Non-Taxable Compensation

Source link: https://www.bir.gov.ph/index.php/tax-information/withholding-tax.html#wt05

EXEMPTIONS AND EXCLUSIONS FROM GROSS INCOME

1. Remuneration received as an incident of employment (RA 7641; those with approved reasonable private retirement plan; Social Security Act of 1954, as amended; GSIS Act of 1937, as amended; and etc.
2. Remuneration paid for agricultural labor;
3. Remuneration for domestic services;
4. Remuneration for casual labor not in the course of an employer's trade or business;
5. Compensation for services by a citizen or a resident of the Philippines for a foreign government or international organization;
6. Damages (Actual, moral, exemplary and nominal);
7. Life insurance;
8. Amounts received by the insured as a return of premium;
9. Compensation for injuries or sickness;
10. Income exempt under treaty
11. 13th Month pay and other benefits
12. GSIS, SSS, Medicare and other contributions (employee's share only)
13. Compensation income of minimum wage earners (MWEs) who work in the private sector and being paid the Statutory Minimum Wage (SMW), as fixed by the Regional Tripartite Wage and Productivity Board (RTWPB)/National Wages Productivity Commission (NWPC), applicable to the place where he/she is assigned;
14.  Compensation income of employees in the public sector with compensation income of not more the the SMW in the non-agricultural sector as fixed by the RTWPB?NWPC applicable to the place where he/she is assigned.
15. De Minimis benefits
16. Fringe benefits given to employees other than rank and file and subjected to Fringe Benefit Tax (FBT);
17. Personnel Economic Relief Allowance (PERA) given to government employees; and Representation and transportation allowance (RATA granted to public officers and employees under the General Appropriations Act.

MINIMUM WAGE EARNERS

No withholding tax shall be required on the Statutory Minimum Wage (SMW) of the Minimum Wage earner in the private/public sectors as defined in RR 2-98, as amended by RR 11-2018, including:

• Holiday pay
• Overtime pay
• Night shift differential
• Hazard pay

of Minimum Wage earners in the private/public sectors as defined by these Regulations.