‘ome
REC
DEPARTMENT OF FINANCE
4G cexncty
Janaary 25,2018,
revenvr recutations no. 8-20/8
SUBJECT: Impkmenting the Income Tax Provisions of Republic Act No.
10863, Otherwise Known s the “Tax Reform for Acceleration and
Inclusion (TRAIN) Act
To _Alltnternat Revenue Officers and Other Concerned
SECTION 1. SCOPE. ~ Pursuant to Section 244 of the National Intemal Revenue Code, 2s
mended, ond Seetion 84 of Republic Act (R.A.) No, 10863 otherwise known as the “Tx
Reform for Acceleration and lnchsion (TRAIN)” Law, these regulations ae, hereby
promulgated to implementthe amended provisions on Tile Tl ~Tax on nome ofthe NIRC,
SECTION 2, DEFINITION OF TERMS. ~ Words andor phrases used under these
regulations shall mess
‘Compensation Inscine -in generl, means ll remuneration for services performed by
sn employee for bis employer under an employeremployee relationship, unless
specifically excudad by the Code
“The name by which the remaneaton for services is designated is immateval. Thus,
sales, wages, emoluments and hovoraia, allowances, commissions (eg.
transportation, presentation, entertainment and the like), fees including director's
fees, i the dvetr i atthe same time, an employes of the employesfeorporation,
taxable bonuses and Binge benefits, excep those which are subject to the fringe
benefits tix under Sec. 33 ofthe Code ad the allowable “de minimis" benefits,
taxable pensions ad retirement pay and ater income ofa similar nature consi
compensation income
b. Compensition lnsome Eamers - individuals whose source of income is purely