House of Representatives

House passes bill on 25% income tax relief for health workers

Mara Cepeda

This is AI generated summarization, which may have errors. For context, always refer to the full article.

FRONTLINERS. Health workers in Metro Manila wear personal protective equipment during the COVID-19 pandemic.

File photo by Lisa Marie David/Rappler

The bill proposes a discount on the 2020 personal income taxes of qualified frontliners

The House of Representatives gave its nod to a bill granting medical personnel fighting the coronavirus pandemic a 25% discount on a year’s worth of personal income taxes.

On Monday, February 1, a total of 235 legislators passed on 3rd and final reading House Bill (HB) No. 8259, which would provide for a 25% tax discount on salaries, compensation, and gross receipts from the exercise of profession by medical frontliners for taxable year 2020.

No lawmaker voted against HB 8259 or abstained. 

Under HB 8259, the medical frontliners qualified to avail of the 25% tax discount are those engaged in health-related services and are employed in hospitals, clinics, or other medical institutions – whether public or private – that treat patients infected with COVID-19. 

Qualified frontliners would include administrative employees, support personnel, and staff of the said medical institutions, regardless of their employment status. 

HB 8259 also allows the Department of Finance chief to extend the tax exemption for the qualified health workers up to 6 months or until June 2021. 

The bill’s proposed tax discount, however, will not cover the income received by health workers from their other businesses, investments, and other kinds of passive income not related to their duties to serve and treat COVID-19 patients. 

Filipino healthcare workers have long been overwhelmed by the crippling COVID-19 pandemic, with cases in the country reaching 525,618 as of Monday.

Though the Bayanihan law grants health workers special allowances and hazard pay during the COVID-19 crisis, these do not always reach them on time, while other frontliners have complained about not receiving the full amount.

Several Filipino health workers have opted to work abroad instead due to low wages and poor working conditions in their home country. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Loading
Download the Rappler App!
Clothing, Apparel, Person

author

Mara Cepeda

Mara Cepeda specializes in stories about politics and local governance. She covers the Office of the Vice President, the Senate, and the Philippine opposition. She is a 2021 fellow of the Asia Journalism Fellowship and the Reham al-Farra Memorial Journalism Fellowship of the UN. Got tips? Email her at mara.cepeda@rappler.com or tweet @maracepeda.