Tax deductions

Gatchalian calls for tax deductions to offset work-from-home setup costs


Senator Sherwin Gatchalian is proposing to reduce employee taxes for work performed under a work-from-home (WFH) setup to ease their financial burden.

In a statement on Saturday, Gatchalian said the benefits in the form of eligible tax deductions could help ease the burden on telecommuting employees, such as a P 25.00 reduction in their taxable income for each hour worked under the agreement of the WFH, which will reduce taxes. they have to pay and, in fact, increase their take-home pay.

In addition, allowances or other benefits not exceeding P 2,000 per month granted to them by their employers can be legislated as non-taxable benefits, the senator said.

Gatchalian is the vice-chairman of the Senate Economic Affairs Committee.

The legislator’s proposals are contained in Senate Bill 1706 or Tax Incentives for Individuals participating in a work-from-home or telecommuting program co-authored by Gatchalian.

The measure also includes a provision allowing employers to claim an additional 50% tax deduction for allowances granted within the specified ceiling.

Such a provision, said Gatchalian, is intended to encourage employers to provide much-needed allowances to their employees by allowing them to deduct an additional 50% of the amounts they provide for income tax purposes.

“By providing for these allowable tax deductions, it will effectively increase the workers’ take-home pay and, one way or another, these would be enough to cover some of their costs for electricity, internet connectivity and others.” work-related expenses. The amount will be substantial, especially for people strapped for cash, ”he explained.

“Mahalaga of unusual learning for most employees who find it difficult to adjust to the ‘new normal’. Malaking tulong na ito in kanilang buwanang gastusin, pampalubag loob din ito with stressa habang naka work-from-home.

(It is important to offer incentives, especially now that many employees are still adjusting to the “new normal.”

Highlighting the need for such incentives, Gatchalian cited a recent Microsoft survey titled First Annual Work Trend Index, conducted among 31,092 full-time or self-employed workers in 31 global markets, including the Philippines, which shows that 42% of employees have stated that even after a year of working from home, they still lack essential office supplies and one in 10 does not have an adequate internet connection to do their job.

Meanwhile, 46% said their employer does not help them with remote work expenses.

As employees keep pace with today’s digital world, the same survey indicates that 63% of workers in the Philippines said they felt overworked while 31% said they felt exhausted, according to the senator.

Another survey conducted by JobStreet.com Philippines said about 10 months ago that 75% of those polled said they had not received any reimbursement or allowance for their electricity and internet expenses from of their businesses and 87% said employers should cover their WFH costs while 38% said they experienced a reduction in their income due to poor Internet service. – DVM, GMA News