How to earn 30% more

Over lunch today I had to explain for the umpteenth time that I am a card carrying Overseas Filipino Worker (OFW). It’s sad but the truth is that when someone says OFW, people automatically think seaman or domestic helper. Somehow, Registered Foreign Attorney doesn’t quite fit the OFW mold.

People laugh (as they did today) and think I should feel bad for having to go through a registration process that they consider “beneath” me.

Please don’t feel bad for me. Here’s the deal people: OFWs DON’T PAY PHILIPPINE TAX.

I don’t even have to file a tax return* for crying out loud.

And for those who have forgotten how much Philippine tax is, it’s 33% of your income. So if you earn P100, you actually “take-home” only P67. I pay only Hong Kong taxes, with an effective rate of approximately 13%. So while your sorry little ass takes home P67, I’m whistling to the bank with my P87.

Continue crunching the numbers and you will realize that someone earning P87 is earning almost 30% more than someone earning P67.

Looks who’s laughing now.

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*For everyone else, don't forget to file your income tax returns next Monday.