By Mortz C. Ortigoza
|TAX BRASS. RDO-6 Chief Narsrollah B. Conding (2nd from right) and BIR Regional Director Arnel Guballa (2nd from left)|
According to Nasrollah Conding, chief of the RDO-6, his office collected more than 40% of the tax target given by the government in August this year.
Meanwhile, a brass of the BIR here said that officials and employees of public and private entities shall have not more than P30,000 13th month pay and other benefits for them to be excluded in the income tax.
Assistant Revenue District Officer Bernadette Mangaoang said that government will tax 32% of the amount that extend beyond P30,000 given as benefits that are received by these workers.
“Other benefits such as productivity incentives and Christmas bonus are included. Provided that the ceiling of P30,000 may be increased through rules and regulations issued by the Secretary of Finance, upon recommendation of the Commissioner, after considering, among others, the effect on the same of the inflation rate at the end of the taxable year,” she reads Section 32, paragraph e (iv) of the National Internal Revenue Code.
“The P30,000 ceiling has been implemented by the government was 20 years ago. Its high time it raises it to P70,000 so the taxpayer will not be burdened,” a taxpayer, who asked anonymity, said here.
Mangaoang said even fringe benefits are taxable.
Fringe Benefits, according to the Tax Code is any good, service, or other benefit furnished or granted in cash or in kind by an employer to an individual employee (except rank and file employees ) such as housing, expense account, vehicle of any kin, household personnel, such as maid, driver, and others, interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted, Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations, expenses for foreign travel, holiday and vacation expenses, educational assistance to the employee or his dependents, and life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows.
She added fringe benefits that are not taxable are those which are authorized and exempted from tax under special laws, contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans, Benefits given to the rank and file employees, whether granted under a collective bargaining agreement or not, and De Minimis Benefits.