Bill to Increase Tax Exemption on Bonuses: Signed, Sealed, Soon to be Delivered


Bill to Increase Tax Exemption on BonusesAccording to ACT Teachers Party List, the bill to increase tax exemption on bonuses from P30, 000 to P 82,000 is now a law.

ACT (Alliance of Concerned Teachers)  Party List supported today’s good news by further stating that- President Noynoy Aquino’s signature finally landed the final form of bill to increase tax exemption on bonuses just 2 days ago, January 19, 2015. This soon to be decree, is the conclusion of House Bill 4970 and Senate Bill 2437.

As per legislative process, this is the final step in turning a bill into a law. So though number series has not been tagged yet, the

bill to increase tax exemption on bonuses

becoming Republic Act is close at hand.

The bill to increase tax exemption on bonuses was initially authored by ACT Teachers Party List Representative Antonio L. Tinio under House Bill 4970.  The original bill to increase tax exemption on bonuses proposed the raising of the ceiling of total exclusion from taxes to P60,000 both for public and private sector ; and to increase the exemption every 3 years depending on inflation rate . When bill to increase tax exemption on bonuses progressed to the Senate, the cap was increased to  Php 82,000 based on inflation rate as of October 2013.

Milestones of the successful bill to increase tax exemption on bonuses included several dialogues both in the House of Representatives and Senate. Not to mention the argument raised by BIR and Department of Finance on budget deficit and income loss, which apparently was over ran.

This surely sparks hope for the working Filipinos. It was worth all the disappointment we all felt since the

bill to increase tax exemption on bonuses

came in a little too late for our last year’s bonuses.

Bill to Increase Tax Exemption on Bonuses

Rep. Antonio L. Tinio

But this is just square one. Implementation will be another page to read.

For the meantime let’s hold on to the promise Tinio explained in his proposed bill -“Such legislative action is necessary to enable employees to have more of their income to take home to their families”.

 

This article has been updated as of February 10, 2015. Please click here.

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5 comments
rme0715
rme0715

Hi Atty,


I just would like to know when will be the effective date of the increase in tax exemption to Php82000. 


Thanks!

Roja

ACT_Teachers
ACT_Teachers

We regret to inform you that the news of the enactment into law of our bill hiking tax-exempt bonuses to P82,000 is wrong.  We received erroneous information from the House Committee on Ways and Means last Monday, 19 January 2015, to the effect that Aquino has already signed our bill.  Aquino is in fact considering a veto against the bill (as reported here http://www.abs-cbnnews.com/business/01/28/15/will-pnoy-veto-bill-higher-tax-exemption-bonuses), upon the advice of DOF and BIR, and consistent with his earlier public statements regarding the "inadvisability" of tax relief because of foregone revenues.


Rest assured that the office of Rep. Tinio will not let go of the campaign for tax relief and salary increases and will pursue an override of the Presidential veto by both Houses of Congress, should one indeed come.


-Atty. Maneeks, Legislative Staff

For the Office of Rep. Antonio Tinio

CheVP
CheVP moderator

@ACT_Teachers Hi Atty. Maneeks. Thanks for the heads up. I've actually sent an inquiry on ACT's official FB page 2 days after writing this article bec. suddenly I couldn't find the FB post anymore. I'll update this post asap to avoid further confusion. 

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  1. […] This is to update or rectify my blogpost “Bill to Increase Tax Exemption on Bonuses: Signed, Sealed, Soon to be Delivered “. […]

  2. […] on bonuses from P30, 000 to P 82,000 when ACT Teachers Party List stated on my previous article Bill to Increase Tax Exemption on Bonuses: Signed, Sealed, Soon to be Delivered that they were misinformed (Update on Bill to Increase Tax Exemption on Bonuses: ACT Misinformed) […]