Filipino freelance workers may soon enjoy tax relief and special assistance lanes at the Bureau of Internal Revenue (BIR) if a proposed bill recently passed by the House Committee on Ways and Means becomes law.
Albay 2nd District Rep. Joey Salceda, also the chair of the House panel, led the approval of the amendments to Sections 19 and 20 of the substitute bill for protecting freelance workers.
Sections 19 and 20 of the unnumbered substitute bill that consolidated House Bills (HBs) 593, 615, 1087, 2212, 2821, 3738, 4557, and 5000, or “An Act Providing Protection and Incentives to Freelance Workers,” referred to the suggested tax reliefs and special assistance lane at every BIR Revenue District Office.
“Freelancers, as defined under this Act, shall be entitled to tax relief within the threshold provided under Republic Act No. 10963, otherwise known as the ‘Tax Reform for Acceleration and Inclusion Act’, and Republic Act No. 9178, otherwise known as the ‘Barangay Micro Business Enterprises (BMBEs) Act of 2002,’ Section 19 of the substitute bill said as presented during the committee hearing.
“Every BIR Revenue District Office shall designate a lane or a special assistance desk that shall be manned by an officer who shall assist freelance workers on their inquiries and in complying with the processing of documents, including the registration requirement under this Act,” Section 20 added.
The consolidated bills were authored by Reps. Salceda, Christian Tell Yap of Tarlac 2nd District, Christopher de Venecia of Pangasinan 4th District, Luis Raymund Villafuerte Jr. of Camarines Sur 2nd District, Miguel Luis Villafuerte of Camarines Sur 5th District, Tsuyoshi Anthony Horibata of Camarines Sur 1st District, Nicholas Enciso III of BICOL SARO Party-list, Bro. Eddie Villanueva of CIBAC Party-list, Paolo Duterte of Davao City 1st District, Eric Yap of Benguet Lone District, Edvic Yap and Jeffrey Soriano of ACT-CIS Party-list, Patrick Michael Vargas of Quezon City 5th District, and Bernadette Herrera of BH Party-list.
READ: House bill seeks better pay, protection for Pinoy freelance workers
There was no interpellation and comments from the minority and majority groups of the House of Representatives, with Finance Assistant Secretary Juvy Danofrata also not raising any objections “as this is in accordance (to the) income tax provision of the tax code.”
The Committee on Labor also accepted the amendments to the proposed substitute bill, which, according to HB 3738, aims to protect the rights of freelancers, whose numbers are expected to grow exponentially as the country transitions to a digital economy.
The bill sought to make written contracts mandatory in obtaining the services of freelancers, along with providing them with night differential and hazard pay when applicable.
Currently, the Philippines is sixth among countries with the fastest-growing market for freelancers, the 2019 Global Gig Economy Index of the financial services provider Payoneer said.
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The growth contributed to a 35 percent rise in freelance earnings, the payment service provider added.
According to an earlier statement from Duterte and Yap, “independent estimates” showed that there are about 1.5 million to two million Filipinos working as freelancers.