Next year, the government will not tax 13th month pay and other bonuses of up to P90,000 under a compromise reached by the Senate and House panels reconciling their versions of the proposed Tax Reform for Acceleration and Inclusion (TRAIN) Act. ADVERTISEMENTUnder the Senate version of the proposed tax reform measure, the increase in the coal tax will be collected in three tranches until 2020 on top of the current P10 excise tax. ADVERTISEMENTThe panels agreed to increase from P82,000 to P90,000 the tax exemption cap on the 13th month pay and other bonuses that include productivity bonuses and Christmas bonuses, Sen. Sonny Angara said. “Next year, the tax exemption on the 13th month pay and other bonuses would be bigger and the government could not tax this so the take-home pay will be bigger. Also still to be tackled is the excise tax on petroleum and the automobile excise tax.

Source: Philippine Daily Inquirer December 07, 2017 22:07 UTC