Wednesday, July 2, 2014

More Taxes Imposed on Allowances of Government Employees

Prices of commodities have gone up, so is the minimum fare. Still, the salaries of workers are the same.  The salaries of government employees have also remained the same for the last four years or so. Now, the government has found another way to milk the government employees for whatever extra money they receive from their government service.  I just noticed, why is the government hell bent on acquiring more funds from taxes when it consistently fails to provide decent public service? 

Ladies and gentlemen, without further adieu, I give you... BIR Revenue Memorandum Order No. 23-2014 which was issued on June 20, 2014. (Applause...Applause... not!!)

The Memorandum Order specifies the benefits that are subject to withholding tax, namely:

A. Allowances, bonuses, honoraria or benefits received by employees and officials in the Legislative Branch, such as anniversary bonus, Special Technical Assistance Allowance, Efficiency Incentive Benefits, Additional, Food Subsidy, Eight (8th) Salary Range Level Allowance, Hospitalization Benefits, Medical Allowance, Clothing Allowance, Longevity Pay, Food Subsidy, Transition Allowance, Cost of Living Allowance, Inflationary Adjustment Assistance, Mid-Year Economic Assistance, Financial Relief Assistance, Grocery Allowance, Thirteenth (13th) Month Pay, Cash Gift and Productivity Incentive Benefit and other allowances, bonuses and benefits given by the Philippine Senate and House of Representatives to their officials and employees, subject to the exemptions enumerated herein. 

B. Allowances, bonuses, honoraria or benefits received by employees and officials in the Judicial Branch, such as the Additional Compensation (ADCOM), Extraordinary and Miscellaneous Expenses (EME), Monthly Special Allowance from the Special Allowance for the Judiciary, Additional Cost of Living Allowance from the Judiciary Development Fund, Productivity Incentive Benefit, Grocery Allowance, Clothing Allowance, Emergency Economic Allowance, Year-End Bonus, Cash Gift, Loyalty Cash Award (Milestone Bonus), SC Christmas Allowance, anniversary bonuses and other allowances, bonuses and benefits given by the Supreme Court of the Philippines and all other courts and offices under the Judicial Branch to their officials and employees, subject to the exemptions enumerated herein. 

C. Compensation for services in whatever form paid, including, but not limited to allowances, bonuses, honoraria or benefits received by employees and officials in the Constitutional bodies (Commission on Election, Commission on Audit, Civil Service Commissioner) and the Office of the Ombudsman, subject to the exemptions enumerated herein. 

D. Allowances, bonuses, honoraria or benefits received by employees and officials in the Executive Branch, such as the Productivity Enhancement Incentive (PEI), Performance-Based Bonus, anniversary bonus and other allowances, bonuses and benefits given by the departments, agencies and other offices under the Executive Branch to their officials and employees, subject to the exemptions enumerated herein. 

The tax rate shall depend on which bracket the income of an employee falls on.

So there, it's as if we're working our as**s off for the government just so the latter can tax us. Sheesh!

If you want to see the entire contents of this BIR Memo, click here.

sMiLe!!

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