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AUG
06
2013

SBN-1213: Excluding Performance-Based Bonus From the Computation of Taxable Income

An Act Excluding the Performance-Based Bonus From the Computation of Taxable Income Amending for the Purpose Section 32 (B) (7) of Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code Of 1997, As Amended

  • Performance-Based Bonus a top-up bonus given to government personnel of Bureaus or Delivery Units in accordance with their contribution to the accomplishment of their Department’s over-all targets and commitments, as provided for in Executive Order No. 80, series of 2012.
  • The rates of the PBB were distributed as follows for FY 2012, “without prejudice to the revision thereof in succeeding years”. Thus:

 

Bureau / Unit Ranking Best (Top 10%) Better (Next 25%) Good (Up to 65%) Poor
Best (Top 10%) P35,000.00 P20,000.00 P10,000.00
Better (Next 25%) P25,000.00 P13,500.00 P7,000.00
Good (Up to 65%) P15,000.00 P10,000.00 P5,000.00
Poor

 

  • To grant government employees full recognition and enjoyment of their exemplary performance, this Bill proposes to include the PBB among the types of compensation exempt from the computation of taxable income by amending for the purpose Section 32 (B) (7) of Republic Act No. 8424, otherwise known as the “National Internal Revenue Code of 1997”, as amended.

 

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