Tax Alerts

It's official. The P82,000 tax exemption allowance will apply on all 13th month pay and other benefits paid or accrued beginning January 1, 2015. The increased ceiling was enacted via Republic Act No. 10653.

The RR reiterated that the exemption allowance applies only to the 13th month pay and other benefits and should not cover basic salary and other allowances paid pursuant to an employer-employee relationship. Likewise, the allowance is not available to self-employed individuals.