Acctg4Entrep

We are working ourselves to the bone to fund systems we barely benefit from, while struggling to save for our own families. The system feels backwards. Who's actually looking out for the taxpayers?

📢 ₱400,000 Income Tax Exemption Proposed?

A proposal has been raised to increase the income tax exemption threshold to ₱400,000 annually to help improve workers’ take-home pay amid rising living costs. Currently, under the TRAIN Law, only annual taxable income up to ₱250,000 is exempt from income tax.

If approved, this could mean:
✅ Higher net pay for middle-income earners
✅ Increased consumer spending power
✅ Additional relief against inflation pressures

However, this also raises important questions:
💭 Can government revenues absorb the impact?
💭 Will businesses eventually adjust compensation structures?
💭 Is this enough to offset rising prices and living costs?

For finance leaders, HR professionals, and business owners, this is another development worth monitoring as it may directly affect payroll planning, compensation strategy, and tax forecasting.

https://www.philstar.com/headlines/2026/05/06/2526075/p400000-income-tax-exemption-sought-raise-take-home-pay

P400,000 income tax exemption sought to raise take-home pay A tax relief bill seeks to raise the tax-free income threshold to P400,000 a year as workers face rising prices.

📢 BIR UPDATE: EXTENDED DEADLINE FOR 2025 ANNUAL ITR

The Bureau of Internal Revenue (BIR) has officially extended the deadline for filing the 2025 Annual Income Tax Returns (AITR) and payment of corresponding taxes.

🗓 New Deadline: May 15, 2026
(From original deadline of April 15, 2026)

📌 Key Highlights:
• Applies to filing, payment, and submission of required attachments
• Extension granted to provide taxpayers additional time amid current economic conditions
• No penalties will be imposed within the extended period

💻 Filing & Payment Options:
• BIR electronic filing platforms (eFPS / eBIRForms)
• Electronic payment channels
• Authorized Agent Banks (AABs)

📖 This extension is pursuant to Revenue Memorandum Circular No. 030-2026, in line with the declared State of National Energy Emergency.