References:
- Memorandum from TDC dated October 24, 2022 with subject: Fiscal Directive re: “Grant of Performance-Based Bonus for FY 2020 to Eligible PNP Personnel”;
- Memorandum from C, AD, DC dated November 7, 2022 with subject: Taxable Income in Excess of Threshold; and
- BIR Revenue Regulations 8-2018 and 11-2018.
The Performance-Based Bonus (PBB) for Fiscal Year 2020 will be credited to the ATM payroll account of qualified PNP personnel on November 24, 2022. Pursuant to BIR Revenue Regulations 8-2018 and 11-2018, the amount of 13th Month Pay and other bonuses in excess of Php 90,000.00 shall be subjected to withholding tax, which will be added to the annual taxable income, per Income Tax Rates provided by the BIR.
However, based on the Guidelines on the Grant of PBB FY 2020, should the resulting amount is lower than Php 5,000.00, the PBB amount shall be automatically Php 5,000.00.
|
Amount of Net Taxable Income |
Rate |
|
|
Over |
But Not Over |
|
|
- |
P250,000 |
0% |
|
P250,000 |
P400,000 |
20% of the excess over P250,000 |
|
P400,000 |
P800,000 |
P30,000 + 25% of the excess over P400,000 |
|
P800,000 |
P2,000,000 |
P130,000 + 30% of the excess over P800,000 |
|
P2,000,000 |
P8,000,000 |
P490,000 + 32% of the excess over P2,000,000 |
|
P8,000,000 |
|
P2,410,000 + 35% of the excess over P8,000,000 |