oleh admin | Mar 28, 2025 | income tax returns, income taxes, personal finance taxes, tax returns, taxes
On Friday, the Bureau of Internal Revenue (BIR) urged taxpayers to settle their dues when submitting their 2024 Income Tax Returns (ITR) by the deadline of April 15, 2025, to evade any fines.
In an official announcement, BIR Commissioner Romeo Lumagui Jr. urged taxpayers to submit their yearly Income Tax Returns through electronic means via the agency’s digital platforms—the Electronic BIR Forms (eBIRForms) or the Electronic Filing and Payment System (eFPS).
Lumagui stated that those who do not have internet access can utilize the eLounge facilities at the Revenue District Offices (RDOs). There, they will receive assistance with electronically filing their 2024 annual ITR.
The BIR National Office plans to set up an e-filing hub or Tax Assistance Center at the BIR National Training Center (NTC) Auditorium to serve all taxpayers.
It will be available from March 24 to April 15, 2025—skipping Sundays and holidays—from 8 AM to 5 PM.
The Bureau of Internal Revenue (BIR) is dedicated to simplifying the process of tax submission and payments by guaranteeing that both our online filing center and the digital lounges at Regional District Offices (RDOs) are accessible to support taxpayers throughout each stage. We strongly advise submitting your yearly Individual Tax Return (ITR) promptly along with the complete Income Tax owed on the same date via the BIR’s digital tools and multiple payment options such as Authorized Agent Banks, Revenue Collection Officers (RCOs), and several electronic systems including MAYA, GCash, MYEG, among others. This will ensure a seamless and stress-free procedure,” stated Lumagui.
To assist the Bureau of Internal Revenue (BIR) during the tax-filing period, designated agent banks will be available on two Saturdays next month—specifically April 5 and April 12, 2025. Additionally, bank operating hours will be extended until 5 p.m. from April 1 through April 15, 2025, for accepting tax payments.
“Our objective is to simplify tax compliance and eliminate hassles for our taxpayers. We will keep improving our services and put in additional effort to reach this aim,” Lumagui stated.
— VDV, GMA Network News
This article
BIR tells taxpayers: Submit your 2024 ITR by April 15 or earlier
was originally published in
GMA News Online
.
oleh admin | Mar 24, 2025 | business, economics, government, personal finance taxes, taxes
By Buertey Francis BORYOR
The Head of Accounting at the University of Ghana Business School (UGBS), Professor William Coffie, has advocated for a strategic method to incorporate the nation’s informal sector into the taxation framework.
At the 2025 Post-Budget Forum webinar organized by LIMA Partners, he suggested connecting tax adherence with financial assistance programs to motivate small enterprises to sign up for taxation and meet their obligations.
Coffie proposed utilizing programs such as the Women’s Development Bank and MASLOC to motivate small enterprises to register, maintain records, and fulfill their tax obligations.
We often discuss formalizing the informal sector so they can start paying taxes, yet we rarely mention specific actions being taken. Rather than merely encouraging adherence, we ought to offer incentives instead,” he explained further. “For instance, if tiny enterprises such as salons demonstrate consistent record-keeping and timely tax submissions over three years, they could become eligible for microloans and grants from organizations including MASLOC, GEA, and the Women’s Development Bank.
He says this method has been successful in locations such as the UK, where companies that follow the rules can obtain financial assistance.
Utilizing monetary rewards to enhance tax adherence
Coffie mentioned that numerous informal enterprises evade taxation as they perceive no immediate advantages. He suggested implementing a tax compliance index, which would enable the nation to incentivize firms adhering to reporting and payment criteria.
“Government bodies and financial organizations could establish a framework wherein enterprises that consistently meet their tax obligations receive preferential access to funding. This would encourage voluntary adherence as opposed to depending solely on regulatory measures,” he clarified.
Furthermore, he emphasized that incorporating the informal sector ought to be part of a long-term strategy. “Addressing this issue cannot happen within just one financial year. It requires a well-structured plan spanning the coming three to four years,” he noted.
VAT changes provide respite for companies.
Coffie welcomed the latest VAT reforms, calling them a relief for companies.
“The core idea behind VAT is that the taxes paid on inputs and collected from outputs should offset each other. In theory, whatever amount one pays for inputs would equal the tax they gather from their outputs. However, due to additional charges, companies found themselves paying over 21% on inputs but only recovering 15% through outputs. This situation significantly increased operational costs. Therefore, these reforms come as a significant relief,” he stated.
Although acknowledging that eliminating these charges will enhance the general business climate, he encouraged the government to take additional steps toward making VAT more equitable for companies.
Addressing tax evasion via bonded warehouses
Coffie likewise expressed worries regarding tax avoidance via the improper use of bonded warehouses.
“We should carefully examine the usage of bonded warehouses. Certain companies exploit this system for tax evasion purposes. Enhancing oversight can assist in ensuring that enterprises fulfill their financial obligations,” he asserted.
Agriculture for economic transformation
The economist similarly endorsed the government’s Agriculture for Economic Transformation program, aiming to increase food output and reduce inflation.
“We all understand that food prices play a significant role in driving inflation. By supporting local production, particularly in sectors such as aquaculture, we can decrease our reliance on costly imported goods,” he pointed out.
Strengthening young people through skill-building
Coffie also praised the government for investing in vocational training and employment initiatives such as the National Apprenticeship Program, Adwumawra, and the National Coders Initiative.
“Everyone won’t necessarily move through the conventional educational framework. Such programs offer crucial abilities that render youth capable of securing employment and becoming financially independent. In due course, this could broaden the tax pool as additional individuals join the structured economic sector,” he stated.
The economic setting for the 2025 budget
The nation’s budget for 2025 arrives as it strives to bounce back from financial challenges. Starting in 2023, it has implemented an economic revival strategy backed by the International Monetary Fund (IMF). This initiative aims to fortify the economy post periods of soaring inflation, devalued currency, and escalating debts.
In December 2024, when President John Mahama assumed office, he pledged to revitalize the economy. A key component of his strategy involves eliminating certain taxes to alleviate pressure on enterprises. This approach is evident in the 2025 budget proposal, which aims to strike a balance between reducing taxes and exploring alternative methods for generating governmental income.
Nevertheless, certain specialists argue that the administration needs to discover methods for securing sustained income generation. Professor Coffie proposed that rather than increasing the burden on enterprises which are already contributing taxes, the government ought to concentrate on integrating more individuals into the taxation framework via inducements and fiscal assistance.
Provided by Syndigate Media Inc. (
Syndigate.info
).
oleh admin | Mar 10, 2025 | expenses, tax policy and law, taxes, tourists, Travel
From Venice to Barcelona, popular tourist spots are overwhelming visitors. However, do these measures truly help in decreasing overtourism, and where exactly does this revenue end up?
Despite the high tourist taxes, 39-year-old Susanne Meier has visited the Himalayan nation of Bhutan twice. Bhutan actually imposes the globe’s highest tourist tax, referred to as the “Sustainable Development Fee,” which amounts to $100 (€95) per person per day. This substantial fee deters many potential visitors.
tourism tax
is added to the extra travel expenses, including a driver and guide, typically organized by tour operators for an additional fee.
“People there prefer sustainable tourism over inexpensive tourism,” explains Meier, who is employed by Bhutan Travel located in Moosburg, Bavaria. She mentions that her clients are content with paying the additional taxes once they realize the beneficial impact it has on the area.
Taxes contribute to enhancing Bhutan
The nation’s tourism board states that these funds are channeled directly into supporting Bhutan’s roughly 800,000 inhabitants. The government allocates visitors’ contributions toward enhancing healthcare services, educational facilities, and upgrading infrastructural developments. Additionally, this income bolsters programs aimed at environmental conservation and aids in fostering growth for small enterprises within the community.
The nation reported generating $26 million (€25 million) in income during 2023 from the charge.
Certainly with such high
tourism tax
serves as a deterrent as well: Officials stated that approximately 103,000 visitors traveled to the nation in 2023. Most of these visitors originated from India, which is the sole country where travelers incur a reduced daily fee for their trip.
With a population of 962,000 million inhabitants, Mallorca, the Spanish island, mirrors the size of Bhutan’s populace; nonetheless, residents have faced an overwhelming influx of tourists in recent times and have
staged numerous protests
.
In 2024, approximately 13 million tourists visited the island. Consequently, it comes as little surprise that numerous locals have been advocating for restrictions on mass tourism.
In 2016, the island introduced an accommodation tax. According to the hotel classification, visitors might have to pay as much as €4 ($4.16) daily.
As per the plan proposed by the Balearic Islands’ government, the levy might increase up to six euros.
The funds are utilized to support initiatives focused on rendering Majorca more environmentally friendly. Nonetheless, this levy has had minimal impact in discouraging visitors—the island continues to achieve new highs in tourism each year.
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Tourism accommodation taxes have minimal impact as a deterrent for visitors.
“As stated by Jaume Rossello, an economics professor at the University of the Balearics in Palma de Mallorca, the impact of these taxes on tourism demand is minimal,” he notes.
In
Barcelona,
For instance, travelers presently incur costs as high as €7.50 each day, varying based on the hotel category. In Berlin, a levy of 7.5% on the cost of an overnight stay applies, whereas in Paris, guests could be faced with payments nearing €16 nightly for top-tier accommodations. Despite this, Rossello indicates that it remains uncertain when tourists would begin reconsidering their choices.
changing their destination
.
As stated by Professor Harald Zeiss from the Institute for Sustainable Tourism in Wernigerode, Germany, numerous locations utilize the income generated from tourist taxes to compensate
environmental impacts
“At the very least, this is how it’s portrayed when these taxes are being proposed and implemented,” he adds.
Nevertheless, the actual utilization of these funds differs significantly. They might be allocated towards fostering eco-friendly transportation options or merely bolstering municipal finances. “Therefore, it’s essential to clearly designate fund usage with transparency,” emphasizes Zeiss. “Yet, when resources are scarce, their intended application tends to be more vaguely outlined.”
Loathe to criticize tourism
Across numerous locations, the earnings generated from tourism taxes often constitute a substantial part of a city’s overall tax-based revenue. For instance, in Barcelona, these taxes bring in approximately €100 million ($104 million) annually, positioning them as the third-highest contributor to local government funds, based on official figures provided by the municipality. Nevertheless, this destination continues to experience intense anti-tourism demonstrations driven by rising rental costs attributed largely to short-term vacation accommodations managed by firms such as
Airbnb
As a consequence, officials in Barcelona have decided to concentrate their efforts on funding initiatives aimed at benefiting the local population rather than solely supporting the tourism industry. Approximately €100 million ($104 million) obtained through taxes levied on tourists’ overnight stays will be invested in the Barcelona School Climate Plan. This initiative involves installing air conditioning systems in the city’s educational institutions.
The income generated from the overnight accommodation tax in Berlin, referred to as the City Tax, has not been designated for specific purposes yet. This amount, totaling nearly €90 million in 2024, presently gets incorporated into the overall municipal budget.
In Amsterdam, a tourist tax has been implemented since 1973. This levy stands at 12.5% of the cost of an overnight stay and is projected to yield approximately €260 million in income for 2025, as stated by a representative from the municipal government. Local authorities assert that this tax serves not only as a significant financial resource but also as a means to regulate the influx of tourists. Nonetheless, the impact of this tax in deterring visitors may be minimal.
Venice makes changes
Following considerable discussion, Venice, Italy finally implemented its highly anticipated tourism levy in 2024. During the busy season, day visitors were required to pay an entry fee of €5 on 29 designated high-traffic days. Critics from opposing political parties argued that this charge was insufficient to discourage travelers from flocking to the overburdened city. Consequently, Venice increased the number of charging days to 54. Those failing to make the payment at least four days prior to their trip must now cough up €10 upon arrival.
It remains unclear whether the additional euros might discourage visitors from exploring the declining metropolis.
Jaume Rosselló, a researcher at the University of the Balearic Islands, expresses skepticism. According to him, for many individuals, taking a holiday is not an extravagance but rather a fundamental necessity. He cites the case of Mallorca, noting that most visitors willingly cover the lodging tax with little complaint. “These kinds of taxes tend to be quite popular,” states Rosselló, “especially when they help enhance the environmental sustainability of a location.”
Nevertheless, numerous visitors still face constraints, which can be illustrated by Bhutan’s case. After increasing the tourism levy from $65 to $200 following years of stability at the lower rate, the country observed a decline in visitor numbers. Susanne Meier noted a distinct change: “The booking figures reflected this shift clearly; people were unwilling to cover such costs.”
The article was originally in German.
Author: Jonas Martiny
oleh admin | Apr 28, 2024 | cost of living, income, income taxes, money, taxes
-
The highest tax rates were found in Oregon, Maryland, Hawaii, California, and Maine.
-
Florida, Nevada, Tennessee, Texas, and Wyoming stood out for their more permissive policies.
Earning $100,000 before and after tax varies significantly, with some states having larger disparities than others.
In
Oregon
A worker would require an annual salary exceeding $156,000 to net $100,000 per year, which equates to roughly $8,300 each month.
At the opposite extreme, in several states without any state income tax, an individual earning a salary of $137,000 would retain approximately $100,000 after deductions.
Residents of
Florida
,
Nevada
,
New Hampshire
,
South Dakota
,
Tennessee
,
Texas
, Washington and
Wyoming
will have the mildest taxes applied – ending up with 72.8 percent of their pre-tax earnings when they return.
Even though Alaska doesn’t have a state income tax, certain areas might levy local taxes with an average combined rate below 2 percent.
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Following Oregon, states with the highest tax rates were Maryland,
Hawaii
,
California
and Maine — included in the sequence.
Interestingly, as many as 13 states have higher tax rates compared to New York, where individuals must earn approximately $149,500 annually to net $100,000.
When looking at all 50 states, the average pre-tax income needed was approximately $146,500; both Oklahoma and Colorado fell within this range.
The statistics were released in a
recent study by GOBankingRates
, taking into account the average federal income tax along with withholding for Social Security and Medicare, plus state and local taxes.
FIVE STATES WITH THE TOP MOST COMPENSATED POSITIONS
1. Oregon: $156,280
2. California: $153,700
3. Maryland: $154,850
4. Hawaii: $154,165
5. Maine: $151,640
Source:
GOBankingRates
Read more
