Great tax news!
For all my Filipino blogger-friends who are working as a corporate rat here in the Philippines, well, I have some good news for you. Ready? 🙂
There will be no more tax deductions for minimum wage earners! Let us thank Mar Roxas for authoring Republic Act 9504. Yey!!!
The law was signed today declaring that for every minimum wage earner here in the Philippines, there will be no more tax deduction in your salaries. Now that is a big help for so many Filipinos earning minimum wage right now. Remember, when a tax law, ruling, regulation is changed within the year, it will become effective for the whole year. It means that for those people who are deducted with tax from their January to June 15th salaries, you can get a refund come December. For minimum wage earners only, okay?
Now, for those who are earning more than the minimum wage, there is a good news for you as well. The personal tax exemptions for single (Php20,000), head of the family (Php25,000) and married individuals (Php32,000) are now fixed to Php50,000! And an additional exemption for qualified dependents has been increased to Php25,000 per dependent from the previous Php8,000 per dependent.
To top it off, the senator added that all holiday, night differential, hazard, and overtime pay would also be tax-exempt.
That will reduce tax deductions by a significant amount. Expect tax refunds or lower tax deductions come November and December of this year people!
When I was still working as a corporate rat, my tax deduction could pay two assistants already. It was that painful to look at when I get my payslip. With this change in the tax table, I might be lured back to work as a corporate rat… Might is the operative word there hehe… If I will not go to work on Mondays, well, that will be a greater pull 😉
*More information on the new tax bill here.