DOF reminds LGUs not to impose work tax on WFH employees
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DOF reminds LGUs not to impose work tax on WFH employees
Wena Cos,
ABS-CBN News
Published Aug 22, 2022 07:38 PM PHT

MANILA - Finance Undersecretary Antonette Tionko said the Department of Finance (DOF) will issue a local finance circular which states that local government units cannot collect work tax from individuals who are working from home.
MANILA - Finance Undersecretary Antonette Tionko said the Department of Finance (DOF) will issue a local finance circular which states that local government units cannot collect work tax from individuals who are working from home.
This, after they learned that some local governments have been collecting taxes from WFH employees, such as BPO employees.
This, after they learned that some local governments have been collecting taxes from WFH employees, such as BPO employees.
"We understand there are certain local government units trying to collect local tax on people working from home. That is not correct," Tionko said on Monday at the joint economic briefing of joint chambers of commerce held at Makati.
"We understand there are certain local government units trying to collect local tax on people working from home. That is not correct," Tionko said on Monday at the joint economic briefing of joint chambers of commerce held at Makati.
"It’s the company that is doing the work, it is the business, not the individual. It is not where the individual lives, it is still where the business, where the business of the company is [that should be taxed]," Tionko said.
"It’s the company that is doing the work, it is the business, not the individual. It is not where the individual lives, it is still where the business, where the business of the company is [that should be taxed]," Tionko said.
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Tionko said that DOF will issue the regulation soon.
Tionko said that DOF will issue the regulation soon.
"I think this will help the BPOs who are work from home so their workers don’t get bothered by LGUs," Tionko added.
"I think this will help the BPOs who are work from home so their workers don’t get bothered by LGUs," Tionko added.
A Senate bill (SB 1706) was filed in 2021 which seeks a tax deduction of P25 per working hour rendered at home, to increase workers' take-home pay.
A Senate bill (SB 1706) was filed in 2021 which seeks a tax deduction of P25 per working hour rendered at home, to increase workers' take-home pay.
Sen. Sherwin Gatchalian who filed the bill said this "would suffice to cover part of their electricity, internet connectivity fees, and other work-related expenses."
Sen. Sherwin Gatchalian who filed the bill said this "would suffice to cover part of their electricity, internet connectivity fees, and other work-related expenses."
Part of the bill wants employees’ allowances and other benefits below P2,000 per month to be non-taxable.
Part of the bill wants employees’ allowances and other benefits below P2,000 per month to be non-taxable.
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