Tax Alerts

President Aquino signed into law Republic Act 10653 which increased to P82,000 the tax exemption allowance for other benefits given to employees such as the Christmas bonus and productivity incentives. The old threshold was only P30,000.

The new law also mandates the President to adjust this threshold every three years to its present value using the consumer price index (cpi) as published by the National Statistics Office (NSO).

This takes effect 15 days following its publication in at least two newspapers of general circulation.

The Secretary of Finance is tasked to promulgate the implementing regulations. However, absence of an implementing regulations shall not prevent the law from taking effect upon its effectivity.

Under the old regulations, this exemption allowance covers benefits given in excess of the tax exempt de minimis benefits.