JORG R.

MENESES
BSREM 1YR SEM1

COMPARISON BETWEEN THE OLD RATE WITH COMPUTATION AND THE NEW (TRAIN
LAW) RATE AND COMPUTATION

1. Capital Gain Tax Old Rate

Taxpayer type Tax rate Legal basis Effectivity date
Individual Not over   R.A. No. 8424 or NIRC of January 1, 1998 to
₱100,000.00 - 5% 1997 December 31, 2017
Domestic
On any amount in
Corporation
excess of
Foreign ₱100,000.00 - January 1, 1998 to
Corporation 10% April 10, 2021
Capital Gain Tax New Rate
Taxpayer type Tax rate Legal basis Effectivity date
Individual 15% R.A. No. 10963 or TRAIN January 1, 2018 to
Domestic Law present
Corporation
Foreign 15% R.A. No. 11534 or CREATE April 11, 2021 to
Corporation Law present
2. Withholding Tax

ANNUAL TAX TABLE

EFFECTIVE DATE JANUARY 1, 2018 to DECEMBER 31, 2022 

Not over ₱ 250,000.00 0%
Over ₱ 250,000.00 but not over ₱ 400,000.00 20% of the excess over ₱ 250,000.00
Over ₱ 400,000.00 but not over ₱ 800,000.00 ₱ 30,000.00 + 25% of the excess over ₱ 400,000.00
Over ₱ 800,000.00 but not over ₱ 2,000,000.00 ₱ 130,000.00 + 30% of the excess over ₱ 800,000.00
Over ₱ 2,000,000.00 but not over ₱
₱ 490,000.00 + 32% of the excess over ₱ 2,000,000.00
8,000,000.00
₱ 2,410,000.00 + 35% of the excess over ₱
Over ₱ 8,000,000.00
8,000,000.00
EFFECTIVE DATE JANUARY 1, 2023
Not over ₱ 250,000.00 0%
Over ₱ 250,000.00 but not over ₱ 400,000.00 15% of the excess over ₱ 250,000.00
Over ₱ 400,000.00 but not over ₱ 800,000.00 ₱ 22,500.00 + 20% of the excess over ₱ 400,000.00
Over ₱ 800,000.00 but not over ₱ 2,000,000.00 ₱ 102,500.00 + 25% of the excess over ₱ 800,000.00
Over ₱ 2,000,000.00 but not over ₱
₱ 402,500.00 + 30% of the excess over ₱ 2,000,000.00
8,000,000.00
₱ 2,202,500.00 + 35% of the excess over ₱
Over ₱ 8,000,000.00
8,000,000.00

3. Documentary Stamp Tax

To compute the DST, divide the higher amount between the selling price and the fair market value by
P1,000.00, then round off the amount to next higher number if there are decimals, then multiply it by
P15.00. As a shortcut, multiply the higher amount between the selling price and the fair market value
by .015 and if the DST is not a multiple of 15, the DST shall be the next higher multiple of 15.

4. Value Added Tax

 The standard VAT rate, which applies to most supplies of goods, properties and services, is 12 percent of the
gross selling price or gross value. The purchase of goods, properties or services by the government or
government controlled corporations is generally subject to a 5 percent final withholding tax on VAT. There
is also a zero percent (0 percent) VAT rate.
5. Estate Tax
 Effective January 1, 1998 up to December 31, 2017 (RA No. 8424)

If the Net Estate is

Over But not Over The Tax Shall be Plus Of the Excess Over
  P   200,000.00 Exempt    
P   200,000.00      500,000.00 0 5% P   200,000.00
     500,000.00   2,000,000.00 P   15,000.00 8%      500,000.00
  2,000,000.00   5,000,000.00    135,000.00 11%   2,000,000.00
  5,000,000.00 10,000,000.00    465,000.00 15%   5,000,000.00
10,000,000.00   1,215,000.00 20% 10,000,000.00
 Effective July 28, 1992 up to December 31, 1997 (Section 77 of the NIRC, as amended (RA No.
7499)

If the Net Estate is

Over But not Over The Tax Shall be Plus Of the Excess Over

  P   200,000.00 Exempt    
P  200,000.00      500,000.00   5% P   200,000.00
    500,000.00   2,000,000.00 P   15,000.00 8%      500,000.00
 2,000,000.00   5,000,000.00    135,000.00 12%   2,000,000.00
 5,000,000.00 10,000,000.00    495,000.00 21%   5,000,000.00
10,000,000.00   1,545,000.00 35% 10,000,000.00

6. Donor’s Tax
Effective January 1, 1998 to December 31, 2017 (RA No. 8424)
Net Gift Over But not Over The Tax Shall be Plus Of the Excess Over
       100,000.00 exempt    
     100,000.00      200,000.00 0 2%    100,000.00
     200,000.00      500,000.00 P    2,000.00 4%     200,000.00
     500,000.00   1,000,000.00      14,000.00 6%     500,000.00
  1,000,000.00   3,000,000.00      44,000.00 8%  1,000,000.00
  3,000,000.00   5,000,000.00    204,000.00 10%  3,000,000.00
  5,000,000.00 10,000,000.00    404,000.00 12%   5,000,000.00
10,000,000.00 and over 1,004,000.00 15% 10,000,000.00

Notes:

1.    When the gifts are made during the same calendar year but on different dates, the donor's tax shall be
computed based on the total net gifts during the year.

2.    Donation made to a stranger is subject to 30% of the net gift. A stranger is a person who is not a:

·  brother, sister (whether by whole or half-blood), spouse, ancestor and lineal descendants; or
·  relative by consanguinity in the collateral line within the fourth degree of relationship.

·  Effective July 28, 1992 to December 31, 1997 (RA No. 7499)
Net Gift Over But not Over The Tax Shall be Plus
       50,000.00 exempt  
     50,000.00    100,000.00 1.50%  
   100,000.00    200,000.00 P     750.00 3%
   200,000.00    500,000.00     3,750.00 5%
   500,000.00 1,000,000.00  18,750.00 8%
1,000,000.00 3,000,000.00   58,750.00 10%
3,000,000.00 5,000,000.00 258,750.00 15%
5,000,000.00 and over 558,750.00 20%

Note:

1.    Donation made to a stranger is subject to 10% of the net gift. A stranger is a person who is not a:

·  brother, sister (whether by whole or half-blood), spouse, ancestor and lineal descendants; or
·  relative by consanguinity in the collateral line within the fourth degree of relationship. 

·  Effective January 16, 1981 to July 27, 1992 (Presidential Decree No. 1773)

Net Gift Over But not Over The Tax Shall be Plus Of the Excess Over
        1,000.00 exempt    
         
       1,000.00      50,000.00              1.50%          1,000.00
     50,000.00      75,000.00 P    735.00 2.50%      50,000.00
     75,000.00    100,000.00    1,360.00 3%      75,000.00
   100,000.00    150,000.00    2,110.00 6%    100,000.00
   150,000.00    200,000.00    5,110.00 9%    150,000.00
   200,000.00    300,000.00    9,610.00 12%    200,000.00
   300,000.00    400,000.00   21,610.00 15%    300,000.00
   400,000.00    500,000.00   36,610.00 18%    400,000.00
   500,000.00    625,000.00   54,610.00 21%    500,000.00
   625,000.00    750,000.00   80,860.00 24%    625,000.00
   750,000.00    875,000.00 110,860.00 28%    750,000.00
   875,000.00 1,000,000.00 145,860.00 32%    875,000.00
1,000,000.00 2,000,000.00 185,860.00 36% 1,000,000.00
2,000,000.00 3,000,000.00   545,860.00  38%   2,000,000.00
3,000,000.00    925,860.00  40%