Вы находитесь на странице: 1из 6

Republic Act No.

10963 is based on Senate Bill The tax rates are as follows:


(SB) No. 1592 which consolidates 31 Senate
Tax schedule effective January 1, 2018 until
Bills and 3 House Bills and 3 Senate
December 31, 2022
Resolutions.
AMOUNT RATES
It is a product of: Not over P250,000 0%
Over P250,000 but 20% of the excess
 12 Public hearings not over P400,000 over P250,000
 3 Consecutive Meetings Over P400,000 but P30,000 + 25% of
 2 Technical Working Group Meetings not over P800,000 the excess over
 1 Pre-Bicam Conference Meeting; and P400,000
 5 Bicameral Conference Meeting Over P800,000 but P130,000 + 30% of
not over P2,000,000 the excess over
P800,000
It said that TRAIN will address the ff:
Over P2M but not P490,000 + 32% of
1. Bracket creep on income tax affecting over P8M the excess over P2M
the individual income tax payers. Over P8M P2,410,000 + 35% of
2. Tax relief for public and private sector the excess over P8M
employees by raising the annual income
tax exemption and the ceiling for the 13th Tax schedule effective January 1, 2023
month and other monetary benefits. and onwards
3. Issue on paying the right tax for the self- AMOUNT RATES
employed and professionals. Not over P250,000 0%
4. Building not only the country’s physical Over P250,000 but 15% of the excess
infrastructure but also its human not over P400,000 over P250,000
infrastructure. Over P400,000 but P22,500 + 20% of
not over P800,000 the excess over
Thus, the main objectives of the TRAIN are P400,000
to maintain fiscal discipline and adhering to Over P800,000 but P102,500 + 25% of
the true principles of taxation: which should not over P2,000,000 the excess over
be fairness, simplicity and efficiency. P800,000
Over P2M but not P402,500 + 30% of
over P8M the excess over P2M
Over P8M P2,202,500 + 35% of
FEATURES OF TRAIN LAW the excess over P8M

 PERSONAL INCOME TAX


Note: SEPs who are also earning compensation
Effective January 1, 2018, compensation income shall be subject to:
income earners, self-employed and  On Compensation Income - graduated
professional tax payers whose annual taxable
income tax (IT) schedule
incomes are P250,000 or less are exempt from
 On Income from Business or Practice of
the personal income tax. The 13th month pay
Profession
and other benefits amounting to P90,000 are
 If Gross Sales and/or Gross Receipts
likewise tax-exempt.
and other Non-Operating Income do not
exceed Php3,000,000 - either 8% fixed tax or
graduated IT schedule.
 If Gross Sales and/or Gross Receipts
and other Non-Operating Income exceed
Php3,000,000 – graduated IT schedule.
 TAX ON PASSIVE INCOME TAX
 Interest on FCDU deposits = 15%  DONOR’S TAX
 Sale of Unlisted shares =15%  The tax payable by a donor for each
 Sale of Listed shares = 0.6 of 1% calendar year is at 6% based on the total
 Pre-terminated long-term time deposits gifts in excess of P250,000.00.
= 20%  Any contribution in cash or in kind to any
 FRINGE BENEFITS candidate, political party or coalition of
parties for campaign purposes shall be
 A final tax of 35% is imposed on the
governed by the Election Code as
grossed up monetary value of fringe amended.
benefits granted to the employee  The Donor's Tax is not imposed on:
(except rank and file employees) by  Gifts made to or for the use of
the employer, whether an individual or the National Government or any entity
a corporation. Such tax is payable by created by any of its agencies which is not
the employer. conducted for profit, or to any political
subdivision of the said Government.
 OPTIONAL STANDARD DEDUCTION  Gifts in favor of an educational
 A general professional partnership and and/or charitable, religious, cultural or social
the partners comprising such welfare corporation, institution, accredited
nongovernment organization, trust or
partnership may avail of the OSD only
philanthropic organization or research
once, either by the general
institution or organization: Provided,
professional partnership or the however, that not more than 30% of said
partners. gifts are to be used by such donee for
administration purposes.
 FILING OF INCOME TAX RETURNS
(ITR) AND PAYMENT OF TAXES  CIGARETTE EXCISE TAX
 An individual whose taxable income  The tax rates, per pack of 20s, on
does not exceed Php250,000 is not cigarettes packed by hand or by
required to file an income tax return. machine are:
 The ITR shall be composed of a 1/1/18– 6/30/18  32.50
maximum of four (4) pages in paper or 7/1/18 – 12/31/19  35.00
electronic form. 1/1/20 – 12/31/21  37.50
 The rate of withholding of tax at source 1/1/22 – 12/31/23  40.00
shall not be less than 1% but not more 1/1/24 onwards  4% annual
than 15% of the income payment increase
beginning January 1, 2019.
 AUTOMOBILE EXCISE TAX
 ESTATE TAX
 The rate of estate tax to be paid upon
 The Tax Rates, imposed on the importer’s
the transfer of the net estate of
or manufacturer’s price, net of the excise
decedent to his heir or beneficiary is and value-added taxes are:
fixed at 6% of the value of the net
estate.
 There are also deductions categorized
by the law whether you are a
citizen/non-citizen.
Net Price (in Rate (in percent)  Official Development Assistance (ODA)
Php) Traditional Hybrid projects are not subject to the final
Not more than withholding VAT [Sec. 114(C)].
4 2
600,000
Over 600,000 up  PETROLEUM EXCISE TAX
10 5
to 1M
Over 1M up to 4M 20 10  The tax rates are:
Over 4M 50 25 Petroleum Unit 2018 2019 2020
product onwards
 A hybrid vehicle is a motor vehicle
powered by electric energy in Lubricating Liter/ 8.00 9.00 10.00
combination with gasoline, diesel or any oils & kg
motive power, that can propel itself from greases
a stationary condition using solely
electric motor. Processed Liter 8.00 9.00 10.00
gas
 Additional tax-exempt vehicles include
pick-up trucks and electric vehicles. Waxes & Kg 8.00 9.00 10.00
petrolatum
 VAT
Denatured Liter 8.00 9.00 10.00
 The threshold gross sales/receipts is alcohol
Php 3 Million.
Naphtha, Liter 7.00 9.00 10.00
 A purely self-employed individual and/or
professional who is VAT registered but regular
whose gross sales/receipts now fall gasoline,
below the new VAT threshold may
pyrolysis
change his status to NON-VAT and avail
of: gasoline
Unleaded Liter 7.00 9.00 10.00
i. The graduated income tax rates
under Sec. 24(A)(2)(a) of the premium
NIRC, as amended; or gasoline
ii. An 8% tax on gross
Aviation Liter 4.00 4.00 4.00
sales/receipts and other non-
operating income in excess of turbo jet fuel
P250,000 in lieu of the graduated Kerosene Liter 3.00 4.00 5.00
income tax rates and the
percentage tax under Sec. 116 of Diesel fuel Liter 2.50 4.50 6.00
the NIRC, as amended. oil
 Indirect Exporters are still VAT zero
Liquefied Kg 1.00 2.00 3.00
rated until the establishment and
implementation of an enhanced VAT petroleum
refund system. gas
 The criteria of an enhanced VAT refund
Asphalts Kg 8.00 9.00 10.00
system:
o All applications filed from 1 Bunker fuel Liter 2.50 4.50 6.00
January 2018 shall be processed oil
and must be decided within 90
days from the filing of the VAT Petroleum Metri 2.50 4.50 6.00
refund application (NOTE: Failure coke c ton
on the part of the BIR official,
agent or employee to act on the
application within the 90 day
period is punishable under Sec.  TAX ON COSMETIC PROCEDURES
269 of the NIRC, as amended);
and  The tax rate and base are: 5% of the
o All pending VAT refund claims as gross receipts on invasive cosmetic
of December 31, 2017 shall be procedures, surgeries & body
fully paid in cash by December enhancements for aesthetic purposes.
31, 2019.  Exempt procedures include:
1) Procedures necessary to ameliorate a  The list of exempt beverages includes:
deformity arising from a congenital or
developmental defect or abnormality, a
All milk Meal replacement &
personal injury resulting from an
products medically indicated
accident or trauma, or disfiguring beverages
disease, tumor, virus or infection,
2) Cases or treatments covered by the
National Health Insurance Program. 100% natural fruit Ground coffee, instant
juices soluble coffee, & pre-
 SWEETENED BEVERAGE TAX packaged powdered
Type of Sweetened Rate (Php) coffee products (3-in-1,
Beverage etc.)

 sweetened 6.00
beverages using 100% natural vegetable juices
purely caloric and per liter
purely non-caloric
sweeteners, or a  EXCISE TAX ON MINERAL
mix of caloric and
PRODUCTS
non-caloric
sweetener
 The tax rates are:
 Coal & coke, per metric ton:
 sweetened 12.00
beverages using Jan 1 2018 Jan 1 2019 Jan 1, 2020
purely high per liter onwards
fructose corn Php50 Php100 Php150
syrup (HFCS) in
combination with  Metallic & non-metallic minerals &
any caloric or quarry resources: 4% of the actual
non-caloric market value of the gross output at the
sweeteners time of removal or the BOC valuation for
determining tariff and customs duties,
net of the excise and value-added taxes

 Indigenous petroleum: 6% of the fair


international market price
 Taxable non-alcoholic beverages
include:  DOCUMENTARY STAMP TAX

Sweetened Flavored Cereal & grain  The tax rates are:


juice drinks water beverages Document / Rate & Base
Transaction
Original issue of Php2.00 per Php200 or
Sweetened Energy & Other non-alcoholic shares of stock fractional part thereof,
tea sports beverages with of the par value
drinks sugar added
Sales, agreements to Php1.50 per Php200 or
sell, memoranda of fractional part thereof,
Carbonated Other powdered drinks
sales, deliveries or of the par value of the
beverages not classified as milk,
transfer of shares or stock
juice, tea, & coffee
certificates of stock
Certificates of profits Php1.00 per Php200 or
or interest in property fractional part thereof,
or accumulations of the face value
Bank checks, drafts, Php3.00 per check,
certificates of deposit draft or certificate
not bearing interest
and other instruments
Debt instruments Php1.50 per Php200 or
fractional part thereof,
of the issue value and deeds of trust Secured (Php)
Bills of exchange or Php0.60 per Php200 or First 40.00
drafts; Acceptance of fractional part thereof, Php 5,000
bills of exchange & of the face value For every 20.00
others; Foreign bills Php 5,000
of exchange and or fractional
part thereof,
letters of credit
in excess of
Life insurance Amount of Rate the first Php
policies Insurance (Php) 5,000
(in Php)
Deeds of sale, Php15.00 per
Not more
than conveyances and Php1,000 or fractional
100,000 donation of real part thereof, of the
More than 20.00 property, except consideration or value
100,000 up those exempt from
to 300,00 the donor’s tax
More than 50.00 Charter parties and Registered Rate
300,000 up similar instruments Tonnage (Php)
to 500,000 Not more Php
More than 100.0 than 1,000 1,000 on
500,000 up 0 tons the first 6
to 750,000 months,
More than 150.0 and Php
750,000 up 0 100 for
to each
1,000,000 month /
More than 200.0 fractional
1,000,000 0 part in
Annuities Php1.00 per Php200 or excess of
6
fractional part thereof,
months.
of the premium or
1,000 tons Php
instalment payment – 10,000 2,000 on
Pre-need plans Php0.40 per Php200 or tons the first 6
fractional part thereof, months,
of the premium or and Php
contribution 200 for
Certificates; Php 30.00 each
Warehouse receipts; month /
Proxies fractional
part in
Jai-alai and horse Php0.20 per Php1.00 excess of
race ticket, lotto or or fractional part 6
other authorized thereof, of the cost of months.
numbers games the ticket More than Php
Bills of lading or Value of Rate 10,000 3,000 on
receipts Goods (Php) tons the first 6
Php 100 – 2.00 months,
Php 1000 and Php
More than 20.00 300 for
Php 1,000 each
Powers of attorney Php10.00 month /
fractional
Leases and other Value of Rate
part in
hiring agreements agreement / (Php)
excess of
lease
6
First Php 6.00 months.
2,000
For every 2.00
Php 1,000  ADMINISTRATIVE MEASURES
or fractional
part thereof  Mandatory marking of all fuel products
in excess of and imposition of fines for related
the first Php offences.
2,000
Mortgages, pledges Amount Rate
 Use of appropriate counting or metering
devices to determine volume of fuel
importation and production.
 Issuance of receipts or sales or
commercial invoices on the sale and
transfer of merchandise or for services
rendered valued at Php100 or more.
 By 2023, those engaged in the export of
goods and services, taxpayers engaged
in e-commerce and those belonging to
the Large Taxpayers Service are
required (1) to issue electronic receipts
or sales or commercial invoices and (2)
to electronically report their sales data to
the Bureau of Internal Revenue (BIR).
 Fine for attempt to evade or defeat tax is
set at not less than Php500,000 but not
more than Php10,000,000 and
imprisonment of not less than 6 years
but not more than 10 years.
 Fine for printing of (a) receipts without
authority of the BIR, (b) double or
multiple sets, or (c) unnumbered
receipts is set at not less than
Php500,000 but not more than
Php10,000,000 and imprisonment of not
less than 6 years but not more than 10
years.
 Penalty for failure to transmit sales data
to the BIR’s electronic sales reporting
system is 1/10 of 1% of the annual
income or Php10,000, for each day.
 Fine for the purchase/use/possession
/sale- or-offer- to-sell/installation/transfer
/update/upgrade/ mainte-nance of sales
suppression devices is set at not less
than Php500,000 but not more than
Php10,000,000 and imprisonment of not
less than 2 years but not more than 4
years.

Вам также может понравиться