House panel OKs higher tax exemption for 13th month bonus
MANILA, Philippines - A bill seeking to increase the tax exemption for 13th month bonuses has been approved by the House ways and means committee.
The bill seeks to exempt 13th month bonuses of as much as P70,000.
Currently, only 13th month bonuses, worth as much as P30,000, are tax-exempt.
Ways and means committee chairman Miro Quimbo says the bill was approved unanimously by the committee and will be brought to the plenary after the budget deliberations.
It is one of the priority measures of the House and Senate.
Quimbo, however, explained that even if the bill becomes law this year, it won’t be applicable until 2015.
“The budget for 2014 as approved is based on fund sourcing schedule which presupposes na walang pagbabago sa taxes inapprove na natin cashflow," he said.
Government’s cashflow is expected to be set back by P800 million to P1.6 billion by the measure.