ra 9504 - an act amending section 22, 24, 34, 35, 51, and 79 of republic act no. 8424, as amended...

8/9/2019 RA 9504 - AN ACT AMENDING SECTION 22, 24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO. 8424, AS AMENDED OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE OF 19…

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Republic of the Philippines

Congress of the Philippines

Metro Manila

Fourteenth Congress

First Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two

thousand seven.

Republic Act No. 9504 June 1! "00#

Amending RA 8424

AN AC$ A%&N'(N) S&C$(*N ""! "4! +4! +5! 51! AN' 9 *F R&P,-(C

AC$ N*. #4"4! AS A%&N'&' *$/&R(S& N*N AS $/& NA$(*NA

(N$&RNA R&2&N,& *F 199

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

S&C$(*N 1. e!tion 22 of Re"u#li! A!t $o. 8424, as amended, otherwise %nown as

the $ational &nternal Revenue 'ode of ())*, is here#y further amended #y adding

the following definition after u#se!tion + to read as follows:

/'. 22. Definitions. - when used in this 0itle:

+A 1 1 1.

1 1 1

+ 1 1 1.

+ the term 3statutory minimum wage3 earner shall refer to rate fi1ed #y

the Regional 0ri"artite age and 5rodu!tivity Board, as defined #y the

Bureau of 6a#or and /m"loyment tatisti!s +B6/ of the 7e"artment of

6a#or and /m"loyment +76/

+99 the term 3minimum wage earner3 shall refer to a wor%er in the "rivate

se!tor "aid the statutory minimum wage, or to an em"loyee in the "u#li!

se!tor with !om"ensation in!ome of not more than the statutory minimum

wage in the non-agri!ultural se!tor where heshe is assigned.

S&C. ". e!tion 24+A of Re"u#li! A!t $o. 8424, as amended, otherwise %nown as

the $ational &nternal Revenue 'ode of ())*, is here#y further amended to read as

follows:

/'. 24. Income Ta Rates. -

+A Rates of Income Ta on Individual Citi!en and Individual Resident

"lien of the Philippines# -

+( 1 1 1:

1 1 1; and

+! n the ta1a#le in!ome defined in e!tion <( of this !ode, other than

in!ome su#=e!t to ta1 under u#se!tions +B, +' and +7 of this e!tion,

$ot over 5(>,>>> ........ ?@

ver 5(>,>>> #ut not over

5<>,>>>

........ 5?>>(>@ of the e1!ess over 5(>,>>>

ver 5<>,>>> #ut not over

5*>,>>>

........ 52,?>>(?@ of the e1!ess over

5<>,>>>

ver 5*>,>>> #ut not over 5(4>,>>> ........ 58,?>>2>@ of the e1!ess over 5*>,>>>

ver 5(4>,>>> #ut not over

52?>,>>>

........ 522,?>>2?@ of the e1!ess over

5(4>,>>>

ver 52?>,>>> #ut not over

5?>>,>>>

........ 5?>,>>><>@ of the e1!ess over

52?>,>>>

ver 5?>>>,>>> ........ 5(2?,>>><2@ of the e1!ess over

5?>>,>>>

http://www.lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html





derived for ea!h ta1a#le year from all sour!es within the 5hili""ines #y an

individual alien who is a resident of the 5hili""ines.

+2 Rates of 0a1 on 0a1a#le &n!ome of &ndividuals. - 0he ta1 shall #e

!om"uted in a!!ordan!e with and at the rates esta#lished in the following

s!hedule:

or married individuals, the hus#and and wife, su#=e!t to the "rovision of

e!tion ?( +7 hereof, shall !om"ute se"arately their individual in!ome ta1

#ased on their res"e!tive total ta1a#le in!ome: Provided , that if any in!ome

!annot #e definitely attri#uted to or identified as in!ome e1!lusively earned

or realied #y either of the s"ouses, the same shall #e divided eCually #etween the s"ouses for the "ur"ose of determining their res"e!tive ta1a#le

in!ome.

Provided , 0hat minimum wage earners as defined in e!tion 22 +99 of

this 'ode shall #e e1em"t from the "ayment of in!ome ta1 on their ta1a#le

in!ome: Provided , further , 0hat the holiday "ay, overtime "ay, night shift

differential "ay and haard "ay re!eived #y su!h minimum wage earners

shall li%ewise #e e1em"t from in!ome ta1.

1 1 1.

S&C. +. e!tion <4+6 of Re"u#li! A!t $o. 8424, as amended, otherwise %nown as

the $ational &nternal Revenue 'ode of ())*, is here#y amended to read as follows:

/'. <4. Deductions from $ross Income. - /1!e"t for ta1"ayers earning

!om"ensation in!ome arising from "ersonal servi!es rendered under an

em"loyer-em"loyee relationshi" where no dedu!tions shall #e allowed

under this e!tion other than under u#se!tion +Mhereof, in !om"uting

ta1a#le in!ome su#=e!t to in!ome ta1 under e!tions 24+A; 2?+A; 2D;

2*+A, +B, +'; and 28+A+(, there shall #e allowed the following

dedu!tions from the gross in!ome:

+A %penses. -

1 1 1.

+6 &ptional Standard Deduction. - &n lieu of the dedu!tions allowed under

the "re!eding u#se!tions, an individual su#=e!t to ta1 under e!tion 24,

other than a nonresident alien, may ele!t a standard dedu!tion in an amount

not e1!eeding forty "er!ent +4>@ of his gross sales or gross re!ei"ts, as the

!ase may #e. &n the !ase of a !or"oration su#=e!t to ta1 under se!tion 2*+A

and 28+A+(, it may ele!t a standard dedu!tion in an amount not e1!eeding

forty "er!ent +4>@ of it gross in!ome as defined in e!tion <2 of this 'ode.Enless the ta1"ayer signifies in his return his intention to ele!t the o"tional

standard dedu!tion, he shall #e !onsidered as having availed himself of the

dedu!tions allowed in the "re!eding u#se!tions. u!h ele!tion when made

in the return shall #e irrevo!a#le for the ta1a#le year for whi!h the return is

made: Provided , 0hat an individual who is entitled to and !laimed for the

o"tional standard shall not #e reCuired to su#mit with his ta1 return su!h

finan!ial statements otherwise reCuired under this 'ode: Provided , further ,

0hat e1!e"t when the 'ommissioner otherwise "ermits, the said individual

shall %ee" su!h re!ords "ertaining to his gross sales or gross re!ei"ts, or the

said !or"oration shall %ee" su!h re!ords "ertaining to his gross in!ome as

defined in e!tion <2 of this 'ode during the ta1a#le year, as may #e

reCuired #y the rules and regulations "romulgated #y the e!retary of inan!e, u"on re!ommendation of the 'ommissioner.

+M 1 1 1.

1 1 1.

S&C. 4. e!tion <?+A and +B of Re"u#li! A!t $o. 8424, as amended, otherwise

%nown as the $ational &nternal Revenue 'ode of ())*, is here#y amended to read as

follows:

/'. <?. "llo'ance of Personal %emption for Individual Tapayer . -

+A In $eneral . - or "ur"oses of determining the ta1 "rovided in e!tion

24+A of this title, there shall #e allowed a #asi! "ersonal e1em"tion

amounting to ifty thousand "esos +5?>,>>> for ea!h individual ta1"ayer.

&n the !ase of married individual where only one of the s"ouses is deriving

gross in!ome, only su!h s"ouse shall #e allowed the "ersonal e1em"tion.

+B "dditional %emption for Dependents. - 0here shall #e allowed an

additional e1em"tion of 0wenty-five thousand "esos +2?,>>> for ea!h

de"endent not e1!eeding four +4.



0he additional e1em"tion for de"endents shall #e !laimed #y only one of

the s"ouses in the !ase of married individuals.

&n the !ase of legally se"arated s"ouses, additional e1em"tions may #e

!laimed only #y the s"ouse who has !ustody of the !hild or !hildren:

Provided , 0hat the total amount of additional e1em"tions that may #e

!laimed #y #oth shall not e1!eed the ma1imum additional e1em"tions

herein allowed.

or "ur"oses of this u#se!tion, a de"endent means a legitimate,

illegitimate or legally ado"ted !hild !hiefly de"endent u"on and living with

the ta1"ayer if su!h de"endent is not more than twenty-one +2( years of

age, unmarried and not gainfully em"loyed or if su!h de"endent, regardless

of age, is in!a"a#le of self-su""ort #e!ause of mental or "hysi!al defe!t.

1 1 1.

S&C. 5. e!tion ?( +A+2 of Re"u#li! A!t $o, 8424, as amended, otherwise %nown

as the $ational &nternal revenue 'ode of ())*, is here#y further amended to read asfollows:

/'. ?(. Individual Return. -

+A Re(uirements. -

+( /1!e"t as "rovided in "aragra"h +2 of this u#se!tion, the following

individuals are reCuired to file an in!ome ta1 return:

+a 1 1 1;

1 1 1.

+2 0he following individuals shall not #e reCuired to file an in!ome ta1

return:

+a 1 1 1;

+# An individual with res"e!t to "ure !om"ensation in!ome, as defined in

e!tion <2+A+(, derived from su!h sour!es within the 5hili""ines, the

in!ome ta1 on whi!h has #een !orre!tly withheld under the "rovisions of

e!tion *) of this 'ode: Provided , 0hat an individual deriving

!om"ensation !on!urrently from two or more em"loyers at any time duringthe ta1a#le year shall file an in!ome ta1 return;

+! 1 1 1; and

+d A minimum wage earner as defined in e!tion 22+99 of this 'ode or

an individual who is e1em"t from in!ome ta1 "ursuant to the "rovisions of

this 'ode and other laws, general or s"e!ial.

1 1 1.

S&C 3. e!tion *)+A of Re"u#li! A!t $o. 8424, as amended, otherwise %nown asthe $ational &nternal Revenue 'ode of ())*, is here#y further amended to read as

follows:

e!tion *). Income Ta Collected at Source. -

+A Re(uirement of )ithholding . - /1!e"t in the !ase of a minimum wage

earner as defined in e!tion 22+99 of this !ode, every em"loyer ma%ing

"ayment of wages shall dedu!t and withhold u"on su!h wages a ta1

determined in a!!ordan!e with the rules and regulations to #e "res!ri#ed #y

the e!retary of inan!e, u"on re!ommendation of the 'ommissioner:

1 1 1.

S&C. . Separability Clause. - &f any "rovision of this A!t is de!lared invalid or

un!onstitutional, other "rovisions hereof whi!h are not affe!ted there#y shall

!ontinue to #e in full for!e and effe!t.

S&C. #. Repealing Clause. - Any law, "residential de!ree or issuan!e, e1e!utive

order, letter of instru!tion, administrative order, rule or regulation !ontrary to or

in!onsistent with any "rovision of this A!t as here#y amended or modified

a!!ordingly.

S&C. 9. Effectivity Clause. - 0his A!t shall ta%e fifteen +(? days following its

"u#li!ation in the official $a!ette or in at least two +2 news"a"er of general

!ir!ulation.

A""roved,

+gd. PR*SP&R* C. N*)RA&S

"ea%er of the 9ouse of Re"resentatives

+gd. %ANN 2(AR

5resident of the enate



0his A!t whi!h is a !onsolidation of 9ouse Bill <)*( and enate Bill $o. 22)< was

finally "assed #y the 9ouse of Re"resentatives and the enate on May 28, 2>>8 and

May 2*, 2>>8 res"e!tively.

+gd. %AR(N -. -AR,AAP

e!retary eneral

9ouse of Re"resenatives

+gd. &%%A (R(*R&&S

e!retary of enate

A""roved: June 1! "00#

+gd. )*R(A %ACAPA)AARR**

President of the Philippines

ra 9504 - an act amending section 22, 24, 34, 35, 51, and 79 of republic act no. 8424, as amended...

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