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withholding tax

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1 withholding tax on Mon Dec 23, 2013 12:04 pm

cjlarenas


Arresto Menor
Minimum pay earners are exempted from Withholding Tax on Compensation.
However, if an employee is receiving other benefits (daily allowance) not included and considered in de minimis he/she is now taxable including his/her salary.

Like in a company, an employee is receiving a transpo allowance of P30.00 per day or P9,360.00 in a year . Considering the ceiling of P30,000.00 per year on other benefits with P11,076.00 13th Month Pay.

Allowance - P9,360.00
13th Month Pay - P11, 076.00
Total - P20,436.00

P20,436.00 is below the P30,000.00 ceiling. Is the employee now subject to tax?

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2 Re: withholding tax on Mon Dec 23, 2013 1:11 pm

HR Adviser


Reclusion Perpetua
no

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3 Re: withholding tax on Mon Dec 23, 2013 1:26 pm

Patok


Reclusion Perpetua
it's still below the 30K allowable for other income/bonuses/allowance.

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4 Re: withholding tax on Mon Dec 23, 2013 2:26 pm

cjlarenas


Arresto Menor
is de minimis different from other benefits? or de minimis plus other benefits = 30,000.00 ceiling?

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5 Re: withholding tax on Mon Dec 23, 2013 5:01 pm

Patok


Reclusion Perpetua
everything extra is included in the 30K ceiling.. anything excess of 30K is taxable..

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6 Re: withholding tax Today at 7:57 pm

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