Finally, PGMA has signed into law a bill that would exempt minimum wage earners from paying income tax and increasing personal exemptions for other employees. I just saw "the signing" last night on T.V. She signed the Repubic Act 9504 or an amending Sections 22, 24, 34, 35, 51, and 79(6 digits lotto sana kaso 51 and 79 ang dalawa) of RA 8424 or the National Internal Revenue Code of 1997.
Senator Manuel Roxas "Mr. Palengke", principal author of the measure and was present during the signing, said the new law would "provide relief to our workers by increasing their take home pay." But apart from tax exemption for minimum wage earners, the law will also provide for an increase in the personal exemption of all taxpayers.
Head of the family
Additional Exemption for Dependent(s)
The senator added that all holiday, night differential, hazard, and overtime pay would also be tax-exempt.
Expectedly, the government will lose around P 14 billion a year with the new law, it hopes to recover this through the optional standard deductions (OSD), which will "simplify the filing of ITR and benefits, in particular, professionals and medium, small, and micro entrepreneurs(yan ang batas!-Judai), according to the law.
The law is said to take effect 15 days after its publication in a national newspaper.