Skip to content Our country is governed by a lot of taxes imposed by the government; this is to ensure that the businesses established are paying their part of serving and patronizing national products and services in our land. There is one tax that all employees and entities in our country pays and this is what we call the income tax. This was imposed way back when we weren’t still around and it varies from the salary, and by the jurisdiction. However, taxpayers can get back what they have been paying and this is now what we call the Income Tax Return or the Tax Refund.
What is Tax Refund?
If you are an employee and you notice that you are not getting the whole amount that the company and you agreed to, the amount that was cut is the amount of taxes you are paying each month. Tax Refund is when your employer, gives back what you have been paying as stated in the law. Also, you can file a claim for a tax refund when the tax liability is less than the amount paid. But here in our country, employees get a tax refund on or at the coming end of the calendar year.
How can I claim my Tax Refund?
As mentioned earlier, your tax refund is usually computed on or before each calendar year unless a modification in your employment happens. Say you went to a maternity leave, or you switched companies, etc. This is where claiming of your Tax Refund comes in.
When this happens, the employee needs to file with the employer the new and updated withholding exemption certificate reflecting the change in a span of 10 days; notify your employer just as your status changes and you should do this immediately.
Read: How to compute capital gain tax on sale of real property in the Philippines
YOU ARE EXEMPTED FROM FILING INCOME TAX RETURN IF: