7

th
proposal to raise tax cap exemption
of workers bonuses and benefits filed
The clamor to raise the tax cap exemption of all bonuses and benefits of workers from the
present P30,000 continues to gain support from lawmakers, with Rep. Rene Relampagos
(1
st
istrict, !ohol" filing the se#enth bill for higher tax exclusion.
Relampagos, through $ouse !ill %%&', sought to increase the tax cap exemption of
all bonuses and benefits of workers in public and pri#ate offices, from P30,000 to P(&,000
to impro#e the purchasing power of the middle grade income earners and help them cope
with the rising cost of li#ing.
)*ecessaril+, this will greatl+ impro#e the purchasing power of the middle grade
income earners and help them cope with the e#er,increasing cost of li#ing. *ot to mention
the inflation since the enactment of the tax law. -inall+, this is consistent with the .decent
pa+/ framework of international labor,0 said Relampagos, 1hairman of the $ouse
1ommittee on Tourism.
$e said when the *ational 2nternal Re#enue 1ode (*2R1" was passed in 133(, the
statutor+ intent was to tax those classified as 4alar+ 5rade 67 and higher. $owe#er,
Relampagos said with the current change in the salar+ schedule in #iew of the 4alar+
4tandardi8ation 9aw (449" implemented in 6016 and :ustified b+ the realit+ of increase in
the cost of li#ing, the *2R1 should likewise be amended to be consistent with the
legislati#e intent of the law when it was passed 1( +ears ago.
);therwise, we will be sub:ecting to tax those emplo+ees whose bonuses and
benefits were not pre#iousl+ en#isioned to be taxed b+ law. 2f passed, the proposed law
will correct the impractical and unanticipated result in the application of the *2R1 to
emplo+ees who are classified as 4alar+ 5rade 17 positions which is a far,cr+ from the
original spirit of the tax law,0 said Relampagos.
$e said when the *2R1 was passed in 133(, emplo+ees in the public sector
en:o+ing the P30,000 salar+ were classified under 4alar+ 5rade 67 position or those who
were then occup+ing <ssistant 4ecretar+ positions and higher. To date, the+ recei#e
additional allowances not en:o+ed b+ regular emplo+ees according to the lawmaker.
=ith the passage of the 4alar+ 4tandardi8ation 9aw or >oint 1ongressional
Resolution *o. % on >une 1(, 6003 and full+ implemented in 6016, howe#er, the salar+ of
P30,000 are now recei#ed b+ emplo+ees occup+ing 4alar+ 5rade 17 positions according
to Relampagos. <lso, he said under the 449, 4alar+ 5rade 67 is now pegged at P'(,'7%.
NR # 3538
JULY 25, 2014
$ouse !ill %%&', along with six other bills seeking to raise the tax cap exemption of
all bonuses and benefits of workers, are now pending at the committee on wa+s and means
chaired b+ Rep. ?iro @uimbo (6
nd
istrict, ?arikina 1it+".
These include $ouse !ill %033 filed Rep. 5us Tambunting (6
nd
istrict, ParaAaBue
1it+", $! 33(% b+ Rep. Cstrellita 4uansing (1
st
istrict, *ue#a Cci:a", $! 6%7 b+ Rep.
<ntonio Tinio (Part+,list, <1T Teachers"D $! 673& b+ Rep. <bigail !ina+ (6
nd
istrict,
?akati 1it+"D $! 3'63 b+ Rep. Raneo <bu (6
nd
istrict, !atangas" and $! 3'(0 b+ Rep.
>err+ TreAas (9one istrict, 2loilo 1it+".
$ouse !ill %%&' seeks the amendment of 1hapter E2, 4ection 36, paragraph (!"
sub,paragraph ((" (e" of Republic <ct 7%6%, otherwise known as the *ational 2nternal
Re#enue 1ode of 133(, as amended,0 so that the total exclusion of the gross benefits
recei#ed b+ officials and emplo+ees of public and pri#ate entities shall not exceed
P(&,000.
The amendment further pro#ides that the ceiling of P(&,000 co#ering other benefits
such as producti#it+ incenti#es and 1hristmas bonus ma+ be increased through rules and
regulations issued b+ the 4ecretar+ of -inance, upon recommendation of the
1ommissioner and the irector,5eneral of the *ational Cconomic and e#elopment
<uthorit+ (*C<", after considering among others, the effect on the same of the inflation
rate at the end of the taxable +ear as well as other economic and social factors. (30" rbb