buwis

Buwis is the Filipino term for tax, a compulsory payment imposed by governments on individuals and entities to fund public goods and services. It is assessed by national and local authorities and varies by income, property, and transactions.

In the Philippines, buwis encompasses several categories, including income tax on individuals and corporations, value-added tax (VAT) on sales of goods and services, excise taxes on specific goods, real property tax, and business taxes. The tax system also includes duties on certain transactions and fees that may function as taxes.

Administration: National taxes are administered by the Bureau of Internal Revenue (BIR) under the Department of Finance, while local taxes are collected by local government units (LGUs) under the Local Government Code. Taxpayers include individuals, corporations, partnerships, and non-resident entities with Philippine-source income.

Compliance and enforcement: Taxpayers file tax returns and pay due taxes; the BIR and LGUs conduct audits and assessments; penalties include surcharges, interest, and possible criminal sanctions for tax evasion.

Policy context: Buwis is a major component of fiscal policy and serves to finance government programs, public services, and infrastructure. Tax policy seeks to balance revenue needs with economic impact and equity and undergoes periodic reform and modernization.