Despite objection from the Bureau of Internal Revenue (BIR), Congress will prioritize the passage of the bill raising the tax exemption cap on 13th-month pay, Christmas bonus and other work benefits.
Congress leaders have agreed to give “urgent legislative attention” to the measure that seeks to raise the tax exclusion limit on 13th-month pay and other bonuses from the current P30,000 to P75,000. Republic Act 7833, signed in 1994, specifies the current tax exemption cap on bonuses. The increased thresholds will give employees some relief from the effect of inflation.
