House approves bill increasing tax exemption ceiling on bonuses to P70k

[_Cathy_]

I hope this pushes through!

On 3rd reading, House approves bill increasing tax exemption ceiling on bonuses
By: Lira Dalangin-Fernandez, InterAksyon.com
September 27, 2014 1:31 AM

MANILA, Philippines -- With 250 votes, the House of Representatives on late Friday approved on third and final reading the bill that would increase the tax exemption ceiling for workers' bonuses from P30,000 to P70,000.

The tax exemption would cover the 13th month pay, Christmas bonus, and other bonuses received by employees every year.

The current ceiling for the tax exemption of P30,000 was set by law in 1994.

The House will await the action of the Senate on a counterpart bill.

Raising the tax exemption ceiling will entail amending Section 32 of the National Internal Revenue Code.

In an earlier hearing, officials from the Bureau of Internal Revenue, Department of Finance, and the National Tax Research Center opposed the proposal.

If Congress approves the bill, they said it should also pass new revenue measures to cover the projected losses, such as amending the law granting fiscal incentives to big corporations.

[funkeemunkee]

It will. Papogi sa mga botante yan.

[_Cathy_]

Sana pati income tax isama na rin nila.

[CVT]

I railroad na iyan for this year, please!



“The measure of a man is what he does with power – LJIOHF!”
24.4K:sailor:

[badkuk]

If the P-Noy admin wants to score some pogi points, this is a no-brainer.

[macsd]

I hope this pushes through!

NO doubt this will get through out the legislature unopposed. The question left is will it be signed into a law by Abnoy with bulong from Hinares & Cesar Purisima?

Sana pati income tax isama na rin nila.

Sonny Angara has a bill on this effect. As to when it get's to be passed, maybe after 2016.

If the P-Noy admin wants to score some pogi points, this is a no-brainer.

This is another way of saying, Abnoy has no brain:hysterical:

[badkuk]

This is another way of saying, Abnoy has no brain:hysterical:

abah, twisting my words ah. Well played sir :D

[wowiesy]

important maipasa..

however.. as to effectivity.. expect Ma'm Kim to play spoiler..

Remember the law that was passed before (not sure kung PNoy time na yun o earlier pa).. exempting minimum wage earners from being witheld, mag file na lang sila by year end...

that law was passed... but upon implementation.. inipit ng BIR saying na the following year pa effective since tumatakbo na ang taon noon... Sen Mar Roxas et al I think filed with the SC for the effectivity to cover that whole year... I think upto now wala pa resolution dyan SC... although I think it has become a moot point..

so much for the SC being responsive to the Filipino people..

[_Cathy_]

I thought it was never gonna happen

Higher tax exemption cap on bonuses now a law

Marc Jayson Cayabyab
INQUIRER.net
4:53 PM | Thursday, February 12th, 2015

MANILA, Philippines – President Benigno Aquino III has signed into law the measure raising the ceiling for tax exemption on bonuses and other benefits of workers in the public and private sectors, an administration lawmaker said Thursday.

In a statement, Ways and Means committee chair Marikina Rep. Miro Quimbo lauded the President’s passage of the bill, saying the measure would benefit the middle class salary earners.

“The President saw the significance of the measure as it is projected to benefit taxpayers from low to middle incomes who have not had any reprieve from the burdensome taxes imposed on their earnings,” Quimbo said.

“These are the salary and wage earners who long deserve a break from the inequitable tax system that we currently have,” he added.

Communications Secretary Herminio Coloma Jr. confirmed the news.

“According to the Office of the Executive Secretary, the President has signed into law the bill raising the ceiling on tax exemptions on bonuses to P82,000. The signed law will be transmitted to Congress shortly,” he told Palace reporters on Thursday.

The law increases the tax exemption cap from P30,000 to P82,000, amending for this purpose Section 32(B)(7)(E) of the National Internal Revenue Code of 1997.

The tax exemption covers all bonuses, including 13th month pay and Christmas bonus.

Aquino received his copy of the bill on January 14 after both Houses of Congress ratified the bill December last year. It would have become a law on February 14 if it does not get the President’s signature, when the 30 calendar day-period lapses.

Quimbo said salary earners would feel the impact of the bill as early as June this year, when some workers will receive the first half of their 13th month bonuses.

Finance and tax officials have called for the President’s veto of the bill, warning of revenue loss reaching up to P30 billion. But Quimbo has said losses would only amount to P3.8 billion. With a report from Kristine Angeli Sabillo

[170kphlang]

now if only maisunod na nila yung nasa congress na lowering our taxes from 32% to 25-27%

[_Cathy_]

I thought it 82k PER Bonus. Total Annual Bonus pala. Better than none...

[jmpet626]

Will this take effect immediately na ba? May bonus kasi kami this end of february eh.

[cast_no_shadow]

^ not yet. May publication period pa yan to take effect. And IRR is needed AFAIK.


Sent from my iPhone using Tapatalk

[sirkosero]

^ not yet. May publication period pa yan to take effect. And IRR is needed AFAIK.


Sent from my iPhone using Tapatalk

diba may nilagay na clause sa senate version na failure of DOF to provide the IRR will not defer implementation of the law?

[wowiesy]

challenge naman yan sa companies. how to implement? use a different reporting form? different return? at the risk of being slapped fines, some companies may wait for the irr bago sumunod para malinaw amg protocols... baka company pa ma penalize...

on the other hand... assuming yearly cumulative bonus ang pinag uusapan.. feb pa lang now.. lots of time for bir to issue an irr for such a simple law... dapat icontempt na bir kung dpa sya makapaglabas ng irr agad...

[Lew_Alcindor]

I thought it 82k PER Bonus. Total Annual Bonus pala. Better than none...

Impossible per bonus yan. Lagi total annual value ang basis whether income or benefits for bonuses, di ba?

challenge naman yan sa companies. how to implement? use a different reporting form? different return? at the risk of being slapped fines, some companies may wait for the irr bago sumunod para malinaw amg protocols... baka company pa ma penalize...

on the other hand... assuming yearly cumulative bonus ang pinag uusapan.. feb pa lang now.. lots of time for bir to issue an irr for such a simple law... dapat icontempt na bir kung dpa sya makapaglabas ng irr agad...

I am not familiar with BIR forms kasi sa amin sa govt agency, automatic yung accounting gumagawa.
Pero IMO, hindi naman siguro mababago ang forms. Magbabago lang naman ang ceiling for tax exempt benefits so konting adjustment lang sa formula.

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I thought it 82k PER Bonus. Total Annual Bonus pala. Better than none...

Impossible per bonus yan. Lagi total annual value ang basis whether income or benefits for bonuses, di ba?

challenge naman yan sa companies. how to implement? use a different reporting form? different return? at the risk of being slapped fines, some companies may wait for the irr bago sumunod para malinaw amg protocols... baka company pa ma penalize...

on the other hand... assuming yearly cumulative bonus ang pinag uusapan.. feb pa lang now.. lots of time for bir to issue an irr for such a simple law... dapat icontempt na bir kung dpa sya makapaglabas ng irr agad...

I am not familiar with BIR forms kasi sa amin sa govt agency, automatic yung accounting gumagawa.
Pero IMO, hindi naman siguro mababago ang forms. Magbabago lang naman ang ceiling for tax exempt benefits so konting adjustment lang sa formula.

[tr1ck5h07]

For those who are employed, don't you just need to change the values in this part of the 2316 form?

NON-TAXABLE/EXEMPT COMPENSATION INCOME
37 13th Month Pay and Other Benefits
41 Total Non-Taxable/Exempt Compensation Income

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For those who are employed, don't you just need to change the values in this part of the 2316 form?

NON-TAXABLE/EXEMPT COMPENSATION INCOME
37 13th Month Pay and Other Benefits
41 Total Non-Taxable/Exempt Compensation Income

[dr. d]

I thought it 82k PER Bonus. Total Annual Bonus pala. Better than none...

i also remember 82K exemption on bonuses (yes, total).
but... if you have an 82K bonus, i don't think you would really need, perhaps even feel, that exemption at all..

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I thought it 82k PER Bonus. Total Annual Bonus pala. Better than none...

i also remember 82K exemption on bonuses (yes, total).
but... if you have an 82K bonus, i don't think you would really need, perhaps even feel, that exemption at all..

[_Cathy_]

i also remember 82K exemption on bonuses (yes, total).
but... if you have an 82K bonus, i don't think you would really need, perhaps even feel, that exemption at all..

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i also remember 82K exemption on bonuses (yes, total).
but... if you have an 82K bonus, i don't think you would really need, perhaps even feel, that exemption at all..

Won't you still feel it? Am I right that before the first 30k was excempted and the rest taxable by 32%

[greenlyt]

^
you can, thats 26K plus at 32% tax on a 82K bonus