The government-imposed lockdowns and safety restrictions brought by the pandemic pushed businesses to accommodate a remote work setup. This helped reduce the COVID cases significantly by decongesting the public transportation and by minimizing physical contact in workplaces.
As we ease into the pandemic, some companies stayed working from home while others have decided to follow a hybrid work setup. Working from home helps ease the burden of daily commute which is why many employees prefer this arrangement. But with more expenses from higher power consumption and internet use, how does this affect their taxes?
While certain legislators are already pushing for a bill that grants tax incentives and deductions to such employees, work-from-home employees are still required to pay income taxes as usual, regardless if they’re working for a company in the Philippines or abroad.
Since the responsibility of filing is imposed on the employers, there’s no need for work-from-home (WFH) employees to worry about their tax compliance, as they await tax for Senate Bill No. 1706 to be passed into law.
Senate Bill No. 1706, or the Tax Incentives for Individuals on a Work-from-Home or Telecommuting Program, seeks a tax deduction of P25 for every hour of work rendered by a WFH employee. This bill also allows a 50% tax deduction on allowances granted to WFH employees.
