Full Title
AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32 (B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
Digital Resource
View PDF file
Congress
16th Congress of the Republic
Senate Bill
S. No. 2437
House Bill
H. No. 4970
Legislative History
View Legislative History in Senate website
Floor Activity
View Floor Activity in Senate website
Committee Report Senate Link
View Committee Report
View PDF link of Committee Report no. 84
Date of Approval
February 12, 2015

Legislative History

Entitled:
AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32 (B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
[ SECOND REGULAR SESSION, 16TH CONGRESS ]
[ 2014 ]
10/22/2014 Prepared and submitted by the Committee on WAYS AND MEANS with Senator(s) RALPH G. RECTO, MANUEL "LITO" M. LAPID, JUAN EDGARDO "SONNY" M. ANGARA and CYNTHIA A. VILLAR as author(s) per Committee Report No. 84, Recommending its approval in substitution of SBNos. 256, 452, 1838, 1944 and 2157, taking into consideration HBN-4970;
10/22/2014 Sponsor: Senator Sonny Angara;
10/22/2014 Committee Report Calendared for Ordinary Business;
10/22/2014 Letter of Senator CYNTHIA A. VILLAR dated October 9, 2014, requesting that she be made coauthor of SBN-256 which was substituted by SBN-2437 per Committee Report No. 84, received by the LBIS;
10/22/2014 Transferred from the Calendar for Ordinary Business to the Calendar for Special Order;
10/22/2014 Sponsorship speech of Senator JUAN EDGARDO "SONNY" M. ANGARA;
10/22/2014 Co-sponsorship speech of Senator RALPH G. RECTO;
10/22/2014 Co-sponsorship speech of Senator MANUEL "LITO" M. LAPID;
10/22/2014 Senator LOREN B. LEGARDA was made coauthor as manifested by Senator Angara;
10/22/2014 All Senators present were made coauthors: Senators PAOLO BENIGNO "BAM" AQUINO IV, ALAN PETER COMPANERO S. CAYETANO, PIA S. CAYETANO, FRANKLIN M. DRILON, JOSEPH VICTOR G. EJERCITO, FRANCIS "CHIZ" G. ESCUDERO, TEOFISTO "TG" GUINGONA III, GREGORIO B. HONASAN II, SERGIO R. OSMENA III, AQUILINO KOKO III L. PIMENTEL, VICENTE C. SOTTO III and ANTONIO "SONNY" F. TRILLANES;
11/18/2014 Period of interpellation closed;
11/18/2014 Period of committee amendments;
11/18/2014 Period of committee amendments closed;
11/18/2014 Period of individual amendments closed;
11/18/2014 Approved on Second Reading with Amendments;
11/18/2014 Motion of Senator Cayetano A., that all Senators present were made coauthors (Senators Angara, Aquino, Binay, Cayetano A.P., Cayetano P., Drilon, JV Ejercito, Escudero, Honasan, Lapid, Legarda, Osmena, Pimentel III, Sotto, and Poe);
11/19/2014 Printed copies were distributed to the Senators;
11/26/2014 Approved on Third Reading;
11/26/2014 In favor: (14) JUAN EDGARDO "SONNY" M. ANGARA, PAOLO BENIGNO "BAM" AQUINO IV, MARIA LOURDES NANCY S. BINAY, PIA S. CAYETANO, FRANKLIN M. DRILON, JOSEPH VICTOR G. EJERCITO, TEOFISTO "TG" GUINGONA III, GREGORIO B. HONASAN II, MANUEL "LITO" M. LAPID, LOREN B. LEGARDA, FERDINAND "BONGBONG" R. MARCOS, GRACE L. POE, RALPH G. RECTO and VICENTE C. SOTTO III;
11/26/2014 Against: N o n e ;
11/26/2014 Abstention: N o n e ;
11/26/2014 Senate requested the House of Representatives for a conference on the disagreeing provisions of SBN-2437 and HBN-4970, designating Senators Angara, Recto, Lapid, Aquino and Binay as its conferees to the Bicameral Conference Committee;
12/9/2014 Letter from the House of Representatives informing the Senate that it adopted SBN-2437 as an amendment to HBN-4970 on December 1, 2014;
12/18/2014 Enrolled copies of the consolidated version of HBN-4970 nd SBN-2437, received by the Senate for the signature of Senate Secretary Yabes and Senate President Drilon;
[ 2015 ]
1/12/2015 Enrolled copies of the consolidated version of HBN-4970 and SBN-2437, returned to the House of Representatives already signed by Senate Secretary Yabes and Senate President Drilon;
2/18/2015 Consolidated with HBN-4970, which was Approved and Signed into Law by the President of the Philippines, His Excellency President Benigno S. Aquino III on February 12, 2015 and became;
2/18/2015 REPUBLIC ACT 10653.
(Pursuant to paragraph g, Sec. 7, Rule V of the Rules of the Senate, REPUBLIC ACT NO. 10653(HBN-4970/SBN-2437) with pertinent documents transmitted to the Legislative Records and Archives Service for safekeeping and preservation on February 25, 2015)
(Prepared by the Indexing, Monitoring and LIS Section, Legislative Bills and Index Service)

Committees

Committee Report No.
84
Committee Referral
View Committee Referral in Senate website

Other Details

Issuance Category
Legislative Issuance
Legislative Issuance Type
Republic Act
Bill Note
House Bill First in Billing
Subjects
13TH MONTH PAY
INCOME TAX
NATIONAL INTERNAL REVENUE CODE OF 1997
RA - 10653
Amendment Note
RA 8424, chap. VI, sec. 32(B)

Full Text of Issuance

Manila Bulletin, February 14, 2015; 111 OG No. 13, 1750 (March 30, 2015)

[ REPUBLIC ACT NO. 10653, February 12, 2015 ]

AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 32(B), Chapter VI of the National Internal Revenue Code of the Philippines (Republic Act No. 8424) is hereby amended as follows:

“SEC. 32. Gross Income. —

“x x x

“(B) Exclusions from Gross Income. — The following items shall not be included in gross income and shall be exempt from taxation under this Title:

“xxx

“(7) Miscellaneous Items. — “xxx

“(e) 13 th Month Pay and Other Benefits. — Gross benefits received by officials and employees of public and private entities: Provided, however, That the total exclusion under this subparagraph shall not exceed eighty-two thousand pesos (P82,000) which shall cover:

“xxx

“(iv) Other benefits such as productivity incentives and Christmas bonus: Provided, That every three (3) years after the effectivity of this Act, the President of the Philippines shall adjust the amount herein stated to its present value using the Consumer Price Index (CPI), as published by the National Statistics Office (NSO).”

SEC. 2. Implementing Rules and Regulations. — The Secretary of Finance shall promulgate the necessary rules and regulations for the faithful and effective implementation of the provisions of this Act: Provided, That, the failure of the Secretary of Finance to promulgate the said rules and regulations shall not prevent the implementation of this Act upon its effectivity.

SEC. 3. Repealing Clause. — All laws, orders, issuances, circulars, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 4. Separability Clause. — If any provision of this Act is declared unconstitutional or invalid, other parts or provisions hereof not affected thereby shall continue to be in full force and effect.

SEC. 5. Effectivity. — This Act shall take effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation.

Approved,

(SGD.) FRANKLIN M. DRILON
President of the Senate

(SGD.) FELICIANO BELMONTE JR.
Speaker of the House
of Representatives

This Act which is a consolidation of House Bill No. 4970 and Senate Bill No. 2437 was finally passed by the House of Representatives and the Senate on December 1, 2014 and November 26, 2014, respectively.

(SGD.) OSCAR G. YABES
Secretary of the Senate

(SGD.) MARILYN B. BARUA-YAP
Secretary General
House of Representatives

Approved: FEB 12 2015

(SGD.)  BENIGNO S. AQUINO III
President of the Philippines

 

 

 

 

 

Source: Supreme Court E-Library

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