Close  
  • share this

Angara files bill to ensure tax-free health insurance premiums

By: - Reporter / @CMarquezINQ
/ 04:42 PM December 04, 2018

MANILA, Philippines — Senator Sonny Angara has filed a bill seeking to ensure tax-free health insurance premiums among employees.

Senate Bill No. 2112 seeks to exempt medical insurance premiums from income tax and fringe benefit tax.

ADVERTISEMENT

This was after the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 50-2018, which imposed that health insurance premiums being paid by employers for their employees as part of the tax-free-threshold benefits and bonuses of workers.

READ: Angara warns BIR: Recall order taxing health premiums, or else

FEATURED STORIES

Angara said such provision was not included in the Republic Act (RA) 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“It should be noted that R.A. 10963 did not amend the tax treatment of health premiums nor was it intended, in any way, to diminish the take home pay of taxpayers by subjecting them to the P90,000 tax-exempt bonus,” Angara said in a statement on Tuesday.

The senator then, highlighted the importance of health among citizens, noting that the tax reform was mandated to amend the “unprogressive” income tax.

“The tax reform was enacted primarily to increase the purchasing power of each taxpayer who has been overburdened by the inequitable and unprogressive income tax that has not been changed for almost two decades,” Angara said.

“The health of its citizens remain a primary concern of the government, thus, all support and assistance should be given to ensure that Filipinos, especially the workers, remain fit and healthy,” he added.

Under the TRAIN law, the employees’ bonuses amounting to P90,000 and below should be tax free. However, beyond P90,000 threshold is already taxable.  /muf

ADVERTISEMENT
Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: health insurance premiums, Nation, news, Sonny Angara
For feedback, complaints, or inquiries, contact us.



© Copyright 1997-2018 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.