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15% Preferential Tax Rate for ROHQ Employees

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1 15% Preferential Tax Rate for ROHQ Employees on Tue Oct 04, 2011 9:40 pm


Arresto Menor
Good Day!

I am an employee of a ROHQ company here in the Philippines, and I just have some questions regarding the availment of the 15% preferential tax rate.

My first question is on the Position and Function Test. RMC No. 041-09 defined the term "technical position" as being limited only to positions that are highly technical in nature OR where there are no Filipinos who are competent, able and willing to perform the services for which aliens are desired. I am a Java Developer who reports and works with my counterparts abroad. My responsibility includes developing enhancements, fixing bugs, providing documentation, and maintaning the application. Does IT functions such as mine fit in the definition of a "technical position"? Can you cite examples of positions which qualifies the description of a “technical position”?

My other question is on the Compensation Threshold Test . It was also stated that in order to be considered for availment of the preferential tax rate, the employee must have received, or is due to receive under a contract of employment, a gross annual taxable compensation of at least PhP 975,000.00. Are other allowances and bonuses (such as rice allowance subsidy, transportation subsidy, clothing subsidy, perfect attendance bonus, leave conversion, night differential pay) included in the computation of the gross annual compensation?

Hoping for your advice regarding this matter.

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Arresto Menor
Good day!

I'm a newbie here and am also interested on the inquiry made by oslec86 regarding the computation of the gross compensation. Are allowances such as transportation, leave conversion etc included in the gross compensation computation?

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