#AskTheTaxWhiz: How millennials can revolutionize the tax system
I am a graduating student from a reputable college in Manila, but I grew up in Vigan. Am I supposed to pay taxes already? Do I get a pre-assigned tax identification number (TIN) after graduation? Where do I register my TIN: Manila or Vigan?
Every time you buy a cup of coffee, buy drive-thru meals, or spend on your branded apparel, you are actually paying taxes in the form of the 12% indirect tax imposed on the gross selling price of the goods or services you purchase. It's called Value Added Tax (VAT).
That's why you need to ask for an official receipt or sales invoice to make sure the seller or company remits the 12% VAT to the government.
You will not get a pre-assigned TIN after graduation. You need to apply at a Bureau of Internal Revenue (BIR) office using BIR Form 1901 for self-employed or mixed income earners, or BIR Form 1902 for employees or individuals earning purely compensation income, OFWs, or employees with foreign nationalities.
It is better for you to register where you will decide to work or do business.
I heard you talk about tax reform once. How can millennials help in pushing for genuine tax reform, if it's even possible in our lifetime?
In the Philippines, one-third of the population is made up of millennials, or those between 15 and 35 years old. It is quite obvious that the youth have the numbers to challenge the status quo and influence positive change in the country, especially this coming elections.
That is the message I shared with the delegates of the 18th Ayala Young Leaders Congress (AYLC) held last February 8 to 12 in Batangas, with the theme "KABATAAN: Sabay Sabay sa Bayan."
We need to dream bigger than ourselves. "Ayokong mabroken-hearted sa balewala. Kung mabasag at mabroken-hearted man ulit ako, okay lang basta para sa bayan."
(I don't want to be broken-hearted over something meaningless. If I get broken-hearted again, it's okay as long as it's for the country.)
You can help by sharing this video to all the millennials you know:
Millennials must lead our country now, both in the government and the private sector. We need to bring our nation to a higher moral ground where integrity and honesty truly matter, where competence and character are not compromised for desired results.
Join us on Wednesday, February 24, at the Manila Marriott Hotel (beside Resorts World) for the Asia Young Leaders Summit 2016. It will present the stories of the nation's most prominent new generation leaders.
They are already at the top of their fields, and are poised for global success. You can register for the summit here. – Rappler.com
Mon Abrea is a former BIR examiner and an advocate of genuine tax reform. He serves as chief strategy officer of the country's first social consulting enterprise, the Abrea Consulting Group, which offers strategic finance and tax advisory services to businesses and professionals. Mon's tax handbook, Got a Question About Taxes? Ask the Tax Whiz! is available in bookstores nationwide. Follow Mon on Twitter: @askthetaxwhiz or visit his group's Facebook page. You may also email him at email@example.com.