RR No. 3-2015 — Implement the provi ion of RA No. 10653, more particularly on the increa e to P 82,000.00 of the total amount of exclu ion from gro income for 13th month pay and other benefit , effectively further amending the pertinent provi ion of RR No. 2-98 (Publi hed in Manila Bulletin on March 16, 2015) Dige t |

RERIHIPTPN THAPTNEAFNANE B yATRAE Reccnh I. f.

BIREAEOFNIIRNALRFENTE

I& Quezon City FECEIPEE

March 9.2015

REVENUE REGULATIONS NO. 3--!5

SUBJEC Impiementing the Prcvisions of Republic Act No. 10s53. More Particuiarly on the increase of the Totai Amcunt of Exciusicn tc Reguiations No. 2-98 P82.000.00 for 3r Month Pay and Other Benefits from Gross Income. Effectively Further Amending the Pertinent Provisions of Revenue

TO All internal Revenue Officiais and Others Concerned

SEcTION 1. scOPE. - Pursuant to the provisions of Section 4 in relatior to Section 244 of the National Internal Revenue Coae (NIRC) of 19e7. as armenaed. these Regulations are hereby promulgated to impiement the provisions Republic Act (RA) Ne 10653. "An Act Adjusting the 13t- Month Pay and Other Benefits Ceiling Exciuded from the Computaiion of Gross Income for Purposes of Income Taxatior.. Amending for the Purpose Section 32 (B). Chapter VI of the National internal Revenue Code o: 19s7. As

from gross income. further amending. in effect. the pertinent provisions of Revenue Amended". more particulariy on the increase of the total amount of exciusion to Eighty Two Thousand Pesos (P82.000.00) for thirteenth (13th: month pay and other benefits

Regulations No. 2-98

pursuant to the provisions of RA No. 10553. compensation income received by an employee prescribed under the perinent provisions. inciuding the exampie computations. of Revenue Regulations (RR) No. 2-98) as amenaed. is hereby increased to "Eighty Two Thousand Pesos (P82.000.00) -- The amount of Thirty Thousand Pesos (P30.000.00). specifically referring to the total amount of 13:h month pay and other benefits as one of the exclusions from gross SEC. 2 AMENDATORY PROVISION ON REVENUE REGULATiONS NO. 2-98

and other benefits prescribed under the provisions of Section 2.78.1.(B){11) of RR No Accordingiy. the amount of P82.000.00 shall ONLY appiy to the 13tr month pay

2-98, as arnended. and shall in no case apply to other compensation received by ar empioyee under an empioyer-employee relationship. such as basic saiary and cther allowances. Further. it must be empnasized that this exciusion from gross income is not applicable to seif-empioyod individuals ana income generated from business

SEc 3. TRANSITORY PROViSIONS. - The amount of P82.000.00 shail appiy to the 13" month pay and other benefits pa:d or accrued beginning January 1. 2015.

N

For he effective implementation of these Reguiations. all taxpavers-emplovers

month and other benefits of the empioyees. in the year-end adjustments. and the same Withheid (BIR Form No. 2316). The said BIR form shali be issued by the employer to shall ensure the corect computation and applicaton of tie said increase on the 13t shal: be cieariy :ndicated. among others. in the Certificate of Compensation/Tax

tre iast payment of compensation is made. In case the empioyee whose employment is the empioyee on or before January 31 of the succeeding caiendar year. or if the empioyment is terminated beiore the ctose o? such caiendar year. on the day on which

terminated and subseauentiy emploved by another employer before the ciose of the

aceompished BIR form issuec by thc previous empioyer. for the appropriate withholding iax computation of the empioyee's regular compensation and subsequcnt year-ena caiendar year employee-transferee shall immediately farnish the rew employer the adjustment. if any

the corresponding penalties under the pertinent provisions of the NIRc oi 1997. as amended, and appiicabie regulations issued by the BiR. SEC. 4. PENALTIEs. -- Any vioiation of these Reguiations snall be subject to

declared invalid by a competent court. the remainder of these Reguiations or any provision not affected by such deciaration of invalidity shall remain in force and effect SEC. 5. SEPARABILiTY CLAUSE. - If any provision of these Regulations is

of these Regulations are hereby revoked. repealed or amended accordingly. reguiations. rulings or orders: or portions thereof inconsistent with the provisions SEC. 6. REPEAlING CLAUSE. - The provisionsofany existing

immediateiy after pub:ication thereof in a ieading newspaper of general circuiation. SEC. 7. EFFECTIVITY. - These Reguiatians shall take effect fifteen (151 days

cesarv. Purisima Secretary of Finance

Recommending Approval: 025425

Commissioner of Internal Revenue KIM S.JACINTO-HENARE3 RECORDS MST DIVISIOR BUREAL OF INTEPNAL RLYENUE F7 1 3 206 1:277-f

031107 A

FECEIVED

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