Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income)
Republic Act No. 10653, enacted on February 12, 2015, amends the National Internal Revenue Code to adjust the ceiling for the 13th Month Pay and other benefits excluded from gross income for income tax purposes. It establishes that a total exclusion of up to eighty-two thousand pesos (P82,000) is allowed for 13th Month Pay and additional benefits like productivity incentives and Christmas bonuses. The law mandates that this amount be adjusted every three years based on the Consumer Price Index. The Secretary of Finance is tasked with implementing necessary rules and regulations, with the Act taking effect fifteen days after publication in two newspapers.
Quick Answers
- What is Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income) about?
- Republic Act No. 10653, enacted on February 12, 2015, amends the National Internal Revenue Code to adjust the ceiling for the 13th Month Pay and other benefits excluded from gross income for income tax purposes. It establishes that a total exclusion of up to eighty-two thousand pesos (P82,000) is allowed for 13th Month Pay and additional benefits like productivity incentives and Christmas bonuses. The law mandates that this amount be adjusted every three years based on the Consumer Price Index. The Secretary of Finance is tasked with implementing necessary rules and regulations, with the Act taking effect fifteen days after publication in two newspapers.
- What type of law is Republic Act No. 10653?
- Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income) (Republic Act No. 10653) is a Philippine Statutes enacted by the Congress of the Philippines.
- When was Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income) enacted?
- Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income) (Republic Act No. 10653) was enacted on Feb 12, 2015.
- What is the citation for Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income)?
- Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income), Republic Act No. 10653, Feb 12, 2015 (Philippines)
Law Information
- Reference Number
- Republic Act No. 10653
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
February 12, 2015
REPUBLIC ACT NO. 10653
AN ACT ADJUSTING THE 13TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATIONS 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
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.
Cite This Law
Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income), Republic Act No. 10653, Feb 12, 2015 (Philippines)
Amendment to National Internal Revenue Code of 1997 (Adjustment of 13th Month Pay and Other Benefits Ceiling Excluded from Gross Income), Republic Act No. 10653 (Phil. 2015)
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