The Bureau of Internal Revenue (BIR) wants this year’s collection from large taxpayers to still breach the P1-trillion mark despite the impact of a new law on tax-exempt bonuses.
On the sidelines of the BIR’s 2015 tax campaign kickoff for its large taxpayers service (LTS) last Tuesday, Commissioner Kim S. Jacinto-Henares told reporters that the earlier target of P1.07 billion in total collections of the LTS for this year would be lowered to take into account the law on tax-exempt bonuses that was recently signed by President Benigno Aquino III.
“There will be an adjustment because [the law] impacts on the withholding taxes of compensation income earners. Of the P30 billion [in estimated revenue losses from the higher tax-exemption cap on bonuses], about 64 percent will be from them [large taxpayers],” Henares said.
It would mean about P19 billion in foregone collections for the LTS, so its goal could be lowered to P1.05 trillion. Last year, the LTS was tasked to collect P915.1 billion of the P1.456-trillion total tax-collection goal of the BIR.
The BIR defines large taxpayers as corporations with authorized capitalization of at least P300 million registered with the Securities and Exchange Commission (SEC); multinational enterprises with authorized capitalization or assigned capital of at least P300 million; publicly listed corporations; universal, commercial and foreign banks; taxpayers with an authorized capitalization of at least P100 million belonging to the banking, insurance, petroleum, telecommunications, utilities, alcohol and tobacco industries; and corporate taxpayers engaged in production of metallic minerals.