MANILA, Philippines – Taxpayers trooped to the public consultation of the Bureau of Internal Revenue (BIR) to answer queries regarding the new tax exemption rules under the Tax Reform for Acceleration and Inclusion or TRAIN Law.
One of the main issues asked is whether a minimum wage earner is still exempted from paying income tax if his annual income exceeds P250,000 due to overtime pay and other incentives.
“There are specific words and other words retained from the old tax code that says a minimum wage earner is exempt from income taxes. So if you’re under minimum wage category, you will be exempted including holiday pay regardless if your total income for the whole year exceeds 250,000” BIR Spokesperson Atty. Marissa Cabreros said.
The BIR stresses that the tax reform law has already taken effect since January 1, so workers earning 21,000 and lower should not have any deductions pertaining to any taxes.
“Our withholding agents have an obligation to ensure that their withholdings are correct. Some employers say there’s no revenue regulation yet. But there’s no need to wait for the revenue regulation because we’ve already released an issuance,” Cabreros said.
The BIR encourages employees to directly report to them any employer who fails to comply with the new tax exemption rule.
“If they exceeded withholding this January in the first salary, they should self-correct to adjust and give back the excess in the next payouts,” Cabreros added. – Mai Bermudez | UNTV News & Rescue
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