Guide on Christmas Bonus 2020 Tax Rules
CHRISTMAS BONUS 2020 – Here is a guide on whether or not the Christmas bonus is subject to tax deduction in the Philippines.
In the Philippines, the employees are entitled to a 13th month pay or a year-end pay. It is mandated by law and there is no exemption to it. It greatly helps employees cope with the expenses during the holiday season and as well as bridge some personal expenses.
Aside from the 13th month pay, some employees also receive a Christmas bonus. It is upon the discretion of the employer or the company on whether or not to give a cash bonus to their workers.
The Christmas bonus is like an appreciation gift to employees for the services they rendered within the year. It also greatly helps the workers in their expenses.
However, you might be curious if whether or not the Christmas Bonus 2020 is taxable. Based on an article on Asean Briefing, it is covered by tax deduction in the Philippines depending on the amount of the cash bonuse.
There are two types of Christmas bonus – the Performance-Based Bonus and the Non-Performance-Based Bonus or the “Other Benefits”. Both are taxable if they surpass the exemption cap set.
Do you want to check on the exemption cap set for each Christmas bonus 2020? You may refer below depending on the type of bonus that your employer or company is releasing:
- Christmas Bonus: When Is Non-Performance-Based Bonus Subject for Tax?
- Performance-Based Christmas Bonus – When Is It Subject for Tax Deduction?
Thank you for visiting our website. We hope we have helped you in regards to this matter about the Christmas bonus. You may keep coming back for more informative guides.
READ ALSO: 13th Month Pay – Is It Subject For Tax Deduction in the Philippines?
