BIR to tax bonus beyond P30,000: How it’s computed

The Bureau of Internal Revenue is firm on its declaration that allowances and bonuses received by officials and employees in the government and private sector are subject to income tax if the amount is in excess of P30,000.

In an interview on ABS-CBN’s morning show “Umagang Kay Ganda” on Friday, November 23, BIR commissioner Kim Henares cited Sections 244 and 245 of the Internal Revenue Code and said no one is exempted.

This issue is one of the most-discussed in broadcast and social media. Resistance is typical, but one needs to understand how the tax deduction is computed so blood pressures won’t shoot up.

tax on allowances and bonuses

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