At present, doing business is a bit an inch of perfection, if not a mastery of craft, in order to maximize the use of its finances for success. Many promising undertakings could be made on the funds wasted on penalties. Sometimes, no matter how and what measures are employed not to overlook some reportorial requirements, that they simply occurs unnoticed. This may prove that, sometimes, simple errors are big headaches in business. The question is why these penalties have to be imposed, even on honest mistakes and simple inadvertence?

Revenue Memorandum Circular No. 41 – 2009 dated July 23, 2009 (RMC 41-2009) was issued to clarify the meaning of “Managerial and Technical Positions” under Section 25(C) of the Tax Code, as amended. Compared to the normal tax rate of 5-32% bracket 5-32%, if a resident alien or non-resident alien engaged in trade or business, or 25%, if a non-resident alien not engaged in trade or business, the 15% rate is a good break because of a material rate gap on rates of income tax on compensation of approximately 17% (32%-15%), and 10% (25%-15%), respectively.

Realty business, nowadays, are even becoming more aggressive and sophisticated with the advent of technological advancements on design and marketing their products. Tax implication of real property disposition basically depends on its classification for tax purposes: ordinary asset or capital asset. To determine for tax savings, the author suggest that a proper study be made as there could be some tax minimization schemes that may help legally reduce tax dues.

In general, allowances and other form of compensation income, are taxable, irregardless of how they are called. However, there are noted exceptions on this rule by virtue of a law or a regulations. For sure, they will make employees happier because no withholding tax on compensation will be deducted from their salaries.

Stock market is a good game of money and risk as it deals a level of some strategy and know-how to make money. In here, the process is simple. The main objective is to see to it that the selling price of listed shares are moving positively in the stock market to decide on holding or selling. The higher the market, the better, as the yield or gain would be higher.

Republic Act No. 9648 was signed into law by President GMA on June 30, 2009 and applies retroactively to March 20, 2009. This made permanent the 5-year exemption introduced by Republic Act No. 9243 that commenced on May 20, 2004 and ended up on May 20, 2009.