Home / News / Only workers of tax-compliant small businesses can get wage subsidy, says BIR

Only workers of tax-compliant small businesses can get wage subsidy, says BIR

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Metro Manila (CNN Philippines, April 16) — Even as millions of affected middle-income earners have been rallying to get a share of the government’s cash subsidy, only those who are part of the tax-compliant small businesses are eligible for the COVID-19 aid for now.

Bureau of Internal Revenue Deputy Commissioner Arnel Guballa made the clarification during the Laging Handa virtual presser on Thursday.

“Ang financial assistance for small businesses para po sa Small Business Wage Subsidy Program, ito po yung mga small business taxpayers natin—yung hindi po classified as large taxpayers,” Guballa said.

[Translation: The financial assistance for small businesses under the Small Business Wage Subsidy is only intended for our small business taxpayers—those who are not classified as large taxpayers.]

“Ang qualification lang po nito ay dapat for the last three years na talagang nagko-comply, nagbabayad (ang employers) ng kanyang withholding tax para po sila magqualify sa wage subsidy natin na ibibigay po,” he clarified.

[Translation: The only qualification for this is, for the last three years, their employers should have settled their withholding taxes in order for them to be part of the wage subsidy which we will be giving out.]

Finance Assistant Secretary and spokesperson Tony Lambino also noted that only those who had to implement a skeletal workforce or halt their operations due to the enhanced community quarantine can get the grant.

“Ang isa pa pong kwalipikasyon ay dapat hindi sila sumweldo for at least two weeks dahil hindi na nakayanan ng kanilang employer,” said Lambino, who was also at the briefing.

[Translation: Another qualification is they haven’t received their salary for at least two weeks because their employers were unable to provide it.

The Department of Finance earlier announced that some 3.4 million employees in small businesses may get the one-time cash assistance from the government worth ₱5,000 to ₱8,000 amid the ongoing crisis.

While the program may benefit 2.6 million workers whose employers have been compliant with the BIR and Social Security System, Lambino said they will still support the remaining 800,000 workers once their employers settle their dues.

“Sinama rin po natin yung 800,000 na mukhang hindi po ganun ka-compliant ang employer,” he said. “Kasama po sila sa pagbudget and as long as yung employer po ay maging compliant ay makakatanggap din po sila ng tulong.”

[Translation: We also included the 800,000 with employers who have not been fully compliant. They are part of the budget and as long as their employers have already complied, they will receive aid.]

Lambino, however, did not expound on the extent of the coverage for the remaining workers.

The Department of Trade and Industry classifies “small businesses” as those that employ 10 to 99 workers.

Those who will get the grant may receive their subsidy through their SSS UMID cards, their bank accounts, or e-wallets in two tranches: Between ‪May 1 to 15‬ and ‪May 16 to 30.‬

CNN Philippines’ Lara Tan and Glee Jalea contributed to this report. 

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