MANILA, Philippines - How much was the average income tax paid by self-employed individuals and professionals last year?
According to the Bureau of Internal Revenue (BIR), self-employed individuals and professionals paid only an average of P18,813 in income tax last year. This was only slightly higher than the average P16,407 income tax they paid in 2010.
This helped the BIR increase its income tax collection from self-employed individuals by 37.8% to P10.19 billion in 2011 from P7.39 billion in 2010, mainly due to its campaign against tax evaders.
The BIR also reported a 7.9% increase in the filing of income tax returns from self-employed and professionals to 541,561 in 2011 from 501,915 in 2010.
But despite this increase in collections, BIR Commissioner Kim Jacinto-Henares said there is still "huge room for growth."
"Compliance among professionals and the self-employed is still nowhere near where it should be," she said, in a statement.
The Department of Finance wants the BIR to increase the annual average tax collections on self-employed individuals to P200,000 before President Aquino ends his term in 2016. Finance Secretary Cesar Purisima earlier said the annual tax payments of professionals “remain unrealistically low."
BusinessMirror reported the BIR is planning to beef up the deployment of officers to monitor the business activities of self-employed taxpayers that would now include general professional partnerships.