An Act Amending Sections 22, 24, 34,35, 51 and 79 of Republic Act no. 8424, as amended, otherwise known as The National Internal Revenue Code of 1997
Looking at the stats of this site, I’m sure many are already looking for a copy of the law. I have good and bad news: the good news–I have a copy of the law; the bad–I have a bad copy.
Download: RA-9504 pdf (440kb)
As expected, there were no changes in the progressive tax table. Our lawmakers and our President sure have gained credits for themselves for passing the bill into law. But it only did affect the personal exemptions allowed for most of us taxpayers. Only a part of the taxable income was adjusted, not the whole.
Come to think of it, rice in 1997 was (at the maximum, maybe) P20 per kilo. Now, how much is it? You can answer that question. That’s basically how inflation has gone up since 1997, when the original law (RA 8424) was enacted.
Hi! Thanks for the info. When will the law be operational? Will it need Implementing Rules and Regulations from the BIR before it comes into effect? I’m a bookkeeper in a small firm and I wonder how it will affect us. Sobrang over-rated naman ang batas na ito… kakapiranggot lang naman pala ang magiging benefit sa mga taxpayers. Kinuha na lahat ni GMA ang credit pero kung tutuusin dapat matagal na nga yang isinabatas.
That’s exactly my point. Before people starts rejoicing about this development, it’s better if they do a reality check first.
I’m not aware of the what becomes of the implementing rules and regulations. Last time I checked the BIR website, they have one but a “draft” one. I don’t if it’s final already as of today.
Thanks for commenting. After a long time, watching my traffic spike up because of this post, one did really bother leave a comment. Thanks again!
The bad copy was good enough on large screen. The law is good enough, too. Trouble is, BIR wants to cut the benefit in half instead of allowing it for the entirety of 2008. Gobyerno natin talaga!
Sabi ng Classmate ko sa MBA (coz he is from an auditing firm and his assignment is on Tax) it will be effective this July but when I asked our payroll department he told me that the implementing rules and reglation is on hearing yet (thus it is subject for approval pa?). Wala pa raw final IRR….. kelan ba talaga at sino ba papaniwalaan ko. Hope you can help me
The last news i got regarding its implementation date is July 6, 2008. To follow pa daw ang Guidelines ???
Hope you can help us..
Kung implementation lang ang iniisip ninyo, fully implemented na. Kaya lang nagkakagulo ngayon ay dahil gusto hatiin ng BIR ang implementation. That is, from Jan-June, they want to implement the old law, then itong bago July to December lang. So in effect, ang exemption ng “single” ay 10thou lang for Jan-June and 25thou for July to Dec.; ang HF 12.5thou Jan-Jun, 25thou July-Dec, and so on . . .
Magulo di ba? Dapat kasi, implement na lang for the entirety of 2008, tapos! Di na kailangan pang hintayin IRR ng palpak na BIR!
Sa totoo lang, tayong may mga babayaran pa din, maliit lang ito. Pero sa minimum wage earner, malaking bagay ito,…. kay okay na din.
Well, that’s not exactly my point. My point is, these politicians should stop rejoicing over themselves ‘coz they haven’t given even half of what we deserve.
Dapat 200 pesos lng ang babayaran nating tax monthly.. mapupunta lng naman yan sa bulsa ng mg politicians.. if we are receiving minimum or above minimum wage pinaghirapan din nman natin to.. doon nlng cla mg focus sa evat na yan at saka kong bumibili tayo ngbabayad din naman tayo ng vat. Do u think politicians are religiously paying income tax? Congress alisin nyo na ang witholding tax….
I went ito seminar yesterday of the PMAP, sabi nila dun, As of Aug. 6, 2008 5 pm, nagpalabas nanaman ng bagong draft ang BIR, kase maraming butas pa ang unang draft, like for instance, people are currently receiving minimum wage, so wala silang withholding and tax but on the moment for the same year that they have an incremental increase or merit basta nagkaroon ng increase rectroactively all there income be taxable, the burden was kailangan humabol sa tax ng previously minimum wage earners, and ang laki ng kailangang habulin!! badtrip db?!?!
Isa pa sa issues ay ung rates from different regions, the assignment of person from NCR receiving a minimun of 382 per day, so what will happen daw, kailangan daw bang ibaba ung wage nung tao? ang gulo db?
Finally, some people will also abusely do it by having much overtime, nighshifting. and the burden was those people earning above minimum ng konti, sobrang degrading!
So for BIR, sana before magset ng deadlines, finalize it first. and pahabol lang, my quarterly alphalist na ang deadline ay 5th day of the following month after the quarter and the semi-annual alphalist deadline ay August 31, 2008!!! Its a BIG burden on the part of the accountants and Payroll master!!!!
Hi Vj, I sympathize with your situation. Eto namang mga mambabatas natin bsta bsta lng gumagawa ng batas na maraming butas.
I say, overhaul the whole NIRC law. Not just amend a portion of it!
{….} db prang nloloko lng tau ng mga taga BIR n yn,d na ntin alam kng saan tlaga npupunta ang mga knkaltas s atin lalo n s mga maliliit n mangagawa puro cla tax cla lng ang nkikinabang s mga pinagpguran ntin. ibaba ang tax ng mga mangagawa,npakalaking bagay nit pra sa atin ng saganon mabawasan ang pamamasyal ng mga politiko n yan sa ibat ibang bansa gamit ang pera ng taung bayan… wlang halaga ang mga batas nyo kong d nman nka2tulong s taung bayan..
Ewan ba naman ang mga opisyales natin, aprub na yang new tax exemption pero wala pang implementing rules and regulations. Lokohan na talaga ito. Gusto nila makakalamang pa rin sila sa dami ng kukurakutin nila sa gobyerno. Nagsisisi pa ata sila sa pag abrub ng RA 9504 kasi mawawalan sila ng kukurakutin
ask ko lang po, for curiosity sake, bakit po from 8,000 dati, ginawa nilang 25,000 ung personal exemption? nu po sa tingin nyo… thnks po for our thesis po kasi…
syempre, sa mahal ba naman ng matrikula ngaun eh, kulang pa yang adjustment na yan.
ang masasabi ko lang, di ba pwede na bago ipamalita sana ready na ang lahat hindi puro propaganda, pahirap sa employer ang pag explain sa mga tao na wala pang IR ang nasabing issue. tapos pag tatawag sa bir ang sagot nila nasa finance pa hanggang ngayon??? ang hirap sa part ng employer na di gaano mataas sa minimum ang rate ng mga tao kasi kinakaltasan parin pano kung puro refund e di abono naman ng employer yan….tapos employer din hirap mag explain dahil balitang balita na na bababa na tax at wala na for minimum earners. may conflict pa dun sa part na “minimum earners or not above 10k salary. paano yung wala pang 10k a month pero above min. rate sa provincial rate ? may tax na tapos wala namang OT, tapos yung minimum na may OT lumalabas mas mataas kita nila pareho lang naman gastusin….di narin naman kaya ng mga employer mag taas pa ng sweldo…..ay naku…..kawawang Juan dela Cruz….pasan ang cross….
we have computed the refunds of our employees in accordance with the provisions of RA 9604.. do you mean hindi pa pala dapat implemented yun? but in effect ganun din naman db? refundable pa rin..di na kasi ako na update about the guidelines..magulo talaga.please give me update..
i just want to ask.. kelan ba talaga lalabas ang FINAL IMPLEMENTING RULES for RA9504? Araw araw ko inaabangan ang paglabas nito sa BIR site but up to now, wala pa din.. Grabe.. pahirap talaga ang BIR na yan.. Kung kelan end of the year na saka nila ilalabas.
Sana isipin naman nila na hindi biro ang magkwenta. Two months na sana naeenjoy ang tax relief na yan ng mga empleyado. What’s taking BIR so long..
Ang hirap naman kaseng iimplement na agad at baguhin ang kwenta ng WT ng mga employees tapos mali naman pala.
hello BIR.. maawa naman kayo.. ilabas na nyo yan….
I just want to ask kung ano na ang status ng IRR ng RA 9504..habang tumatagal kc syempre mas lalaki pa yung kelangan i-refund..and we can’t implement naman in the absence of the IRR kc bka mamaya mag-iba na naman..it is very troublesome sa tulad kong nasa payroll…plus the burden of explaining to the employees..
Grabe talaga yang mga taga BIR, nakalagay n sa Draft IR n ang kailangan nilang documents eh “NSO copy for the attachment” tapos iba nnmn ung sasabhin nila when you have called, eh db kailangan nga ng hierarcy un. una NSO copy, kapg hindi available ung NSO copy saka lng pedeng maging approved ung ibang copy like the certified true copy of such documents!! grabe talga ito!! ang hirap mag explain!
hello.. gud day. bakit ba kse ang tagal tagal ipalabas yan lahat pinahihirapan nila. sana naman bago sila magpalabas ng ganyan sa publiko eh approved na. para masaya kaagad
matagal ng effective ang law, kaya pwede ng mag-adjust ng tax or magcopmute ng new tax…the argument only is whether the application is retroactive from jan 08, which is not, based on the draft IRR, so icompute na lang based on the draft….kung di sila makapaglabas ng final IRR, it could be presumed that the application is retroactive, but then it is safe to compute based on the draft IRR.
sinu-sino ba talaga covered ng tax exemptions? bakit kming mga teachers hindi?
Tanong ko na rin po kng sino ang mga covered ng tax exemption, sila lang po ba ung mga nagswe2ldo ng minumun o ung income eh 200thousand pababa sa isang taon di ko rin po maintindihan kasi po ako nababawasan din po ng tax 🙁 sana po may makasagot…:)
Hi.. I’m currently working in a payroll outsourcing company.. d pa namin na-implement yung bagong tax exemption. Natatakot kasi kaming baguhin kasi nga wala pa namang final IRR baka kasi mabago pa yung bagong released ba final na yun?? gulo naman kasi…. pde na ba talagang baguhin ang tax exemption?? pwede na bang mag-refund???? thanks..
question naman, pano ba yung ruling ng minimum wage earner na yan at dapat walang tax? this yr kasi wala akong tax kaso napalitan yung accountant namin then by next yer daw may tax na kami kasi sumobra daw kami ng php24 sa minimum. ano ba talaga yung basehan ng tax exempt na yan? pls pls paexpalin naman… thanks… you can email mo also @kizzybone_12@yahoo.com. thanks
lahat ay covered ng new tax law including non-minimum wage earners…pero it is more advantageous to minimum wage earners, pwedeng wala na talgang taxable sa salary nila, dun naman sa above the minimum wage, mas mababa sa usual na deduction nyo ang magiging w/tax nyo.
About sa tax refund, mas mabuti na idefer ang refund until the release of the final IRR, pero pwede na rin magcompute based on the draft IRR na iniorient ng BIR….pero syempre depende pa rin yan sa company at sa accounting nyo.
saan po makikita ung balita na exempt ung 200k below ang compensation income?
Until now wala parin ang IR nayan. The last time I’ve check at the BIR Main’s Witholding division/dept was I think 3rd week of August, they told me that it was still at the finance for final approval. ANONG PETSA NA? Sabi nila baka release na that time wthin that week or next week. Then I have read in one newspaper na parang may umaapila pa, tama ba naman na ngayon pa magkaroon ng apilahan after maihayag na ang batas. Sa ngayon naninimbang kami, ang ginawa namin dahil karamihan refundable, dahil di naman kalakihan ang diperensya ng sweldo ng iba sa minimum, at may epekto nga ang 50K na exemption for every individual tax payor, lahat ng minimum wagers exempt na, then the rest, we took the average tax emption P50K plus yung dati ng exeption (ex. P50k+32k if married+25k if w/ 1 child) then we annualized. Yung minimum wagers nalang nag we- wait ng refund nila nung na w/held sa kanila from Jan-June2008. Kasi kung di gaganituhin at sinasabi nyo n yung draft ng BIR ay pwede na for signature nalang o ng finance e maiipon at lalaki pa refundable ntin kung hintayin pa natin yan, kahit pa nga sabihin nila na i-offset sa mga remittances ng susunod na buwan e konte na nga lang kasi nga bababa na din tax ng iba. at tumatagal pa pati ang daing ng ibang di kataasan ang sweldo at burden ng mga nasa payrol.
meron na ba kayong nabalitaan re sa deadline ng alphalist?? do we have to submit the Jan. – June alphalist this year?? or kasabay ba nung July – dec. submission??
Jacqui about your question on alphalist. Hindi pa rin sure kung paano ang gagawin because ang center ng argument is kung retroactive effect (which is dapat) or may transition period.
Based sa latest IRR na nasubmit nila..
1. Kailangan twice ipakita ang name ng isang employee sa alphalist by the end of this year.
2. Required magsubmit ng monthly alphalist for minimum wages sa Dept. of Labor or Wage Board.
Isa rin yan sa tinututulan ng business/accounting groups ang monthly alphalist for minimum wages. Dahil na rin sa dagdag trabaho ito para sa mga employer.
For any question pls feel free to ask… ^_^
i work as an examiner sa BIR and everyday may tumatawag sa office namin inquiring sa developments ng implementing guidelines sa hanep na RA na to. Nahaharass na kami minsan kasi marami sa kanila galit na. Madalas, yung mga empleyado mismo yung tumatawag, eh hirap pa paintindihin minsan kasi ang daming pinapalabas na media coverage na ganito-ganyan eh wala naman! Eh di naman kami pwede mag-base dun sa draft kasi nga draft pa yun, di pa final. Marami nang naiipit na accountants at payroll masters dahil sa tagal. Dapat kasi July pa yun lumabas eh, yun ang effectivity nun dba.
Sa mga accountants naman, sori talaga dahil kami na mga ultimo ng BIR ay nahihirapan tumulong dahil wala pa kaming basis. Lahat tayo naghihintay lang.
Parang pabango lang yata ang RA na to. Pampabuhay loob, kahit saglit lang. Eh kasi naman, binabaan yung tax ng mga employees, eh yung goal ng BIR ba bumaba? i dont think so. eh trilliones na nga yung budget for this year san kukuha yung gobyerno natin pangtustos sa “projects” nila? hay naku! ewan ko talaga jan!
tnong ko lang po kylangan ba tlaga mgsubmit ng 2305 ang lhat ng empleyado khit wlang changes sa status or khit wlang additional dependents? ang msaklap pa ang deadline is hanggang October 31 nlang as of dis year. Tapos ang gusto pa eh NSO certified pa ang mga birth certificate na requirements including all the qualified dependents. Tapos humihingi kmi ng 2305 form BIR e wla pa daw cla maibigay. E ang laking abala nman ata sa lahat ng mga empleyado ang nirerequire ng BIR. Unang unang kaylangan pa gumastos ng emplayado para mkakuha ng authenticated birth certificate nya pati ng mga dependents nya.
Tapus sabi dun sa draft regulation, failure to file 2305 the employer shall withhold the taxes prescribed under the Schedule for Zero Exemption e di pa nman final ang implementing guidelines na yan..Pano nman ung mga ibang companies na hindi pa nkakaalam nito? May penalty din ganon? Pano naman kc wla nmang circular letter na ipinapalabas ang BIR..Dapat kc ifinalize muna yang RA 9504 na yan pra maayos na lhat at mai explain ng mabuti sa mga tao kung ano man ang nirerequire ng BIR! hay naku!
hello chelsea, pasensyahan na natin ang BIR, talagang inefficient.. anyway, eto ang link ng FORM 2305 http://www.bir.gov.ph/birforms/form_cer.htm#2305 para maidownload mo na lang. and you can input na dito sa excel file ng FORM 2305 na ito wc i did.
suggest ko lang sa yo, i file nyo na din asap kahit meron or wala pa ang IRR ng 9504. at least sa side ng taxpayers, di tayo nagkulang para anytime maisipan ng BIR na ilabas ang IRR, ready to fight na tayo.. este ready to implement na tayo na di na tayo mahahanapan ng butas ng BIR. medyo tiis lang talaga kase kumuha pa lahat ng NSO certified marriage at birth cert ng dependents.
sa company namin, nag try na kme mag file ng 2305, buti na lang as early as now namin ginawa kase alam mo ba? Sa mahigit na 10 yrs na ng company namin, (6 employees lang naman kme), 1 lang sa amin ang nakaregister sa tamang RDO? kameng 5 ay kung san sang RDO nakaregister kaya….. we filed another form wc is the BIR FROM 1905 (Registration Information Update) whic should be filed… take note ha, sa RDO where you are registered (pray mo na lang wlang nakaregister sa inyo sa Visayas o Mindanao)
http://www.bir.gov.ph/birforms/form_apl.htm#1905 .
After one week na nareceive ng kanya kanya naming RDOs ang aming 1905, saka pa lang pwede ulet i file ang 2305 dun na sa RDO ng aming company.
HAYYY BUHAYY… hope makatulong sa yo
FINALLY!!!! THE MUCH AWAITED FINAL IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT 9504
ftp://ftp.bir.gov.ph/webadmin1/pdf/42126rr%20no.%2010-2008.pdf
hi ms. nora, salamat for the info. finally lumabas na rin ang final draft atleast ngayon pwede ng idiscuss sa mga employees kung ano man mga requirements..tnx ulit =)
so are minimum wage earners exempt from income tax or just from withholding tax?
i attened a symposium las thur. but mlabo pa rin. d b un fair nan un to those above minum wage but are nt req’d to have ot, while there were many MWE whose overtime is double and sometimes even triple ther basic pay. and how about those whoe work on a per day basis? lets say their daily rate is 450, w/c is above the MW but the total basic pay per mont is about 9,OOO, w/c is below SMW of 11619 for NCR will he not be considered as MWE?
ano itong revenue memorandum circular no. 4-2009? extension of filing daw. until feb. 27 , kasi may ilalabas na bagong data entry..
kelan po b talaga na implement ang RA 9504,kc ung last naming HRD.hindi na kami kinaltasan ng tax,ngaung may bago na po kaming HRD.sabi nya ibabalik daw nya ang tax this coming march 31,2009 sa payslip namin.i will be waiting for the reply soon.thx and also about the 13th month pay pano po ba talaga ang tamang computation,base on daily basis po ba un o,base on gross income.
hi, just need to be enlighten i am earning 9,932 monthly SIngle/HOF . But our acctg. deducts us tax compensation of P 601.42 monthly is that right? When I told them it shouldnt be like that becoz we are tax exempted, they say if not deducted I will need to file an annual income tax return by april. Is that true?Please help me on what to do
Where are you and how much is the minimum wage in your region as per DOLE?
WE are in Taguig and minimum wage here is P 382 per day….we also have work on saturdays.
well, I guess you're above the minimum wage.
deuts, pano mo nasabi na above minimum si melvie?
where and how did you get your basis?
question po. my current status in filing ITR is Married with one dependent because my husband waived his right. Senior citizen na po ang mother (64 years old) ko at retired govt employee na ang father(58year ) ko since 2007. Can i claim them as my additional qualified dependent? Or strictly child lang po ang qualified dependent ng Married status? Hope you can answer me. Thanks.
And if meron po written reference to answer my question can you send me the copy or website so i can tell to my HR department. Thanks.