IRR of RA 9504?

Still wondering why there is still no signed revenue regulations/IRR for the new RA 9504.

The law which took effect last July 6, 2008 after being approved on June 17, 2008 by President GMA, amends Sections 22, 24, 34, 35 and 79 of the amended RA 8424, otherwise known as the National Internal Revenue Code of 1987.

It’s about time that such amendments were made to the outdated provisions of this income tax law. Among the good news for the regular taxpayers would include the following:

1) Exemption of minimum wage earners as well as the income they get from holiday pay, overtime, night differentials and hazard pay.

2) Increase in the basic exemption for Single, Head of the Family, Married taxable persons from the previous amounts to P50,000 each and also increase in the additional exemption for dependents to P25,000 for each qualified dependent, the number of which shall not exceed four.

3) The availability of an Optional Standard Deduction from gross income equal to 40% for BOTH individual and corporate tax payers.

The law is progressive in application, such that there will be two computations to be made by accountants in the preparation of Income tax returns. One for period prior to implementation last July 6, 2008 and another for the period subsequent to the implementation of the new law.

Although the final IRR is yet to be released, the BIR has issued a draft to serve as a guideline for the implementation of this new law. But the delay may have caused some to not yet implement this unless they have a clear idea on the provisions of RA 9504. The BIR is taking quite a long time to issue the signed RR for this one, maybe they have to do better in succeeding amendments/revisions of our NUMEROUS tax laws.

After this one, probably it’s about time to revisit some more of the obsolete lax laws out there. Tax officials as well as finance people should know that the value of money before is not the same as now. Take that into consideration and you know that tax provisions should once in a while be checked to see if it is up to date.

You can check out a copy of the draft regulation here.


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~ by licruz on August 27, 2008.

2 Responses to “IRR of RA 9504?”

  1. Check out my blog. I have various posts about this RA 9504

  2. […] Comment! The BIR has finally issued Revenue Regulations 10-2008, providing for the implementation of the provisions of the popular RA 9504. We have previously provided a draft of this here. […]

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