MANILA, Philippines — Senator Sonny Angara has filed a bill seeking to ensure tax-free health insurance premiums among employees.
Senate Bill No. 2112 seeks to exempt medical insurance premiums from income tax and fringe benefit tax.
This was after the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) 50-2018, which imposed that health insurance premiums being paid by employers for their employees as part of the tax-free-threshold benefits and bonuses of workers.
Angara said such provision was not included in the Republic Act (RA) 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law.
“It should be noted that R.A. 10963 did not amend the tax treatment of health premiums nor was it intended, in any way, to diminish the take home pay of taxpayers by subjecting them to the P90,000 tax-exempt bonus,” Angara said in a statement on Tuesday.
The senator then, highlighted the importance of health among citizens, noting that the tax reform was mandated to amend the “unprogressive” income tax.