If you are earning P21,000 or less per month (with a gross income of P273,000 inclusive of the 13th-month pay and other benefits), you might soon be exempted from paying for your personal income tax.
Quirino Representative Dakila Cua filed for the revised Comprehensive Tax Reform Plan (CTRP) Package One under House Bill (HB) 4774. This retained the DOF-proposed exemptions on the first P82,000 of earnings from the 13th-month pay and other bonuses received by taxpayers.
Yet, the filed bill will increase the threshold for those who will get exempted from paying personal income tax.
Moreover, if this pushes through, this means a savings of P21,000 per year if you are earning P21,000 per month.
The filed bill also aims to decrease the rates for estate and donor’s taxes, adjusting automobile and fuel excise taxes, and expanding the value-added tax (VAT) base. Still, it will retain the tax exemptions for senior citizens and persons with disabilities.
It will introduce a sugar-sweetened beverage tax, index the motor vehicle user’s charge to inflation, and provide an amnesty to past estate tax cases.
Moreover, this tax reform bill will reduce the estate tax, which is a tax imposed on the privilege of transferring ownership of properties upon the death of the owner, from the current maximum rate of 20% to 6%.
Anything to add to this story? Share your thoughts with us.
