BIR: 5% Tax on Teachers’ Allowances for the Barangay Elections

barangay elections allowance

The Bureau of Internal Revenue (BIR) has stood firm in its decision to impose the 5 percent withholding tax on the honoraria and transportation allowances that public school teachers will get for doing service in the coming barangay elections. A revenue legal official who declined to be named said the collection of the tax is mandatory under Sections 2.78 and 2.78.3 of Revenue Regulations No. 98. She said, however, the take will be returned if the teacher’s annual total compensation does not exceed his tax exemption of P250,000 as prescribed…