Is my Christmas Bonus and benefits taxable?

With just 95 days before Christmas, we're giving you a lighter Tax Break this Monday.

Besides the 13th Month Pay and Christmas Bonus, employees also anticipate the Christmas gifts/ baskets from their employers every December.

Did you know that this MAY BE subject income tax? What? Yung Hamon ko may tax?

Pwede, kung mag-exceed ang value ng Christmas basket mo ng P 5,000. Any excess may be subject to the graduated income tax rate. But this may still be exempt, if the excess together with your bonuses, do not exceed P 90,000.

Christmas gifts, allowances (i.e., rice, uniform, laundry, medical cash allowance), achievement awards and productivity bonuses within the limit set forth by the BIR are considered as De Miminimis Benefits (too trivial or minor to merit consideration, especially in law) which are exempt from income tax.

So don't sweat over the tax on your Hamon! Most companies maximize these exemptions to help their employees increase the amount or value of their take home salary and benefits.

#TaxBreak with #VPA