Income Tax Return or Tax Refund may sound like a complicated matter for the unaware but if you know the drill, this can help you get back a portion of what you’ve been paying as your income tax.
To begin with, let’s take a look at what falls under the category of a tax refund and whether you are really eligible for it.
According to a post by online news website Rappler, “tax refund for employees is the excess of tax withheld over the tax due on their annual gross compensation income. The employer as the withholding agent is responsible for computing any tax refund or adjustment to salary.”
The website continues:
“All employees may receive a tax refund as the withholding tax on compensation is based on a separate withholding tax table, which is to be reconciled at the end of the year with the tax due based on the individual income tax table. The difference will result in a refund if there is overpayment or adjustment to collect tax deficiency based on the reconciliation.”
To avail of this, you wouldn’t even have to go to the BIR (Bureau of Internal Revenue) office in your area.
Rappler’s post tells us:
“Once a tax refund is computed, the employer is required to give the tax refund not later than January 25 of the following year. Otherwise, the employer who fails or refuses to refund excess withholding tax shall be liable to penalty equal to the amount of refund which was not refunded to employee.”
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Meanwhile, EfrenNolasco.com tells us that the following individuals are exempted from filing income tax return:
1. A Filipino citizen who works and earns income abroad.
2. An overseas Filipino worker whose income is derived only in sources not in our country.
3. A Filipino working overseas as a seaman; the vessel must be engaged in international trade.
4. A Filipino citizen previously considered a non-resident citizen.