Many Filipinos ask the same question:
“Am I paying the right amount of tax?”
Not too little.
Not too much.
Just right.
With a system that’s supposed to compute taxes approximately, surely there’s a way to know.. right?
How Do You Know If You’re Paying an Approximate Amount of Taxes?
For most taxpayers, especially freelancers, self-employed professionals, and small business owners, tax computation can feel.. well.. confusing. Rates vary, forms pile up, and one small mistake can mean either:
Underpaying, which can lead to penalties and interest
Overpaying, which means losing money you could’ve used for daily expenses
The goal is really simple: pay what’s due—nothing more, nothing less.
But before we get there, let’s take a step back and answer a bigger question many people still wonder about.
This Is Where Your Taxes Go
We often see taxes at work in visible, large-scale projects. Roads, bridges, schools
These are the usual examples. And yes, taxes do help fund them.
But for business owners, taxes aren’t just about big projects, they also tie directly into the everyday costs of running a business.
What About Your Everyday Expenses?
For business owners, taxes don’t exist in isolation. They come alongside everyday expenses you deal with constantly, such as:
Paying your staff’s salaries and benefits
Buying inventory or raw materials
Covering rent, utilities, and internet bills
Handling marketing, software subscriptions, and other operating costs
When you’re juggling all these expenses, even a small mistake in tax computation can hurt.
Overpaying means less cash for daily operations.
Underpaying can lead to piled up penalties and unexpected charges..later on.
That’s why knowing an approximation how much tax you should be paying matters. Your taxes should fit into your budget properly, not eat into money meant for running and growing your business.
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