Minimum wage earners tax free
President Gloria Macapagal-Arroyo has signed into law the bill exempting minimum wage
earners from paying income tax and increasing the personal exemptions for other employees. The President said the new law is expected to help ease the impact of continuing rise in oil and food prices on the people, as it would “provide relief and additional money to spend for basic necessities especially for the minimum wage earners.” Under the new law, payments received by minimum wage earners for all holiday, night differential, hazard, and overtime should be exempted from taxes. It also increases personal exemptions for individual taxpayers to P50,000 from 20,000 for single; from P25,000 for head of the family; from P32,000 for married; and from P8,000 for each qualified dependents of up to four. The law also provides additional deduction for qualified dependents. For example, in the case of a family of six with two working spouses and four dependent children, they used to enjoy total exemptions of P96,000, but with the new law, the new amount of exemptions would be P200,000.
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I am kind of bewildered by the fact that the B.I.R. still continues to deduct taxes on my meager income despite the R.A. 9504 already being an operative law. Is there anybody out there who can help the famish Filipinos such as myself from this depredation? Is R.A 9504 already in effect? Pls. advice.
dont fret… outsourced minimum wage earners in our office are tax free … our office do not deduct for bir anymore