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» A message from LBPEA Visayas Director SONIA D. BROTARLO
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A message from LBPEA Visayas Director SONIA D. BROTARLO
TAX EXEMPTION Icon_minitime1Thu Nov 16, 2017 10:30 am by sonia
TAX EXEMPTION Sonia10

It has been two (2) years and six (6) months that this website was closed.  Many were disappointed with the closure but we have to keep up with the fast changing technology - facebook and twitter, among others.  
 
With the remaining one month and a half of my stint as Director for Visayas, I have been ruminative as to the manner of my “consummatum est” in LBPEA.  Thus  here I am re-opening the website pro hac vice for my grand exit. 
 
This is the medium where you first knew me and this is where I want to personally reach out to you to express my deepest and heartfelt “THANK YOU” for all the years that you trusted me. 
 


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axeman



Number of posts : 87
Registration date : 2010-01-20

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Mon Dec 03, 2012 10:57 pm

May I ask for another issue Ms Sonia? Kasi I have heard na nag increase daw yung individual tax exemption. Clarification lang po....kasi may sabi-sabi na dahil daw dito, may tax refund daw tayo. Yun nga daw last bonus natin eh sana wala na sanang ikuha na tax pero kinunan pa ng malaki. marami lang pong nagtatanong....
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sonia
Admin


Number of posts : 1428
Registration date : 2008-12-16

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Tue Dec 04, 2012 9:25 am

http://www.bir.gov.ph/taxinfo/tax_income.htm


TAX EXEMPTION Bir10

Axeman: R.A. 9504 this is the prevailing law on tax exemption which took effect in 2008. This law provides for a uniform personal tax exemption of P50,000 per taxpayer and an additional tax exemption of P25,000 per dependent child up to maximum of 4 children.

The law has not yet been repealed or amended by another law so there is no truth to the information you received about any change in our tax exemption. The above link from the BIR website would be helpful.

However, there is a bill in Congress HB 5431 approved already in the House of Representatives for increase in additional tax exemption. This focuses on children with special needs wherein the additional tax exemption will be increased from P25T to P50T. This would mean that other dependent children will retain the same tax exemption of P25T. The laudable provision of this bill is the removal of limitation on the number of allowable dependents and the inclusion of parents as dependents.

This is still a bill not yet approved into law thus RA 9504 is still the existing law on tax exemption.

Below is a news clipping about HB 5431.
http://filipinojournal.com/philippine-news/news/congress-approves-bill-on-additional-tax-exemption

CONGRESS APPROVES BILL ON ADDITIONAL TAX EXEMPTION

The House of Representatives has approved on second reading House Bill 5431 principally authored by former President and now Pampanga Rep. Gloria Macapagal-Arroyo, Sorsogon Rep.

Deogracias Ramos, Pangasinan Rep. Marlyn Primicias-Agabas, and Camarines Sur Rep. Diosdado Arroyo, granting an additional P50,000 tax exemption for children requiring special needs.

Batangas Rep. Hermilando Mandanas, chairman of the House committee on ways and means, will present the bill at the plenary for approval. Mandanas introduced an amendment by setting the allowable income tax exemption at P50, 000 for each physically or mentally challenged dependent.

Another key provision of the bill is the removal of limitation on the number of allowable dependents and the inclusion of children and parents in the definition of dependents.


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semaj501



Number of posts : 280
Registration date : 2010-09-15

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Tue Dec 04, 2012 10:15 am

Axeman's query re increase on tax exemption may be that of Recto’s Senate Bill 2879 which seeks to shatter the threshold of allowances and bonuses from P30,000 to to P60,000 from income tax.
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sonia
Admin


Number of posts : 1428
Registration date : 2008-12-16

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PostSubject: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Tue Dec 04, 2012 10:23 am

semaj501 wrote:
Axeman's query re increase on tax exemption may be that of Recto’s Senate Bill 2879 which seeks to shatter the threshold of allowances and bonuses from P30,000 to to P60,000 from income tax.


semaj501: Yes Atty, it could also be about Senate Bill 2879...thanks!

Here is a news clipping on Senate Bill 2879:
http://www.sunstar.com.ph/manila/local-news/2012/11/26/bill-eyes-tax-exemption-bonuses-allowances-below-p60000-255215


Bill eyes tax exemption for bonuses, allowances below P60,000
Monday, November 26, 2012

SENATOR Ralph Recto said Congress should pass a bill that would raise the tax exemption ceiling on Christmas bonuses and 13th month pay to P60,000 from the current P30,000 to give the public more spending power this holiday season.

Calling the system outdated, Recto said the 15-year-old National Internal Revenue Code was passed when the basic wage of government employees was only P2,800 and the salary of the President of the Philippines was only P25,000.

At present, the basic pay scale of government employees is P8,287 while the salary grade of the Chief Executive is P120,000.

"A worker bound to receive a little more than P30,000 in bonuses and allowances should not be penalized with a tax. The tax is essentially a disincentive for workers aspiring for a higher pay scale that naturally comes with generous perks and bonuses," said Recto.

Section 32(B) Chapter VI of the NIRC states that private and government employees having bonuses beyond P30,000 were automatically subjected to income tax.

Factoring inflation, Recto said the P30,000 tax exemption ceiling is practically worth P15,000 today as computed by the National Economic and Development Authority, which he chaired before getting elected to the Senate in 2010.

"With time running out for the approval of this bill, I could only look forward to its serious consideration in 2013 in time for the next holiday season. And who would say that Number 13 is the unlucky number?" he said.

The bill is still pending in the committee in ways and means temporarily chaired by Senator Franklin Drilon.

BIR Commissioner Kim Henares declined to comment on the proposal as of this posting Monday.

At least three Regional Development Councils (RDCs) have expressed support to the Recto bill, the latest of which is the RDC-National Capital Region. The first two RDCs are that of Cagayan Valley and Western Visayas.

The RDC-NCR, in a recent meeting headed by Makati Mayor Junjun Binay, RDC-Metro Manila chair, even proposed a higher tax exemption threshold of P80,000 or P20,000 higher than the Recto proposal.
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bob587



Number of posts : 92
Registration date : 2011-11-26

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Wed Dec 05, 2012 9:42 am

Ma'am Sonia, ano nga pala ang katotohanan sa mga haka hakang taxable na daw ang monetization of leave credits.Thank you po.
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sonia
Admin


Number of posts : 1428
Registration date : 2008-12-16

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Wed Dec 05, 2012 10:49 am

As per inquiry with Personnel Administration Department, there is no truth to the rumors that monetization of leave credits will be taxable.
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bob587



Number of posts : 92
Registration date : 2011-11-26

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Wed Dec 05, 2012 12:39 pm

Salamat po ma'am at Mabuhay.
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semaj501



Number of posts : 280
Registration date : 2010-09-15

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Wed Dec 05, 2012 6:06 pm

EO No. 291 dated Sept. 27, 2000 is the governing rule on monetization of leave credits of gov't. employees/officials. In Sec. 1, its states that the monetized leave credits of government officials and employees shall continue to be exempted from income tax.

Equally important is the issue on Terminal Leave Pay. Jurisprudence indicates that terminal leave pay received by a government official or employee is not subject to withholding (income) tax ... Terminal leave payments are given not only at the same time but also for same policy considerations governing retirement benefits (CIR Vs CA and Castañeda). Note that retirement benefits are not subject to tax.
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bob587



Number of posts : 92
Registration date : 2011-11-26

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Thu Dec 06, 2012 9:51 am

Thank you uli Attorney James.Nagpapanic na kasi ibang personnel halos lahat nagfile na ng monetization dahil taxable na daw next year.
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sonia
Admin


Number of posts : 1428
Registration date : 2008-12-16

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PostSubject: Re: TAX EXEMPTION   TAX EXEMPTION Icon_minitime1Thu Dec 06, 2012 10:27 am

semaj501 wrote:
EO No. 291 dated Sept. 27, 2000 is the governing rule on monetization of leave credits of gov't. employees/officials. In Sec. 1, its states that the monetized leave credits of government officials and employees shall continue to be exempted from income tax.

Equally important is the issue on Terminal Leave Pay. Jurisprudence indicates that terminal leave pay received by a government official or employee is not subject to withholding (income) tax ... Terminal leave payments are given not only at the same time but also for same policy considerations governing retirement benefits (CIR Vs CA and Castañeda). Note that retirement benefits are not subject to tax.

Thanks to the brilliant lawyer from Tuguegarao- Atty. Semaj501 for his informative contribution. Hopefully, this will subdue the panic mode on monetization of leave credits and will satisfy the endless query.





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