Train Law - 17mar2018

R.A. No.
10963 : Tax Reform

for Acceleration and Inclusion
ATTY. ROSARIO S. BERNALDO

INCOME
TAXATION:
INDIVIDUALS
SUBSTANTIVE AMENDMENTS
1. Removal of personal and additional exemptions
2. Change in tax rates
3. Exemption from tax of Gross Income of P250,000.00
4. Optional 8% rate on Gross Sales/Receipts from

Business or Practice of Profession
5. Deadline on filing of quarterly and annual returns and 3

payment of tax
TYPES OF INCOME
1. Compensation Income
 Basic pay
 Allowances or other benefits
 Fringe Benefits
2. Business or Professional Income of Self-

Employed and/or Professionals
 From habitual engagement in any commercial activity
involving regular sales of goods and services or the exercise of
4
profession of an individual
3. Mixed Income
 Compensation and business income
4. Passive Income
 Gains derived from dealings in property
 Interest
 Rents
 Royalties
 Dividends
 Annuities
 Prizes and winnings
 Pensions
5
5. Partner’s distributive share from the
net income of the GPP
COMPENSATION INCOME
OLD PROVISION NEW PROVISION
Taxable Compensation 2018-2022: 20%-35%
5% - 32%
Income 2023 onwards: 15%–35%
P82,000 not included in the Increase of the ceiling of

13th month pay and other
Gross Income, therefore exclusion from P82,000 to
benefits
not subject to tax P90,000
Exempt from Income Tax

regardless if their income
Minimum Wage Earners Same
exceeds the income of
taxable individuals
Tax on Alien Individuals
employed by RHQs, ROHQs,
OBUs or Petroleum Service
15% of Gross Income Regular rate of 20%-35%
Contractors or
Subcontractors
Fringe Benefits 32% Fringe Benefit Tax 35% Fringe Benefit Tax
6
OLD INCOME TAX RATES
ANNUAL INCOME TAX RATE
P10,000 and below 5%
Above P10,000 to P30,000 P500 + 10% of the excess over P10,000
Above P30,000 to P70,000 P2,500 + 15% of the excess over P30,000
Above P500,000 P125,000 + 32% of the excess over P500,000
7
NEW INCOME TAX RATES
2018 - 2022
GROSS INCOME PER YEAR INCOME TAX RATE
Above P250,000 to P400,000 20% of the excess over P250,000
P30,000 + 25% of the excess over
Above P400,000 to P800,000
P400,000
Above P800,000 to P2,000,000
P800,000
Above P2,000,000 to P8,000,000
P2,000,000
P2,410,000 + 35% of the excess over
Above P8,000,000
P8,000,000
8
NEW INCOME TAX RATES
2023 - ONWARDS
INCOME PER YEAR TAX RATE
Above P250,000 to P400,000 15% of the excess over P250,000

Above P400,000 to P800,000
P400,000
Above P800,000 to P2,000,000
P800,000
Above P2,000,000 to P8,000,000
P2,000,000
P2,202,500 + 35% of the excess over
Above P8,000,000
P5,000,000
9
BUSINESS OR PROFESSIONAL
INCOME
• If Gross Sales / Gross Receipts
• 5% - 32% Progressive and other Non-Operating
Income:
Income Tax Rates
Does not exceed 8% income tax
the new VAT rate on Gross
Threshold Sales/Receipts in
(P3,000,000) excess of P250,000
Exceeded the new

VAT threshold 20%-35%
(P3,000,000)
10
BUSINESS OR PROFESSIONAL
INCOME
 For taxpayers who are availing the 8% Income Tax Rate option, the FS is not
required to be attached in filing the ITR.
 For taxpayers who are subjected to the graduated income tax rates, an FS
shall be required as an attachment to the annual ITR even if gross
sales/receipts and other non-operating income did not exceed the VAT
threshold.
• Taxpayers whose gross sales/receipts and other non-operating income
exceeded the VAT threshold shall be required to attach an Audited FS when
filing the ITR.
RR ON INCOME TAX (Section 3C)

11
MIXED INCOME EARNERS

• Income from Compensation shall
be taxed based on the rates
• 5% - 32% Progressive under new graduated tax rates
Income Tax Rates (20% -35%)
• Income from Business/Practice

of Profession
– Option to use 8% Income Tax Rate or
the graduated rates, provided
certain conditions are met.
12
MIXED INCOME EARNERS
• Mixed Income Earners who opted to be taxed under
the graduated rates for business/practice of
profession, shall combine the taxable income from both
compensation and business/practice of profession in
computing for the total taxable income and income tax
due.
RR ON INCOME TAX (Section 3D)
13
WHO CANNOT AVAIL OF THE 8%
INCOME TAX RATE
• Taxpayers who failed to signify in the 1st Quarter Return the
intention to elect the 8% income tax.
• Taxpayer whose Gross Sales/Receipts exceeded the P3M VAT
Threshold
• A VAT-registered taxpayer, regardless of the Gross Sales/Receipts
• Taxpayers who are subject to Other Percentage Taxes
• Partners by virtue of their distributive share from GPP which is
already net of cost and expenses
• The aforementioned taxpayers shall be subject to the
graduated rates (20%-35%)

14
Continuation
• A non-VAT registered taxpayer who initially opted to avail

of the 8% option but has exceeded the P3M VAT Threshold
during the taxable year, shall be subject to:
– 3% Percentage Tax on the first P3,000,000
– The excess of the threshold shall be subject to VAT
– The 8% Income Tax previously paid shall be credited to the Income
Tax Due under graduated rates

15
PASSIVE INCOME
INTEREST
• Interest Income received by • Increased to 15%
an Individual from a
depository bank under EFCDS
shall be subject to final tax of
7 ½% of Interest Income.
16
Continuation
PCSO WINNINGS
• All winnings are not subject • All winnings of more than

to tax. 10,000 are taxable at a
final tax rate of 20%
17
INCOME DISTRIBUTION FROM A
GENERAL PROFESSIONAL PARTNERSHIP

• Only the General • The partners comprising
Professional Partnership the GPP can no longer
(GPP), not the partners, can claim further deduction
claim OSD as a deduction in from their distributive
computing its net income. share and have no option
to avail of the 8% Income
Tax Rate option since their
share is already net of cost
and expenses.
18
CAPITAL GAINS TAX RATES

• Capital gains on the sale of • Capital gains on the sale of
shares not traded through shares not traded through
local stock exchange sold local stock exchange sold
directly to buyer directly to buyer
– 5% of gains not over – 15% of net capital gains

P100,000
– 10% of gains in excess of
P100,000
19
DECLARATION OF INCOME TAX
• Deadline of Filing: • Deadline of Filing:
– On or before – On or before May 15 (current
April 15
year)
(current year)
• Installment Payment:
• Installment Payment: – 1st installment – May 15
– 1st installment – time of – 2nd and 3rd – August 15 and
Quarterly
declaration Quarterly November 15
– 2nd and 3rd – August 15 and – 4th Installment – on or before
April 15 as stated in Section 10 of
Annual November 15 RR 8-2018. But it should be May
– 4th Installment – on or before Annual 15 based on the amendment of
April 15 Section 20 of the TRAIN
Law/Section 74(B) of the 1997 Tax
Code
20
PAYMENT AND ASSESSMENT OF
FINAL ADJUSTED INCOME TAX
Installment Payment

• Payment deadlines: • Payment deadlines:
– 1st Installment – at the time – 1st Installment – at the time
the return was filed (April 15 the return was filed (May 15
of following year) of following year)
– 2nd Installment – on or before – 2nd Installment – on or before

July 15 OCTOBER 15
21
WHO ARE NOT REQUIRED TO FILE ITR?
• An individual whose taxable
• An individual whose Gross income does not exceed P250,000
Income does not exceed his provided that a citizen of the
additional and personal Philippines and any alien
individual engaged in business or
exemptions shall not be
practice of profession within the
required to file a return. Philippines shall file an ITR
regardless of the amount of gross
income.
• Substituted Filing (even if more
than P250,000 but employer
withheld and remitted to BIR)
• Minimum wage earners
RR ON INCOME TAX (Section 9) 22
Continuation
ADDITIONAL PROVISION
• Provided in Section 51-A (new section)

• An individual taxpayer receiving purely compensation
income from only one employer shall not be required to file
an annual ITR; If more than one employer, the taxpayer must
file regardless of the amount of income.
• Certificate of Withholding filed by employers and stamped
“RECEIVED” by the BIR is tantamount to substituted filing.
23
Continuation
ADDITIONAL PROVISION
• The Income Tax Return (ITR) shall consist of a maximum of

FOUR (4) PAGES in paper form or electronic form.
24
ESTATE TAX
Estate Tax Collection for 2006-2015
(In Billion Philippine Peso)
26
I. DEFINITION OF GROSS ESTATE
Citizens or Resident Non Resident Aliens

In general, all properties, real or personal, Only properties located in the Philippines
tangible or intangible wherever located shall be included in the gross estate
shall be included in the gross estate
27
II. SUMMARY OF ESTATE TAXATION UNDER NIRC 1997
COMPARED WITH THE TRAIN REVISION
GROSS ESTATE xx
Less:
ORDINARY DEDUCTIONS
Expenses, Losses, Indebtedness, Taxes Replaced with
1. Funeral Expenses (5% of the total Gross Estate or actual expense whichever is lower xx Standard Deduction
but in no case to exceed P200,000 ) of P5,000,000 for
2. Judicial Expense (Shall be incurred during the settlement of estate) xx residents and
3. Claims against the Estate xx P500,000 for non-
a. at the time the indebtedness was incurred the debt instrument was duly residents
notarized
b. if loan was contracted within 3 years before the death of the decedent, the
administrator/executor shall submit statement showing the disposition of the
proceeds of the loan
4. Claims against Insolvent Persons ( the said claims must be initially included as part of xx
the Gross Estate)
5. Unpaid Mortgage and Taxes (Property Mortgaged must be part of the Gross Estate) xx
6. Casualty Losses (should include all losses incurred during the settlement of the estate xx
not later than the last day for the payment of estate tax)
Property Previously Taxed/ Vanishing Deduction xx

Transfer for Public Use xx
TOTAL ORDINARY DEDUCTIONS xx 28
II. SUMMARY OF ESTATE TAXATION UNDER NIRC 1997
COMPARED WITH THE TRAIN REVISION
TOTAL ORDINARY DEDUCTIONS xx
Less:
SPECIAL DEDUCTIONS Increased to
1. Family Home (Current fair market value of the decedent's family home but not xx P10Million
to exceed P1,000,000) P5Million or
2. Standard Deduction (An amount equivalent to P1,000,000 is allowed to be xx P500,000 (per
deducted without the need for substantiation) previous slide)
3. Medical Expenses (Expenses incurred within 1 year prior to death with a xx Removed
maximum amount of P500,000 duly substantiated with receipts shall be
deductible as medical expenses)
4. Amount received by Heirs under RA No. 4917 xx xx
NET ESTATE BEFORE THE SHARE OF THE SURVIVING SPOUSE xx
Less: SHARE OF THE SURVIVING SPOUSE xx
NET ESTATE xx
Tax Rate xx
TAX PAYABLE xx
29
III. COMPARISON OF OLD AND NEW LAW
SEC. 84. Rate of Estate Tax. – Rate of Estate Tax is reduced to a flat rate of 6% based
on the value of the net estate.

Estates are taxed based on the value of such net estate, as computed in
accordance with the following schedule:
If the net estate is:
Estates shall be taxed AT THE RATE
Over But Not The Tax Plus Of the Excess
OF SIX PERCENT (6%) based on the
Over shall be Over
value of such net estate.
P 200,000 Exempt
P 200,000 550,000 0 5% P 200,000
500,000 2,000,000 P 15,000 8% 500,000
2,000,000 5,000,000 135,000 11% 2,000,000
5,000,000 10,000,00 465,000 15% 5,000,000

0
10,000,000 And Over 1,215,000 20% 10,000,000

30
SEC. 86. Computation of Net Estate
B. Deductions allowed to Non-resident Estates

No provision for standard Standard deduction with an
deduction. amount equivalent to Five
Hundred Thousand Pesos
(P500,000).
31
Section 89 – Notice of Death to be Filed

Notice of death to be filed
within 2 months.
Deleted
32
Section 90 – Estate Tax Returns
A. Requirements

That estate tax returns showing a That estate tax returns showing a
gross value exceeding TWO gross value exceeding FIVE
MILLLION PESOS (2,000,000.00) MILLLION PESOS (5,000,000.00)
shall be supported with a shall be supported with a
statement duly certified to by a statement duly certified to by a
Certified Public Accountant. Certified Public Accountant.
33
B. Time for Filing

The estate tax return required The estate tax return required
shall be filed within six (6) shall be filed within ONE (1)
months from the decedent’s YEAR from the decedent’s
death death
34
Section 91 – Payment of Tax

If the available cash of the estate is
insufficient to pay the total estate
tax due, payment by installment
shall be allowed within two (2)
years from the statutory date for
its payment without civil penalty
and interest
35
SEC. 97. Payment of Tax Antecedent to the Transfer of Shares, Bonds or Rights. –

Withdrawal of Bank Deposits are not allowed Withdrawal of Bank Deposit of the
unless the Commissioner has certified that decedent is now allowed subject to
the taxes imposed thereon by this Title have
been paid: Provided, however, That the
FINAL WITHHOLDING TAX of 6%. All
administrator of the estate or any one (1) of withdrawal slips shall contain
the heirs of the decedent may, upon statement to the effect that all joint
authorization by the Commissioner, withdraw depositors are still living at the time of
an amount not exceeding Twenty thousand withdrawal and such statement shall
pesos (P20,000) without the said
certification.
be under oath by the said depositors.
36
IV. COMPARISON OF OLD AND NEW LAW
Note: This appears both under the old and new law.
Time of Payment estate tax shall be paid at the time the return
is filed.
However, if the Commissioner finds that the payment on the

due date of the estate would impose hardship upon the estate
or any of the heirs, the time of payment may be extended to :
• Not to exceed 5 years in case estate through courts
• Not to exceed 2 years in case estate is settled extrajudicially
37
V. CHANGES UNDER THE TRAIN LAW
1. Rate of Tax – 6% based on the value of the net estate

of a decedent, whether resident or nonresident
Note: The law did not say citizen, therefore, all

decedents are covered provided they have gross estate
in the Philippines.
38
2. Deductions from Gross Estate

a. Citizen or Resident
1. Standard deduction increased from P1,000,000 to
P5,000,000 but expenses such as funeral, judicial and
medical expenses were removed.
2. The threshold for the deduction of Family Home
increased from P1,000,000 to P10,000,000.
39
b. Non-Resident
1. Standard Deduction will be allowed amounting to
P500,000.
2. Can avail of deductions provided for under the law even
if the return does not include his gross estate not
situated in the Philippines.
40
3. Compliance Requirements
a. Notice of Death is no longer required.
b. Estate tax returns showing gross value exceeding P5,000,000 shall be
supported with a statement duly certified by a Certified Public Accountant.
c. The estate tax return shall be filed within One (1) Year from the
decedent’s death.
d. If there are no sufficient cash to pay the total estate tax due, Payment by
Installment shall be allowed within Two (2) years from the statutory date
for its payment without civil penalty and interest.
e. Withdrawal from bank deposit is allowed subject to a final withholding
tax of six (6%) percent. 41
DONOR’S TAX
I. COMPARISON OF OLD AND NEW LAW
SEC. 99. Rate of Tax Payable by Donor

(A) In General. - The tax for each calendar year shall
be computed on the basis of the total net gifts made
Donor’s Tax is now reduced to 6%,
during the calendar year in accordance with the regardless of whether the donee is
following schedule:
Over But Not Over The Tax Shall Plus Of the Excess
a stranger or not.
be Over
P 100,000 Exempt
P 100,000 200,000 0 2% P100,000 However, DST now applies to

200,000 500,000 2,000 4% 200,000
donations of real property P15 for
every P1,000 (.015%).
500,000 1,000,000 14,000 6% 500,000
1,000,000 3,000,000 44,000 8% 1,000,000
3,000,000 5,000,000 204,000 10% 3,000,000
5,000,000 10,000,000 404,000 12% 5,000,000
10,000,000 1,004,000 15% 10,000,000 43

(B) Tax Payable by Donor if Donee 6% is applied on total gifts in
is a Stranger. - When the donee or excess of P250,000 exempt
beneficiary is stranger, the tax
gift made during the calendar
payable by the donor shall be
thirty percent (30%) of the net year.
gifts.
44
SEC. 100. Transfer for Less Than Adequate and full Consideration. –

Where property, other than real property This is added:
referred to in Section 24(D), is transferred for PROVIDED, HOWEVER, THAT A SALE,
less than an adequate and full consideration in EXCHANGE, OR OTHER TRANSFER OF
money or money's worth, then the amount by
PROPERTY MADE IN THE ORDINARY
which the fair market value of the property
COURSE OF BUSINESS (A TRANSACTION
exceeded the value of the consideration shall,
WHICH IS A BONA FIDE, AT ARM’S LENGTH,
for the purpose of the tax imposed by this
Chapter, be deemed a gift, and shall be
AND FREE FROM ANY DONATIVE INTENT),
included in computing the amount of gifts WILL BE CONSIDERED AS MADE FOR AN
made during the calendar year. ADEQUATE AND FULL CONSIDERATION IN
MONEY OR MONEY’S WORTH.
45
SEC. 101. Exemption of Certain Gifts. –
(A) In the Case of Gifts Made by a Resident. –
(1) Dowries or gifts made on account of NONE

marriage and before its celebration or
within one year thereafter by parents to
each of their legitimate, recognized
natural, or adopted children to the
extent of the first Ten thousand pesos
(P10,000)
46
II. CHANGES UNDER THE TRAIN LAW
1. Donor’s Tax is now reduced to 6%, regardless of
whether the donee is a stranger or not.
2. 6% is applied on total gifts in excess of P250,000

exempt gift made during the calendar year.
47
II. CHANGES UNDER THE TRAIN LAW
3. That a sale, exchange, or other transfer of property made in
the ordinary course of business (a transaction which is a bona
fide, at arm’s length, and free from any donative intent), will
be considered as made for an adequate and full
consideration in money or money’s worth.
4. Dowries or gifts on account of marriage by parents to their

children is now subject to donor’s tax. 48
EXCISE TAX &
DOCUMENTARY
STAMPTAX
Salient Features, Modifications and Revisions
1. Imposition of New Taxes
 Excise Tax on Sweetened Beverages
• Classification
• Composition
 Excise Tax on Cosmetic Procedures (Non-essential Services)
 Excise Tax on Petroleum Products
Kerosene Liquefied Petroleum Gas
Diesel Fuel Oil Petroleum Coke
Bunker fuel Oil
 Increase in Tax Rates on Petroleum Products and Automobiles 50
 Higher Excise Taxes on Cigarettes and Minerals

2. Effectivity of the TRAIN Law - January 1, 2018
3. Doubling of Documentary Stamp Tax
Almost all DST Rates are doubled except on the original issuance of
debt instruments.
Donation of Real properties are now subject to DST.
4. Services as Excisable Activity

Non-essential services – Cosmetic Procedures 51
The payee is the Withholding Agent

5. Vetoed Provision
Exemption of various petroleum products from the excise tax
when used as input, feedstock, or as raw material in the
manufacturing of petrochemical products, or in the refining of
petroleum products, or as replacement fuel for natural gas
fired combined cycle power plants.
52
DOCUMENTARY
STAMP TAX
53
DOCUMENTARY STAMP TAX
• A national tax levied upon a right or privilege.
• The tax is paid by the person making, signing, issuing,
accepting or transferring the documents.
• The amount of tax is either fixed or based on the par or
face value of the document or instrument.
• BIR Form 2000 shall be filed and paid within the 5 days
after the close of the month when the taxable
document was made signed, issued, accepted and 54
transferred.
Documentary Stamp Tax
Section 51 of R.A. 10963

Stamp Tax on Sales, Agreements to Sell. Memoranda of Sales,
Deliveries or Transfer of Shares or Certificates of Stock.
Provided, further, That in the case of stock without par value the
amount of the documentary stamp tax herein prescribed shall be
equivalent to FIFTY PERCENT (50%) of the documentary stamp
tax paid upon the original issue of said stock.
55
Section 69 of R.A. 10963
SEC. 196. Stamp tax on Deeds of Sale Conveyances AND

DONATION of Real Property.
xxx
TRANSFERS EXEMPT FROM DONOR’S TAX UNDER SECTION
101 (A) AND (B) OF THIS CODE SHALL BE EXEMPT FROM THE
TAXED IMPOSED UNDER THIS SECTION.
56
TRAIN Amending Previous Amended

P1.00 on each P2.00 on each
Section 51 Sec. 174 Stamp On Original Issue of Shares of Stock
P200.00 P200.00
Sec. 175 Stamp on Sales, Agreements to Sell,

Section 52 Memoranda of Sales, Deliveries or Transfer of
P200.00 P200.00
Shares or Certificate of Stocks
Sec. 177 Stamp Tax on Certificates of Profits or P0.50 on each P1.00 on each
Section 53
Interest in property or Accumulations P200.00 P200.00
Sec. 178 Stamp Tax on Bank Checks, Drafts,

Section 54 Certificates of Deposit not Bearing Interest and P1.50 P3.00
Other Instruments

Section 55 Sec. 179 Stamp Tax on All Debt instruments
P200.00 P200.00 57

Section 56 Sec. 180 Stamp Tax on All Bills of Exchange or Drafts
P200.00 P200.00
Sec. 181 Stamp Tax upon Acceptance of Bills of P0.30 on each P0.60 on each
Section 57
Exchange and Others P200.00 P200.00
Sec. 182 Stamp Tax on Foreign Bills of exchange and P0.30 on each P0.60 on each
Section 58
Letters of Credit P200.00 P200.00
Sec. 186 Stamp Tax on Policies of Annuities and Pre-

Need Plans
Section 60 P200.00 P200.00
All Policies of Annuities
P200.00 P200.00 58
Pre-need plans

Sec. 183 Stamp Tax on Life Insurance Policies
if the amount of insurance does not exceed
Exempt Exempt
P100,000
if the amount of insurance exceeds P100,000 P10.00 P20.00
but does not exceed P300,000
if the amount of insurance exceeds P300,000
Section 59 P25.00 P50.00
if the amount of insurance exceeds P500,000 P50.00 P100.00
if the amount of insurance does exceeds P75.00 P150.00
P750,000 but does not exceed P1 million
P100.00 P200.00
if the amount of insurance exceeds P1 million
59

Section 61 Sec. 188 Stamp Tax on Cerificates P15.00 P30.00
Section 62 P15.00 P30.00

Sec. 189 Stamp Tax on Warehouse Receipt
Sec. 190 Stamp Tax on Jai-alai, Horse Race, Tickets, Lotto, P0.10 P0.20
Section 63 or Other Authorized Numbers Games
P0.10 on P0.20 on
if the cost of ticket exceed P1.00 each P1.00 each P1.00
Sec. 191 Stamp Tax on Bills of Lading or Receipts
if the value of goods exceeds P100.00 and does not P1.00 P2.00
Section 64
exceed P1,000.00
P10.00 P20.00
if the value exceeds P1,000.00
60

Section 65 Sec. 192 Stamp Tax on Proxies P15.00 P30.00
Section 66 P5.00 P10.00

Sec. 193 Stamp Tax on Powers of Attorney
Sec. 194 Leases and other Hiring Agreements

Section 67
for the first P2,000.00 P3.00 P6.00
for every P1,000.00 in excess of the first P2,000.00 P1.00 P2.00
Sec. 195 Stamp Tax on Mortgages, Pledges, and Deeds

of Trust
Section 68 P20.00 P40.00
the amount does not exceed P5,000.00
61
P10.00 P20.00
for every P5,000.00 in excess of the first P5,000.00

Sec. 197 Stamp Tax on Charter Parties and Similar Instruments
a. Registered gross tonnage does not exceed P1,000 and the
duration of the charter of contract does not exceed 6 months P500.00 P1,000.00
additional tax in each month or fraction of a month in excess of 6 P50.00 P100.00
months
b. Registered gross tonnage exceeds P1,000 and does not exceed
Section P1,000.00 P2,000.00
P10,000 and the duration of the charter of contract does not
70
exceed 6 months
additional tax in each month or fraction of a month in excess of 6
P100.00 P200.00
months
c. Registered gross tonnage exceeds P10,000 and the duration of
the charter of contract does not exceed 6 months P1,500.00 P3,000.00
additional tax in each month or fraction of a month in excess of 6
P150.00 P300.00
months 62
END OF SLIDES
63

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Train Law - 17mar2018

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R.A. No.

10963 : Tax Reform

ATTY. ROSARIO S. BERNALDO

2. Change in tax rates

3. Exemption from tax of Gross Income of P250,000.00

4. Optional 8% rate on Gross Sales/Receipts from

5. Deadline on filing of quarterly and annual returns and 3

2. Business or Professional Income of Self-

P82,000 not included in the Increase of the ceiling of

Exempt from Income Tax

Above P10,000 to P30,000 P500 + 10% of the excess over P10,000

Above P30,000 to P70,000 P2,500 + 15% of the excess over P30,000

Above P70,000 to P140,000 P8,500 + 20% of the excess over P70,000

Above P140,000 to P250,000 P22,500 + 25% of the excess over P140,000

Above P250,000 to P500,000 P50,000 + 30% of the excess over P250,000

Above P500,000 P125,000 + 32% of the excess over P500,000

Above P250,000 to P400,000 15% of the excess over P250,000

P22,500 + 20% of the excess over

Exceeded the new

RR ON INCOME TAX (Section 3C)

OLD PROVISION NEW PROVISION

• Income from Business/Practice

RR ON INCOME TAX (Section 3D)

RR ON INCOME TAX (Section 3C)

• A non-VAT registered taxpayer who initially opted to avail

RR ON INCOME TAX (Section 3C)

• All winnings are not subject • All winnings of more than

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

– 5% of gains not over – 15% of net capital gains

OLD PROVISION NEW PROVISION

– 2nd Installment – on or before – 2nd Installment – on or before

• Provided in Section 51-A (new section)

• The Income Tax Return (ITR) shall consist of a maximum of

Citizens or Resident Non Resident Aliens

Property Previously Taxed/ Vanishing Deduction xx

OLD PROVISION NEW PROVISION

P 200,000 550,000 0 5% P 200,000

500,000 2,000,000 P 15,000 8% 500,000

2,000,000 5,000,000 135,000 11% 2,000,000

5,000,000 10,000,00 465,000 15% 5,000,000

10,000,000 And Over 1,215,000 20% 10,000,000

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

However, if the Commissioner finds that the payment on the

1. Rate of Tax – 6% based on the value of the net estate

Note: The law did not say citizen, therefore, all

2. Deductions from Gross Estate

OLD PROVISION NEW PROVISION

P 100,000 200,000 0 2% P100,000 However, DST now applies to

1,000,000 3,000,000 44,000 8% 1,000,000

3,000,000 5,000,000 204,000 10% 3,000,000

5,000,000 10,000,000 404,000 12% 5,000,000

10,000,000 1,004,000 15% 10,000,000 43

OLD PROVISION NEW PROVISION

OLD PROVISION NEW PROVISION

(1) Dowries or gifts made on account of NONE

2. 6% is applied on total gifts in excess of P250,000

4. Dowries or gifts on account of marriage by parents to their

 Higher Excise Taxes on Cigarettes and Minerals