The House of Representatives approved on second reading a measure providing a 25-percent discount to the personal income taxes (PIT) of medical frontliners.
The chamber passed through voice voting House Bill 8259 or proposed Handog Sa Mga Bayaning Lumaban Kontra COVID-19 Act, which provides income tax relief to medical frontliners for taxable year 2020 as the government’s appreciation for putting themselves at risk to fight the coronavirus pandemic.
The exemption granted will only cover the salary or compensation received by a frontliner for the taxable year 2020.
The exemption granted in this proposal will only cover the salary or compensation, as well as the gross receipts from the exercise of profession or employment received by a frontliner for taxable year 2020.
The exemption will not cover income received by medical frontliners from their other businesses, investments, and other kinds of passive income not related to serving, treating, caring, aiding, and assisting COVID-19 patients.
To help frontliners file their income taxes on time given the potential changes in their tax calculations, the Secretary of Finance will also be given the authority to extend tax filing by six months.