Tag Archives: Overseas Filipino Workers

Philippine Congress Wants to Tax Income Of Overseas Filipino Workers

January 25, 2016 Pol Pinoy 1 Comment

MANILA, Philippines (The Adobo Chronicles) – The Philippines’ Congress is at it again. Members want to exempt Pia Alonzo Wurtzbach from paying taxes on her income as Miss Universe. But Wurtzbach has declined, saying she will continue to pay her taxes just like she always did in the past.

This is not the first time that such a proposal has been filed in Congress. There have been several attempts to put forward a similar bill exempting Filipino champion boxer Manny Pacquiao from paying taxes. (Incidentally, Pacquiao is facing a P3.2 billion tax evasion case before the Court of Tax Appeals. The case was filed by the Bureau of Internal Revenue after assessing that Pacquiao had incurred “deficiency income and value-added tax” from 2008 to 2009, worth P2.2 billion. Penalties and surcharges caused the deficiency to balloon to P3.2 billion.)

Congress wanted to grant the tax exemptions, arguing that Wurtzbach and Pacquiao are the “pride of the Philippines, putting the country on the world map, and considering them as “heroes.”

Well, what about the true heroes of the Philippines — the overseas Filipino workers (OFWs)? They are the backbone of the Philippine economy, infusing more than $26 Billion in remittances to the country annually?

Currently, the wages or income of OFWs arising out of their overseas employment are exempt from income tax. Since OFWs usually already pay income taxes in the country they are working in, the Philippines exempts those taxable income of Filipinos through the virtue of tax reciprocity. With the tax reciprocity rule, Filipinos working abroad are taxed for incomes received there and are exempt from paying income taxes in the Philippines, in the same way that foreigners working in the Philippines are taxed here for incomes sourced within the Philippines and are also not required to pay income taxes anymore to their home country.

But now, some smart members of Congress want to lift that exemption, and the Aquino administration — especially Bureau of Internal Revenue Commissioner Kim Henares — favor the proposal.

“Sure, it would be a case of double taxation,” Henares said, “but think about the huge tax revenue that the Philippine government will earn from taxing OFW income abroad.”

It’s more fun in the Philippines!

Government, International, Travel

OVERSEAS FILIPINO WORKERS DITCHING THE BALIKBAYAN BOX IN FAVOR OF SUITCASES TO AVOID CUSTOMS TAX

August 27, 2015 Pol Pinoy 1 Comment

NINOY AQUINO INTERNATIONAL AIRPORT, Philippines (The Adobo Chronicles® ) – The Philippines’ Bureau of Customs (BOC) has come under very intense fire in recent weeks from overseas Filipino workers (OFWs) because of its recent announcement that balikbayan boxes will be opened and inspected to determine whether any of the items contained inside are subject to tax.

Balikbayan boxes are those corrugated cardboard boxes used by overseas Filipinos to ship gifts and household items for their families back home. Until recently, balikbayan boxes were free of inspection and customs tax.

In order to avoid inspection and customes duties, many OFWs have ditched the balikbayan box in favor of huge suitcases. They would rather bring their gifts with them when they travel back to the Philippines than have them sent through shipping companies and vendors. This way, they would be physically present when their luggages are inspected by Customs upon their arrival in Manila.

The new modus operandi is causing huge problems for the airlines because the multiple checked suitcases are creating long lines at airport counters. Airlines are also concerned about potential overloading of the aircraft.

It has also resulted in long lines at the arrival lounges at the Ninoy Aquino International Airport and has prompted BOC to deploy more customs inspectors.

Well, BOC has brought this upon itself.

Film and TV, Government, Politics

MULTI-AWARDED ACTRESS NORA AUNOR CALLS FOR PRESIDENT AQUINO TO STEP DOWN

March 19, 2015 Pol Pinoy Leave a comment

MANILA, Philippines (The Adobo Chronicles) – It was one of the most powerful, fist-clenching scenes ever seen on Philippine cinema, with a true-to-life character played by multi-awarded Filipina actress Nora Aunor.

The scene:

Aunor calling for the resignation of President Noynoy Aquino in a stirring speech at a rally by Migrante International, a support group for overseas Filipino workers.

In her strongly worded speech delivered in Filipino, Aunor lambasts the chief executive for the government’s labor export policy and called him “a puppet and the scourge of migrant Filipinos.”

But wait.

This is no longer just a scene from a movie. It is for real. It is the real Nora Aunor participating and speaking at a rally commemorating the 20th death anniversary of Flor Contemplacion, the domestic helper who was controversially executed for the alleged murder of another Filipina maid in Singapore in 1995.

Aunor portrayed Contemplacion in Joel Lamangan’s “The Flor Contemplacion Story” that same year. She won Best Actress in the Gawad Urian, the Film Academy of the Philippines, the Star Awards for Movies, the Young Critics Circle, and the Cairo International Film Festival.

Last year, Aunor was snubbed for the National Artist award despite being nominated by the National Commission on Culture and the Arts following a three-year vetting process.

Asked by reporters about his reaction to Aunor’s speech, President Aquino said, “Eh, sour grapes!”

Meanwhile, presidential sister Kris Aquino said she was withdrawing her earlier offer to pay for Aunor’s airfare to seek surgical operation of her vocal cords abroad. “She’s either with us, or against us,” the younger Aquino said about Aunor.