Tax credit

Tax credit — an amount subtracted peso-for-peso from the tax you owe (versus a deduction, which merely shrinks the income being taxed). PERA’s 5% credit means contributing ₱200k knocks ₱10k straight off your income-tax bill for the year — real money for a self-employed filer with a real tax due, and worthless to someone with no tax bill to credit against.

First used in: 1.4 · The PH cheat codes: MP2, PERA, RTBs