Frontliners allowances, hazard pay tax exempt na!

We laud the Bureau of Internal Revenue (BIR) for not getting in the way of government to provide tax exemptions to retiring employees this year (those who particularly retire during June 5 to December 31, 2020) and for giving tax relief to the risk allowance, hazard pay, sickness cash benefit and death compensation to medical for frontliners who were exposed and died to the coronavirus disease 2019.

The Bureau of Internal Revenue, the other day, issued Revenue Regulation No. 29-2020 or the Implementing Rules and Regulations of a provision of Republic Act 11494 or the ‘Bayanihan To Recover As One Act’ that provides tax exemptions of certain income payments.
The said IRR was released October 15, 2020.

We are glad the BIR did not prevented the government giving recognition by way of giving tax exemptions to retiring employees who helped the the economy and businesses grow with their productive years and honest labor. 

We are also glad that the BIR did not play killjoy to health frontliners who will be receiving their allowances, hazard pay, sickness benefit and death compensation in full tax-free during the state emergency period as the government continues to fight the scourge of the virus. 

Tax-exempt health frontliners and employees who will retire during the covered period are very happy and appreciates the manner of government recognition to their contribution to the country.

These tax exemptions will definitely boost the morale of frontliners in their conviction to help the government battle against COVID-19. It is also inevitable that the tax-free cash incentives received by these workers will help stimulate the receding economy and help realize the intention of the Bayanihan Law to pump prime economic down turn