The general rule is that all income from whatever sources (legal or illegal) are taxable.
In the Philippines, there is no clear guidance as to the treatment of crypto income. But if someone is to claim that crypto is exempt from taxes one must prove that such exemption is clearly indicated in the law or executive pronouncements. As of the moment I think crypto income falls under regular taxable income (the tax table above applies). But since taxes are self assessing it is hard to trace and assess such crypto by the authorities so you can evade paying tax on crypto income hahaha
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)?
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.
That's really helpful. Thank you so much.
I'm going to assume you're from the Philippines. Do you have any info/article/etc about how we're supposed to go about our steem "earnings"?
Maybe this can help.
https://steemit.com/philippines/@paulthebeloved/philippines-steem-and-steemdollars-sbd-taxable-or-non-taxable
since there is no law about cryptocurrency here, still it falls to non_taxable, hehe
20,000 php income a month will have 0% income tax in 2018 table, still I have no tax on it
IRS of America issued a ruling that cryptos are assets and is taxable. Here in Ph, the rule of taxation that all income are taxable applies. Crypto income are taxable but the problem is how to extract the taxes since blockchain is hard to understand hahaha and peoples are the one who file and pay the authorities will have a hard time assessing the proper amount of taxes. It is just like gambling winnings. Gambling winnings are taxable but the question is who wants his winning from gambling to be taxed? haahaha so do not declare it as other income.. BIR only need to move and bwalah maybe one day crypto will be taxed if the government cannot benefit or extract taxes then maybe one day it might be banned hahahah.
Is it true that there is a Crypto Trading Platform (like Bittrex, Binance, Poloniex etc.) in the Philippines in cooperation with coins.ph?