Category Archives: Money & Finance

Your Money Will Have No Value in 2017

Exchange your old bank notes with the New Generation Currency (NGC), the Bangko Sentral ng Pilipinas (BSP) has constantly reminded the public [see Design Highlights of the Philippine New Generation Currency, Primer on the New Generation Philippine Currency: Banknotes and Coins, and Security Features of the Philippine New Generation Currency]. Soon, the old paper money — interestingly called the New Design Series or NDS — will have absolutely no value, will not be accepted as payment for all transactions, and CANNOT be exchanged with the New Generation Currency. The  date to remember: 1 January 2017. So, check if you’re still holding the old paper money. The central bank reminder: Continue reading

PNoy Made a Mistake in Vetoing the P2,000 SSS Monthly Pension Increase?

Congress passed a bill proposing an increase in the monthly Social Security System (SSS) pension by P2,000. President Aquino vetoed the proposed law because, according to him, the increase will result to the bankruptcy of the SSS in the next 11 years. On the other hand, there seems to be nothing erroneous in the statements of Senator Cynthia Villar in her sponsorship speech of Committee Report 213 (incidentally, the speech also addresses the “scary” scenario that the SSS will go bankrupt). Incidentally, there’s another piece of legislation under watch by female employees — the 100-day maternity leave. Full text of the speech reproduced below. Feel free to express your thoughts on the matter through the comment section below. Continue reading

More from Your Bonus: A Welcome Valentines Gift

Government has a bit of Valentines gift to people who rely on salaries to support themselves and their families — an increase in the tax exemption for 13th month pay and other bonuses/benefits. On 12 February 2015, two days before Valentines, President Aquino signed Republic Act No. 10653 (full text), increasing the tax exemption of bonuses from P30,000 to P82,000. Continue reading

Philippine Lemon Law

Steps in Availing of Consumer Rights under the Philippine Lemon Law

We know a few things about Republic Act No. 10642, also known as the Philippine Lemon Law, and we’ll know a whole lot more about this newly signed law as soon as the Department of Trade and Industry (DTI) issues the necessary Implementing Rules and Regulations (IRR). Based on what we know about the law, here are the steps that a consumer must take to avail of his/her rights under the Philippine Lemon Law [Update: the Philippine Lemon Law took effect on 7 August 2014; see also effectivity and coverage]: Continue reading

Increase the Maximum Bonus and 13th Month Pay Tax Exemption?

A proposal is currently pending in the Senate to increase the tax exemption of 13th month pay, Christmas bonuses, productivity incentives and similar benefits — from the original maximum tax-free amount of P30,000 to P75,000. The proposal also provides for an adjust of the cap every three years, to raise the maximum exemption to its present value using the consumer price index. Under existing laws, any amount beyond P30,000 is subject to income tax. Continue reading

Why Sari-Sari Stores, Carinderia and other Marginal Income Earners Must Register with BIR

The Bureau of Internal Revenue recently issued Memorandum Circular No. 7-2014, clarifying the issues relating to the registration and tax compliance requirements of Marginal Income Earners (MIE). The circular provides that an MIE refers to an individual not deriving compensation as an employee under an employer-employee relationship but who is self-employed and deriving gross sales or receipts not exceeding P100,000 in any 12-month period. Moreover, the activities of such MIE should be principally  for subsistence or livelihood. The term includes, but not limited to, agricultural growers/producers (farmers/fishermen) selling directly or indirectly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos”, drivers/operators of a single unit tricycle, and such, but shall not include licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including all others whose income have been subjected to withholding tax. Continue reading

Business Ideas over Business Capital

What to do when one has no business idea and no business capital? The good thing about the query, received through email, is the obvious interest in doing business. It’s important to note that much of the risk in doing business lies in the insufficient understanding of the nature, requirements and prospects of the business. Peter Drucker, widely regarded as a management guru, succinctly noted that “entrepreneurship is “risky” mainly because so few of the so-called entrepreneurs know what they are doing.” There is, therefore, everything to gain in asking questions, especially for new entrepreneurs. Continue reading

New Scam Involving Change of Payment Details

A scam is always waiting to happen. It pounces on the vigilant and clueless alike. In this era of [presumably] secure money transfers in business transactions, it’s amazing to see a simple scheme hit one company after another. This scam is really not a new but we’ve seen an alarming rise of incidents in the past months. The modus operandi goes like this. Continue reading

New Regulations for Tiangge or Privilege Stores

On 22 August 2013, the Bureau of Internal Revenue (BIR) issued a new set of regulations that cover tiangge or privilege stores, basically the payment of business/income taxes and the obligations of organizers/exhibitors/operators of the tiangge. This is Revenue Regulation No. 16-2013 (full text). RR 16-2013 provides that it shall take effect 15 days after its publication in a newspaper of general circulation. Since it was published in the Manila Bulletin on 27 September 2013, it took effect effect on 12 October 2013. Continue reading

Insolvency Proceedings under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010


Insolvency is the state of of insolvent, defined as the financial condition of a debtor that is generally unable to pay its or his liabilities as they fall due in the ordinary course of business or has liabilities that are greater than its or his assets. Insolvency proceedings may cover: (a) an individual debtor, referring to a natural person who is a resident and citizen of the Philippines that has become insolvent as defined under Republic Act No. 10142; or (b) a debtor, referring to, unless specifically excluded by a provision of Republic Act No. 10142, a sole proprietorship duly registered with the Department of Trade and Industry (DTI), a partnership duly registered with the Securities and Exchange Commission (SEC), a corporation duly organized and existing under Philippine laws, or an individual debtor who has become insolvent as defined in Republic Act No. 10142. Continue reading