Comments on: 3 Types of Income on Taxes http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html Escape the Rat Race and Join My Journey to Financial Freedom Wed, 08 Feb 2012 05:13:04 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Emman Lijesta http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-35843 Emman Lijesta Thu, 24 Mar 2011 06:32:59 +0000 http://www.millionaireacts.com/?p=1424#comment-35843 Robert Kiyosaki's principles are really good, no question about it. But the principles should be applied in context in the Philippine setting. One; there is no such thing as passive income in the National Internal Revenue Code. The National Internal Revenue Code recognizes only two kinds of income in the Philippines: Earned/Business income and Portfolio income. Earned/Business income is pegged at 5 to 32% for individuals and 30% fixed for corporations. Portfolio income is 20% except in cases of books and compositions which is 10%. Rental income from real estate is taxed at a final withholding tax of 15% only if the owner of the property in question has other sources of income. If not, it is taxed at Earned/Business income rates. In order to apply Kiyosaki's teachings in the Philippines, one must increase his portfolio income. Real estate is a death trap here in the Philippines. The following taxes are imposed on real estate: 1) 6% of gross selling price or fair market value whichever is higher. 2) 1% of gross selling price or fair market value for documentary stamps. 3) Real estate tax of up to 1% of the assess value of the property for a province or 2% for a city or municipality (the municipality must be located within the Greater Manila Area, otherwise it is taxed at provincial rates) 4) 1% of assessed value for additional levy for Special Education Fund 5) 5% of assessed value for idle lands 6) The 15% final withholding tax mentioned above Therefore, total amount of taxation for real estate is 14 or 15% depending on the location of the property. This does not include the 15% final withholding tax. The goal of Kiyosaki in "Rich Dad's Guide to Investing" is to adapt one's business scheme to the prevailing laws of the country where the business is to be set up. That means his teachings must be adapted to the Philippine setting, and not the other way around (he cites US laws only as an example, but most real estate owners apply Kiyosaki's principles blindly.) Hope this information ads up to the entire topic. More about Philippine laws in <a href="philcritic.clickbankphilippines.com" rel="nofollow">PhilCritic</a> Robert Kiyosaki’s principles are really good, no question about it. But the principles should be applied in context in the Philippine setting. One; there is no such thing as passive income in the National Internal Revenue Code. The National Internal Revenue Code recognizes only two kinds of income in the Philippines: Earned/Business income and Portfolio income.

Earned/Business income is pegged at 5 to 32% for individuals and 30% fixed for corporations.

Portfolio income is 20% except in cases of books and compositions which is 10%.

Rental income from real estate is taxed at a final withholding tax of 15% only if the owner of the property in question has other sources of income. If not, it is taxed at Earned/Business income rates.

In order to apply Kiyosaki’s teachings in the Philippines, one must increase his portfolio income.

Real estate is a death trap here in the Philippines. The following taxes are imposed on real estate: 1) 6% of gross selling price or fair market value whichever is higher.
2) 1% of gross selling price or fair market value for documentary stamps.
3) Real estate tax of up to 1% of the assess value of the property for a province or 2% for a city or municipality (the municipality must be located within the Greater Manila Area, otherwise it is taxed at provincial rates)
4) 1% of assessed value for additional levy for Special Education Fund
5) 5% of assessed value for idle lands
6) The 15% final withholding tax mentioned above

Therefore, total amount of taxation for real estate is 14 or 15% depending on the location of the property. This does not include the 15% final withholding tax.

The goal of Kiyosaki in “Rich Dad’s Guide to Investing” is to adapt one’s business scheme to the prevailing laws of the country where the business is to be set up. That means his teachings must be adapted to the Philippine setting, and not the other way around (he cites US laws only as an example, but most real estate owners apply Kiyosaki’s principles blindly.)

Hope this information ads up to the entire topic.

More about Philippine laws in PhilCritic

]]> By: Jay Castillo | FroeclosurePhilippines.com http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3860 Jay Castillo | FroeclosurePhilippines.com Fri, 14 Aug 2009 00:31:42 +0000 http://www.millionaireacts.com/?p=1424#comment-3860 @ ceblogger, now I get it, silly me. Thanks! =) @ ceblogger, now I get it, silly me. Thanks! =)

]]> By: ceblogger http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3855 ceblogger Thu, 13 Aug 2009 10:04:42 +0000 http://www.millionaireacts.com/?p=1424#comment-3855 tyrone/jay, i just made up the 10.1 10.5, etc... because i believe they are also emerging influential bloggers na hindi lang umabot sa top 10. part of the top 20 din but i could not exactly recall the order. tyrone/jay, i just made up the 10.1 10.5, etc… because i believe they are also emerging influential bloggers na hindi lang umabot sa top 10. part of the top 20 din but i could not exactly recall the order.

]]> By: Jay Castillo | Foreclosurephilippines.com http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3837 Jay Castillo | Foreclosurephilippines.com Wed, 12 Aug 2009 04:38:15 +0000 http://www.millionaireacts.com/?p=1424#comment-3837 Hi Tyrone, nice post. Passive income is the way to go! One way of looking at it is earned income from January up to mid April actually ends up with the government in the form of taxes... sigh. Wow, nakapunta ka pala sa awards night. Sayang I wasn't able to make it due to a previous commitment. Congrats pa rin to you and all the winners! @ceblogger, curious din ako sa score ni Tyrone na 10.5, how was this arrived at? I voted din kasi for Millionaire Acts... hehe. Hi Tyrone, nice post. Passive income is the way to go! One way of looking at it is earned income from January up to mid April actually ends up with the government in the form of taxes… sigh.

Wow, nakapunta ka pala sa awards night. Sayang I wasn’t able to make it due to a previous commitment. Congrats pa rin to you and all the winners!

@ceblogger, curious din ako sa score ni Tyrone na 10.5, how was this arrived at? I voted din kasi for Millionaire Acts… hehe.

]]> By: cebu attractions http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3828 cebu attractions Tue, 11 Aug 2009 11:56:11 +0000 http://www.millionaireacts.com/?p=1424#comment-3828 yeah... big income big taxes. and in the end the government is the sole benefactor of our money yeah… big income big taxes. and in the end the government is the sole benefactor of our money

]]> By: burn http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3825 burn Tue, 11 Aug 2009 10:29:45 +0000 http://www.millionaireacts.com/?p=1424#comment-3825 I am not a business minded person.. however, as I read your post.. I learn something today. Passive and Active income; earned and portfolio income. Wala talaga umaasenso sa pagtatrabaho, only those who are in business ang umaangat lalo.. sana maka bisita ka ulit sa blog ko. I am not a business minded person.. however, as I read your post.. I learn something today. Passive and Active income; earned and portfolio income.

Wala talaga umaasenso sa pagtatrabaho, only those who are in business ang umaangat lalo..

sana maka bisita ka ulit sa blog ko.

]]> By: Tyrone http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3802 Tyrone Mon, 10 Aug 2009 04:11:14 +0000 http://www.millionaireacts.com/?p=1424#comment-3802 Nice meeting you too. By the way, how did you know naman na 10.5 yung rank ko sa emerging influential blogs? Pero thanks pa rin for the vote. Good point for the topic. Nice meeting you too. By the way, how did you know naman na 10.5 yung rank ko sa emerging influential blogs? Pero thanks pa rin for the vote. Good point for the topic.

]]> By: ceblogger http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3801 ceblogger Mon, 10 Aug 2009 04:03:52 +0000 http://www.millionaireacts.com/?p=1424#comment-3801 nice meeting you last Saturday, tyrone! sayang at 10.5 yung rank mo sa emerging influential blogs of 2009. But I know you are still a winner. On topic, for taxes on individual income, the maximum is 30%. Those earning lower are taxed less. It's 30% for corporations, but there could be tax-exempt transactions. One can also maximize their spare cash by investing/joining in Cooperatives. nice meeting you last Saturday, tyrone! sayang at 10.5 yung rank mo sa emerging influential blogs of 2009. But I know you are still a winner.

On topic, for taxes on individual income, the maximum is 30%. Those earning lower are taxed less. It’s 30% for corporations, but there could be tax-exempt transactions.

One can also maximize their spare cash by investing/joining in Cooperatives.

]]> By: Chris | Crisiboy.Com http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3796 Chris | Crisiboy.Com Sun, 09 Aug 2009 16:39:17 +0000 http://www.millionaireacts.com/?p=1424#comment-3796 sayang pro we never had a chance na magkausap sa eb..nakita pa naman kita dun..anyways till next time.kita kits nalang ulit sa mata..hehehe congrats din kahit papaano honorable mention naman tong blog mo..sayang nga di nakaabot sa top 10 hayyyzz sayang pro we never had a chance na magkausap sa eb..nakita pa naman kita dun..anyways till next time.kita kits nalang ulit sa mata..hehehe congrats din kahit papaano honorable mention naman tong blog mo..sayang nga di nakaabot sa top 10 hayyyzz

]]> By: elmot http://www.millionaireacts.com/1424/3-types-of-income-on-taxes.html#comment-3787 elmot Sun, 09 Aug 2009 10:08:48 +0000 http://www.millionaireacts.com/?p=1424#comment-3787 sipag ah, post agad, eheheh! hey, nice meeting you last night. it was a great event. 3am na kmi nakauwi kaya bangag pa, wala pang maisip na post wahahah! see you next time bro. :D sipag ah, post agad, eheheh!

hey, nice meeting you last night. it was a great event.

3am na kmi nakauwi kaya bangag pa, wala pang maisip na post wahahah!

see you next time bro. :D

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