Sun.Star Cagayan de Oro

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THE Bureau of Internal Revenue (BIR) reminded employers in Negros to start using the new withholdin­g tax table as provided under the Tax Reform for Accelerati­on and Inclusion (Train) law.

BIR Revenue Region 12 Director Eduardo Pagulayan Jr. said on Sunday, January 14, that effective starting January, the table should already be used in computing the tax deductions from the workers' income.

Pagulayan said employers using the old table should return to their employees the excess withholdin­g tax.

This is provided under the Revenue Memorandum Circular issued in December last year, mandating all employers to return to their respective workers the "excess deductions" resulted from not using the new withholdin­g tax table.

"Erring employers in the island can be prosecuted criminally once their employees filed complaints before our office," Pagulayan added.

BIR Region 12 covers revenue district offices in Bacolod City, Binalbagan town and Victorias City in Negros Occidental, Dumaguete City in Negros Oriental, and Siquijor Province.

The new tax reform law exempts some workers from paying income tax while increasing the excise tax on various products including fuel and sweetened beverages.

Under the new withholdin­g tax table, workers earning P20,833 and below every month have no income tax to pay.

Tax computatio­n for workers in other salary brackets are available at www.bir.gov. ph, or they may also compute it using taxcalcula­tor.ph of the BIR and Department of Finance (DOF).

The Train law also reduces the tax for self-employed workers. From 10 to 15 percent, it should be lowered to eight percent.

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