MANILA, Philippines — The House of Representatives on Tuesday approved on second reading the bill that aims to provide income tax relief to medical frontliners for the taxable year 2020.
Through voice voting, the lower chamber approved House Bill No. 8259, or the “Handog sa mga Bayaning Lumaban Kontra COVID-19 Act.” which exempts medical frontliners from paying 25 percent of income tax due for the taxable year 2020 in a move to show the government’s appreciation for their service amid the coronavirus pandemic.
Under the proposed law, the coverage of the tax exemption is limited to salary or compensation from the exercise of their profession or employment, and shall not include those income received from their other businesses, investments, and other kinds of passive income not related to serving, treating, caring, aiding, and assisting COVID-19 patients.
It also authorizes the Secretary of the Department of Finance to extend, for a period of not more than six months, the exemption from payment of income tax to qualified medical frontliners.
The bill defines medical frontliners as “persons who are engaged in health-related services and are employed in hospitals, clinics, or other medical institutions, whether public or private, which treat patients affected with COVID-19.
Further, it states that medical frontliners also include administrative employees, support personnel, and staff of medical institutions, regardless of their employment status.