WITH reference to the Tax Reform for Acceleration and Inclusion Act or Train Law, the Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) No. 96-2018 on Nov. 29, 2018, to provide clarifications on the tax treatments of the following:
The P90,000 threshold refers to the nontaxable limit on bonuses (i.e., 13th month pay, Christmas bonus) and excess of de minimis benefits. The recent issuance will serve as guide in computing the 13th month pay of the employees for taxable year 2018.
RMC No. 96-2018 will take effect immediately.
P&A Grant Thornton
Certified Public Accountants
Punongbayan & Araullo (P&A) is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu dated 4 December 2018.