E M E L I N O

M A E S T R O

Taxing Non-taxable Minimum Wage Earner

A privileged communication. Valid within June 10, 2011 ETM Conviction and Belief

Misfeasance. The spirit. language and noble objective of Republic Act No. 9504 is to exempt the compensation of poor minimum wage earners [or MWE] from income tax, thus , withholding of a tax.

ETM reported this to the Ofce of the Ombudsman because he believes that the BIR ways are To nd ways to tax it is unfair and Emelino T Maestro is not belonging contrary to law and moral unacceptable to the school of MWEs but his values. However, it does not heart understands that every Recently, a BIR circular that want to be involved by invoking centavo earned counts. If ETM presented ways to go around the primary jurisdiction principle. is in the same position, he will the law was deliberately not accept the P500 ETM encourages the labor and planned and executed. It commission. worker groups to look closely to presented two identical this questionable actions and if scenarios. Last scenario. In adding more salt possible le appropriate actions to the big and fresh wound, a First scenario. A P500 in the proper forum. second example in the same commission or whatever type of circular was presented and The real movers of this economy allowance was generously given offered. Now, a policeman who are the minimum wage earners. by an employer. Even if it was is receiving P11,000/mo. was Let us protect and promote their made in December, the circular transferred to Laguna Province rights and privileges under the expressed that the entire where the minimum wage rate is laws of the State. compensation received for the P8,000 (example only). In this year shall be subjected to scenario, the BIR explained that Those who shall place and post income tax. Let us this to their websites, blog-sites, his earnings from January up to numberalized this. social-network sites and the June when he was still regularly same shall receive via email a reporting to his Manila station is TIP ON HOW TO AVOID THE Earnings No P500 With P500 exempted from income tax while ABOVE SCENARIOS. So that for reporting to his new post, his Annual 132,000 132,500 our MWEs shall no longer loan compensation from July and from their employers because succeeding months will be Exempted 132,000 50,000 their take-home pay will not subjected thereto. sustain their needs for the Taxable 0 82,500 See the disparity and indifference. coming month. The rst scene subjected the December 11,000 11,000 Support the income tax exemption entire compensation to income of MWE, thus, reducing the tax even if only the December Tax 0 4,375 possibilities of the employers earning exceeded the minimum from paying penalties. Take home 11,000 6,625 wage rate while in the last example, only the July and Be an ETM Tax Consultant!
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The benet of receiving P500 commission does not justify the cost of paying income tax of P4,375. Because his take-home pay dropped sharply, he needs to get a loan to nance his daily needs. Fair?

succeeding months earnings are subjected thereto. Identical scenario. Double standards?