New Tax Exemption Ceiling

On 12 February 2015, Philippine President Benigno S Aquino III signed into law Republic Act 10653.

This amended the National Internal Revenue Code of the Philippines, effectively increasing the tax exemption allowance for other benefits (such as the 13th month pay, Christmas bonuses and other incentives) to a maximum of PhP82,000 (Eighty Two Thousand Pesos) from the previous P30,000 (Thirty Thousand Pesos).

With this, the President is also mandated to adjust this threshold every three years to its present value using the consumer price index (CPI) published by the National Statistics Office (NSO).

The full document can be downloaded here.

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