Tax Exemption for Incentives and Bonus Pushed
Volume XVIII No. 5 (November 8-14, 2014)
BAGUIO CITY – Members of the city council showed support for Senate Bill 2437; through approval of Councilor Leandro Yangot, Jr.’s proposed resolution during last week’s session.
Senate Bill 2437 sought to raise the previous ceiling of P30,000 to P75,000 of 13th month pay, productivity incentives and Christmas bonuses for private and government workers; for taxation purposes. The bill is a consolidation of five senate bills authored by Senators Edgardo Angara, Ralph Recto and Manuel Lapid
Yangot’s proposed resolution expressed support to the senate bill and said it “will serve as a welcome gift to our workers who deserve to enjoy a full income especially during Christmas season.”
Productivity incentives, and Christmas bonuses “not exceeding P30,000,”are exempted from tax as mandated through Republic Act 7833, and was approved on December 8, 1994.
Due to passage of time, considering that RA 7833 was approved nearly 20 years ago; and the devaluation of the peso, “there is a need to increase the taxable threshold for Christmas bonuses and other benefits to conform to the present economic situation,” the councilor further stated.
“The proposed measure will eventually benefit the economy as employees will have more money to spend during the holiday season, thus spurring businesses and other livelihood,” he also said.
The consolidated senate bill also seeks to amend a section of the national internal revenue code of 1997, as amended./juliegfianza