07/04/2026
WHERE DOES
OUR TAX MONEY GO?
(See Taglish version below.)
Every Filipino who works, buys, drives, owns land, or even just lives here contributes to the nation’s coffers. We all pay taxes — in many different forms, often without realizing it. Here’s a simple rundown:
1. Income Tax – Automatically deducted from your salary or paid by professionals and business owners.
2. Corporate Income Tax – Paid by companies that earn profits.
3. Withholding Taxes – Collected from salaries, interest, and payments to suppliers or contractors.
4. Value-Added Tax (VAT) – The 12% added to almost everything you buy.
5. Percentage Tax – Paid by small businesses that are not VAT-registered.
6. Real Property Tax – Paid yearly for land, houses, and buildings you own.
7. Capital Gains Tax – Paid when you sell real estate or shares of stock at a profit.
8. Excise Tax – Added to goods like fuel, to***co, alcohol, cars, and sugary drinks.
9. Documentary Stamp Tax – Collected on legal documents, loans, and property transfers.
10. Estate Tax – Paid when property is passed on after death.
11. Donor’s Tax – Paid when you give large gifts or donations.
12. Customs Duties – Taxes on imported goods.
13. Community Tax (Cedula) – The annual residence tax required for individuals and businesses.
14. Local Business Tax and Permits – Paid to cities or municipalities for doing business.
15. Local Franchise Taxes, Environmental Fees, and Other Local Levies – Depending on your city or province.
When you add it all up — every payslip deduction, every fuel refill, every purchase at the grocery, every property tax bill — it’s clear that Filipinos are among the most heavily taxed people in Asia.
So the question is:
Are we getting our taxpayers’ money’s worth in terms of public services — roads, hospitals, schools, flood control, disaster protection, etc.?
