Teachers to pay tax on election day allowance

MANILA, Philippines — Thousands of teachers will have to pay income tax on the allowance the law grants them for serving in the 85,000 electoral boards (EBs) that will oversee Monday’s elections.           

Not a single teacher will be spared from paying the tax based on statements of the Commission on Elections (Comelec) and the Bureau of Internal Revenue (BIR), Rep. Salvador Belaro Jr. of party-list group 1-Ang Edukasyon said yesterday.            

He said both the Comelec and the BIR have announced that the allowance would not be taxed if the recipient has an annual income of P250,000 or less.

“The monthly salary now of a public school teacher holding a Teacher 1 position is P20,754. Multiply that by 13 months, including the 13th month pay, the sum is P269,802 which is clearly above the tax-exempt threshold of P250,000 per annum. That does not yet include various allowances from the national and local governments,” Belaro said.

Under Republic Act 10756, or the Election Service Reform Act, the EB chair is entitled to a P6,000 allowance, while board members will get P5,000 each. 

The Department of Education supervising officer and his support staff will receive P4,000 and P2,000, respectively.

Additionally, all will get a travel allowance of P1,000 each.

The Comelec has announced that as a withholding tax agent, it would have to collect income tax on the teachers’ honoraria.

It said those seeking tax exemption would have to declare in an affidavit that they are earning only up to P250,000 a year.

Belaro said teachers could be liable for tax evasion and other wrongdoing if they falsely make such a declaration.

He suggested that the Comelec desist from withholding the tax due on the allowance and let teachers pay the corresponding levy when tax return filing comes.

“There is no urgent necessity to deduct taxes from the election duty pay because income taxation covers an entire year and the time for the teacher-taxpayer to settle that is April next year,” he said.

He promised to work for exempting the election duty allowance from any tax if his party-list group wins reelection.

Sen. Sherwin Gatchalian said yesterday the BIR should not tax the honoraria of teachers on duty during the election period due to the demanding and sometimes life-threatening duties.  

He said it is only fair that honoraria and travel allowance of teachers who serve as board of election inspectors be exempted from withholding tax. 

“Giving our teachers the full amount of their election honoraria and allowances is the best way we can show them our gratitude and appreciation for ensuring clean, honest and orderly elections in the country,” Gatchalian said. – With Paolo Romero