www.iamafilipino.com - President Gloria Macapagal-Arroyo signed into law exempting minimum wage earners from paying income tax and also increasing the personal exemptions for other employees.
The President signed Republic Act 9504 or "An Act Amending Sections 22,24,34,35 and 79 of Republic Act 8424,as Amended, otherwise known as the National Internal Revenue Code of 1987,".
The President, who for several times urged Congress to pass this urgent bill that would help ease the impact of continuing rise in oil and food prices on the people, was visibly pleased.
The new law stands to provide relief and additional money to spend for basic necessities especially for the minimum wage earners.
The new law also exempts from tax all holiday, night differential, hazard and overtime pay received by minimum wage earners.
The new law also increases personal exemptions for individual tax payers and additional deduction for qualified dependents.
The personal exemptions are as follows: for single: from P20,000 to P50,000; for head of family: from P25,000 to P50,000; for married: from P32,000 to P50,000; for each qualified dependent not exceeding 4: from P8,000 to P25,000.
A family of six, with two working spouses and four dependent children used to enjoy total exemptions of P96,000. With the new law, the total amount of exemptions would be P200,000. - Join us at www.iamafilipina.com
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