th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

Isumbong Mo Kay Dulay: BIR Chief Urges Staff of Employers Still Deducting Old Withholding Taxes to Blow the Whistle on Bosses

But employers’ confederation appeals for more time for some members to re-program payroll systems
By Entrepreneur Staff |

Bureau of Internal Revenue Commissioner Caesar Dulay

 

 

The Bureau of Internal Revenue (BIR) wants employers to immediately implement the new withholding personal income tax rates on all their employees starting on January 1, 2018 amid reports that some employers are not yet ready to do so because they have yet to complete the process of re-programming their payroll systems to reflect the new tax rates.

 

The new withholding tax rates exempts employees earning no more than Php250,000 a year from income taxes and generally lowers tax deductions for a vast majority of employees.

 

However, some companies have issued notices to employees that they won’t be able to immediately implement the new withholding tax rates in the first few weeks of January. They said the new tax deduction schedules will instead be implemented either in the second half of January or in February.

 

But BIR Commissioner Caesar Dulay is having none of that. “We have published the RMC (revenue memorandum circular). They should have checked that. They know the effect of non-compliance,” he said, according to an ABS-CBN News Channel (ANC) television report.

 

He was referring to RMC 105-2017 that the BIR issued on December 28, 2017 detailing the revised withholding tax table on compensation in the wake of the enactment of the Tax Reform for Acceleration and Inclusion (TRAIN) law. Signed by President Rodrigo Duterte on December 19th, the tax reform law was set to take effect on January 1, 2018.

 

 

Related story: How Much Withholding Taxes Should Be Deducted From Your Pay Under the New TRAIN Law?

 

 

The BIR chief urged employees of companies that are still deducting the old withholding taxes to report their employers directly to his office. “Papuntahin mo sa opisina ko at sabihin ang employer nila then we will call their attention and the employer will not know kung sino ang nagsumbong sa kanila, (Tell the employees to come to my office and we’ll call the attention of the employers and they won’t know who reported them to us), ANC reported him as saying. He made the remarks at the sidelines of a public consultation on proposed rules and regulations on the TRAIN law last January 11.

 

The BIR’s warning of possible penalties has prompted the head of the Employers Confederation of the Philippines (ECOP) to ask the BIR to give the group’s members extra time to fix their payroll systems to reflect the new tax schedules.

ADVERTISEMENT - CONTINUE READING BELOW

 

Dulay with President Rodrigo Duterte

 

 

“We would be asking Commissioner (Caesar) Dulay to at least give us a chance to give us time to convert our old program into a new program," said ECOP Chairman Donald Dee in a live interview aired by ANC on December 11.

 

He said many of the employers were waiting for the release of the new tax law’s detailed implementing rules and regulations but admitted that wasn’t enough reason for delaying the tax relief to employees. “They delayed the process. There was no implementing guidelines. These are all technicalities that should’ve not been brought up. We intend to implement it right away," he said.

 

Entrepreneur Philippines tried to reach Dee and the ECOP secretariat for an update on their request to the BIR but hasn’t gotten a response so far.

 

 

***** 

Latest Articles

Can Gov’t Take Frequencies From Globe and PLDT to Give These to the 3rd Telco Player?

Policy makers admit available spectrum is not enough to make new entrant competitive

byElyssa Christine Lopez | January 18, 2018 19:00:00

PayMaya, GCash QR Code Tech Can Now be Used for Payments in The SM Store and Other Large Retailers

The two telco-powered mobile wallets are slowly working toward the BSP’s vision of a cashless...

byLorenzo Kyle Subido | January 18, 2018 14:00:00

This Property Manager Has a Better Deal than AirBnB or Private Leasing for Condo Investors

Founded by Luis Monserrat, Hospitality Innovators Inc now counts 19 properties in its portfolio

byPaul John Caña | January 18, 2018 13:00:00

All Entrepreneurs Face Failure But the Successful Ones Didn't Quit

Fear of failure is natural. In entrepreneurship, overcoming your fears is essential

byDaniel Neiditch | January 18, 2018 08:00:00

Avoid These 5 Early Mistakes I Made as an Entrepreneur

Learn from my mistakes and save yourself unnecessary hardship

byJonathan Long | January 18, 2018 06:00:00

Why Most New Year's Resolutions Fail and What You Should Do Instead

It's incredibly hard to break out of old habits

byJulie Christopher | January 18, 2018 02:00:00

The New Metropolis Rising in Central Luzon is Getting Some Help from Singapore

A consulting firm from the Lion City has been tapped for the project

byMiguel Escobar for Esquiremag.ph | January 18, 2018 00:00:00

Want a Salary of Up to Php99K a Month? Here’s a List of the Highest-Paying Jobs for Pinoys Abroad

Asia and the US need engineers and technicians but Middle East wants healthcare professionals

byElyssa Christine Lopez | January 17, 2018 19:00:00

Former Stock Exchange Chief Assails SEC Decision on Rappler as ‘Anti-Business’

Lawyer Francis Lim says agency’s harsh penalty is inconsistent with its mandate to protect...

byEntrepreneur Staff | January 17, 2018 15:00:00

Need a New Office Space For Your Business This 2018? Try FlySpaces Passport

The subscription service is perfect for highly mobile employees and freelancers

byNicai de Guzman | January 17, 2018 11:00:00

9 Reliable Ways to Cultivate Creative Thinking

Some people are naturally creative. Everyone else can cultivate creativity

byJohn Rampton | January 17, 2018 08:00:00

3 Simple Ways to Increase Empathy at Work

Empathy is a great way to climb the career ladder

byCeren Cubucku | January 17, 2018 06:00:00