BIR: Gov't Workers' Tax Not New, Based On 1997 Law
BIR: Gov't Workers' Tax Not New, Based On 1997 Law
BIR: Gov't Workers' Tax Not New, Based On 1997 Law
“We would like to clarify that we did not impose any new
tax. We issued an RMO to clarify that, under Section 32 of
the Tax Code, all compensation, whether in cash or in
kind, whatever they maybe called, are subject to income
tax and therefore, proper withholding tax should have
been deducted and remitted,” Henares said.
“This has been the law since 1997. The private sector and
the executive branch by and large know this and they have
been strictly monitored for compliance,” Henares said.
In issuing RMO 23-2014 on June 20, 2014, the BIR said this
only sought “to clarify and consolidate the responsibilities
of the public sector to withhold taxes on its transactions
as a customer (on its purchases of goods and services)
and as an employer (on compensation paid to its officials
and employees) under the National Internal Revenue Code
(NIRC) of 1997, as amended, and other special laws.”
Anniversary bonus
Special Technical Assistance Allowance
Efficiency Incentive Benefits
Additional food subsidy
Eight (8th) Salary Range Level Allowance
Hospitalization Benefits, Medical Allowance
Clothing Allowance
Longevity Pay, Food Subsidy
Transition Allowance
Cost of Living Allowance
Inflationary Adjustment Assistance
Mid-Year Economic Assistance
Financial Relief Assistance
Grocery Allowance
Thirteenth (13th) Month Pay
Cash Gift and Productivity Incentive Benefit and
other allowances
Bonuses and benefits given by the Philippine
Senate and House of Representatives to their
officials and employees, subject to the exemptions
enumerated in the RMO
Judicial branch
Constitutional offices
Executive