The BIR has finally issued Revenue Regulations 10-2008, providing for the implementation of the provisions of the popular RA 9504.
RR 10-2008 was issued on September 24, 2008 after deliberations and discussions spearheaded by the BIR and the Department of Finance to come up with the final rules and regulations to implement the law.
One of the main points of the law is the exemption of MWE from income tax. In the final RR, we have a clause there that explains the treatment on the income in excess of the ceiling for one to be considered as MWE. Another is the fixed personal Exemption of fifty thousand pesos (50,000.00) regardless of the tax payer’s status, and 25,000 additional exemption for each dependent children not exceeding four (4).
Transitional provision of the RR also indicates that the law is to take effect only on July 6, 2008, such that there would be pro rata computations to be made, one before the law took effect and one implementing the new law.
Here’s a copy of revenue-regulation-no-10-2008