House bill on tax exemption for bonuses passes on 2nd reading
Philippine Congress. FILE PHOTO
MANILA, Philippines—The bill seeking to increase the tax ceiling exemption for bonuses was approved on Tuesday on second reading despite the few numbers in the plenary.
This came just less than a week after the ways and means committee approved House Bill 4970 last Wednesday.
The bill is entitled “An Act increasing the ceiling for the total exclusion from gross income of 13th month pay and other benefits to P70,000, amending for the purpose Section 32(B)(7)(E) of the National Internal Revenue Code, as amended.”
The bills seeks to increase to P70,000 from the current P30,000 the tax exemption cap of the 13th-month pay and other bonuses.
The bill, which seeks to amend the 1997 National Internal Revenue Code, was approved by viva voce (voice) voting with less than a dozen lawmakers present on the floor. The session adjourned after 40 minutes.
Panel chairman Marikina Rep. Romero “Miro” Quimbo had 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 earlier 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 lawmaker said.
He said larger take home pay from their bonuses gives 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 sponsors of the bill are Quimbo, Quezon City Rep. Jose Christopher Belmonte, Makati Rep. Mar-Len Abigail Binay, Act Teachers Rep. Antonio Tinio, Aurora Rep. Bellaflor Angara-Castillo, COOP-NATTCO Reps. Anthony Bravo and Cresente Paez, Bayan Muna Rep. Neri Colmenares and Carlos Zarate, Batangas Rep. Raneo Abu, Iloilo City Rep. Jerry Trenas, Nueva Ecija Rep. Estrellita Suansing, Quezon Rep. Angelina Tan, Paranaque Rep. Gus Tambunting, and Bohol Reps. Rene Relampagos and Arthur Yap.
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