Tag Archive: Department of Finance


07 - 24 -1 (1)

It has been more than a year since we featured House Bill No. 5060 or the Philippine Identification System Act.  This is the bill that will require all Filipinos to be issued a national identification card that will serve as their main identification for all government transactions, claims, use of government-mandated benefits, and applying for clearances from the NBI and PNP.   At that time, the said bill has just been signed and approved by the House of Representatives and was passed on to the Senate for deliberation.

While the country is eagerly awaiting the finality the National ID System Act, the Department of Finance (DOF) came up with an additional proposal to tap the ID as a means to determine an individual’s privilege to certain subsidies, discounts, and tax exemptions under the law.

How do these additional parameters affect the National ID System’s initial purpose?

Apart from the National ID being an all-in-one valid ID (except as a Driver’s License and Passport), the DOF is proposing that it contain biometrics data to determine a citizen’s entitlement to certain subsidies and benefits provided by the government.

For example, if a PWD is entitled to discounts on medicines, fare, and education, his (national) ID alone should be enough to determine his eligibility for such discounts.  Another possibility that the DOF is looking at is to activate an EMV (Europay-Mastercard-Visa) chip in the card.  Through this chip, the card can double as an ATM card where the owner may receive cash subsidies from the government, if he or she is legally entitled to such benefits.  It simplifies the identification and benefits disbursement process, both for the government and the recipient.

Do these new proposals affect the anticipated release and distribution of the IDs?

It does.

The issuance of the IDs will be done in batches.  Since the DOF has expressed its intention of tapping the National ID to address the long process of applying and claiming benefits for individuals with special needs, senior citizens and persons with disabilities are seen to be the first recipients of these IDs.  Soon after, members of the 5.2 million poor households that are not yet covered by the conditional cash transfer program of the DSWD will follow.

All in all, the government plans to provide IDs to the more than 100 million Filipinos in two years’ time, after the bill is enacted into law.

Who will issue the IDs?

The Philippine Statistics Authority (PSA) shall be responsible for the proper issuance of the ID cards.

We will keep this thread updated on the progress of the proposed National ID System.  If you have any questions or related information you would like to share, please feel free to send us a message.  We will do our best to find the answers for you.

Sources:

www.psa.gov.ph

www.dof.gov.ph

www.philstar.com

Chips And Nibblers (1)

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10-03-1

One of the best news of 2015 was the higher tax exemption for 13th month pay and other bonuses for income accrued beginning January 1, 2015.  The government raised the income ceiling to Php 82,000.00 giving employees from the private sectors and the government more room to enjoy their full one-month salary, incentives, and bonuses by year’s end.  It was indeed a merry holiday season for the Pinoy employee last year.

The same may not be true this year as the new administration, through the Department of Finance, moves to reform the tax package for annual bonuses and 13th month pays.  For easier reference, here is a list of the proposed changes on tax exemptions:

  1. Lower the tax exemption on the mandatory additional one-month salary, bonuses, and incentives.  (Where a gross income of Php 250,000 a year or Php 20,833 per month would be tax free.  The computation of the annual gross income shall include the mid-year bonuses and 13th month pay so that if the total amount exceeds Php 250,000, the employee will still be subject to tax as prescribed in the DOF’s proposed tax reforms).
  2. Remove the personal tax exemptions of working spouses.
  3. Remove the 20% tax exemption of senior citizens and Persons with Disability on certain goods and services and their exemption from the 12% value added tax.

Apart from the above, the government is also looking at lowering corporate income tax rates to 25%.  Property and capital income taxes will likewise be reviewed for possible reduction.  On the other hand, new taxes are expected to be imposed on sweetened beverages, chips, jewelry, mining, carbon, gambling (lottery and casinos) as well as alcohol and tobacco.

The reform measure is seen to help augment the needed funds for government projects on infrastructure, education, health, and social protection.

As a Pinoy employee (whether private or government), are you in favor of this proposal from the Department of Finance?  Let us know your thoughts!

Source:

http://www.philstar.com/headlines/2016/10/02/1629543/government-tax-13th-month-pay-bonuses

http://www.dof.gov.ph/index.php/dof-submits-first-package-of-tax-reforms-to-congress/

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