RP Consulate clarifies income tax issue
The Philippine Consulate issued a statement yesterday saying it is no longer mandatory for Filipino contract workers in the CNMI to file their income tax for year 1998.
However, its office requires the payment of past dues for those who failed to file their income tax back to the Philippine government for the last three years.
The clarification was made in the wake of reports that the Philippine Consulate is still requiring Filipinos to pay their income tax for 1998.
Under the Comprehensive Tax Reform Act of 1997, which was passed by the Philippine Congress, income earned by non-resident citizens, contract workers and Filipino seamen are exempted from paying their income tax.
However, Filipino businessmen are not exempted from paying their taxes. Likewise, Filipinos abroad need to file tax return for income derived from the Philippines.
Philippine Consul Julia Heidemann pointed out that some Filipinos in the CNMI prefer to file their income tax for 1998 to support their application for loans, visa and other transactions that will require this document.
“Who are we to decline? It’s not mandatory but we accept payments (for those who would insist on paying),” she said.