Pinoys have reason to rejoice! The BIR has recently released its implementing guidelines for RA 9504, which was signed into law last June. Under the new law, Filipinos have larger tax exemptions and will therefore be bringing home more take home pay!

I'm not a tax expert, but from what I understand, there are three major changes that will happen as a result of this new law:

(1) Minimum wage earners are now exempt from payment of income tax.

(2) All individuals now have a P50,000 annual income tax exemption. (It used to be P20,000 for single individuals, P25,000 for heads of families, and P32,000 for married individuals.)

(3) Married couples now have an exemption of P25,000 per child, up to 4 children. (It used to be P8,000 per child, up to 4 children.) Only one spouse can claim the increased exemption.

Find out from your accountant or company's accounting office if there's anything that you need to do to claim the additional exemptions. At our office, married couples and individuals with dependents were asked to submit NSO copies or CTCs of marriage certificates/dependents' birth certificates.