CITY OF SAN FERNANDO -- The Bureau of Internal Revenue (BIR) regional office here held Wednesday a whole day Tax Update seminar for top taxpayers, certified public accountants and business owners.
BIR Regional Director Romulo Aguila Jr. told Sun.Star Pampanga that the seminar aimed at updating taxpayers on new policies and various initiatives and programs of the BIR to increase local tax collection and to apprehend tax evaders.
Also discussed in the seminar is the five percent tax on campaign-related materials.
The BIR is mandated under Revenue Regulations to strictly monitor the withholding tax payments of five percent on campaign-related expenditures of political parties, campaign contributors and candidates for the forthcoming local and national elections.
The five percent creditable withholding tax is not a tax on the candidate, political party or contributor but a tax on the income of the supplier of goods and services.
It is collected through the candidates, political parties and contributors by the latter deducting the tax from the agreed transaction price upon making the payment and remit such amount to the BIR.
Aguila said the tax update seminar is important because concerned agencies, particularly withholding agents from both private and public entities, including the business sector should know the exemptions and who are not exempted in the implementation of the new law, the Republic Act (RA) 9504.
The whole day tax seminar focused on all withholding agents from local government units and National Government agencies here and withholding agents coming from the private entities and business sector.
The seminar discussed new law, the implementing rules and regulations, and the salient features of RA 9504.
“Withholding agents should know on what to do if the minimum wage earners are exempted from income taxes,” Aguila said.
Salient features of RA 9504 exempt minimum wage earners from income tax on their statutory minimum wage; holiday pay; overtime pay; night shift differential; and hazard pay.
It also increases the amount of personal exemptions; increases the rate of optional standard deductions or OSD on individuals; and includes corporations among those entitles to OSD.
Aguila said additional seminars will be conducted in the coming months to accommodate those who were not able to attend the said seminar.