Revised Tax Exemptions schemes

[valvura]

Good News for the Middle Class. Seems the recent tax measure will not only benefit the minimum and low income earners. It's about time, lahat naman tayo apektado with the spiralling cost of commodities eg. food & energy. And the higher income group pays MORE taxes especially sa EVAT while the lower income group pays less taxes but are given more government services. What's your opinion?

http://www.gmanews.tv/story/101564/(...mption-measure

[tidus1203]

Di rin maganda lahat ipasa sa higher income groups (the business class) kasi if they get pissed of and migrate we are much worse off for sure

[coiter]

kelan effective date nito? retro ba to from the start of the year?

[uls]

GMA has abandoned balancing the budget.

She's now in tax-cutting and subsidy/cash-giving mode to help the poor cope with the rising cost of living.

We can't blame her. These are desperate times.

But after all this, the phil. govt will have a tremendous budget deficit.

So there will be more borrowing, the peso will fall... it's a downward spiral...

--------------------------------

making the rich pay more taxes is like penalizing the rich for making money.

Kung papahirapan mo ang mga business people kumita ng pera, dadalhin nalang nila ang puhunan nila kung saan hindi sila papahirapan.

[Memphis Raines]

Ok na rin 'to.

Better than nothing as they say, at least we see some positive things to counter the usual economic woes we encounter everyday.




.

[VtEC]

MANILA, Philippines – (UPDATE) President Gloria Macapagal-Arroyo has signed into law a bill that would exempt minimum wage earners from paying income tax and increasing personal exemptions for other employees.

Arroyo signed in Malacañang Tuesday Republic Act 9504 or an act amending Sections 22, 24, 34, 35, 51, and 79 of RA 8424 or the National Internal Revenue Code of 1997.

Senators Manuel Roxas, Francis Escudero, Juan Ponce Enrile, and Ramon “Bong” Revilla Jr. and Speaker Prospero Nograles were present during the signing.

The law aims “to provide financial relief to taxpayers in cognizance by the government of the hard times brought by multiple factors, including the current rice crisis, oil price hikes and the heightening inflationary pressure on commodities of all kinds and to help reduce the wide tax gap in the taxation of self-employed and professionals,” according to the five-page document released to media.

Senator Manuel Roxas, principal author of the measure, said the new law would “provide relief to our workers by increasing their take home pay.”

He added that the law would allow minimum wage earners to take home as much as P750 a month or from P33 to P35 a day.

"A worker in Metro Manila earning P7,900 a month will now have an additional P750 of take-home pay per month, or P34 per day. He can now spend this additional money for his needs or for his family's needs, such as food, medicine, and the tuition fee of his children, among other uses," Roxas said.

But apart from tax exemption for minimum wage earners, the law will also provide for an increase in the personal exemption of all taxpayers.

From the current P20,000 personal exemption for single taxpayers, P25,000 for head of family, and P32,000 for married individual, the tax exemption will be fixed at P50,000, Roxas said.

The additional exemption for dependents will increase from P8,000 to P25,000, he said.

The senator added that all holiday, night differential, hazard, and overtime pay would also be tax-exempt.

He added that the aim of both the House of Representatives and Senate was not only to increase tax exemption for workers but also to provide relief for minimum wage earners.

“The House focuses on increasing the exemption while I focus on minimum wage,” he said.

“We have fought for this for a long time. Many Labor Days have come and gone wherein we fought for this for our workers, and at last, income tax exemption of minimum wage earners is now a law,” said Roxas in an interview Monday.

For other salaried workers, the measure would allow an employee earning P455 per day or P10,010 per month to have an additional take-home pay of P472.59 per month or P5,671.02 per year if unmarried; P678.50 per month or P8,142.04 per year as head of the family; and P580.92 per month or P6,971.02 per year for those married with four children.

An employee earning P683 per day or P15,026 per month would have an additional take-home pay of P545.26 per month or P6,543.10 per year if unmarried; P1,307.18 per month or P15,686.20 per year as head of the family; and P1,190.52 per month or P14,286.20 per year for those married with four children.

Although the government is expected to lose around P14 billion a year with the new law, the government hopes to recover this through the optional standard deductions (OSD), which will “simplify the filing of income tax returns and benefits, in particular, professionals and medium, small, and micro entrepreneurs,” according to the law.

The OSD will rake in P15.03 billion tax revenues annually.

The law is said to take effect 15 days after its publication in a national newspaper.


http://newsinfo.inquirer.net/breakingnews/...um-wage-earners

this is good, it will help alot especially to the average earners.

[mikaztro]

Real good news ito. Eh kung ganyan ba ginagawa ng ating gobyerno palagi eh di ok na ok. Sana naman eh makatulong ito malaki sa mga mamamayang Pilipino pati na ang New Generic act.

[mikaztro]

Salamat at narinig din ang ating mga dasal. Halleluja!!! :D

[boybi]

This does not have any effect on the minimum wage earners since they already fall under the exemption granted by the current tax law. (Less than 60K+ salary per annum, including all the deductibles: head of family, etc.). Malaking effect ito sa mga medium income earners, especially those working in offices wherein their taxes are withheld already by their company.

[Lucius]

Dapat ang tanggalin talaga si Ralph Recto, as in tanggalin na sa mundo. Sya nag-pass nung e-vat.

[tidus1203]

The EVAT was a good law in general. Only the populist go against it cause they never understand the bigger picture that we are so burdened with debt servicing and it has to be reduce big time. Sacrifices are necessary.

[mikaztro]

The senator added that all holiday, night differential, hazard, and overtime pay would also be tax-exempt.

- I wonder kung sa minimum wage earners ito o para sa lahat. I think matutuwa mga taga call centers nito lalo na sa mga nag night diffs and OTs. Biro ninyo tax exempted na yon. This is really a good news to everyone.

[mikaztro]

The senator added that all holiday, night differential, hazard, and overtime pay would also be tax-exempt.

- I wonder kung sa minimum wage earners ito o para sa lahat. I think matutuwa mga taga call centers nito lalo na sa mga nag night diffs and OTs. Biro ninyo tax exempted na yon. This is really a good news to everyone.

[coiter]

sana next step is to update the tax brackets. kung di ako nagkakamali, more than 20 yrs na (1987 constitiution) since last na update ito. so a salary of 10k before would probably be worth around 20k today.

[1D4LV]

just had a meeting with a BIR lawyer just this lunch.

this will be effective after 15 days after publication + completion of the guidelines for BIR. so tingin ko mga two months pa ito.

[shadow]

mganda nanaman sa umpisa but where the hell will the gov't get the fiscal deficit bec of this new tax exemption? I'm 100% sure that one bracket will be affected one way or another to give way for the minumum earners...will it come from the self-employed and professionals?

how much additonal taxes will be implemented to the other brackets? let us wait for the reaction of the bracket that was affected to be able for the gov't to implement this

[1D4LV]

mganda nanaman sa umpisa but where the hell will the gov't get the fiscal deficit bec of this new tax exemption? I'm 100% sure that one bracket will be affected one way or another to give way for the minumum earners...will it come from the self-employed and professionals?

how much additonal taxes will be implemented to the other brackets? let us wait for the reaction of the bracket that was affected to be able for the gov't to implement this

based on what i heard from the news last night:

a. corporate taxes
b. they will streamline and simplify individual tax filing so that many individuals will be encouraged to file their taxes
c. more efficient tax collection.

[tidus1203]

Natawa ako sa C. Efficient Tax collection

[meledson]

In a way, this is a good news para sa atin na nabubuhay sa suweldo.

[_Qwerty_]

To illustrate this:

If you are earning Php500,000.00 a year, married w/ 4 kids.

[SIZE=2]old exemption: 52T[/SIZE]
[SIZE=2]50T + 30% of >250T[/SIZE]
[SIZE=2]500T - 52T = 448T - 250T = 198T x .30 = 59,400 + 50T = Php109,400.00 tax per year or Php9,116.66 per month[/SIZE]

[SIZE=2]new exemption: 150T[/SIZE]
[SIZE=2][SIZE=2]50T + 30% of >250T[/SIZE]
[SIZE=2]500T - 150T = 350T - 250T = 100T x .30 = 30,000 + 50T = Php80,000.00 tax per year or Php6,666.66 per month[/SIZE]

** saving of at least Php2,500.00 per month on tax.
[/SIZE]