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Financial support from the employment office and PIT settlement Some categories of support from the employment office are subject to income tax, others are not. The Regulation of the Minister of Finance on waiving the collection of personal income tax on certain income revenues received under the provisions on employment promotion and labor market institutions from PIT shows that the following are exempt from personal income tax.
One-off funds for starting a business activity by graduates of a social integration center and graduates of social integration philippines photo editor clubs referred to in the provisions on social employment, if they do not run a business activity or do not have a suspended business activity A lump sum for travel to training and a lump sum for accommodation received as part of a training voucher, a lump sum for travel costs to and from the place of internship received as part of an internship voucher and benefits received as part of a settlement voucher Benefits as part of activation activities - this is a package of activities aimed at starting and maintaining an appropriate job or business activity by the unemployed person Scholarships received under the Act on Employment Promotion and Labor.
Market Institutions Failure to collect income tax. referred to in the regulation applies to the period from January , to December , . People who receive unemployment benefits or activation allowances must pay income tax on such support. Therefore, they will receive a PIT- from the employment office, which should be settled in the PIT- annual return. Of course, this omission of income tax collection only applies to income received by persons who meet the criteria referred to in the table above. This grouping does not include various other forms of support granted by the labor office, which may benefit from income tax exemption under the Personal Income Tax Act.
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