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|Subject: House panel OKs bill raising tax exemption cap for bonuses Thu Sep 04, 2014 12:27 pm|| |
House panel OKs bill raising tax exemption cap for bonuses
By Marc Jayson Cayabyab |INQUIRER.net5:27 pm | Wednesday, September 3rd, 2014
MANILA, Philippines—The House of Representatives ways and means committee on Wednesday approved the consolidated bill seeking to increase the tax ceiling for bonuses.
In an executive session, the panel approved the bill increasing to P70,000 from the current P30,000 the tax exemption cap of the 13th-month pay and other bonuses.
Panel chairman Marikina Rep. Romero “Miro” Quimbo said the bill seeks to exclude the 13th-month pay and other bonuses from the computation of the gross income taxation.
“What we approved today is exempting all bonuses or 13th month pay to the extent of P70,000 so what will happen is double tax exemption,” Quimbo said in an interview.
Quimbo said the tax ceiling on bonuses remained stagnant since 1997 when the tax code was passed.
“The 13th-month pay has remained unadjusted to inflation since 1997… The P30,000 [exemption] in 1997 is more than P70,000 already today,” the majority solon said.
He said larger take home pay from their bonuses give them morale during Christmas and higher purchasing power during the enrolment period.
The panel consolidated the eight similar bills on higher tax ceiling exemption. The authors are Act Teachers Rep. Antonio Tinio, Makati Rep. Mar-len Abigail Binay, Batangas Rep. Raneo Abu, Iloilo city Rep. Jerry Trenas, Nueva Ecija Rep. Estrelita Suansing, Paranaque city Rep. Gus Tambunting, Cagayan De Oro Rep. Rufus Rodriguez, and Bohol Rep. Arthur Yap.
Read more: http://newsinfo.inquirer.net/635085/house-panel-oks-bill-raising-tax-exemption-cap-for-bonuses#ixzz3CJVPhS29
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