SONA 2026: Marcos seeks P350K income tax exemption ceiling for middle class

President Ferdinand “Bongbong” Marcos Jr. on Monday called on Congress to expand the annual income tax exemption threshold in a bid to increase the Filipino middle class take-home pay and ease their burden amid rising cost of living brought about by the lingering effects of the Middle East fuel crisis.

In his fifth State of the Nation Address (SONA), the President urged lawmakers to expand the exemption threshold for annual income tax.

“Dagdagan natin ang mga manggagawang malilibre sa buwis sa kanilang kita. Isasama na natin ang mga kumikita nang hindi lalagpas sa P350,000 kada taon,” he said.

Marcos said that the government will not turn a blind eye to the hardships faced by Filipino workers, middle class, and micro and small business owners.

“Alam natin na sila rin ay nabibigatan sa epekto ng krisis… So, to ensure the continued progress of the middle class amidst the lingering effects of the crisis, we will pursue tax relief measures that promote growth, generate revenue, and advance equity toward socio-economic sustainability,” the President said.

“Kaya bilang natatanging proteksyon sa kanila at para mas mapakinabangan nila ang pinaghirapan nilang kita, nananawagan ako sa Kongreso upang maipasa ang batas na magbibigay ng bahagyang ginhawa para sa ating bayaring buwis,” Marcos said.

Currently, the Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law exempts those earning P250,000 a year from paying income tax.

Moreover, Marcos said small business should be exempted from paying minimum corporate income tax (MCIT).

“Ang mga maliliit na negosyo ay hindi na papatawan ng minimum corporate income tax,” the President said.

Under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the prescribed MCIT is set at 2% of gross income of a corporation for a period of 12 months.

“Pangatlo, para mapanatag ang loob ng taumbayan ang pagbigay ng amnesty para sa mga hindi nabayarang buwis tulad ng income tax, estate, donor’s tax, at value added tax. Kasama na rin diyan ang mga multa na kaakibat ng mga ito,” Marcos said. —LDF/BM, GMA News