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lovephileo's review
Investment Sector: Fixed Income Submitted by Lovephileo 
, WEB CONSULTANT / PASTOR
at LIGHT OF THE WORLD CHRISTIAN CENTER
5 months ago Tags: Act 9504 tax exempt income tax labor day tax payer Tax Add Tag |
Many labor days have come and gone fighting for Republic Act 9504, that the income tax exemption of minimum wage earners be put into law, that their earnings would no longer be subjected to witholding tax - at last certified urgent by Malacanang and the House and the Senate as a gift on RP's labor day.
President Arroyo lately signed a law ammending the Republic Act 9504 or the National Internal Revenue Code of 1997 exempting more than a half-million Filipinos from paying income tax and increase the personal exemptions for employees as part of efforts to help the poor from rising food and energy prices. This move would mean the government is giving up about 14 billion pesos (315 million dollars). This loss revenue seems to be a huge sacrifice that needs cooperation by the individual tax payers and corporation to religiously assist the government by paying proper traxes to compensate such loss.
New Philippines law gives half a million people income tax relief. Arroyo signs law on tax exemption for minimum wage earners.
Tax exemption would translate into an additional take home pay of P750 a month or P34 a day. This indeed will provide relief and additional money to spend for our workers which is needed more than ever at this time of unending price increase of basic commodities. Included in this Act is tax exempt on all holiday, night differential, hazard and overtime pay both from the private and government sectors.
For this passage, an employee earning P455/day or P10,010.00/month would have an additional take-home pay of P472.59/month if not married; P678.50/month if head of the family and P580.09/month if married with four children.
Further, an employee earning P683/day or P15,026/month would have an additional take home pay of P545.26/month if not married, P1,307.18/month as head of the family and P1,190.50/month for those with four children.
Moreover, the measure raised the personal tax exemption to P50,000/individual tax payer and additional exemptions to P25,000/dependent up to four dependents. Before, the tax code only allows a P24,000 exemption for single individual, a R25,000 exemption for a head of family and P32,000 exemption for each married individual. In effect, a family of six both spouses working will get tax exemption if their annual income is P200,000 or less.
Of the estimated 2.484 million compensation income tax filers in 2004, about 87% are minimum wage earners.
Hope that this bill will really benefit the low-income earner and would serve the poor on a long-term basis not a mere band-aid solutionto the present economic storm.
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WEB CONSULTANT / PASTOR at LIGHT OF THE WORLD CHRISTIAN CENTER
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