Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income)

February 12, 2015 REPUBLIC ACT NO. 10653 AN ACTADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATIONS OF GROSS INCOMEFOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32 (B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE C OD E OF 1997, AS AMENDED 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. "xxx xxx xxx "(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 xxx xxx "(7) Miscellaneous Items. "xxx xxx xxx "(e) 13th 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 xxx 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)." SECTION 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. SECTION 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circulars, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly. SCHIcT SECTION 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. SECTION 5. Effectivity. This Act shall take effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation. Approved: February 12, 2015. Published in The Philippine Star on February 14, 2015.