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freelancer Archives - Taxumo

Genesis Reonico of Online Jobs University

Taxumo Heroes: Genesis Shares His Winning Advantage to Filipino Freelancers

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Genesis Reonico of Online Jobs University

For Filipino freelancers, taking the leap from their corporate jobs into the wild world of online freelancing can be a daunting start to a rewarding career.

Luckily, it’s not as scary as it used to be. Many freelancers will not face the same problems that those who started years back had encountered, thanks to the web-based freelance mentoring platform Online Jobs University.

Below, we get to know more about Genesis, the founder of Online Job University, and his precious advice for Filipino freelancers, and just about everybody who wants to pursue their passion and make a difference:

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Taxumo Hero Raffy Vicente

Taxumo Heroes: Why Paying His Income Tax Won’t Stop Raffy from Pursuing His Passion 

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Taxumo Hero Raffy Vicente

It wasn’t always living a life he truly wanted for himself.

Before Raffy Vicente set out to build his own consultancy firm, he was working full-time as an employee for almost a decade.

He yearned for something more fulfilling, career-wise: a level-up of some sort. That was the time he decided that it was time for a change.

But while it was the desire for freedom that had made him leave, it was ultimately his burning passion and relentless drive that eventually built and grew his company, RV Marketing Services.

Below, Raffy recounts his rewarding journey from leaving the corporate world to joining the growing pool of successful entrepreneurs who continue to defy their comfort zones, in the name of following and living out their passions: Read More

Taxumo

Income tax rate of just 1%?

By | Tax Rules | No Comments

The Department of Finance has just released more info on proposed tax reform proposals it aims to be approved next year, and yes it includes much lower income tax rates. How much lower? How about as low as 1%? Have I got your attention?

But just who are qualified under this low income tax rate? Let’s assume JCRuz (aka Juan de la Cruz) is a starting triathlon coach who makes P30,000/month and as part of his work, racks up expenses of P9,000/month. JCruz is also single and currently dating his childhood crush. Under the current tax rules, the income tax for the year would be:

Annual income
30,000 x 12                                          360,000

Less allowed deductions:
Business expenses – 9,000 x 12       108,000
Personal tax exemption                      50,000
Dating childhood crush                                  x  sorry, hindi pwede
Taxable income                                  202,000

Tax due (current rules)                       38,000

 

Under the proposed lower income tax rates, those earning P250,000 and below will be taxed a fixed P2,500, and 20% on the next P150,000 of income over P250,000.  So JCruz could see his P38,000 tax sliced to just:

Annual income                                   360,000

Less allowed deductions:
Business expenses                              108,000
Personal tax exemption                                  x  let’s assume this could go away
Taxable income                                  252,000

Tax due                                                     2,900

The lower rates should encourage more people to register and file their taxes and could lead to higher total tax collections to improve our country’s infrastructure and public services.

Isn’t this more awesome that catching that rare Pokémon?

Online Filipino Freelancers Exempted from Income Tax

OFWs Don’t Pay Income Taxes. Shouldn’t Online Filipino Freelancers Be Exempted, Too?

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Online Filipino Freelancers Exempted from Income Tax

Should Filipino freelancers pay income tax?

Without divulging my age, let’s just say I was once a patron of prepaid internet ISP cards during the dark ages where people back then would have freaked out if someone had showed them the IPhone. Anyone remember anticipating that fax sound to end so we could finally start surfing, only to have your sibling pick up the phone extension in the other room? Oh that was so annoying…

But technology and the internet has come a long way. It has even disrupted the very employment landscape and allowed Filipinos to compete for virtually any job in the world, right at the comfort of home. Graphic design, bookkeeping, virtual assistants – the list is endless, and out of this technological revolution an ever growing community of online freelancers has emerged. Some describe online freelancing to be a bit similar to working abroad, only this time you get to do it even in pajamas.

It therefore is not surprising for some online freelancers to think they enjoy the same “tax exempt” status as OFWs, and if not, why not? Why not us too?

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