Bill raising tax exemption cap for bonuses passed on final reading
Originally posted 11:58 pm | Friday, September 26th, 2014
MANILA, Philippines—Within the month since it was filed, the consolidated bill seeking to increase the tax ceiling for bonuses is approved on third and final reading Friday night in the House of Representatives.
The bill 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 wants to amend Section 32(B)(7)(E) of the National Internal Revenue Code of 1997.
Marikina Rep. Romero Quimbo. INQUIRER.net FILE PHOTO
Marikina Representative Romero “Miro” Quimbo said the proposed law seeks to exclude the 13th-month pay and other bonuses from the computation of the gross income taxation.
It will allow employees in public and private sector to take home a larger share of their bonuses by 2015.
The bill hurdled the ways and means committee and passed on first reading on September 3. The bill was approved on second reading on September 9 by viva voce (voice) voting with less than a dozen lawmakers present on the floor.
The proposed measure is a consolidated version of 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.
The bill will then be transmitted to the Senate where it will undergo the same legislative process before it is approved by both chambers of Congress.
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