“Congress must revisit its definition of what constitutes marginal businesses as the present threshold is still too low,” urges Asian Consulting Group’s Founding Chairman and Chief Tax Advisor Mon Abrea.
In an article published with the Inquirer, the tax expert noted that the present threshold for marginal businesses includes only those with annual gross sales of P100,000 or below. This means that the threshold only includes those with monthly gross sales of P8,333.33, which is markedly below what an average sari-sari store earns
He instead proposes that marginal income earners should include those who earn from P100,000 to P1,000,000, and to impose upon them a fixed income tax. By doing so, the government can make it easier for taxpayers to register, thereby broadening the taxpayer base. It would also serve to simplify tax compliance for micro, small, and medium-sized businesses.
But even without these proposed changes to tax laws, business owners can still avoid tax issues and efficiently manage their taxes by learning more about these laws and regulations as well as adopting a variety of game-changing strategies. On August 25, the Asian Consulting Group will be conducting the Executive Tax Management Program wherein CEOs and business owners can learn how to avoid tax problems and mitigate the risks – if not outright get rid of – a tax audit.
By enrolling under the Executive Tax Management Program, business owners will be getting three Executive Sessions and Workshops, face-to-face consultations, as well as a chance to network with other business executives.