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Is the allowance given to me in an informal work arrangement taxable?

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frozenviolette


Arresto Menor
Hello,

From April to December 2011, my boss hired me as an assistant in her personal capacity. We had no formal/written arrangements /contract whatsoever. I was not required to pay PhilHealth and SSS contributions and she did not require me to have a TIN number. She gave me an allowance of P18,000/month. Is this allowance tax exempted or do I have to pay tax for this? If I have to pay tax for it, how do I compute the tax due plus penalties if I intend to file it this year? Also, do I really have to supply BIR my former boss' TIN number in the form or is her full name sufficient? Am I the only one liable or does my former boss have liability as well?

Thanks for your help and looking forward to your response.  Smile

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council


Reclusion Perpetua
frozenviolette wrote:Hello,

From April to December 2011, my boss hired me as an assistant in her personal capacity. We had no formal/written arrangements /contract whatsoever. I was not required to pay PhilHealth and SSS contributions and she did not require me to have a TIN number. She gave me an allowance of P18,000/month. Is this allowance tax exempted or do I have to pay tax for this? If I have to pay tax for it, how do I compute the tax due plus penalties if I intend to file it this year? Also, do I really have to supply BIR my former boss' TIN number in the form or is her full name sufficient? Am I the only one liable or does my former boss have liability as well?

Thanks for your help and looking forward to your response.  Smile

That's 3 years ago. What have you been doing since 2012?

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frozenviolette


Arresto Menor
I've been gainfully employed in the private sector since then. This matter slipped my mind until I read something about taxable allowances (I don't know if this applies to my situation before.) So is it taxable and if it is, how do I compute for the tax due plus penalties? Thanks so much for all your replies. Smile

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council


Reclusion Perpetua
frozenviolette wrote:I've been gainfully employed in the private sector since then. This matter slipped my mind until I read something about taxable allowances (I don't know if this applies to my situation before.) So is it taxable and if it is, how do I compute for the tax due plus penalties?  Thanks so much for all your replies. Smile

Any tax due would be computed for all income in 2011, with a maximum of 32%. Plus penalties of up to 50% of amount.

For an exact computation, you need to go to BIR, which might not be a good thing for you.


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