Is 13th month pay tax-exempt?

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ryangramos:
On the statement below, is there any company that is exempted to that.
How about the companies that are Regional Operating Head Quarter.

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It depends. If the amount of 13th month pay is equivalent to Php30,000 and below, it is not subject to tax. Otherwise, it is subject to tax. (Rev Regulations No. 8 & 10, s. 2000, Bureau of Internal Revenue)

REVENUE REGULATIONS NO. 8-2000 issued November 22, 2000 amends specific provisions of RR No. 2-98 and RR No. 3-98 with respect to the "De Minimis" Benefits, Additional Compensation Allowance (ACA), Representation and Transportation Allowance (RATA) and Personal Economic Relief Allowance (PERA). Said benefits/allowances received by employees are not considered as items of income and, therefore, are not subject to income tax and, consequently, to the withholding tax. Effective the Taxable Year 2000, ACA will be classified as part of the "Other Benefits" excluded from one's gross compensation income, provided that the total amount of such benefits does not exceed P 30,000. Items of "de minimis" benefits exempt from the fringe benefits tax are enumerated in the Regulations.

kathmandu:
Alam ko pag above 30K taxable na sya yung in excess of 30K which applies to any company

ryangramos:
Thanks for the info...

erialc78:
As far as I know, 13 month pay which is less than 30,000 is non-taxable according to labor code.

Talk2myCPA:
13th month pay is part of your bonuses and other benefits and exempted from taxes up to 30,000.  the 30,000 is the BIR threshold for the exemption and anything in excess of this amount is already taxable. for example if your employer gave you 15,000 for your 13th month pay and another 15,000 for your performance bonus/incentive then there should be no tax for both amounts because the total of these two does not exceed 30,000. but if instead of giving you 15,000 performance bonus your employer gave you a 20,000 then the excess of 5,000 is already taxable.

any amount in excess of 30,000 is taxable.

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