An Exempting Marginal Income Earners From Income Tax And Value-Added Tax, Amending For The Purpose Sections 22, 24, 109 (1) And 236 Of The National Internal Revenue Code Of 1997, As Amended, And For Other Purposes
- The Marginal Income Earners (MIEs), as defined under tax regulations, are those individuals not deriving compensation as an employee under an employer-employee relationship and are self-employed and deriving gross sales or receipts not exceeding One hundred thousand pesos (P100,000) in any 12-month period. The threshold amount is increased to P150,000 under the bill to provide for inflation and considering the current minimum wage rate.
- In recognition of the importance of MIEs to our economy and to alleviate their sorry plight, this proposed bill seeks to exempt MIEs from the payment of income tax and value-added tax and to institutionalize their exemption from the registration requirements under the Tax Code.
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