Practice question
An employee receives P100,000 of qualifying 13th-month and other benefits in 2026 and has no other amounts using that exclusion. Before other adjustments, how much exceeds the Section 32(B)(7)(e) ceiling?
- Zero because every bonus is exempt
- P100,000
- P90,000
- P250,000
- P10,000
Legal references
- RA 10963, Sections 5 and 9, individual tax rules and NIRC Section 32(B)(7)(e): https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
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