PH gov’t expands tax exemptions on workers’ fringe benefits
MANILA, Philippines – The government has expanded the list of de minimis benefits exempted from income tax.
Communications Secretary Herminio Coloma Jr. said President Benigno Aquino III had approved the new regulation on tax exemptions on benefits given to workers under collective bargaining agreements (CBAs) and productivity incentive schemes.
“Bunga ito ng tuluy-tuloy na pakikipagdiyalogo ni Pangulong Aquino sa mga organisasyon ng mga manggagawa nitong taong 2014,” he explained.
(This is a product of President Aquino’s continuous dialogue with labor groups this year.)
Coloma said that while the government will lose P17 billion in taxes, low-wage workers will benefit from it.
Finance Secretary Cesar Purisima said it is “fairer and more equitable” than other tax relief measures.
Article continues after this advertisement“This measure directly impacts the working poor and the smallest income earners, who stand to have the most to gain from these benefits,” Purisima said.
Article continues after this advertisementLabor Secretary Rosalinda Dimapilis-Baldoz called it a “fitting gift” to Filipino workers during the holiday season.
She said each worker can now claim de minimis benefits of up to P104,225, from only P94,225 this year. The regulation on fringe benefits was last amended in 2012.
The exemptions will be implemented on January 2015 through the issuance of a new Bureau of Internal Revenue (BIR) regulation.
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