A.

ADMINISTRATIVE
OLD TAX CODE AMENDMENTS INTRODUCED BY
TRAIN LAW
▪ No TIMTA yet at the time of the ▪ Power of the Commissioner to obtain
enactment of 1997 Tax Code information to include data supplied by
Cooperative Development Authority in
compliance with “The Tax Incentives
Management & Transparency Act
▪ Presence of counterpart restrictions (TIMTA)”

▪ Power of the Commissioner to make

assessments notwithstanding any law
requiring prior authorization of any
▪ No period is provided government agency or instrumentality

▪ Authority of the Commissioner to

prescribe real property values subject to
automatic adjustment once every three
(3) years

B. INDIVIDUAL INCOME & RETURNS & PAYMENT

▪ Below Php 10,000.00 taxed at 5%
▪ Over Php 500,000.00 taxed at 32%
▪ No counter-part provision
▪ Personal exemption-Php 50,000.00
▪ Additional exemption-Php 25,000.00 per
child
▪ No counter-part provision
▪ Tax exempt 13 Month Pay & Other ▪ Php 90,000.00
th
▪ Below Php 250,000.00 no tax
▪ Over Php 8M taxed at 35%
▪ Optional for self-employed &
professionals to be taxed at 8% for
gross revenues below Php 3M or the
new VAT threshold
▪ No more personal and additional
exemptions
▪ Minimum wage earners receiving holiday
pay still exempt from income tax

Benefits including Productivity

Incentives & Christmas Bonus-Php
82,000.00
▪ Employees of RHQ, ROHQ, OBU, & ▪ Preferential tax treatment of 15% shall not
Petroleum Service Contractors taxed apply anymore to registrants after
at 15% January 1, 2018
▪ Fringe Benefit Tax-32% ▪ 35%
▪ None ▪ Returns to consist of maximum of 4 pages
showing personal profile & information,
gross revenues, allowable deductions,
taxable income, income tax due &
payable
▪ Deadline for 1st Quarter & Annual ITR- ▪ May 15
April 15
▪ Deadline for 2nd Installment of Annual ▪ October 15
Income Tax Due-July 15
C. PASSIVE INCOME
▪ PCSO & Lotto Winnings-exempt ▪ Taxable above Php 10,000.00
▪ Interest income on foreign currency ▪ 15% whether recipient is individual or
denominated units-7.5% domestic corporation
▪ Capital gains tax on unlisted shares-5% ▪ 15%
for 1st Php 100,000.00 net capital gains
realized and 10% in excess of Php
100,000.00
D. ESTATE
▪ Progressive at 5% to 20% ▪ Flat rate of 6%
▪ Standard deduction at Php 1M ▪ Php 5M
▪ Family home Php 1M ▪ Php 10M
▪ CPA Certification needed at Php 2M ▪ Php 5M
▪ None ▪ Final withholding tax at 6% on
withdrawals on deposits of decedent
▪ Estate tax return filing deadline-within 6 ▪ 1 year
months from the date of death
▪ No counterpart provisions ▪ Payment by installment in 2 years in
case of insufficient cash without civil
penalty & interest
E. DONATION
▪ 0%-15% & 30% on donations to ▪ 6% in excess of Php 250,000.00
strangers
F. VAT
▪ VAT threshold-Php 1,919,500.00 ▪ Php 3M
▪ Sale of goods to PEZA-0% ▪ Subject to 12% upon implementation of
enhanced VAT refund system
▪ VAT exempt sale of residential lot-not ▪ Php 1.5M
more than Php 1,919,200.00
▪ VAT exempt sale of residential house & ▪ Php 2.5M, by 2021 Php 2M
lot-Php 3,199,200.00
▪ VAT exempt lease of residential unit-Php ▪ Php 15,000.00
10,000.00
▪ Association dues, membership fees & ▪ VAT exempt
other assessments & charges of
homeowner’s association &
condominium corporation-vatable ▪ VAT exempt
▪ Transfer property pursuant to Section 40
(C) (2) of the Tax Code on tax-free
exchange-vatable ▪ VAT exempt Transfer of Sale of drugs
▪ Sale of medicines-12% VAT and medicines for diabetes, high
 cholesterol & hypertension-VAT
exempt effective January 1, 2019

▪ Amortization of input VAT on capital ▪ Repealed by 2022

goods
▪ 120-day period within which to refund ▪ 90 days reckoned from the date of
reckoned from the complete submission of official receipts &
submission of documents invoices
▪ In case of inaction, appeal to CTA after
the expiration of 120-day period
▪ BIR officer may be punished
▪ Monthly & quarterly VAT filing ▪ Effective 2023 only quarterly VAT filing
G. PERCENTAGE TAX
▪ Cooperatives are exempt from 3% gross ▪ Beginning January 1, 2019 , annual
receipts tax gross receipts not exceeding Php
500,000.0 shall be exempt from 3%
▪ Self-employed & professionals with ▪ Exempt effective January 1, 2019 if
gross receipts of Php 1,919,500.00 annual gross receipts not exceeding
and less-subject to 3% Php 500,000.00
▪ Stock transaction tax on listed shares- ▪ 0.60 of 1%
0.50 of 1%
H. EXCISE TAX
▪ Php 31.20 per pack with 4% increase ▪ Php 32.50-January 2018
annually Php 35.00-January 2019
Php 37.50-January 2020
Php 40.00-January 2022
4% annual increase
▪ Diesel-Php 0.00 per liter ▪ Php 2.50 per liter-2018
Php 4.50 per liter-2019
Php 6.00 per liter-2020
▪ Unleaded & premium gasoline-Php 4.35
per liter ▪ Php 7.00 per liter-2018
Php 9.00 per liter-2019
Php 10.00 per liter-2020
▪ No counterpart provisions ▪ Mandatory marking of all fuel products
▪ 2% for up to Php 600,000.00 ▪ 4%
▪ Php 12,000.00 + 20% in excess of Php ▪ 10% for over Php 600,000.00-Php 1M
600,00.00
▪ Php 112,000.00 + 40% in excess over
Php 1.1M
▪ Php 512,000.00 + 60% of excess over ▪ 20% for over Php 1M-Php 4M
Php 2.1M
▪ 50% for over Php 4M
▪ Cosmetic procedures for aesthetic ▪ 5%
reasons-none
▪ Sweetened beverages-none ▪ Php 6.00 per liter using caloric & non-
caloric sweeteners
▪ Php 12.00 per liter using high-fructose
corn syrup
▪ Php 10.00.00 per metric ton of coal ▪ Php 50.00-2018
Php 100.00-2019
Php 150.00-2020
▪ Various rates for other minerals
100% increase in rate for other
minerals
I. DOCUMENTARY STAMP TAX
▪ Various transactions subject to different ▪ 100% increase in rate except DST on
rates & amounts loans from Php 1.00 to Php 1.50 per
Php 200.00 & no increase in sale of
real property & insurance policies

J. COMPLIANCE REQUIREMENTS
▪ Php 600,000.00 threshold for keeping of ▪ Php 3M
books of accounts for entities
K. ADMINISTRATIVE PROVISIONS
▪ Php 25.00 sale required to issue official ▪ Php 100.00.0
receipt/invoice
▪ Electronic sales reporting-none except ▪ Enhanced electronic point of sales
the current Quarterly Summary List of reporting by taxpayers engaged in
Sales & Purchases & List of export of goods & services & Large
Importation, e-Sales Reporting Taxpayers within 5 years from
enactment of TRAIN
▪ Monthly filing of withholding tax & ▪ Quarterly filing of withholding tax except
percentage tax/VAT compensation & VAT/percentage
▪ Deficiency interest-20% ▪ Double the legal interest rate per annum
▪ Penalty for failure to transmit sales data ▪ 1/10 of 1% of the annual net income for
entered on Cash Register the 2nd year preceding the current
Machine/Point of Sales Machine to the taxable year for each day of violation or
BIR’s Electronic Sales Reporting Php 10,000 whichever is higher &
System-administrative penalty permanent closure if violation exceeds
180 days