Acting Negros Occidental Gov. Salvador Escalante yesterday said he has instructed the Provincial Accountant to get the opinion of the Bureau of Internal Revenue on the tax imposed on the bonuses and other benefits of provincial government employees.

The clarification is being sought amid questions raised on the higher withholding tax imposed on Negros Occidental provincial government employees compared to those of Iloilo.

The Negros Occidental government employees were taxed for the total of their Productivity Enhancement Incentive Bonus and other benefits.

Leo Mauricio, Legal Division chief of the BIR Revenue Region 11 in Iloilo City, in response to the query of Iloilo Gov. Arthur Defensor, said it is apparent that the Productivity Enhancement Incentive Bonus can be viewed as “other benefits” under the Tax Code of 1997.

As such, it is exempt from income tax and withholding tax provided that, when added to the 13th month pay and other benefits, it shall not exceed the threshold of P30,000, Mauricio said.

Any excess in the threshold shall be taxable to the employees, he added.

Provincial Administrator Enrique Pinongan said that if the Capitol employees were overtaxed, they will be given refunds.*CPG

back to top