BIR changes tax policies on head of the family and tax exemption
Tuesday, September 30th, 2008Thanks to one of my friends, I got wind of a report that the BIR has lowered the treshold for tax exemption. Instead of P30,000 personal exemptions, you will now enjoy P50,000 of personal exemptions and P25,000 for your dependents.
Not only that, if you are Single, you can no longer be considered as head of the family as long as your parents are still alive. This means that the P100 less tax per month entitled to the Head of the Family will no longer be applicable. The status will only be SINGLE or MARRIED. But you can still put your qualified dependents of up to four children less than 21 years of age. Parents can no no longer be considered as qualified dependents. Too bad for those who are supporting their parents.
The Bureau of Internal Revenue has increased the personal exemptions and additional exemptions in computing the income tax beginning this year. This means that if you have been paying your taxes regularly, you may be entitled for some proportionate tax refunds!

















