TRAIN Tax Law: Primer,

Guide & BIR Sample

Computations
On December 19, 2017, Pres. Rodrigo Duterte signed Republic Act RA
10963 or Tax Reform for Acceleration and Inclusion or the TRAIN law. It
provides for the increase in take-home pay of salaried Filipino by reducing
income tax rates, while increasing and rationalizing tax rates in other goods
and services.
Here are relevant articles related to the TRAIN law and accompanying
guidelines issued by the Bureau of Internal Revenue or BIR to address
the implementation of the said law.
https://www.pinoymoneytalk.com/bir-tax-law-philippines/

What is TRAIN?
Tax Reform for Acceleration and Inclusion
The goal of the first package of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to
create a more just, simple, and more effective system of tax collection, as per the constitution,
where the rich will have a bigger contribution and the poor will benefit more from the government’s
programs and services.

Lowering the Personal Income Tax (PIT)

Simplifying the Estate and Donor's Tax
Expanding the Value-Added Tax (VAT) Base
Increasing the Excise Tax of Petroleum Products
Increasing the Excise Tax of Automobiles
Excise Tax on Sweetened Beverages
http://www.dof.gov.ph/taxreform/
Duterte: No stopping
TRAIN law
President Rodrigo Duterte says some have 'incorrectly blamed' the price increases in
the past months to the Tax Reform for Acceleration and Inclusion law

MANILA, Philippines – President Rodrigo Duterte reiterated the need for a

comprehensive tax reform program and echoed his economic managers'
sentiments that the Tax Reform for Acceleration and Inclusion (TRAIN) law cannot be
stopped.

In his 3rd State of the Nation Address (SONA) on Monday, July 23, Duterte went on to
applaud the "timely passage of the TRAIN law."

"Some have incorrectly blamed our efforts toward a fairer tax system for all the price
increases in the past months, and some irresponsibly suggesting to stop TRAIN's
implementation. We cannot and should not. We need this for sustainable growth that
leaves no Filipino left behind," the President said.

Duterte wants the remaining 4 out of 5 tax reform packages submitted to Congress
before July ends.

He called on lawmakers to pass Package 2 of TRAIN in 2018, saying that he hopes to

sign it before the year ends.

Package 2 aims to rationalize or remove certain tax incentives of companies and reduce
the corporate income tax from 30% to 25%. The Department of Finance (DOF)
proposed to make incentives performance-based, targeted, time-bound, and
transparent.

Business groups earlier warned that the removal of incentives would scare away
potential foreign investors.

Duterte also called for reforms in mining taxes and further increasing levies on alcohol
and tobacco.

He also urged Congress to work on on real property valuation, capital income and
financial taxes, and an amnesty program.
"I urge Congress to take them seriously and pass them in succession, for there is no
chance that we can deliver our promises without an equitable tax system," the President
said. – Rappler.com