A bill proposing to increase the dependents age bracket of taxpayers was recently proposed, making it from 21 to 23 years old. This is in line with the current education program.
At present, the country is implementing the K to 12 program which adds two more years to the educational system. Students affected by this program will complete their education by 2018 at age 23 on the average, instead of 21.
Thus a lawmaker proposed amendments to the National Internal Revenue Code (NIRC), suggesting to increase dependents age bracket of tax payers.
According to reports, Parañaque Rep. Eric Olivarez said on a statement that income earners in the family would have to sustain the education of their children or immediate relatives, like a brother or a sister, a little longer, or two years longer than before.
“Because of this, it is only proper to amend the sections of the National Internal Revenue Code which provide for the age limitation of household members who may qualify as dependents for purposes of availing tax exemptions, if only to avoid defeating the purpose and wisdom of the above-cited specific provision of the NIRC,” he pointed out.
As Olivarez filed the proposal to increase the dependents age bracket of tax payers, he said that the State understands that an income earner has an obligation first and foremost to his or her family, and that the State assists the income earner by imposing lesser taxes accordingly.”
The proposal was called as House Bill 183 or the proposed “ An Act Increasing the Age Bracket of Taxpayers’ Dependents”.
The proposal consists of the following legislative measures:
- There shall be a basic personal exemption amounting to P50,000 for each individual taxpayer.
- It also provides for an additional exemption of P25,000 for each dependent not exceeding four. The additional exemption for a dependent shall be claimed by only one of the spouses in the case of married individuals.
- Additionally, a married individual or head of the family shall be allowed an additional exemption of P5,000 for each dependent.
- In the case of legally separated spouses, only the spouse who has custody of the child or children may claim additional exemptions. The total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions herein allowed.
The bill has been referred to the House Committee on Ways and Means.