QuestionsQuestions (BIR REVENUE REGULATION NO. 1-92)
It amends the withholding tax regulations on compensation by prescribing the collection at source of income tax on compensation paid on or after January 1, 1992, using Revised Withholding Tax Tables that account for increased personal and additional exemptions.
It cites Sections 245 and 72 of the National Internal Revenue Code in relation to Republic Act No. 7167.
It applies to compensation income paid on or after January 1, 1992.
RR No. 1-92 amends Revenue Regulations No. 6-82, as amended by Revenue Regulations No. 12-86 (the original withholding tax regulations on compensation).
An employer making payment of compensation shall deduct and withhold from such compensation a tax determined according to the Revised Withholding Tax Tables effective January 1, 1992.
The Revised Withholding Tax Tables shown in Annex “A”, effective January 1, 1992, which take into account increased personal and additional exemptions.
It reiterates that withholding tax is required; the employer must deduct and withhold based on the prescribed revised tables effective January 1, 1992.
P9,000.00.
Each employed spouse is entitled to a personal exemption of P9,000.00.
The employed spouse is entitled to P18,000.00.
P12,000.00.
P5,000.00 for each qualified dependent child, not to exceed four (4) dependent children.
The husband is deemed the proper claimant of the additional exemption for dependent children.
Yes. The option of claiming additional exemption and the special additional personal exemption by either husband or wife must be exercised and reflected in the joint income tax return.
It is available if the gross compensation income of a single, married, legally separated individual, or head of family does not exceed the aggregate (combined compensation income of husband and wife) amount of P20,000.00.
The threshold is based on the aggregate amount of P20,000.00, which is the combined compensation income of husband and wife.
All existing rules and regulations or portions thereof inconsistent with RR No. 1-92 are revoked.
The regulations take effect on compensation income from January 1, 1992.