Philippines News Agency Announces Proposed Tax Relief Measures for Individuals, MSMEs

The Philippine Information Agency (PIA) July 2 announced two tax relief bills for individuals and micro, small, and medium enterprises (MSMEs). The bills include measures to: 1) increase the income tax exemption threshold for workers to 400,000 Philippine pesos (US$7,092), from 250,000 pesos (US$4,433); 2) increase the tax-free bonus cap for workers to 150,000 (US$2,659) pesos, from 90,000 (US$1,595) pesos, and provide a credit for specified individuals; 3) eliminate taxes on service charges and additional compensation, such as overtime day pay; 4) provide micro taxpayers an additional 50 percent deduction for labor expenses and a withholding exemption; 5) provide MSMEs ...