Gatchalian proposes tax deductions to help offset cost of work-from-home setup

As employees in a work-from-home (WFH) and hybrid work arrangement are likely to be in it for the long haul, Senator Win Gatchalian said it comes with a lot of costs that workers are now facing such as lack of logistical assistance, internet and utility expenses and their mental wellbeing.

A recent survey by Microsoft called the First Annual Work Trend Index, which was conducted among 31,092 full-time employed or self-employed workers across 31 global markets including the Philippines, shows that 42% of employees said that even after a year of working from home, they still lack essential office supplies and one in 10 don't have adequate internet connection to do their job while 46% said their employer does not help with remote work expenses. While employees keep up with today's fast-paced digital world, the same survey says 63% of workers in the Philippines said they feel overworked while 31% said they feel exhausted.

Another survey conducted by JobStreet.com Philippines some 10 months ago showed that 75% of the respondents claimed that they did not receive any reimbursement or allowance for their electricity and internet expenses from their companies and 87% said employers should shoulder their WFH costs while 38% claimed they experienced reduction in their income due to poor internet service.

Gatchalian said new benefits in the form of allowable tax deductions could help ease the burden of telecommuting employees such as a reduction of P25.00 from their taxable income for every hour of work under WFH arrangement, which will lessen the taxes they have to pay and in effect increase their net pay. Also, allowances or other benefits not exceeding P2,000 per month granted to them by their employers can be legislated as a non-taxable benefit, the Vice Chairperson of the Senate Economic Affairs said.

"In providing for these allowable tax deductions, it will effectively increase the workers' take-home pay and somehow, these would suffice to cover part of their electricity, internet connectivity fees and other work-related expenses. The amount will be substantial especially for cash-strapped individuals," Gatchalian said.

The said proposals are contained under Senate Bill No. 1706 or the Tax Incentives for Individuals on a Work-From-Home or Telecommuting Program co-authored by Gatchalian. In the said measure, it also included a provision allowing employers to claim an additional 50 percent income tax deduction for allowances granted within the specified ceiling. Such provision, Gatchalian said, seeks to encourage employers to provide much needed allowances to their employees by allowing them to deduct an additional 50% of the amounts they provide for income tax purposes.

"Mahalaga ang pagbibigay ng insentibo lalo na sa maraming mga empleyado na hanggang ngayon ay nag-a-adjust pa rin sa "new normal." Malaking tulong na ito sa kanilang buwanang gastusin, pampalubag loob din ito sa mga nakakaramdam ng stress habang naka work-from-home," Gatchalian concluded.

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Bigyan ng tax deductions ang mga naka-work-from-home - Gatchalian

Bilang pakunswelo sa mga naka-work-from-home (WFH) na nadagdagan ng gastos sa online setup at madalas ma-stress dahil hanggang ngayon ay nag-aadjust pa rin sa new normal, iminumungkahi ni Senador Win Gatchalian na bawasan sila ng buwis.

Ayon sa First Annual Work Trend Index survey ng Microsoft na lumabas noong Enero at nilahukan ng higit sa tatlumpung libong full-time o kaya ay self-employed na mga manggagawa sa 31 na bansa kasama ang Pilipinas, 42% ang nagsabing kinukulang pa rin sila ng mga gamit pang-opisina kahit isang taon na ang nakalipas magmula ng mag-work from home sila. Isa sa sampu ang nagsabing hindi sapat ang kanilang internet connection para makapagtrabaho, samantalang 46% naman ang nagsabing hindi sila tinutulungan ng mga employer nila sa kanilang mga gastusing may kinalaman sa kanilang trabaho. Sa naturang survey din lumabas na 63% ng mga empleyado sa Pilipinas ay nagsabing overworked sila samantalang 31% ang nagsabing pagod na pagod sila sa trabaho.

Ayon naman sa survey ng Jobstreet.com Philippines na isinagawa noong nakaraang 10 buwan, nasa 75% ang nagsabi na hindi sila binigyan ng reimbursement o allowance man lang ng kanilang pinapasukang kumpanya para punan ang gastusin nila sa kuryente at internet samantalang nasa 87% naman ang nagsabing dapat akuin ng mga employer nila ang mga ginagastos nila sa pagtatrabaho sa bahay. Nasa 38% ang nagsabi na nabawasan ang kanilang kita dahil sa gastos nila sa paggamit ng internet.

Sabi ni Gatchalian, maaaring mapunan ang ilan sa kanilang pangangailangan kung bibigyan sila ng tax deductions katulad ng P25.00 na bawas sa kanilang taxable income sa bawat oras na ginugugol sa WFH arrangement. Ang kabuuang bawas sa kanilang taxable income ay magdudulot ng mas mataas na take-home pay. Bukod dito, iminumungkahi din ng senador na ang ilang benepisyo o allowance na natatanggap nila sa kumpanya na hindi lalagpas sa P2,000 kada buwan ay tanggalan na ng buwis.

"Ang mga tax deductions na ito ay malaking bagay na para sa maraming empleyado upang punan ang mga gastusin nila sa kuryente, internet connectivity fees at iba pang may kinalaman sa kanilang trabaho," ani Gatchalian. Ang mga panukalang nabanggit ng senador ay nakapaloob sa Senate Bill No. 1706 o Tax Incentives for Individuals on a Work-From-Home or Telecommuting Program kung saan isa sa may akda si Gatchalian. Sa nasabi ring panukala, may probisyon dito na magbibigay ng karagdagang 50% na bawas sa income tax ng mga employer para sa mga allowances ng mga empleyado nila na sakop ng batas. Ito'y upang ma-engganyo ang mga employer na magbigay ng mga karagdagang allowances sa kanilang mga empleyado.

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