Question & AnswerQ&A (BIR Revenue Regulations No. 3-2015)
The main purpose is to implement Republic Act No. 10653 which increases the total amount of exclusion for 13th month pay and other benefits from gross income to P82,000 for income tax purposes.
It amends the pertinent provisions of Revenue Regulations No. 2-98 as well as Section 32 (B), Chapter VI of the National Internal Revenue Code (NIRC) of 1997, as amended.
The new exclusion amount is Eighty Two Thousand Pesos (P82,000.00).
No, the P82,000 exclusion applies only to the 13th month pay and other benefits as prescribed under Section 2.78.1.(B)(11) of RR No. 2-98, and does not apply to basic salary or other allowances.
No, the exclusion does not apply to self-employed individuals or income generated from business.
The exclusion applies to 13th month pay and other benefits paid or accrued beginning January 1, 2015.
Employers must ensure the correct computation and application of the P82,000 exclusion in year-end adjustments and indicate this in the Certificate of Compensation/Tax Withheld (BIR Form No. 2316).
The employee should immediately furnish the new employer with the BIR Form No. 2316 issued by the previous employer for proper withholding tax computation and year-end adjustment.
Violations are subject to corresponding penalties under the pertinent provisions of the National Internal Revenue Code of 1997, as amended, and applicable BIR regulations.
The remainder of the regulations or any unaffected provisions shall remain in full force and effect as stated in the separability clause.
The regulations took effect fifteen (15) days after publication in a leading newspaper of general circulation.
Any inconsistent existing regulations, rulings or orders are revoked, repealed, or amended accordingly as stated in the repealing clause.