Tag Archives: tax

More from Your Bonus: A Welcome Valentines Gift

Government has a bit of Valentines gift to people who rely on salaries to support themselves and their families — an increase in the tax exemption for 13th month pay and other bonuses/benefits. On 12 February 2015, two days before Valentines, President Aquino signed Republic Act No. 10653 (full text), increasing the tax exemption of bonuses from P30,000 to P82,000. Continue reading

Increase the Maximum Bonus and 13th Month Pay Tax Exemption?

A proposal is currently pending in the Senate to increase the tax exemption of 13th month pay, Christmas bonuses, productivity incentives and similar benefits — from the original maximum tax-free amount of P30,000 to P75,000. The proposal also provides for an adjust of the cap every three years, to raise the maximum exemption to its present value using the consumer price index. Under existing laws, any amount beyond P30,000 is subject to income tax. Continue reading

Why Sari-Sari Stores, Carinderia and other Marginal Income Earners Must Register with BIR

The Bureau of Internal Revenue recently issued Memorandum Circular No. 7-2014, clarifying the issues relating to the registration and tax compliance requirements of Marginal Income Earners (MIE). The circular provides that an MIE refers to an individual not deriving compensation as an employee under an employer-employee relationship but who is self-employed and deriving gross sales or receipts not exceeding P100,000 in any 12-month period. Moreover, the activities of such MIE should be principally  for subsistence or livelihood. The term includes, but not limited to, agricultural growers/producers (farmers/fishermen) selling directly or indirectly to ultimate consumers, small sari-sari stores, small carinderias or “turo-turos”, drivers/operators of a single unit tricycle, and such, but shall not include licensed professionals, consultants, artists, sales agents, brokers and others similarly situated, including all others whose income have been subjected to withholding tax. Continue reading

Tax Registration and Requirements of Marginal Income Earners (Memorandum Circular 7-2014)

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REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF FINANCE
BUREAU OF INTERNAL REVENUE

February 5, 2014

MEMORANDUM CIRCULAR NO. 7-2014

SUBJECT : CLARIFYING THE ISSUES ON THE REGISTRATION AND COMPLIANCE REQUIREMENTS OF MARGINAL INCOME EARNERS PURSUANT TO REVENUE REGULATIONS NO. 7-2012

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New Regulations for Tiangge or Privilege Stores

On 22 August 2013, the Bureau of Internal Revenue (BIR) issued a new set of regulations that cover tiangge or privilege stores, basically the payment of business/income taxes and the obligations of organizers/exhibitors/operators of the tiangge. This is Revenue Regulation No. 16-2013. RR 16-2013 provides that it shall take effect 15 days after its publication in a newspaper of general circulation. Since it was published in the Manila Bulletin on 27 September 2013, it took effect effect on 12 October 2013. Continue reading

Tax Amnesty Available until May 2008

The last day to avail of tax amnesty is 5 May 2008. Now, before you get excited because you may happen to have failed to file your income tax return by 15 April 2008, this tax amnesty refers to all national internal revenue taxes for the taxable year 2005 and prior years that have remained unpaid as of 31 December 2005. Continue reading

Implementing Rules and Regulations of RA 9480

DEPARTMENT ORDER No. 29-07

August 15, 2007

RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT No. 9480

Pursuant to Section 15 of Republic Act No. 9480, “An Act Enhancing Revenue Administration and Collection By Granting An Amnesty On all Unpaid Internal Revenue Taxes Imposed by the National Government For Taxable Year 2005 and Prior Years,” the following rules and regulations are hereby promulgated to implement the provisions of said Act.

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