Hi im from Philippines. we just received our 13th month pay and im being deducted for tax. but according to our law as long as the amount does not exceed P30,000. Only the amount in excess of P30,000 is taxable.
my colleague last year experience the same problem and have this explanation: Company made our 13 month pay included on the mid pay this December which is always a taxable payslip but the 13 month was included in the tax which is not suppose to be. Company stated that threshold was the reason for this since we had a performance bonus last year but was given by February this year which they did not deduct any tax. I think this should not be the case as 13 month is not subject to tax or inclusive of regular pay tax withholding. This type of strategy shows desperate moves of the company.
My 13th month pay is just 20000 pesos but its being deducted 2000k . Pls help.