You are viewing a single comment's thread from:

RE: Philippines Tax Updates: Personal Income Tax (TRAIN LAW)

in #philippines7 years ago

But then again we do not "earn". We are being "rewarded". I'm not an expert, I'm also curious. In my opinion, rewards are more like gifts than income. So if your mother gave you 300,000php do you pay tax for receiving the gift (being rewarded for being a nice child)?

Sort:  

The answer is yes. There is what we call donor's tax. A tax imposed on the transfer of property/rights over a certain thing whether it came from a relative or a stranger.

You are rewarded, its true. Gifts are given out of generosity and given without any consideration in exchange. But, I beg to differ that your rewards are being earned thru hard work and dedication. And try to define "reward" and you will see its just the same, look at its synonyms.

I see, thanks for the clarification. Do people above 18 who still receive "baon" in college have to pay the so-called donor's tax?

I know the synonyms. reward -> incentive/compensation -> pay

No. There is a difference between support and donation. Every parent has an obligation to support their children specially with their necessities. A gift like car, house and lot, and large sum of money that may prejudice other children are things that are somewhat subject to this donor's tax.