BIR eyes P605.5B in corporate income taxes

MANILA, Philippines - The Bureau of Internal Revenue is eyeing P605.53 billion in revenues from corporate income taxes next year, according to documents from the Department of Finance.

Individual income taxes will account for  P309.9 billion of the BIR’s projected revenue of P1.72 trillion for 2014, which is equivalent to 12.1 percent of gross domestic product.

The BIR’s collection goal for next year is 16 percent higher than this year’s target of P1.45 trillion.  The higher revenues are based on the assumption that the BIR will continue its aggressive campaign against tax evasion.

The BIR is expected to generate P684.71 billion in revenues from taxes imposed on domestic goods and services. 

Collection of excise taxes on select goods is seen to reach P151.27 billion -- tobacco (P81.6 billion), alcohol (P48.3 billion), fuel and oils (P14.6 billion), mining (P3.75 billion), and others (P3.045 billion).

About P5.02 will come from property tax.

The BIR has file criminal complaints against those found to have evaded tax payments or under-declared earnings or sales to avoid paying a bigger amount of tax.

The Bureau of Customs, on the other hand, is expected to rake in P456.47 billion in revenues, the bulk of which or P347.36 billion will come from value added tax on imports.  The 2015 target is equivalent to 3.2 percent of GDP.

Import duties and taxes will contribute P75.78 billion to BOC’s total revenues

The BOC has seen steady growth in collections in the past several months on the back of reforms implemented across all its units.

The BIR is hard-pressed to collect P2.07 trillion by 2016,  20.35 percent more than next year’s target.

The higher targets set for the BIR was due to the need to significantly increase spending on  infrastructure and social services to allow the Philippines to catch up with its neighboring countries and sustain economic growth.

The BIR’s continuing efforts to use third party information such as utility bills data and registration data from other agencies are expected to help expand the taxpayer base.