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.
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