Tax Exemption Of Minimum Wage Earners And Other Tax Relief

[Mr Lee]

While this is old news it is something I believe people who wish to work or earn income while in the Philippines need to know and I believe it should apply to expats as well? Anyone know or care to comment? The President signed into law on June 17, 2008 Republic Act No. (RA) 9504 granting additional tax relief to individuals and corporations, as follows:The new law exempts minimum wage earners in the private and public sector from payment of income tax. The exemption will cover not only the basic pay but also holiday pay, overtime pay, night shift differential, and hazard pay received by said minimum wage earners. Prior to enactment of RA 9504, individual employees whose compensation income does not exceed the statutory minimum wage or five thousand pesos (P5,000) per month were exempted from withholding tax under Revenue Regulations No. 01-06. The law grants minimum wage earners full tax exemption by exempting them from payment of income tax. 2. Increase in personal and additional exemptionsRA 9504 increases the level of personal exemption allowance of each individual taxpayer to a uniform amount of P50,000 regardless of the status of the taxpayer, and additional exemption allowance for each qualified dependent from P8,000 to P25,000, as follows: