Tax Exemption

Somebody's pulling one's hair nowadays because it’s tax time again. Personally, I find the task tedious but necessary. I’m sure, everybody would agree with me that if there’s a way to lessen one’s tax due, one would really try hard to avail of such.

Here’s one good tax exemption tip: BIR ruling pursuant to Section 2.78(B)(13) of Revenue Regulations No. 2-98 implementing Section 32(B)(7)(f) of the Tax Code of 1997, GSIS, SSS, Medicare and Pag-ibig contributions, and union dues of individuals shall not be included in gross income and shall be exempt from taxation.

Thus, Pag-IBIG, GSIS, SSS and Philhealth contributions should be deducted from the taxable income resulting to lesser tax due for the year. One good way to increase the tax exemption is to increase the said contributions.

Pag-IBIG Fund is currently offering the Modified Pag-IBIG II which actually helps lessen the tax due and also, it offers higher yield than the original Pag-IBIG I membershp