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Bonus tax exemption up to P90,000

By Mario B. Casayuran

The Senate and House of Representatives bicameral conference committee have agreed to increase the tax exemption ceiling on the 13th month pay and other bonuses to P90,000 under President Duterte’s Tax Reform for Acceleration and Inclusion bill, Sen. Sonny Angara, head of the Senate bicameral panel and chairman of the Senate Ways and Means Committee, said.

Both panels are rushing a compromise TRAIN bill for ratification by both legislative chambers before they go on a month-long Christmas recess on Dec. 15.

Under the current law Republic Act 10653 which was sponsored by Angara, the 13th month pay and other benefits, including productivity incentives and Christmas bonuses not exceeding P82,000, are exempted from tax.

Before RA 10653 was signed into law in 2015, only bonuses not exceeding P30,000 were tax-exempt.