Law Summary
Amendatory Provisions on Revenue Regulations No. 2-98
- Raises the exclusion limit for 13th month pay and other benefits to P82,000 as per RA No. 10653.
- Clarifies that the P82,000 exclusion applies solely to 13th month pay and other benefits under Section 2.78.1.(B)(11) of RR No. 2-98.
- Other compensation such as basic salary and allowances are not covered by this exclusion.
- Exclusion does not apply to self-employed individuals or business income.
Transitory Provisions and Implementation Procedures
- The P82,000 exclusion applies to 13th month pay and other benefits paid or accrued starting January 1, 2015.
- Employers must correctly compute and apply this increase during year-end adjustments.
- This information must be reflected in the Certificate of Compensation/Tax Withheld (BIR Form No. 2316).
- Employers must issue BIR Form No. 2316 to employees by January 31 of the following year or upon termination.
- Employees changing employment within the year must provide the previous employer's BIR Form No. 2316 to the new employer for proper tax computation.
Penalties
- Violations of these regulations will be subject to penalties prescribed under the National Internal Revenue Code (NIRC) and BIR rules.
Separability Clause
- If any provision is declared invalid by a court, the rest of the regulations remain effective and binding.
Repealing Clause
- Supersedes any inconsistent regulations, rulings, or orders to the extent of inconsistency.
Effectivity
- The regulations take effect fifteen days after publication in a leading newspaper of general circulation.