Employees of the Negros Occidental provincial government, especially about 500 of them working at hospitals, will have to pay more taxes this year.

The provincial government has to comply with the very strict requirements of the Bureau of Internal Revenue, or face a penalty that could amount to P5 million, Provincial Budget Officer Jose Percival Salado Jr. said yesterday.

Starting this year, the provincial government will automatically deduct taxes on the additional benefits of its employees, especially those working at hospitals who receive hazard, subsistence and laundry allowances, as well as from doctors and nurses who receive PhilHealth professional fees, Salado said.

“We will be implementing the ‘zero out’ requirement of the BIR by automatically deducting taxes on benefits,” he said.

Also to be taxed is the P20,000 incentive benefit for exemplary performance to be given to each Capitol employee in the first quarter of this year, he said.

The amount of tax deduction will depend on the salary bracket an employee belongs to, he said.

Since he belongs to salary grade 32, the amount to be deducted from his P20,000 incentive will be P6,400, Salado said.

Those belonging to lower salary grades will pay less taxes, or none at all, he added.*CPG

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