Taxation Laws (compiled codal)
Section 9. Section 32 of the NIRC, as amended, is hereby further amended to read as follows:
"Sec. 32. Gross Income -
"(A) General Definition - x x x
"(B) Exclusions from Gross Income. - x x x
"(1) x x x
"(7) Miscellaneous Items -
"(a) x x x
"(e) 13th Month Pay and Other Benefits. - Gross benefits received by officials and employees of public and private entities: Provided, however, That the total exclusion under this subparagraph shall not exceed Ninety thousand pesos (₱90,000) which shall cover:
"(i) Benefits received by officials and employees of the national and local government pursuant to Republic Act No. 6686;
"(ii) Benefits received by employees pursuant to Presidential Decree No. 851, as amended by Memorandum Order No. 28, dated August 13, 1986;
"(iii) Benefits received by officials and employees not covered by Presidential Decree No. 851, as amended by Memorandum Order No. 28, dated August 13,1986; and
"(iv) Other benefits such as productivity incentives and Christmas bonus."