Misamis Oriental Governor Yevgeny Vicente Emano yesterday, July 10, directed the Provincial Administrator’s Office and the Legal Division to assess the memorandum circular 130-2016 of the Bureau of Internal Revenue (BIR) enforcing a 13% tax to the lowest-paid government employees.
In an article from Sunstar.com, the BIR circular states that employees who are under job order status are identified as service contractors and not totally government employees which makes them bound to be taxed differently on the payment they receive from the government.
Emano said that the basis for taxing job orders is “illogical” and that they “…should not be taxed in any way”.
He also said that while moves are being rolled out to tax the payment given to job order employees, there are still big companies that are not paying their taxes properly.
In the current setting, non professional government employees are taxed as either “value-added tax-payers” or as “service taxpayers”.
Emano maintained that he does not support and will not implement the tax order.