APART from granting tax exemptions to employees with P250,000 in annual income, those earning up to P90,000 monthly may soon enjoy tax-free 13th month pay and other bonuses after members of the bicameral conference committee on the Tax Reform for Acceleration and Inclusion (TRAIN) agreed to the proposal.
Sen. Juan Edgardo “Sonny” Angara, chairman of the Senate ways and means committee, said both Houses were able to reconcile the differences in the two versions of the bill which, if passed, would be take effect in 2018.
Under the current law or Republic Act 10653, the 13th month pay and other benefits, including productivity incentives and Christmas bonuses, are exempted from tax if they do not exceed P82,000.
The Senate on its approved Train bill retained the tax-free ceiling but the House of Representatives raised it to P100,000.
During the bicameral conference committee hearing, lawmakers who were tasked to reconcile the differences agreed to set the exemption at P90,000.
Angara said the new rate was 300 percent higher than the rates in 2015 wherein tax-exemption covered only bonuses and 13th month pay not exceeding P30,000. JEFFERSON ANTIPORDA