Bicam approves tax exempting P340K in annual bonuses, income

During the Bicameral Conference Committee meeting of the House of Representatives and Senate on December 6 to reconcile conflicting provisions of Tax Reform for Acceleration and Inclusion (TRAIN) bill, both sides agreed to raise the tax exemption cap of 13th month pay and other bonuses to P90,000 from the current P82,000 of Republic Act 10653.

Bicam members have also agreed to exempt P250,000 annual taxable income of all individual income taxpayers.

“Ngayong magpa-Pasko na po, napagkasunduan ng bicam na muling taasan ang halaga ng 13th month pay at iba pang bonuses na hindi na kakaltasan pa ng buwis. Ang bonus sa bonus na ito ay maagang Pamasko para sa ating mga ordinaryong manggagawa,” said Senator Sonny Angara, chairman of the Senate ways and means committee who also sponsored RA 10653..

“Kung susumahin, aabot na sa P340,000 na kita kada taon ang hindi na pwedeng galawin ng gobyerno. Buong-buo na itong maiuuwi ng ating mga taxpayer sa kanilang mga pamilya,” Angara said.

The senator also reminded employers that they must pay their rank-and-file employees a 13th month pay regardless of the nature of their employment and whatever the method their wages are paid, provided they worked for at least one month during a calendar year.