Senate panel approves bill raising tax ceiling on bonuses, 13th month pay

[Little_Mermaid88]

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The Senate ways and means committee on Wednesday approved a proposed legislation exempting from payments below P75,000 from their 13th month pay and bonuses.

Senate President Pro-Tempore Ralph Recto endorsed for plenary debates Committee Report No. 84 or Senate Bill No. 2437, which consolidated five bills.

The new measure seeks to exempt from taxes up to P75,000 in bonuses and 13th month pay.

The current ceiling on bonuses and 13th month pay is P30,000.

In his privilege speech, Recto said the government stands to lose P2.6 billion to P5.6 billion in tax collections once the measure is passed into law .

"Whatever is the revenue loss for the government is actually income gained for the workingman. And even if his 13th month pay is tax exempt upon receipt, it will be taxable when spent, so tax not withheld at source will... be captured in the form of sales tax at points of sale," the senator explained.

Recto hoped to pass the measure before the years ends so tax payers may enjoy the new law before the holiday season.

"There's something else we can do to ease the plight of our consumers, and perhaps add a little cheer to their Christmas, and that is to pass the law… This bill can be our Christmas card to them," he added.

A similar measure filed at House of Representatives has been approved in the committee level.

source: Senate panel approves bill raising tax ceiling on bonuses, 13th month pay* | Economy | GMA News Online

Senate committee approves increased tax ceiling on 13th month pay, bonuses | Kicker Daily News

[alwaysdrunk]

This is a good news for me pero kasimhot kog pahumot kay gaka duol na ang election. I hope di ta pada, vote wisely jpn!

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This is a good news for me pero kasimhot kog pahumot kay gaka duol na ang election. I hope di ta pada, vote wisely jpn!

[crossramz]

oh shit.. dili gihapon ko exempt!!

[meickey]

Problema, we don't need that kind of 13th month tax ceiling. What we need is lower income tax rate. And of course, ordinary mang Juan dela Cruz isn't even receving that kind of basic salary (30k+). In short, it won't have an effect on our ordinary working class citizen.

My opinion lang, but lowering our income tax rate is a win-win solution both the working class and the government. The bigger the take home pay (w/c obviously uplift our purchasing power by a few clicks), the better the returns on our business sectors esp. kanang naa sa mga direct trading...

[alwaysdrunk]

Problema, we don't need that kind of 13th month tax ceiling. What we need is lower income tax rate. And of course, ordinary mang Juan dela Cruz isn't receving that kind of basic salary (30k+)...

My opinion lang, but lowering our income tax rate is a win-win solution both the working class and the government. The bigger the take home pay (w/c obviously uplift our purchasing power by a few clicks), the better the returns on our business sectors esp. kanang naa sa mga direct trading...

saon taman boss na sobraan raman ka hangol ning atong gobyerno, gusto nila instant cash ila makuha, wa nay agi sa mga sales sales or business churva or unsa pana. maayo ning tax kay dawat limpyo.mga animels gyud haha

[agbesanez]

For me, this bill is useless....i'm sorry

[jntio]

way pulos gihapon

[cebugdev]

For me, this bill is useless....i'm sorry

useless for you but majority of working middle class, this bill is a great help.
once again, the world do not revolve on just a group or specific person particularly to you,
the law works on majority, the last time i checked, more people will be happy with this. and by people, i mean the nation and not the crab mentality people like you.

[kit_cebu]

i can see that this has not been understood...

[necrotic freak]

useless for you but majority of working middle class, this bill is a great help.
once again, the world do not revolve on just a group or specific person particularly to you,
the law works on majority, the last time i checked, more people will be happy with this. and by people, i mean the nation and not the crab mentality people like you.

Majority majority sa mga pinoy diay nag sweldo ug 75k/month above

Ikaw pilay swedlo nimo, 75k? nga great help man para nimo? aw kung mao man gani na imong sweldo karon dili intawn na majority sa working middle class oi...