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Surely, with his extra dough and creative mind he could start up a small business that would occupy some of his time while making him some extra dough on the side. There are less obstructions than you would run into than say, starting a business in the U. Very little regulation except when it comes to the BIR. Otherwise, it’s assumed you earned at least as much as last year if not more and your tax remains level. But a Filipino friend of mine has a hell of a time getting any deductions because the system is not oriented to reduce taxes. When you look at the big picture it makes sense that the Philippines is so incredibly focused on monitoring every peso made.He starts to think even larger and figures he will fund a business and employ some of his wife’s relatives who always seem to be in need of some cash. They are not interested in you ever paying less tax. Another thing about the BIR is that they are not so keen on the idea of deductions. It really is a tax-hungry beast that demands it’s pound of flesh. In most countries much of the tax revenue is carried by property tax.So why do so many expats get the idea to start a business here, only to learn this lesson the hard way? After finding a wonderful young Filipina wife and having a few kids.. He’s got plenty coming in from his social security, retirement or pension funds and has lots and lots of time on his hands to enjoy his family and home life. He looks around and sees so much opportunity here in the Philippines. One rule for instance is that if you make a certain amount of revenue in the previous year, but then the following year..He sees that many people here are running a small business with no formal education and on a shoe-string budget. And the path for starting a business here is fairly straightforward. business is not so good; well the BIR likes the higher amount you first got taxed on and if you make less this year the only way you’re going to pay a lesser tax is if you go through a process to request for an Audit.Honestly, the first thought that comes to mind when I think about starting a business here is, “Bad idea.” I’d say that ever since I turned an important corner in my life back in 1985 I have been a huge supporter in running one’s own business.
it isn’t much because there is a very small middle-class.
I won’t go into all the details of what changed my mind but suffice it to say that for the last three decades I’ve been a full-fledged believer in owning your own business. But I do believe that the challenges and rewards make it a noble pursuit to make a mark in the free market exchanging goods or services for a net profit. I still believe that for most people, starting a business here is not a good idea.
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