MIE

BIDA KA!: May galit ba sa mahihirap?

Mga Bida, akala natin ay pahupa na ang isyu ng pork barrel scam kasunod ng paglabas ng committee report ng Senado sa kontrobersiya.

Subalit bigla na namang uminit ang usapan ukol sa usapin kasunod ng paglabas ng iba’t ibang bersiyon ng “Napolist”.

Naririyan ang bersiyon nina Jstiuce Secretary Leila de Lima, da­ting senador at ngayo’y rehab czar Panfilo Lacson at whistleblower Sandra Cam.

Ngayon, marami ang nalilito kung anong listahan ang paniniwalaan. Batay sa lumitaw sa mga balita, halos walang pinagkaiba ang isinumite nina Lacson at De Lima kay Blue Ribbon Committee chairman Sen. TG Guingona.

Gamit ang hawak na ebidensya at testimonya ng mga whistleblowers, kailangan talagang ma-verify ang mga pangalan upang masala natin kung sino ang may sala sa kung sino ang sinasama lang.

Pero kahit sino pa ang nasa listahan, isa lang ang gusto nating mangyari – ang tiyaking maparusahan ang lahat ng may pananagutan sa pagkawala ng bilyun-bilyong piso na mula sa dugo’t pawis ng taumbayan.

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Marami sa atin ay gigil na gigil na sa isyu dahil ang perang nawaldas ay mula sa binayaran nating buwis na inawas mula sa ating suweldo at iba pang kita.

Biruin ninyo, imbes na pakinabangan ng taumbayan, sa bulsa lang ng iilan napunta ang perang nagmula sa pawis at dugo ng milyun-milyong Pilipino.

Kaya dapat alagaan at pahalagahan ng pamahalaan ang bawat piso ng buwis na kinokolekta nito sa taumbayan at tiyakin na ito’y napupunta sa dapat pagkagastusan.

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Kaya nang mabalitaan kong plano ng BIR na singilin ng income tax pati maliliit na negosyante o Marginal Income Earners (MIEs), agad akong kumilos at inihain ang Senate Bill 2227.

Sa aking panukala, hindi na pagbabayarin pa ng income tax ang MIEs, na kinabibilangan ng mga magsasaka, mangingisda, tricycle drivers, may-ari ng maliit na sari-sari store at iba pang maliliit na negosyo na ang kita lamang ay hindi hihigit sa P150,000 kada taon.

Itinatapat lang natin ito sa kumikita ng minimum wage na hindi rin sinisingil ng income tax.

Dapat patas lang ang laban, ‘di ba, mga Bida?

Maliban sa income tax, hindi rin sisingilin ang MIEs ng 12 percent value-added tax o kahit anong percentage tax na pinapataw sa ilalim ng National Internal Revenue Code of 1997 dahil sila’y hindi saklaw ng mga nabanggit na buwis.

Sa pamamagitan nito, mga Bida, mabibigyan ang maliliit na negosyante ng pagkakataon para magtagumpay na bahagi ng ating hinahangad na pag-asenso para sa lahat.

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Agad namang umani ng suporta mula sa ilang MIE ang ating hakbang na huwag na silang pagbayarin ng income tax.

Ayon kay Rod (hindi tunay na pangalan), isang OFW na kasisimula pa lang ng maliit na tindahan, paano aangat ang kanyang negosyo kung sa simula pa lang ay mayroon nang pabigat?

Sinabi naman ni Joy, maraming maliliit na negosyo ang nagsasara dahil sa iba’t ibang klaseng tax na sinisingil ng BIR.

Para naman kay Malou, dapat ay intindihin ng BIR ang pagtugis sa malalaking kumpanya at hindi pahirapan ang mga maliliit na negosyo.

Dapat suportahan natin ang ating mga kababayang makaahon sa kahirapan. Sa isang bayang umaasenso, dapat bawat Pilipino, panalo!

 

First Published on Abante Online

SRN-563: BIR Revenue Memorandum Cicular (RMC) No. 7-2014

RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEES TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, ON THE ISSUANCE OF BIR REVENUE MEMORANDUM CIRCULAR (RMC) NO. 7-2014 TO CLARIFY ISSUES ON THE TAXATION AND COMPLIANCE REQUIREMENTS OF MARGINAL INCOME EARNERS PURSUANT TO REVENUE REGULATION 7-2012 AND REVENUE REGULATION 11-2000

Whereas, the Bureau of Internal Revenue (BIR) issued on 05 February 2014 Revenue Memorandum Circular (RMC) No. 7-2014 to clarify the issues related to the registration and tax compliance of Marginal Income Earners (MlEs) pursuant to Revenue Regulation (RR) No. 7-2012 and RR No. 11-2000. According to BIR, the issuance of the circular is part of the BIR’s campaign to plug leakages from tax evasion and to boost state coffers;

Whereas, under RMC No. 7-2014, a .Marginal Income Earner (MIE) is an individual not deriving compensation as an employee under an employer-employee relationship and who is self-employed and’ deriving gross sales or receipts not exceeding One Hundred Thousand Pesos (Php 100,000.00) in any twelve-month period. Moreover, the activities of such MlEs should be principally for subsistence or livelihood.

Whereas, under RMC No. 7-2014, the BIR’ clarified that MlEs include agricultural growers/producers (farmers/fishermen) selling directly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle. It categorically excludes licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including all others whose income have been subjected to withholding tax;

Whereas, under RMC No. 7-2014, MlEs are exempted from payment of the Annual Registration Fee (ARF) and from payment of business taxes such as Value Added Tax or any Percentage Tax. However, the BIR still holds MlEs liable for payment of Income Tax.

Whereas, under RMC No. 7-2014, the BIR additionally subjects MlEs to a range of registration and compliance requirements, including the registration of the MlEs with the BIR, registration of Book of Accounts, issuance of registered principal receipts/sales invoices, and the filing and payment of their Annual Income Tax Return similar to other self-employed individuals.

Whereas, the registration and compliance requirements as provided by RMC No. 7-2014 seem to be unreasonable and excessively burdensome considering the level of income that MlEs are earning as well as their capacity to comply with these complicated requirements. These requirements were not,rart of RR No. 11-2000, the original circular defining MlEs. Under RR No. 11-2000, MlEs shall be given the opportunity to register with the BIR, with no charge and without complying with the usual documentary requirements, such as maintenance of books of accounts and issuance of registered receipts/invoices.

Whereas, the cap of One Hundred Thousand Pesos (Php 100,000.00) per year on gross sales or receipts for individuals to be considered as MlEs, as stated in RMC No. 7-2014, seems unreasonably low and tends to exclude many individuals who are conducting activities principally for subsistence and livelihood. One Hundred Thousand Pesos (Php 100,000.00) per year of gross sales or receipts is equivalent to Eight Thousand Three Hundred Thirty Three Pesos and Thirty Three Centavos (Php8,333.33) per month or Two Hundred Seventy Three Pesos and Ninety Seventy Centavos (Php 273.97) in gross sales or receipts per day.

Whereas, the cap of One Hundred Thousand Pesos (Php 100,000.00) per year on gross sales or receipts implies that MlEs should be earning not more than Twenty Thousand Pesos (Php 20,000.00) per year or not more than Fifty Four Pesos and Seventy Nine Centavos (Php 54:79) per day, assuming a twenty percent (20%) profit margin and not yet deducting their operating costs. In effect, MlEs would only include individuals situated way below the poverty line, those who earn less than Ninety Pesos (Php 90.00) per day. Estimated earnings of those currently considered as MlEs would also be way below the income of individuals considered as Minimum Wage Earners (MWEs), which is between One Hundred Forty Thousand and One Hundred Seventy Thousand Pesos (Php 140,000 to P170,000+) per year.

Whereas, the cap on gross sales or receipts of MlEs of One Hundred Thousand (Php 100,000) provided by RMC No. 7-2014 has been carried over from RR No. 11-2000, the original circular defining MlEs. Under the said revenue regulation issued in year 2000, “MIE shall refer to those individuals whose business do not realize gross sales or receipts exceeding One Hundred Thousand Pesos (Php 100,000.00) in any twelve-month period.” Over a decade later, an upward adjustment of this cap is in order due to a variety of factors, notably inflation.

Whereas, granting income tax exemption to the Minimum Wage Earners (MWE) while subjecting the Minimum Income Earners (MlE) to income tax is contrary to the equal protection clause under the Constitution, there being no substantial distinction between them in terms of earning capacity. Both of these classifications of workers belong to the same class, a class with barely enough money to satisfy even their most basic and immediate needs.

Whereas, imposing income tax on agricultural growers/producers (farmers/fishermen) selling directly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos”, drivers/operators of a single unit tricycle and such is tantamount to confiscating what little income they are able to make on a daily basis. Such provision seems counter-productive and contrary to the nation’s thrust towards a better economy that will benefit the majority of our people.

Whereas, there is a need to revisit the provisions of the circulars issued by the BIR and other pertinent laws in order to afford equal protection and benefits to Marginal Income Earners. Further, the. government should look into more effective tax measures and simpler compliance requirements to encourage micro entrepreneurs to conduct/engage in business. Through the initiatives of the tax authority, the country will able to provide better productivity incentives, promote a more just and equitable distribution of the tax burden, and ultimately, better address the government’s inclusive ~rowth agenda.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved to direct the appropriate Senate Committees to conduct an investigation, in aid of legislation, on the issuance of BIR RMC No. 7-2014 to clarify issues on the taxation and compliance requirements of Marginal Income Earners pursuant to RR 7-2012 and RR 11-2000.
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Sen. Bam’s Tax Bill to Unburden the Poor Gets Support

Several stakeholders are pushing for the passage of Senator Bam Aquino’s measure that exempts marginal income earners (MIE) from paying income tax.
 
The Tax Management Association of the Philippines (TMAP) and the Magna Carta for Workers Alliance (MAGCAISA) both expressed their support during the committee hearing on Aquino’s Senate Bill No. 2777 or the Marginal Income Earners (MIE) bill.
 
Representatives from both TMAP and MAGCAISA said the passage of Aquino’s measure would help unburden poor Filipinos, which is composed mainly of farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs.
 
Aside from throwing support behind the MIE bill, TMAP president Rina Manuel also called for the simplification of tax filings and processes for individuals and businesses.
 
MAGCAISA Steering Committee representative Elizabeth Angsiaco, for her part, batted for the expansion of the bill to cover all MIEs.
 
After the hearing, Aquino welcomed the snowball of support for his bill, saying the government should not take way the little income that poor Filipinos earn from their livelihood.
 
“I consider it a great disservice to our countrymen if the government will take away what was left of their meager income,” Aquino said.
 
Aside from hampering its growth, Aquino stressed that poor Filipinos will be discouraged to enter the formal economy if they would be subjected to tight scrutiny by the Bureau of Internal Revenue (BIR).
 
The senator noted that the number of registered MSMEs in the country – currently pegged at approximately 800,000 – has not grown in years.
 
“If we want to help them grow, we need to create an environment conducive for small businesses to thrive. We need to encourage those businesses in the informal economy to register and join the formal sector,” he added.
 
Aquino’s bill seeks to spare micro entrepreneurs, or self-employed individuals who earn not more than the minimum wage equivalent in their regions, from paying income tax, just like minimum wage earners.
 
The senator filed the measure after the Bureau of Internal Revenue released a memorandum circular – Revenue Memorandum Circular (RMC) No. 7-2014 – compelling MIEs to pay income tax returns.
 
According to BIR’s circular, MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

Spare the Poor, Pass the MIE Bill – Sen. Bam

Spare the poor.

Senator Bam Aquino made this pronouncement as he called for the swift passage of the Marginal Income Earners (MIE) bill, saying ‘it could be another landmark bill of this administration which is pro-poor and pro-business.’

 During the Senate Ways and Means committee hearing on the MIE bill, Aquino stressed the measure doesn’t affect the government’s revenue-collection efforts and, at the same time, eases the burden of millions of Filipinos.

“I’m hoping that we can move this forward,” said Aquino, adding that the Senate has already reached out to its House counterpart to look into the MIE Bill.

Aquino filed Senate Bill 2227 which seeks to exempt MIEs such as farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs, from paying income tax

 Under Senate Bill 2227, Aquino said MIEs, or self-employed individuals who earn not more than the minimum wage equivalent in their regions, should be spared from paying income tax, just like minimum wage earners.

“The MIE bill basically exempts marginal income earners at the same level as the minimum wage earners,” said Aquino.

Aquino filed the bill after the Bureau of Internal Revenue released a memorandum circular — Revenue Memorandum Circular (RMC) No. 7-2014 — compelling micro entrepreneurs to pay income tax returns.

According to BIR’s circular, MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

 “Charging taxes does not help them in any way. Rather, it becomes a burden to a sector that is situated below the poverty line,” Aquino said.

 “Imposing income tax on our micro businessmen is tantamount to confiscating what little income they are able to make on a daily basis,” he added.

“This measure is just and fair and follows the constitutional provision of equal protection to all Filipinos.”

 

Sen. Bam hits BIR’s ‘Anti-Poor’ Circular, Files a Bill to Exempt Small Businessmen from Taxes

Senator Bam Aquino has filed a bill seeking to exempt Marginal Income Earners (MIEs), including farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs, from payment of income tax.

In Senate Bill 2227, Aquino said MIEs, or self-employed individuals who earn not more than P150,000 annually, should be spared from paying income tax, just like minimum wage earners.

“Granting income tax exemption to minimum wage earners while subjecting our small businessmen to income tax is contrary to the mandate of the Constitution, there being no substantial distinction between them in terms of earning capacity,” Aquino said in his measure.

Aquino made the move after the Bureau of Internal Revenue released a memorandum circular — Revenue Memorandum Circular (RMC) No. 7-2014 — compelling micro entrepreneurs to pay income tax returns.

The circular said MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

“Charging taxes does not help them in any way. Rather, it becomes a burden to a sector that is situated below the poverty line,” Aquino said.

“Imposing income tax on our small businessmen is tantamount to confiscating what little income they are able to make on a daily basis,” he added.

The bill classifies MIEs as self-employed individuals – working neither for the private sector nor the government — deriving gross sales/receipts not exceeding P150,000 during any 12-month period, which will be used principally for subsistence or livelihood.

If enacted into law, the bill allows the BIR to adjust the income cap on the gross sales of the small businessmen to match any increase that minimum wage income earners may receive.

Aside from income tax, MIEs shall be exempt from 12 percent value-added tax and any percentage tax imposed under the National Internal Revenue Code of 1997 because they are not engaged in trade for which these taxes are imposed.

“Such a measure provides an enabling environment for our Filipino people to thrive and be given a chance to succeed.  It further continues our campaign in achieving true inclusive growth for everyone, even for the poor and marginalized,” Aquino said.

 

Photo source: biogprawny

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