Teachers ask DEPED, BIR to clarify tax on bonuses
The Teachers’ Dignity Coalition (TDC) asks the Department of Education (DepEd) and Bureau of Internal Revenue (BIR) to issue clarification on the taxes deducted from the bonuses of public school teachers, particularly the performance-based bonus (PBB).
The PBB is a bonus granted by the government to its employees, the amount ranges from P5, 000 to P35, 000 depending on the performance of the employees and their agency. Teachers’ PBB for school year 2013-2014 is supposed to be released by October, however, until this very day, majority of teachers nationwide are still waiting for their PBB. It is worthy to note that this PBB has not been released in all regions aside from the Regions II, III, IV-A, VII and NCR, as of the moment.
Unfortunately, those that were able to receive theirs are complaining of outright deductions of supposed taxes. However, the amount differs from one division to another. For instance, tax deducted in some schools in Cebu, Nueva Vizcaya and Isabela is 10% of the PBB, in Negros Oriental it is higher at 20%, while in Tarlac and Pampanga, it is only 8%. There are also some cases where teachers paid 25 and 30 percent in taxes. But most of the divisions, especially in NCR and CALABARZON have no deductions.
As per Revenue Memorandum Order (RMO) 23-2014 which is based on the RA 8424 or the National Internal Revenue Code, taxes may only be collected to the amount of bonuses that exceeds P30, 000. The order further enumerates the taxable and non-taxable compensation, and the PBB along with the P5, 000.00 productivity enhancement incentive (PEI), 13th month pay and other bonuses are among those included in taxable items.
We seek for the immediate clarification of this matter while we wait for the implementation of the proposal that the praises tax-exemption cap on bonuses.
Benjo Basas, National Chairperson, 0920-5740241
Anabelle Dela Cerna, TDC-Cebu, 0929-6907602
December 30, 2014
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