The table shows the comparison of the brackets and tax rates under the NIRC and Train:Īnother innovation under Train is the option of self-employed individuals and/or professionals whose gross sales or receipts do not exceed P3,000,000 to avail of an 8% tax on gross sales or gross receipts in excess of P250,000, in lieu of the graduated income tax rates. Moreover, the deductible 13th month pay and other benefits are now higher at P90,000 compared to P82,000 under the old law. Those with a taxable income of above P250,000 will be subject to the rate of 20% to 35% effective 2018, and 15% to 35% effective 2023.
Under Train, an individual with a taxable income of P250,000 or less will now be exempt from income tax. Prior to the enactment of the new law, an individual employee or self-employed taxpayer would normally have to pay income tax at the rate of 5% to 32%, depending on one’s bracket. The most popular part of the Train law is the reduction of personal income tax of a majority of individual taxpayers. Nonetheless, the new law also contains praiseworthy provisions which aim to simplify tax compliance. The Train law also imposes new taxes in the form of excise tax on sweetened beverages and non-essential services (invasive cosmetic procedures) and removes the tax exemption of Lotto and other PCSO winnings amounting to more than P10,000. However, it also increases the tax on certain passive incomes, documents (documentary stamp tax) as well as excise tax on petroleum products, minerals, automobiles, and cigarettes. Train relatively decreases the tax on personal income, estate, and donation. But actually, there are much more significant changes under the Train law which are not being reported.
#THOUGHT TRAIN PRICING CODE#
Train overhauls the outdated National Internal Revenue Code (NIRC) which was adopted 20 years ago.Īs a tax lawyer, I noticed that there are a lot of news reports on the changes.
Travellers hopped on and off, joining in conversations and art-making en route.As we celebrated the New Year, the Tax Reform for Acceleration and Inclusion (Train) Law or Republic Act No 10963 took effect on January 1, 2018. Local partners hosted interactive events, and contributed to creative activities and tasks. At each stop, our travelling company disembarked and stayed until the next train came through. Train of Thought was a 2015 seven-week community arts journey from west to east coast, with on-board activities, 25 stops, 75 travellers, 95 partners and hundreds of other artists and community participants along the way. Train of Thought Website Link: Create, Discuss, Travel, Feast, Learn, Change Tracks & lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& gt & lt /span& gt & amp lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& amp gt & amp lt /span& amp gt & amp amp lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& amp amp gt & amp amp lt /span& amp amp gt & amp amp amp lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& amp amp amp gt & amp amp amp lt /span& amp amp amp gt & amp amp amp amp lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& amp amp amp amp gt & amp amp amp amp lt /span& amp amp amp amp gt & amp amp amp amp amp lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& amp amp amp amp amp gt & amp amp amp amp amp lt /span& amp amp amp amp amp gt & amp amp amp amp amp amp lt span data-mce-type=”bookmark” style=”display: inline-block width: 0px overflow: hidden line-height: 0 ” class=”mce_SELRES_start”& amp amp amp amp amp amp gt & amp amp amp amp amp amp lt /span& amp amp amp amp amp amp gt
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