X
theAsianparent Philippines Logo
theAsianparent Philippines Logo
EnglishFilipino
Product GuideSign in
  • Building a BakuNation
  • Becoming a Parent
    • Trying to Conceive
    • Pregnancy
    • Delivery
    • Losing a Baby
    • Project Sidekicks
  • Ages & Stages
    • Baby
    • Toddler Years
    • Preschool Age
    • Kids
    • Preteen & Teen
  • Parenting
    • Parent's Guide
    • News
    • Relationship & Sex
  • Health & Wellness
    • Diseases & Injuries
    • Allergies & Conditions
    • Vaccinations
  • Education
    • Preschool
    • K-12
    • Special Education Needs
  • Lifestyle Section
    • Celebrities
    • Contests & Promotions
    • Home
    • Travel and Leisure
    • Fashion
    • Fitness
    • Wellness
    • Money
  • Become a VIP
  • COVID-19
  • Press Room
  • TAP Recommends
  • Shopping
  • Awards
    • Parents' Choice Awards 2023

Pinoys earning P21,000 a month or less will no longer pay personal income tax

25 Apr, 2017

If you’re an employee who earns P21,000 or less each month, you will no longer be required to pay personal income tax under the comprehensive tax reform plan (CTRP) bill, according to GMA News.

Department of Finance Undersecretary Karl Chua told the news outlet that the revised tax reform package, which is currently pending at the House of Representatives, will cause a P20,000 annual savings for those earning under the P21,000 income bracket.

“Tax rates for 99 percent of taxpayers will gradually decrease over the next few years of implementation under HB 4774,” he told GMA news, adding that the House committee is concerned that Congress would pass the bill without taking “revenue-generating measures” into account.

However, he shared that it will increase the take-home pay of many workers, enabling them to provide a better life for their families.

“The simplified tax system will increase the take-home pay of most individuals, putting more money in people’s pockets, which they can use to save for the future or spend on their families’ needs, such as for tuition or school expenses of their children,” explained Chua.

Following these tax exemption amendments, adjustments will be made to compensate for anticipated revenue losses.

Pinoys earning P21,000 a month or less will no longer pay personal income tax

photo: Daniel Razon facebook

A simpler, fairer tax system for poor to low-income Filipinos

The original proposal of the DOF to exempt those with net taxable income of P25,000 will still be retained, according to a Rappler report.

For example, if a call center agent has a gross income of P273,000 including his 13th month pay, he is earning about P21,000 a month. All of this as well as his other benefits will still be classified under the zero-tax bracket. With the current system, he would have to pay P21,867, even if he had two dependents. His net taxable income of P136,834  would still be taxed P8,500, in addition to the 20 percent in excess of P70,000.

“Under the tax reform plan, his take-home pay will effectively increase by P21,867 annually because he would no longer have to pay this amount of income tax under the current system,” explained Chua.

Continuing, he said that these reforms aim to create a fair and simpler tax system. “This tax policy reform under the bill is among the measures we are supporting to make the country’s tax system simpler, fairer, and more equitable, especially for the poor and low-income Filipinos.”

Partner Stories
This Mommy Welfare Month, Absolute Gives Back The Love to Moms #SelfLoveIsBabyLove
This Mommy Welfare Month, Absolute Gives Back The Love to Moms #SelfLoveIsBabyLove
3 Amazing Possible Stories that will leave you smiling, crying, and inspired
3 Amazing Possible Stories that will leave you smiling, crying, and inspired
Motherhood away from home
Motherhood away from home
Bathing is bonding with Cetaphil Baby
Bathing is bonding with Cetaphil Baby

READ: Mom-to-be’s guide: Know all the maternity benefits you’re entitled to by law

Be sure to check out theAsianparent Community for more insightful stories, questions, and answers from parents and experts alike. If you have any insights, questions or comments regarding the topic, please share them in our Comment box below. Like us on Facebook and follow us on Google+ to stay up-to-date on the latest from theAsianparent.com Philippines!

Got a parenting concern? Read articles or ask away and get instant answers on our app. Download theAsianparent Community on iOS or Android now!

img
Written by

Bianchi Mendoza

Become a Contributor

  • Home
  • /
  • News
  • /
  • Pinoys earning P21,000 a month or less will no longer pay personal income tax
Share:
  • REAL STORIES: "My dyslexic husband graduated after almost twenty years"

    REAL STORIES: "My dyslexic husband graduated after almost twenty years"

  • 2-days monthly menstrual leave filed by women’s party-list in the House

    2-days monthly menstrual leave filed by women’s party-list in the House

  • ‘I was meant to have you’: Pregnant Singaporean mum, 29, delays cancer treatment for sake of unborn baby

    ‘I was meant to have you’: Pregnant Singaporean mum, 29, delays cancer treatment for sake of unborn baby

  • REAL STORIES: "My dyslexic husband graduated after almost twenty years"

    REAL STORIES: "My dyslexic husband graduated after almost twenty years"

  • 2-days monthly menstrual leave filed by women’s party-list in the House

    2-days monthly menstrual leave filed by women’s party-list in the House

  • ‘I was meant to have you’: Pregnant Singaporean mum, 29, delays cancer treatment for sake of unborn baby

    ‘I was meant to have you’: Pregnant Singaporean mum, 29, delays cancer treatment for sake of unborn baby

Get advice on your pregnancy and growing baby. Sign up for our newsletter
  • Pregnancy
    • Baby
    • Breastfeeding & Formula
    • Baby Names
    • Delivery
  • Parenting
    • Parent's Guide
    • Advice for Parenting Kids
    • Relationship & Sex
  • Lifestyle Section
    • Local celebs
    • Celebrities
    • Money
    • News
  • FAMILY & HOME
    • Couples
    • Weekend & Holiday Guide
    • Health
  • Building a BakuNation
    • More
      • TAP Community
      • Advertise With Us
      • Contact Us
      • Become a Contributor


    • Singapore flag Singapore
    • Thailand flag Thailand
    • Indonesia flag Indonesia
    • Philippines flag Philippines
    • Malaysia flag Malaysia
    • Sri-Lanka flag Sri Lanka
    • India flag India
    • Vietnam flag Vietnam
    • Australia flag Australia
    • Japan flag Japan
    • Nigeria flag Nigeria
    • Kenya flag Kenya
    © Copyright theAsianparent 2023. All rights reserved
    About Us|Team|Privacy Policy|Terms of Use |Sitemap HTML
    • Tools
    • Articles
    • Feed
    • Poll

    We use cookies to ensure you get the best experience. Learn MoreOk, Got it

    We use cookies to ensure you get the best experience. Learn MoreOk, Got it

    theAsianparent heart icon
    Nais naming magpadala ng notification sa'yo tungkol sa latest news at lifestyle update.