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Taxes of Content Creators and Influencers in the Philippines

As social media platforms have grown in popularity, the number of content creators and influencers in the Philippines has increased exponentially. With the rise of social media, many creators have been able to monetize their content, making a career out of their passion. However, with this success comes the need to pay taxes. In this article, we will discuss why Filipino influencers and content creators need to pay taxes.

First and foremost, it is important to understand that any income earned from online content creation is subject to taxation. Just like any other profession, content creators and influencers must declare their earnings and pay taxes accordingly. Failure to do so can result in penalties and legal consequences.

As a content creator, I have personally experienced the benefits of paying taxes. One of the most significant advantages is that it has allowed me to book bigger gigs and clients. By issuing official receipts and being a registered taxpayer, I have gained the trust and confidence of larger clients, who are more likely to work with registered businesses or individuals. This has allowed me to expand my business and increase my income significantly.

In addition, being a registered taxpayer has given me access to financial products with lower interest rates. Since I have a credit history, I have been able to apply for loans and other financial products from reputable banks with lower interest rates compared to those available to non-registered businesses or individuals. This has helped me grow my business and manage my finances more efficiently.

It is important to note that the Bureau of Internal Revenue (BIR) considers online content creation as a business, which means that it is subject to the same tax laws as any other business. This includes filing for taxes, securing a business permit, and paying income tax, value-added tax (VAT), and percentage tax, among others.

Some content creators may argue that their income is not significant enough to be taxed. However, it is important to understand that there is no minimum income requirement for paying taxes. Any income, regardless of its amount, is subject to taxation. In addition, the BIR may conduct audits to ensure that all income has been properly declared and taxed.

In recent years, the BIR has been cracking down on tax evaders, including content creators and influencers who fail to declare their income. The BIR has been monitoring social media platforms to identify those who may not be paying their taxes. Those found to be evading taxes may face penalties and even imprisonment.

Paying taxes is not just a legal requirement, but it is also a responsibility to the community. Taxes are used to fund public services and infrastructure, such as schools, hospitals, and roads. By paying taxes, content creators and influencers are contributing to the development of the country and helping to build a better future for all Filipinos.

In conclusion, Filipino influencers and content creators need to pay taxes. Any income earned from online content creation is subject to taxation, and failure to pay taxes can result in penalties and legal consequences. It is important for content creators and influencers to understand their tax obligations and comply with the law. By paying taxes, they are not only fulfilling their legal responsibility, but they are also contributing to the development of the country. As a content creator, paying taxes has allowed me to operate my business with integrity and professionalism, gain access to bigger opportunities and financial products, and contribute to the growth and development of the country.

For assistance in filing your taxes, you can check out Taxumo. All you need to do is enter your income and expenses and the system computes your tax dues for you. You can also file and pay using Taxumo. Taxumo is a BIR accredited tax software provider and is also the first startup in the Philippines to be granted the an IPP (Investment Priority Plan) by the DTI Board of Investment.

https://www.taxumo.com/blog/freelance-tax-philippines/

If you have questions, you can email their customer service team at customercare@taxumo.com. They are very helpful! They can reply during weekdays from 9am to 6pm.

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What I Learned about Finances, Tax Planning and Myself

Weaning Process for Moms

For every mom, the weaning process is a significant step in their child’s development. It is a period when the child gradually moves from breast milk or formula to solid food. As a mom, it can be an emotional time, but it is also a joyful milestone to celebrate. This blog post will discuss three essential things that moms need to know about the weaning process.

weaning process for moms and babies

When to start weaning

The American Academy of Pediatrics recommends exclusive breastfeeding for the first six months of a child’s life. After six months, you can start introducing solid foods while still breastfeeding. In the Philippines, it is encouraged that mothers breastfeed their children up to two years of age, even if the babies are eating solid foods.

However, every child is unique, and some may be ready for solid food earlier, while others may need more time. It’s essential to watch for signs that your baby is ready to start weaning, such as sitting up well, showing interest in food, and chewing on toys. If you are unsure, consult with your pediatrician to ensure that your child is ready for the weaning process.

How to introduce solid foods

*This is based on my own personal experience and it may differ with what will work for you and your baby

When starting the weaning process for moms and babies, it’s crucial to introduce solid foods slowly. Begin with one meal per day and gradually increase the frequency as your baby’s appetite grows. You can start with pureed fruits and vegetables, such as bananas, apples, and sweet potatoes, and then move on to mashed or soft foods, such as avocado and cooked carrots. Avoid giving your baby foods that are high in sugar and salt, such as chips and candy, as they can be harmful to their health. I think Baby Yani was already 13 months when she tried eating chips (haha! She loves tasting different food). Additionally, ensure that the food is properly cooked and mashed to prevent choking. Sit with your baby every time they eat so that you can watch over them. But even if you watch over them, allow them to feed themselves and explore the food you served.

Stopping breastfeeding

When you start the weaning process, it’s essential to remember that it’s a gradual transition for your child. You don’t have to stop breastfeeding immediately, but rather, slowly reduce the frequency of breastfeeding. You can begin by replacing one breastfeeding session with a solid food meal per day and gradually increase the number of solid food meals. Additionally, you can start to introduce a cup with water or formula to your baby. The weaning process can take several months, so be patient with your child and yourself.

Personal Experience

As a mom, I thought I would stop breastfeeding my daughter, Baby Yani, earlier. My eldest daughter stopped breastfeeding at exactly 12 months. Baby Yani is now 16 months old and still breastfeeding continuously at night and sometimes during the day. I tried weaning her completely and even booked a hotel just to try out being away from her for the evening, but I ended up missing her and she missed hugging me, too. This is what happened… (Check out video).

@gingerarboledatv

I don’t not want to sleep, I guess? #funnystory #truestory #mother #motherhood #momsoftiktok #momsoftiktokph #ineedabreak #maybenot

♬ original sound – Ł<3

Breastfeeding has been a rewarding experience for both of us, but I am also looking forward to the weaning process so that I can get back more time for myself. I have been slowly introducing solid foods and different kinds of foods, and I can see that she is curious about them. I am planning to continue breastfeeding while she wants it. I’ll adjust to what she wants.

Conclusion

The weaning process for moms can be an emotional time, but it’s also an exciting time for your child’s development. Remember to watch for signs that your baby is ready to start weaning, introduce solid foods slowly, and be patient with the process. If you have any concerns, consult with your pediatrician to ensure that your child is on track. With these tips, you can help make the weaning process a positive experience for both you and your child.

More on Baby Led Weaning here:

Baby Led Weaning – Letting Your Infant Self-Feed

How to Compute Taxable Income (Philippines)

If you’re a business owner in the Philippines, it’s important to know how to compute your taxable income. Whether you’re a VAT-registered or non-VAT registered business, you’ll need to follow specific steps to ensure compliance with the country’s tax laws. The steps below is as of February 2023.

VAT-registered businesses

For VAT-registered businesses, the process of computing taxable income involves determining VAT-able sales, output VAT, input VAT, and taxable income. First, compute your gross sales, then determine the VAT-able sales by subtracting VAT-exempt and zero-rated sales from the gross sales. Next, compute the output VAT by multiplying the VAT-able sales by the current VAT rate of 12%. Deduct input VAT from the output VAT, which is the amount of VAT paid on purchases and expenses related to the business. Finally, subtract the input VAT from the output VAT to compute your taxable income.

If you’re a non-VAT registered business, the process is simpler. First, compute your gross sales, then deduct allowable deductions, such as the cost of goods sold, salaries, wages, rentals, utilities, and other operating expenses. Finally, subtract the allowable deductions from the gross sales to compute your taxable income.

While computing taxable income may seem like a daunting task, there are tools available to help make it easier. Taxumo, for instance, is an online tax filing and payment platform that automates tax computations for businesses in the Philippines. With Taxumo, you no longer have to worry about computing your tax dues manually as the system automatically computes tax dues for you. Plus, it can also file and pay your taxes on your behalf, saving you time and effort.

In summary, knowing how to compute taxable income is crucial for businesses in the Philippines. By following the steps outlined above or using tools like Taxumo, you can stay compliant with tax laws and avoid any penalties or fines.

Provide A Smooth Ride With Your Business

When you’re running a business, it’s important to ensure that you are keeping things as easy as possible for your customers. In doing so, you can guarantee that they are more likely to provide you with the fantastic reviews that you need while also returning for the critical repeat sale. This is key to longevity on the market. So, let’s explore some of the factors that you must consider here. 

Keep Security At The Right Level 

First, you need to make sure that you are keeping security standards at the right level in your business model. Without the right standards of security, you are always going to struggle to gain the trust of your customers and ensure that you have a positive reputation on the market. If you want to ensure that your business reaches the right standards here, then you should consider investing in an IT support solution. They will monitor your business network and make sure that any gaps in security protocols are filled in without any further delays or issues. 

Hire The Best Team 

Next, you should make sure that you are hiring the best team in your business model. Without the right team, you are always going to struggle to deliver the high quality, smooth service that customers and clients expect. One of the best ways to find the best team would be to use a recruitment agency. A recruitment agency will allow you to cut through the maze of candidates on the market who may not be suitable or qualified enough for a position in your business. They essentially act as gatekeepers for the best people who you can hire to work for your company in every sector and position.

Automate Elements Where Possible

Finally, you should strive to automate elements of your business model where possible. There are various elements of your business that can be automated. For instance, you might want to learn how to optimize the merchant onboarding process using the right tools and software. In doing so, you can guarantee that there are no delays in terms of payment processing in your business model. This is just one example of how automated solutions can help guarantee that your company does run smoothly in the future. 

Offer Advanced Client And Customer Support Solutions 

Finally, you need to make sure that you are providing the right customer support solutions. If anything does go wrong in your business, you need to make sure that you are resolving the situation as quickly as possible without any further delays or issues. There are various ways to ensure that this is the case. For instance, you might want to consider using a call handling solution. With a call handling solution, you can ensure that your customers never have to spend hours on hold waiting to talk to someone from your business. 

We hope this helps you understand some of the key points that you need to consider to ensure that you do provide everything that your customers are looking for from your business.