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Bureau of Internal Revenue
The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 96-2018, 26 November 2018, to clarify that the implementation of the pertinent provisions of RMC No. 50-2018 relative to the group health insurance premiums (Q7/A7) and director’s fees (Q34/A34) which were not affected by the provisions of Republic Act (RA) No. 10963 or the TRAIN Law are deleted from RMC No. 50-2018.
RMC No. 50-2018 includes as part of other benefits subject to the Php90,000.00 threshold the premium on health card paid by the employer for all employees.
RMC No. 50-2018 also states that if the director is not an employee of the entity paying the director’s fees, the director is considered as a professional and the director’s fees are subject to expanded withholding tax and the applicable business tax.
Attached is the full text of the issuance.
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