Noy signs into law higher tax exemption cap on bonuses

MANILA, Philippines - President Aquino has signed into law the bill granting higher tax exemption for Christmas bonus and other benefits.

The proposal raised the tax exemption for 13th-month pay and other bonuses from P30,000 to P82,000. Congress ratified the bill last Dec. 1 and the legislation was to lapse into law on Saturday.

Marikina City Rep. Romero Quimbo, chairman of the House committee on ways and means and principal author of the law, said the measure is part of wide-ranging taxation reforms being introduced in the chamber to benefit the middle class, especially salary and wage earners.

“The President saw the significance of the measure as it is projected to benefit taxpayers from low to middle incomes who have not had any reprieve from the burdensome taxes imposed on their earnings,” Quimbo said.

“These are the salary and wage earners who long deserve a break from the inequitable tax system that we currently have,” he said.