⌛ Investment in the Philippines

Agreements?

:( Claire, This was my understanding, The BIR in Dgte seem not to want to honour this agreement, they seem to have a Bust a Gut battle to be the Top collector of taxes in PI. When we did our 2008 to 2009 tax return there was apart of it that was a little ambiguous, We assumed (wrongly I feel) that we did not need to disclose any information. " ANY OTHER EARNINGS" we put no, but our Auditors had already sent the Return so we could not alter any part of it. The BIR called for further information and we had to submit Bank Statements. They of course found Credits not reported on the return. They duly assets us including these amounts and it is this we now battle with them.
Hence my Statement of staying away from PI banks if you want to hide something. Money earned outside PI will now Stay outside PI. Any countries Tax Laws seem never to relate to each other, The amounts were already taxed to a degree at source but the BIR will not accept the Spanish reciept.
Seems I may have to pay the tax and hope they will accept a translated Receipt when it finally arrive.


Jack P.

 

Sir , I assume that the account is under the name of your wife. That is why they are able to trace it. But probably if your wife just declare only her income this should not be a problem. But I think it is wise to have a separate accounts. But one thing i am sure that if you had started to declare your taxes implicating this income outside the philippines then they will be asking this every time you file tax declaration. Maybe you can talk to a lawyer about this matter. I am very sorry to say that some BIR collecting officer just don't understand the tax laws of the philippines. And in this extent that many people are suffering because of this incorrect implementation. It is too complicated but if you are earning dollars or euro , then it is better to put it in a foreign denominated account since the bank automatically get the correpanding taxes that the philippine gov. is requiring. I know this is not a big help just my opinion sir. I hope you solve this matter without much headache.

 

Claire! Thank you for the reply, We are working on it as we speak, Unfortunately we are a law abiding family but it is this type of thing that makes you wonder how honest we should be?
Hope things are progressing well there for you?


Jack P.

 

Sorry you Guys!

:o Seems I have Digressed a little in this Thread, my apologies.


Jack P.

 

Linus as Claire has said if you have a bank account in the PI you are paying taxes already, that is why the interest rates are so low.

There are many ways to get involved in Micro Financing such as through established international lenders like Kiva.org which are operated similar to charities and there are some that are country based and run like banks that you will have to register with according to each countries investment or banking laws. Your best bet is to research what is available in a country you are a resident in and get involved there to see if it will work for you. I see them as a long term, low grade investment but one that you have to take part in as generally you must choose who you are lending to and keep your hand on the tiller otherwise it will go off course.

 

New thread maybe

Actually taxes are a pretty big topic in it self and maybe deserves its own thread. There is much to be learned in this area as with investing and business ownership.

 

If one can't make 10-20% a year playing the U.S. $ to peso exchange rates (which is EXTREMELY easy) and can be done all in one bank with a dollar account and a peso account, one should stop investing!

 

thx, i understand that i pay taxes on the interest earned. this is normal in most places.

the interesting thing here is stated by knowdafish; earning 10 to 20% on the exchange rate sounds real nice (but it may be a situation like many others: it works until it does not). in any case, i am interested in such transactions; let me know how exactly you operate this scheme.

 

inDigrestion

Not at all Jack - i do not consider this a digression - These are problems that we all have to face irregardless of the form of investment.

Maybe ultimately when someone discovers a decent Tax Accountant here we can share that information and strengthen their practise.

One of my rules is to never cash in a winner -only sell losers so I haven't had to face these problems in the Philippines - YET

 

I sent you a PM.

How do you make any money THAT way? Only on paper?