Welcome to LVS Rich Publishing!
(02) 8579-9170 | Buy Guide

Tax Law

12 Oct

Salary Differential is Not Taxable Per BIR; RMC 105-2019 PDF

Salary differential is one of the novel features in the new maternity law. R.A. 11210 expanded the benefit by generally increasing it to 105 days subject to additional days under certain situations. The Implementing Rules and Regulations have been issued by the Department of Labor and Employment. Under Section 2 of the IRR, the following benefits are granted under the 105-day Expanded Maternity Law (EMLL) in the private sector: One hundred five (105) days for the live childbirth, regardless of the mode [...]

By Tax Law 19 Comments Read more...
05 Jul

Sample De Minimis Benefits of Employee with PhP20,000 Monthly Salary

The term “De Minimis” benefits (DMB) which are exempt from the fringe benefit tax and income tax shall, in general, be limited to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, good- will, contentment, or efficiency. (See page 103, Tax Solutions on Employee Compensation and Benefits 2nd Edition [Aligned with TRAIN Law], 2019 [...]

By Tax Law 9 Comments Read more...
15 Jun

De Minimis Benefits Sample Computation for NCR Employees

“De Minimis” benefits (DMB) are exempt from the fringe benefit tax and income tax shall, in general, be limited to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, good- will, contentment, or efficiency. With the enactment of the TRAIN Law many wonder whether changes have been made on the non-taxability of the DMB under [...]

By Tax Law 10 Comments Read more...
03 Jun

Tax Amnesty Revenue Regulation No. 6-2019 PDF

Tax amnesty pursuant to R.A. 11213 or an Act Enhancing Revenue Administration and Collection by Granting an Amnesty on All Unpaid Internal Revenue Taxes Imposed by the National Government for Taxable Year 2017 and Prior Years with Respect to Estate Tax, Other Internal Revenue Taxes, and Tax on Delinquencies. (Original file is not mine) Advertisement: Design Your Salary Structure Using Tax Savings Methods (De Minimis, 13th Month Pay and other Benefits, etc.) with the book Tax Solutions on Employee Compensation and [...]

By Tax Law , 13 Comments Read more...
30 Apr

De Minimis Benefits Utilization: Illustrating Salary Adjustments Based On NCR Wage Order No. 22 (Php537)

De Minimis benefits which are exempt from the fringe benefit tax and income tax shall, in general, be limited to facilities or privileges furnished or offered by an employer to his employees that are of relatively small value and are offered or furnished by the employer merely as a means of promoting the health, goodwill, contentment, or efficiency. It literally means small amount. The list was amended and made exclusive by RR 5-2011. Additional P10,000 annual benefit was added by [...]

By Tax Law 13 Comments Read more...
12 Apr

Train Law and its Impact on Employee Compensation and Benefits

TRAIN Law or R.A. 10963 was passed which changed the landscape of taxation of employee compensation. At least for those whose monthly basic income ranges from the minimum up to PhP20,833.00. There are other significant impact of the TRAIN Law like the increase in the ceiling of 13th month pay and other benefits. However, it is the change introduced in the monthly withholding and new tax rate that is more considerable since the working man feels it every pay day. Employees [...]

By Labor Law, Tax Law 8 Comments Read more...
09 Apr

Employment Tax of Employee Who Has a Side Business Under the TRAIN Law

Employment tax differs depending on the status, level of income, number of sources of income of employee. While the double job approach is not yet popular in the Philippines unlike in many other countries, there are full-time employees who run a business on the side. In such case, what is the tax implication? Does the 8% rate apply in this case? The TRAIN law provides as well for the rate of tax on income of purely self-employed individuals and/or professionals whose gross [...]

By Labor Law, Tax Law 9 Comments Read more...
25 Feb

Separation Pay Received for Redundancy, Retrenchment, or Cessation of Business, Beyond the Control of Employee is Non-Taxable

Separation pay is mandated to be given to employee who is terminated due to redundancy as set forth under Article 298 of the Labor Code, as amended. In general, this applies to retrenchment and termination due to cessation or closure of business. There is an exception as held in the cases of North Davao Mining vs. NLRC (G.R. No. 112546, March 13, 1996.) and Reahs Corporation vs. NLRC (G.R. No. 117473, April 15, 1997). (See discussion of said cases on pp. 289, [...]

By Labor Law, Tax Law 28 Comments Read more...
06 Dec

Health Card Premiums Remain Non-Taxable

Health card premiums tax has been the major concern of employers with the issuance of RMC 50-2018. Based on said RMC, the health card premiums paid by the employer for all employees, whether rank-and-file or managerial/supervisory, under a group insurance should be included as part of other benefits of these employees which are subject to the PhP90,000.00 threshold. However, individual premiums (not part of group insurance) paid for selected employees holding managerial or supervisory functions are considered “fringe benefits” subject [...]

By Tax Law , , 13 Comments Read more...
17 Nov

Tax Rates Options For Professionals, Self-Employed And Mixed-Income Earners Under The Train Law

Tax rates available for individuals earning from self-employment/business and/or practice of profession under the TRAIN Law are those in graduated rates and 8%. The BIR issued Revenue Memorandum Order (RMO) 23-2018 to prescribe policies, guidelines and procedures in availing of the eight percent (8%) income tax rate option of individuals earning from self-employment/business and/or practice of profession relative to the implementation of the Republic Act No. 10963. In the form of policies and guidelines, the RMO 23-2018 provides that in general, [...]

By Tax Law 9 Comments Read more...
error: Content is protected !!