Essent eee renin pure Rens Pio | 52018 npn he asa oreson Ea Tan Arora pron? iSbeori at ee anien sneer re — rates te A pharumrcxCoses AES for Setaed Beverages Rua a0i8 [reer are ele NaS 4 www.birgov.ph . TAX REFORM FOR INCLUSION AND ACCELERATION (TRAIN) REPUBLIC ACT NO. 10963 JANUARY 1, 2018 us [faner OF HALE NODE cover | norover2. MINIMUM WAGE EARNER (MWE) + Statutory minimum wage rates are exempted from income tax. + Also exempted are the holiday pay, overtime pay, night shift differential pay and hazard pay earned by MWE. 3._ 13th MONTH PAY & OTHER BENEFITS Cec UCM aac ate) * NONE — already included in the P250,000 exempt from income tax; repeal Sec. 33 (A) of the Magna Carta for Persons with Disability, Sec.22(B) of the Foster Care Act of 2012 SALES SUPPRESSION DEVICES | see 268. Purchose, Ute, Possession Sale or Ofer to Sl salen, Transfer, pete, Unorade,Rsping or Maing of Seles Supresson Dees. Ary person te poe aloof tor intl, taser update uperade, software or device designed for or scapate cA) suppressing san ges (8) Paste hing deing Stal be punished by fn of notes tha Fie Hundred Thousand Fos 5080000 but not mare tan Te llon Pesos P10 0000000), ad sur impisonment of not tess than wo (2) year bu ot more ha fou] years Prove, Tata cote | stbereson of eecvone sls recordin exces ofthe soant of ify Mion ee {500,000.00 a be conicered recone sabotage nd sal be pushed [ tise sey stores he pen REVENUE ISSUANCES [issuance [Description —__] C2018 |reserbes the procedures onthe ue f Wihholing Tx Table on Compensation Income and adies onthe change of Credtable | wenoiing Tax Rate on certain income poyents to individuals FNC. 2018 [Prescribe the ransion procedures oraltaxpayers fing tax | retursaffected by the revised tat rates purwant tothe proof RA No. 10963 (TRAIN Law) NC3.2018 Provides the ranstion procedures or altaxpayes ected by the revised tax rates on Documentary Stag Tax pursuant to the provision of Ra No 10963 [RAIN Law) |[casa rg fotterracsinthe|Sectaie Siete cnn FSU AU SIU eS) ei aes) MONTHLY e SALES REPORTING -Any taxpayer eit to Warsi sales data to the Bureau's electron ales reporting system but fasta do 0 shal pay, foreach dy of lato, apenaly amounting © ne-enthof one percent (1/101) ofthe ans net name a efecedin the ‘apes ated Faancastzemert forthe second year preceding the cet ‘arable yer for ach yf vation or Ten Thousand eso 10,00) whichevere higher: Prove, Tat shoud he aggregate number ofthe dayton exceed cone hue eighty (180) dos within a tae yea anadddona penalty of ‘ermanent ose ofthe taxpayer shal be imposed: Prove, ter, That fhe fret tansmt de ooze majeur oF any cases beyond the contol ofthe spay the pert shal ot pp" Ea aie l) * Three Million Pesos (P3,000,000) + Any person whose sales or receipts are exempt under Sec. 109 (BB) of the Code from the payment of VAT and who is not a VAT-registered person shalll pay a tax equivalent to 3% of his gross quarterly sales or receipts. mses + Every 25th following the close of each taxable quarter + Provided, however, That VAT-registered persons shall pay the value-added tax on a monthly basis: Provided, finally, ‘That beginning January 1, 2023, the fling and payment required under this Subsection shall be done within ‘twenty-five (25) days following the close of each taxable quarter,6. SELF-EMPLOYED INDIVIDUALS PURELY SELF-EMPLOYMENT / PRACTICE OF PROFESSION OPTIONS — | the 29% tax on gross sales or ‘The graduated rates under | | receipts and other —non- Section 24(A)2\(a) ofthe Tax | | operating income in excess of, |] Code, as amended; #250,000 in lieu of the traduited income tax rates under OR BD precast secon” + Taxpayer shall be considered as having availed of the ‘graduated income tax rates, unless the taxpayer signifies in the 1 Quarter income tax return or the initial quarter of the taxable year after the commencement of a new business/practice of profession, the intention to elect the {8% income tax rate and such election shall be irrevocable ‘and no amendment of option shall be made for the said taxable year. ATTEMPT TO EVADE OR DEFEAT TAX (a) Fine * Not less than P500,000 but not more than P10,000,000 (2) Imprisonment * Not less than 6 years but not more than 10 years Pao sat Veena asia [rmciosr [rasan rean {arveenannto tangremrainaer | eoore thew orane mute cube receotsoF [One thine pecs P.00) bs ot moan ity tmrnd pre PSO) ater etl an a rotinre hanover.aa Rear acer icy PAA Cke. Wor Me aS aL *Corporations, companies, partnerships or persons whose gross annual sales, earnings, receipts or output exceed Three Million Pesos (P3,000,000),, shall have their books of accounts audited and ‘examined yearly by independent Certified Public Accountants and their income tax returns. ISSUANCE OF RECEIPTS OR Rakes ‘Threshold increased from P25 to P10 KEEPING & PRESERVATION OF RECEIPTS AND INVOICES + Inthe por of business fora period of tre (3 year from the dose ofthe tele yearin which the ivoce or recep was issued; + Intudescigal records for electronic receipts or sles orcommeriainvices + Orgal-Tobe kept by the purchaser customer or cet; + Duplate Kept bythe sue + Those subject to Other Percentage Taxes under Title V of the Tax Code, as amended, except those subject under Section 116 of the same Title + Partners of a General Professional Partnership (GPP) since their distributive share from GPP is already net of cost and expenses. * VAT Taxpayers Ea recs aicy 1. The compensation income shall be subject to the graduated income tax rates prescribed under Section 24(A)(2)(a) of the Tax Code, as. amended; AND 2. The income from business or practice of profession shall be subject to: 16a. If the gross sales/receipts and other non-operating, incomé do not exceed the VAT threshold, option to be taxed at : The BX taxon goss sales) receipts and other non-operating income in| excess of £250,000 In lieu of the (add wee tae tre Seton uaa) aa the percentage ander {2 The total amount which the patient/client pays or is obligated to pay to the service provider including the excise tax and value added tax Provided, thot: “The amount of excise tax shall be shown as a separate item in theoR; ‘Discounts given shall be indicated in the OLR, otherwise the same shall not be alowed as deduction from gross receipts; “If the procedure performed is non-invasive and considered ‘exempt from excise tax, the term Exempt from Excise Tax shall be shown on the O.R: b. Ifthe gross sales/receipts and other non-operating income exceeds the VAT threshold, the individual shall bbe subject to the graduated income tax rates prescribed under Section 24(A)(2}a). + Ifthe services performed involved both invasive (excisable) and non-invasive (exempt from excise tax) procedures, the receipt shall clearly indicate the breakdown of the amount received between its taxable ‘and exempt components and the calculation of excise tax ‘on each portion of the procedure performed shall be shown on the receipt: * Provided, that the service provider may issue separate ORS for the excisable and exempt components of the services rendered.‘In cases where no service subject to excise tax is performed and there are no payments received, the Monthly Remittance Return of Final Withholding of Excise Tax shall still be filed with Excise Large Taxpayers Field Operations” Division (ELTFOD) for Large Taxpayers/Revenue District Office for taxpayers in the National Capital Region (NCR)/Excise Tax Area (EXTA) in Regional Offices for taxpayers outside NCR. ‘Taxpayers fling via EFPS shall comply with the provisions Of the EFPS Regulations. ER cer EL} meee eer ie ===] Invoicing Requirements. — Every person subject to excise tax herein imposed shall issue: 1. An Official Receipt for se whi 2. The following information shall be indicated in the Official Receipt: ROSANA) Mea Deena (INDIVIDUAL TPs) *IT Payable : P2,000 or more *1st Installment : on or before April 15 * 2nd Installment : on or before October 1511. DEDUCTIONS FROM GROSS INCOME 1. Itemized Deductions 2. Optional Standard Deduction (OSD) + 40% of Gross Sales/Receipts during the taxable year + TPs not required to submit with the tax return such Financial Statements otherwise required under the Tax Code, as amended. + General Professional Partnership (GPP) may avail of the 050 only once, ether by the GPP or the partners comprising the partnership eS eet Ce Sean as + Rate = five percent (5%) ross Receipts, net of excise tax and VAT wasive cosmetic procedures, surgeries and_body enhancements directed solely towards improving, altering, or enhancing the patient's appearance and do not meaningfully promote the proper function of the body or prevent or treat illness or disease, The election to claim either the itemized deductions or the (SD for the taxable year~ ‘+ must be signified by checking the appropriate box in the income tax return filed for the first quarter of the taxable year adopted by the taxpayer * the same type of deduction must be consistently applied forall the succeeding quarterly returns and in the final income tax retumn for the taxable year. Manner of Remittance of Excise Tax Under existing rules on goods subject to excise taxes, the excise tax return is required to be filed and the excise tax paid by the manufacturer or producer of the goods before | removal from the place of production.2. Transfer for less than adequate and full consideration Where propery, other than ceal property refered to in Section 24(0), is transfered for less than an adequate and full consideration in money OF money's worth, then the amount by which the fur market valve of the ‘roperty exceeded the vale ofthe consideration shall for the purpose ofthe ‘ax imposed, be deemed gif and shale included in computing the amount fof ts made during the calendar year: Provided, however, that sale, feicharge or other trasfer of property made in the ordinary course of busines (transaction whieh sa bona fide at arms length, ard efom any donate intent) will be considered as made for an adequote and ull consideration in money or moneys worth Tava Framer Maa Ui Seo 174 Orginal issue of Share of Steck | ‘Sec 75 Sales, Areenens St MomoredaofSan Ora or Tran of ‘Stuer Carteses Suck wh saa sec 175 Sales. Ageorent Sot Nomorancs of Sean Osher or Trantor of Stare Contents of Succi ‘oe [ATE [Amount si06 Pi 5101 |P2.0/ P0000 'osvc2 |P1 507720000 S102 s0% eT OST pad on [fener See a8 = Canicaie nued (D544 (P30 onCertcat MINERALS prover re aT A etal mers and gary recres 2. way enced or rosin, - a Sc 8 Oma Canepret 2 ogrzp ose oe Ener| * Transfers exempt from Donor’s Tax under Section 101 (a) and (b) of the Tax Code shall be exempt from DST 1 pee eng “RA 10963 | * Gift inter vives _ Crea) | | fae \ Felatve = Exemption Douries or gts on account of maria | 1.DST on Donation of Real Property | Not to exceed P2,000 P15.00 | | For each additional 1,000 15.00 + Transfers exempt from done’ tax shal be exempt from OST