than gain repeat business from an existing one.

Customers Techniques:

1. Engage in active listening- Active listening is essential for effective communication. It allows for a better understanding of the customers' needs and shows a willingness to
help. Allow the customer to talk without interruption, reflect back their main question or concern and ask clarifying questions when necessary.

2. Highlight understanding- Ensure that each customer is aware that you understood their needs. By using active listening techniques and asking relevant questions, you will
communicate that you understand them and are making an effort to help solve their problem.

3. Be Courteous- Be polite and have respect for your customers. Always use "please" and "thank you" and create an inviting environment for the customers.

4. Call the customer by his name- Ask the customer their name and pronounce it correctly. This communicates respect for the customer and lets them know that they are
important.

5. Go the extra mile- Demonstrate through actions that the customer is important by giving more than the minimum effort required. By taking the initiative to provide better
service or give the customer something extra, customers will feel valued and appreciated.

6. Ask, don't demand- Statements can sound harsh. Asking appropriate questions makes the conversation more collaborative.

7. Empower- Empower customers with adequate information to make informed decisions. When there are options, thoroughly describe each available alternative. By offering
choices, customers will be more involved in solving their problems. This results in a higher level of customer satisfaction.

8. Be proactive - Engage in proactive steps to satisfy the customer's needs. Being proactive will also help to reduce barriers when problem solving.

9. Highlight pros and cons- When describing a product or service, include both its strengths and weaknesses relative to alternatives. By providing balanced recommendations,
customers will view you as more credible. This increases trust and customer satisfaction.

10. Explain- Customers are not always familiar with your company's policies or procedures. Thoroughly explain to customers what you're doing and why you're doing it. A clear
understanding tends to decrease customer frustration.

11. Use plain language- Avoid technical terms, jargon and acronyms. Be professional, concise and clear.

C. Suppliers

Principles of Suppliers: The media has been dominated by horror stories of supply chain failure over the past several weeks.Despite an increasing number of organisations
embracing supplier relationship management (SRM) in recent years, most implement programs with insufficient skills and capabilities at their disposal, and a lack of
understanding of the capacity or bandwidth required to assure sustained success.

1. Relationship with applicable laws- In addition to complying with the provisions of these Supplier Conduct Principles (hereinafter the "Principles"), the Supplier shall comply with
all national laws and all laws applicable to the Supplier and its operations. Where the requirements of such applicable laws and the Principles differ, or are in conflict, the Supplier
shall comply with the highest standard consistent with applicable laws.

2. Human rights- The Supplier shall respect internationally recognised human rights, including those expressed in the United Nations International Bill of Human Rights. The
Supplier shall conduct its business consistently with the United Nations Guiding Principles on Business and Human Rights.

3. Labour rights and working conditions: 3.1 Fundamental labour principles and rights

The Supplier shall respect internationally recognized rights and principles as set out in the International Labour Organization's Core Conventions[1] and Declaration on
Fundamental Principles and Rights at Work.
4. Health and Safety- The Supplier shall promote the good health of Workers, and shall provide and maintain a safe and secure working environment in accordance with
applicable laws and internationally recognised standards.Hazards shall be identified, risk assessed, mitigated and monitored and the necessary precautionary measures taken to
prevent accidents, occupational diseases and foreseeable emergency situations. The Supplier shall establish and implement appropriate systems for recording, investigating and
implementing learning points from accidents and emergency situations.

S. Environment- The Supplier shall take a precautionary approach towards environmental and climate challenges, ensure that responsible practices for managing environmental
impacts are in place, and encourage the development and diffusion of environmentally friendly technologies.The Supplier shall comply with applicable laws and internationally
recognised standards.

6. Privacy, freedom of expression and data protection: The Supplier shall appropriately recognize and respect privacy and freedom of expression within the Supplier's
operationsThe Supplier shall use due skill, care and diligence and implement adequate and documented security controls and take necessary precautions to protect any data
against unauthorized or unlawful processing and against accidental loss, destruction, damage, alteration or disclosure. If the Supplier processes personal data the Supplier shall
ensure the care and awareness which is required according to laws and regulations in order to safeguard the interests of the data subjects.

7. Prohibited Business Practices : 8.1 Competition

The Supplier shall always meet competitors in an honest and professional manner. The Supplier shall not cause or be part of any breach of applicable competition laws and
regulations, such as illegal cooperation on pricing and illegal market sharing.

8.2 Bribery, Corruption and Fraud :The Supplier shall comply with applicable laws and regulations concerning bribery, corruption and fraud. The Supplier shall not offer, give, ask
for, accept or receive any form of bribe, facilitation payment or undue or improper advantage, favour or incentive to/from any public official, international organisation or any
other third party (either in private or public sector), whether directly or through an intermediary.

Tools to the Suppliers:

A good relationship with suppliers is a vital part of business success.

Suppliers not only provide you with the goods and services you need to run your business - they can also be an important source of information, advice and trade credit.

The following tips will help you to maintain good relationships.

• Talk to your suppliers regularly.

• Pay your suppliers' accounts promptly.

• Communicate with a supplier before the due date for payment, should you foresee a delay in paying an account.

• Build good relations with your current suppliers' representatives.

• Be fair but firm with industry sales representatives — they can easily take up a lot of your time.

• Avoid rush orders wherever possible — they can cause significant stress in your business and put a strain on the relationship with your suppliers.

• Monitor the financial position of your suppliers — talk with industry colleagues and competitors about the general financial stability of those businesses that supply goods and
services to you.

• Address any issues of concern in relationships with your suppliers as they arise.

• Refer damaged or faulty goods to the supplier promptly, with supporting documentation.

• Be prepared to review and renegotiate the terms of trade with your suppliers from time-to-time.

Suppliers are essential to almost every business. Without raw materials to make what you sell or manufacturers to provide what you resell, you will have a tough time growing.
There are also many supplies and services your business consumes as part of general overhead, from paper clips to Internet access. Suppliers and vendors-the terms are used
interchangeably here-can do much more than merely supply you with the materials and services you need to do business. They can also be important sources of information,
helping you evaluate the potential of new products, track competitors' actions and identify promising opportunities. Vendors can turn into partners, helping you cut costs,
improve product designs and even fund new marketing efforts. If you don't make selecting good suppliers and vendors a part of your growth plan, you're likely to regret it.

Techniques to the Suppliers:

One of the most important aspects of running a business has to do with how you manage your suppliers. Remember that as supplier isn't just "a company that you hired to boss
around." A supplier is an entity that you need to establish a successful and beneficial relationship with in order for both organizations to achieve all of their goals. As a business
owner or manager, there are a few techniques you can use to more effectively manage your suppliers in the future.

Regular communication - One important quality of managing your suppliers is regular and constant communication. Remember your suppliers aren't mind readers. If there is
some aspect of your business relationship you feel they could be doing better, you need to let them know. If your goals for the next quarter have suddenly changed, you need to
make sure they're aware of that fact as soon as possible. You'll also want to regularly get in touch to help keep your supplier on the same page and to make sure they're keeping
up with your needs, especially if you're in the type of industry where those needs are likely to change on a regular basis. One of the cornerstones of any type of relationship is
mutual understanding. The only way you're going to be able to maintain mutual understanding between your business and your supplier at all times is through regular
communication practices.

Putting objectives in place - Another important step you can take to better manage your relationship with your supplier has to do with putting objectives in place at the beginning
of the production process.

If you have a very specific goal in mind, you need to make sure your supplier is aware of it. Doing so will help keep them on the same page with regards to exactly what it is that
you're trying to accomplish. If you decide to update or change those objectives in any way based on recent trends, you'll also need to make sure your suppliers have that
information as soon as possible. Putting objectives in place will define a number of factors including minimum threshold requirements you may have, clearly defined measures
you'll use moving forward and more.

Regular meetings - Regular meetings are another way to insure effective communication between your business and your supplier. By regularly having an in-person meeting with
a representative from your supplier, you'll be able to more easily communicate certain goals and objectives that can be difficult to get across in text. Communicating through a
combination of meetings and written correspondence will help make sure that everybody stays on the same page at all times.

Putting things in writing - One of the most important things you can do when it comes to managing your relationship with your supplier involves putting things in writing. For the
business that operates in multiple locations there are professional document sharing solutions to help manage your project and relationships effectively. Doing so is an easy and
efficient way to avoid confusion and to make sure everyone has an idea of what goals you are collectively working towards. If any questions arise, your supplier will always have
a hard copy of a document they can refer back to. They'll always be able to clearly know what your objectives are without necessarily getting in direct contact.

Make sure you're focused on your supplier's needs, alongside yours - Just as your business has its own unique requirements which need attending to, so will your supplier. Keep
in mind that many suppliers depend on the prompt payment of invoices to move forward with their own business models. Even one delayed payment can make things
significantly more difficult for that business moving forward. Always try to see things from the perspective of your supplier and do whatever you can to make things as easy for
them as possible. The supplier, in turn, will likely afford you the same courtesy and it will create a much better relationship that is mutually beneficial moving forward.

D. Competitors Principles of Competitor's :

Battle is the most magnificent competition in which a human being can indulge. It brings out all that is best; it removes all that is base." — General George S. Patton

It can be hard to compete with the rest of your field, and daunting to see the best performing in it —especially if you're starting at the bottom. Where do you measure up? How
do you go after #1?, There are a lot of angles to consider when looking at a field of competitors — and it begins with you and your mindset which is the most important part.

1. Race Yourself And Set The Tone (That's Faster Than Everyone Else) - The most important piece is this — how focused you are on your goals, and how enthusiastic you are with
your craft. Together —they're a powerful force. You're driven by a growth mindset that's in a race with itself to improve. The finish line never officially comes around, but you'll
know when you've arrived, because you're a master of your field, and never worry about anything like money or "success" again — because, well, you know what "success" is
and are successful.

2. Don't Sell To Prospects — Push Boundaries To Fragment And Attract The Right Prospects - Do what doesn't feel safe and what others won't say — the 3 out of 100 people who
believe and respect it are who you're looking for. Most importantly, they're the one's willing to follow and buy from you now. Trying not to displease or offend will lead to a less
than ideal prospect —and talking to the right prospects is what you want. It's the three who love what you say, you want to talk to, not ten who just like it. To be a change
agent, don't be afraid to go against the grain —you're like a (good) fanatic, looking for other (good) fanatics of your tribe. Who are in the same way fanatic as you. Great
pioneers are based on a secret or something the masses are unwilling to see, say out loud or acknowledge —until it's accepted by the majority. This brings out the prospects. If
you're feeling scared to publish something, you're fragmenting your market and finding the right prospects —publish. If you're scared of a marketing message, you're
fragmenting your market and finding the right prospects— push it out. Remember, It can be hard to compete with the rest of your field, and daunting to see the best performing
in it —especially if you're starting at the bottom. Where do you measure up? How do you go after tt1?, There are a lot of angles to consider when looking at a field of competitors
— and it begins with you and your mindset which is the most important part.

1. Race Yourself And Set The Tone (That's Faster Than Everyone Else) - The most important piece is this — how focused you are on your goals, and how enthusiastic you are with
your craft. Together —they're a powerful force. You're driven by a growth mindset that's in a race with itself to improve. The finish line never officially comes around, but you'll
know when you've arrived, because you're a master of your field, and never worry about anything like money or "success" again — because, well, you know what "success" is
and are successful.

2. Don't Sell To Prospects — Push Boundaries To Fragment And Attract The Right Prospects - Do what doesn't feel safe and what others won't say — the 3 out of 100 people who
believe and respect it are who you're looking for. Most importantly, they're the one's willing to follow and buy from you now. Trying not to displease or offend will lead to a less
than ideal prospect —and talking to the right prospects is what you want. It's the three who love what you say, you want to talk to, not ten who just like it. To be a change
agent, don't be afraid to go against the grain —you're like a (good) fanatic, looking for other (good) fanatics of your tribe. Who are in the same way fanatic as you. Great
pioneers are based on a secret or something the masses are unwilling to see, say out loud or acknowledge —until it's accepted by the majority. This brings out the prospects. If
you're feeling scared to publish something, you're fragmenting your market and finding the right prospects —publish. If you're scared of a marketing message, you're
fragmenting your market and finding the right prospects — push it out. Remember, you're trying to fragment the market and find the bold 3% who are ready to buy right now,
who believe what you believe. Instead of trying to appeal to every customer, try to force the motivated ones to come out of the wood work. Remember, markets are an outward
manifestation of natural selection —the desires and fears of the human mind manifested into monetary value of their needs and desires.

3. Make A Plan To Be tt1 In Your Segment - If you don't know how markets work and blindly attacking one —you're planning for mediocrity. If you don't know how often
prospects convert— you're planning for disappointment, frustration and mediocrity. This often leads to quick discouragement and pivoting too quickly. Most don't realize that only
about 3% of a market are ready to buy what you have right now. And that's assuming they're the exact right prospects. There's obviously variability here but you get the point.
So in writing, it takes 100 of the right people, to read your article, to have 3 (or maybe 5 or 10) subscribe. What does it take to get 100 people to read? 1500 views or followers
perhaps? I'm not sure but you see the point. You need to reach deep into the market and reach lot's and lot's of the right people to convert sales at 3% of the market who are
ready to buy right now.

4. Grow Faster Than Everyone Else - Grow faster than everyone else is not asking you to have the the growth gods come down and make it rain growth. It's about your approach
toward the market and grabbing every inch to grow a little each day — which compounds over time. Most importantly, it's the urgency and activity it produces on a daily basis.

Tools of Competitors:

Getting to know your competitor's strengths and weaknesses is the foundation on which to base good strategy. For brands, the growth of online activity has seen competitor
analysis methods, metrics and tools blossom. There is now no shortage of competitor analysis tools on the market, and each can offer insights relevant to its own particular niche
and contribute to competitive benchmarking. We've compiled a list of tools that cover a range of areas, from paid adverts to email marketing. You just need to decide which part
of your competitor's business you want to spy on.

1. SimilarWeb — Widely used as a traffic estimation tool, SimilarWeb has loads of cool features that let you peek behind the scenes at your competitor's strategy. Find out which
channels are driving traffic to your competition — with stats for traffic distribution, top organic & paid search keywords, top ad networks, audience interests, and competing
websites.

2. Audiense — This service will help you analyze your competitors' audience based on their Twitter followers. See stats on location, gender, interests, and the languages of those
who follow your competitor.

3. Builtwith — Dig deep into your competitor's website technologies and tools with this handy service. Builtwith can uncover their web server, advertising services they use,
analytics technologies, and much more. You can even find out which email services a given website is using.

4. Simply Measured — A free tool from SimplyMeasured called Facebook Competitive Analysis can easily compare your Facebook fan page with that of your rival. It will show you
general engagement stats for posts and a valuable metric of 'Engagements as % of fans.'

5. Rival IQ — Rival IQ will analyze your social media performance across all the major social networks and compare it to your competition. Add your competitor's website to your
dashboard to compare audience growth, post engagements, and top posts.