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DOF Proposed Tax Reform Packages
1a uReduction of tax rates uReduction of tax rate 2

uShift to simplified PIT system uSimplification of tax provisions
uExpansion of VAT base uRationalization of fiscal
uExcise tax on sugary, incentives
automobiles, cigarettes
and petroleum products Personal Corporate uVAT refund in cash
Income Tax Income Tax

uEstate tax amnesty
uGeneral tax
1b amnesty
uAmendments to
bank secrecy law
Property Capital
uHarmonization of
Tax Income Tax capital income tax
rates on deposits and
investment,
uLower rate of dividends, equity and
transaction taxes on land other passive income
4 uUpdate Schedule of Zonal Values to 10% 3
Slide 1
Key Amendments
Income Tax
Slide 2
Annual Income Tax Table
OLD TAX CODE PROVISION
Annual Income Bracket Tax Rate

0 – 10,000 5%
Over 10,000 – 30,000 500 + 10% of the excess over 10,000
Over 30,000 – 70,000 2,500 + 15% of the excess over 30,000
Over 500,000 125,000 + 32% of the excess over 500,000
Slide 3
Annual Income Tax Table
RA NO. 10963
Annual Income Bracket Tax Rate Tax Rate
(2018-2022) (2023 Onwards)
Lower Limit Upper Tax on Tax on Tax on Tax on
Limit lower limit excess lower limit excess
over lower over lower
limit limit
0 250,000 - 0% - 0%
250,000 400,000 - 20% - 15%
400,000 800,000 30,000 25% 22,500 20%
800,000 2,000,000 130,000 30% 102,500 25%
2,000,000 8,000,000 490,000 32% 402,500 30%
8,000,000 Above 2,410,000 35% 2,202,500 35%
Slide 4
Exemption/Deduction from Gross Income
Removed the following:
Personal and Premium payments on Persons with

additional health and/or Disabilities
exemptions hospitalization (PWDs)*
Insurance amounting to
PhP 2,400 per family
*Under RA No. 10754, an act expanding the benefits and privileges of persons with disability
(PWDs), allows PWDs as qualified dependent with certain qualifications, for purposes of allowing the
benefactor the privilege of claiming the PhP 25,000 exemption in computing taxable income.
However, under RA No. 10963, the same provision was specifically repealed in its repealing clauses.
Slide 5
Non-taxable 13th month pay and other

benefits
PhP 90,000
PhP 82,000
Increased threshold
for non-taxable 13th month pay
and other benefits
Slide 6
Individual Income
Income Tax Rates for Individuals Earning Income Both from Compensation and
from Self-employment (business or practice of profession)
Type of
Income
Compensation Mixed Business/Professional

Income Income Income
Gross sales/receipts
Revised graduated exceeding PhP 3M
income tax rates VAT threshold?
No Yes
OR Revised
graduated income
Revised graduated
8% gross tax rates plus
income tax rates plus
sales/receipts tax 12% VAT
3% Percentage Tax
Slide 7
Individual Income
Income Tax Rates for Self-Employed Individuals Earning Income Purely from
Self-Employment or Practice of Profession
Non-VAT registered taxpayers who VAT- Yes Revised graduated

initially opted to avail the 8% tax Registered? income tax rates plus
but has exceeded the threshold
during the year shall be subject to
12% VAT
No
3% percentage tax on the first 3
million without penalty if payment
was made on the following month
when the threshold was breached. Gross sales/receipts
Excess over 3 million shall be exceeding PhP 3M Yes
subject to VAT.* VAT threshold? Taxpayers subject to other
percentage tax (OPT) and
partners of GPP by virtue of
Option to be taxed at 8% No their distributive share in the
should be signified in the GPP shall have no option to
first quarter ITR.*
OR avail the 8% tax.*
8% gross Revised graduated

sales/receipts tax income tax
(in excess of rates plus 3%
PhP 250,000) percentage tax
*New rules per draft RR on income tax
Slide 8
Income Tax on Alien Employees and Filipino
Employees occupying the same position
PARTICULARS 1997 TAX CODE RA NO. 10963
u RETAINED the provision on 15%
ROHQ
15% preferential rate for alien employees
and Filipino employees occupying the
same position employed by RHQs,
preferential ROHQs, OBUs and petroleum service
Alien Employees and rate contractors and subcontractors.
u Shall NOT BE APPLICABLE to
Filipino Employees
RHQs/ROHQ/OBUs/petroleum service
occupying the same (of salaries, wages,
position contractors and subcontractors
annuities, compensation,
remuneration and other registered with Securities and
*Employed by:
emoluments, such as Exchange Commission (SEC) AFTER
uRegional Headquarters honoraria and January 1, 2018.*
(RHQs) allowances) u EXISTING RHQs/ROHQs/OBUs/
uRegional Operating petroleum service contractors and
Headquarters (ROHQs) subcontractors for qualified
uOffshore Banking Units
(OBUs) employees shall CONTINUE to avail of
u Petroleum Service the preferential tax rate for present
Contractors and and future qualified employees.
Subcontractors (VETOED BY THE PRESIDENT)
*Per draft RR on income tax, such employees shall be subject to regular tax without prejudice to the
application of preferential tax rates under existing international tax treaties.
Slide 9
Income Tax on Alien Employees and Filipino

Employees occupying the same position
Only the following provisions of laws related to RHQs and ROHQs were REPEALED by
the TRAIN:
► Article 65 of RA No. 8756, insofar as VAT exemption and zero rating is concerned,
of regional or area headquarters and zero-rating of the sale or lease of goods and
property and the rendition of services to regional or area headquarters, and Article
67, insofar as VAT exemption is concerned, the same Act; Provided, That existing
RHQs and ROHQs enjoying VAT exemption and zero-rating at the time of the
effectivity of TRAIN shall not be effected; and
► Section 5 of RA No. 8756 or An Act Providing For The Terms, Conditions And
Licensing Requirements Of Regional Or Area Headquarters, Regional Operating
Headquarters, And Regional Warehouses Of Multinational Companies, Amending For
The Purpose Certain Provisions Of Executive Order No. 226, Otherwise Known As
The Omnibus Investments Code Of 1987
Slide 10
Optional Standard Deduction (OSD)
1997 TAX
DEDUCTIONS RA NO. 10963
CODE
40% on gross
Retained
OSD for income
Corporations
Slide 11
Passive Income Tax Rates
TYPE OF INCOME 1997 TAX CODE RA NO. 10963
Exempt
PCSO
(up to
Exempt PhP 10,000)
(full amount)
Philippine Charity
Sweepstakes and 20% final tax
lotto winnings
(in excess of PhP 10,000)
7.5%
15%
final tax
Interest Income from final tax
(applies to both resident individuals
expanded Foreign and domestic corporations)
Currency Deposit Units
(FCDUs)
Slide 12
Passive Income Tax Rates
TYPE OF
1997 TAX CODE RA NO. 10963
INCOME
NET CAPITAL
RATE
GAINS
First
PhP 100,000 5% 15% CGT
(applies to both
Sale of shares Capital resident individuals
of stock not Gains Tax and domestic
(CGT) corporations)
traded in the
In excess of
stock exchange
PhP 100,000
10%
CGT
Slide 13
Income Tax Return – Filing & Payment
u Taxable income does

not exceed
Gross income does
not exceed PhP 250,000
personal and
Persons exempt u Persons qualified for
additional
from filing exemptions substituted
individual ITR
filing
Slide 14
PERIOD DEADLINE
(1997 TAX CODE)
1st
of the same
APRIL taxable year
4th 15 of the following

taxable year
(ANNUAL)
PERIOD DEADLINE
(RA NO. 10963)
Deadline for
1st
of the same
individual income
MAY taxable year
tax declaration
4th 15 of the following

taxable year
(ANNUAL)
Slide 15
15 15
Deadline of 2nd following the close of the following the close of the
calendar year calendar year
installment
payment*
*When a tax due is in excess of Two thousand pesos (PhP 2,000), the taxpayer other than a
corporation (i.e., individual taxpayer), may elect to pay the tax in two (2) equal installments in which
case, the first installment shall be paid at the time the return is filed (now May 15)
Slide 16
Individual and Corporate ITR
Annual Income
Tax Return
Maximum of 4 pages containing the
following information:
Provided that this

1. Personal/Corporate profile and shall not affect the
information implementation of the
Tax Incentives
2. Gross sales/receipts Management and
Transparency Act
(TIMTA).
3. Allowable deductions
4. Income tax due
Slide 17
RMC No. 2-2018

BIR Forms being enhanced and Alphanumeric Tax Codes (ATC) affected:
BIR Form Form Name ATC Affected Old Rate New Rate
Monthly Remittance
WI 170 and WC
1602 Return of Final Income 7½% 15%
170
Taxes Withheld
Quarterly Remittance
1603 Return of Final Income WF 320 15% 35%
Taxes Withheld
Percentage Tax Return

for Transactions
Involving Shares of Stock
Listed and Traded
2552 PT 200 ½ of 1% 6/10 of 1%
Through the Local Stock
Exchange or Through
Initial and/or Secondary
Public Offering
Slide 18
RMC No. 2-2018
BIR Forms being enhanced and ATC affected (continued):
The changes in tax rates previously mentioned are not yet reflected
and implemented in the following:
eFPS eBIRForms Manual
Thus, the following work around procedures in filing the BIR Forms
previously mentioned shall be adopted by the following taxpayers:
Slide 19
RMC No. 2-2018

For eFPS Filers:
1. File using existing BIR Forms and pay online through eFPS
2. The transaction will result to deficiency tax which will be paid online through
eFPS using BIR Form No. 0605. Moreover, the filer should fill in the
information in the Tax Type and ATC fields as stated below:
Supposed BIR Form
Tax Type ATC
to be Used
WB Withholding Tax – Banks and Other
1602
Financial Institutions All eFPS filers shall use
1603 WR Withholding Tax – Fringe Benefits ATC MC 031 –
Deficiency Tax
2552 ST Percentage Tax - Stocks
3. Once the enhanced versions of the aforesaid forms are available, there will be
an announcement through an RMC along with guidelines on whether
amendments of previously files returns are needed
Slide 20
RMC No. 2-2018
For eBIRForms Filers:
1. File using existing BIR Forms in the eBIRForms Package and pay via
► Online payment through Landbank Electronic Payment Service (LBEPS) or
BIR-DBP PayTax Online (BDPTO); or
► Manual payment via over-the-counter (OTC) of AABs under the jurisdiction
of the RDO where the taxpayer is registered
2. The transaction will result to deficiency tax which will be paid via payment
methods discussed above using BIR Form No. 0605. Moreover, the filer should
fill in the information in the Tax Type and ATC fields as stated below:
Supposed BIR Form
Tax Type ATC
to be Used
WB Withholding Tax – Banks and Other
1602
Financial Institutions
All eFPS filers shall use
1603 WR Withholding Tax – Fringe Benefits ATC MC 031 –
Deficiency Tax
2552 ST Percentage Tax - Stocks
Slide 21
RMC No. 2-2018

For Manual Filers:
1. Fill-in the applicable BIR Form downloaded from the BIR Website using the new
tax rates
2. File and pay manually via OTC of AABs under the jurisdiction of the RDO where
the taxpayer is registered
Slide 22
Fringe Benefits Tax (FBT)
35%
(RA NO. 10963)
Increase in
FBT rate* 32%
(1997 Tax Code)
*FBT rate for non-resident alien not engaged in trade or business shall still be at 25%.
Slide 23
FBT – Sample Computation
Particulars 1997 Tax Code RA NO. 10963

Monetary Value of PhP 65,000 PhP 65,000
Fringe Benefit
Divided by: 68% 65%
(1 - FBT Rate)
Grossed-up PhP 95,588 PhP 100,000
Monetary Value of
Fringe Benefit
Multiplied by: 32% 35%
FBT Rate
FBT Payable PhP 30,588 PhP 35,000
Slide 24
Taxability of Government-owned or Controlled
Corporations, Agencies, or Instrumentalities
ENTITY 1997 TAX CODE RA NO. 10963
PCSO
Tax-exempt TAXABLE
Philippine Charity
Sweepstakes
Office
Slide 25
Estates and Trusts
PhP 20,000 REPEALED

Exemptions Allowed
to Estates and
Trusts
Slide 26
Return and Payment of Taxes Withheld at
source
1% to 15%
1% to 32% (Beginning January 1,
2019) - may affect
Range of the withholding tax on
applicable interest expense on
withholding rates loans which do not
qualify as deposit
substitutes which
currently is subject to
20% EWT
BIR Form No. 20th day following the
?
2307 close of the quarter
Distribution of
BIR Form Nos.
2306 and 2307 BIR Form No. On or before January
2306 31 of the succeeding
year
Slide 27
Return and Payment of Taxes Withheld at

source
Submission of BIR Form No. On or before January
?
Annual 1604-CF 31 of the succeeding
Information year
Return and the BIR Form No. Not later than March 1
related Alphalist 1604-E of the following year
Filing of final and Quarterly

creditable
withholding Monthly filing and payment filing and
taxes payment
Slide 28
Creditable Withholding Tax Rate on Income Payment
to Self-employed Individuals or Professionals
Income Payments 1997 TAX CODE* RA NO. 10963**
Income distribution to beneficiaries of

estates and trusts 15%
Professional fees, talent fees, commissions,
etc. for services rendered by individuals
Income payments to partners of GPP
10%/15%
8%
Professional fees paid to medical
practitioners
Income payments to certain brokers and

agents
Commission of independent and/or exclusive

10%
sales representatives, and marketing agents
of companies
*As provided under RR No. 02-98, as amended

**As provided under RMC No. 01-18
Slide 29
Key Amendments
Estate Tax
Slide 30
Estate Tax
Estate Tax
Rate
CURRENT TAX CODE AMENDMENT

PROVISION UNDER TRAIN
Graduated tax rates from FLAT RATE of 6%

5% to 20% based on the
based on the value of the
value of the net estate
net estate
(over PhP 200,000)
Slide 31
Deductions for Estate Tax

CITIZEN/RESIDENT
DEDUCTIONS
Medical
expenses P REPEALED
Family P P
Home (up to (up to
PhP 1M) PhP 10M)
Standard
P P
deductions (PhP 1M) (up to
PhP 5M)
Slide 32
Deductions for Estate Tax
CITIZEN/RESIDENT
DEDUCTIONS
P REPEALED
[actual funeral expense or
Funeral 5% of gross estate,
expenses whichever is lower (up to
PhP 200,000)]
P REPEALED
Judicial
Expenses
Slide 33
Estate Tax – Other Provisions
Allowed deduction
Gross estate not (with conditions) REPEALED
situated in the
Philippines
Within 2 months after

the decedent’s death
REPEALED
(if gross value of estate
Requirement to
file notice of
exceeds
death PhP 200,000)
Slide 34
Required if gross
value of estate NO
exceeds
PhP 200,000 THRESHOLD
Filing of estate tax return
Gross value of Gross value of estate

estate exceeds exceeds
Statement duly certified PhP 2,000,000 5,000,000
by a CPA
Within 6 months Within 1 year

from decedent’s from the decedent’s
Time of filing of estate death death
tax return
Slide 35
No limit but subject
Maximum withdrawal
PhP 20,000 to 6% Final
of the administrator
Withholding Tax
of the estate or any
one of the heirs
Allowed within
TWO (2) YEARS
Not provided from statutory
date WITHOUT
Payment by CIVIL PENALTY
Installment AND INTEREST
Slide 36
Key Amendments
Donor’s Tax
Slide 37
Donor’s Tax Rate
TYPE OF DONEE 1997 TAX CODE RA NO. 10963

Graduated tax
rates from 2%
FLAT RATE of
to 15%
Relative (over 6% based on
PhP 100,000) net value of
donation in
excess of
30% 250,000
Stranger
Slide 38
Taxability of Certain Gifts
PROPERTY 1997 TAX CODE RA NO. 10963
RETAINED with additional provision:

Part of Gross “Provided, however, that a sale, exchange,
Gifts during or other transfer of property made in the
ordinary course of business (a transaction
the calendar which is a bona fide, at arm’s length, and
Transfer for less than year free from any donative intent), will be
an adequate considered as made for an adequate and full
and full consideration consideration in money or money’s worth.”
Exempt
(up to the
amount of REPEALED
Dowries or gifts made
on account of
PhP 10,000)
marriage
Slide 39
Key Amendments
Value Added Tax
Slide 40
Value Added Tax (VAT)
PhP 3,000,000
Increase in PhP 1,919,500

VAT threshold
Slide 41
Revised Provisions on VAT-exempt

Transactions
TRANSACTION TYPE 1997 TAX CODE RA NO. 10963
Exempt Exempt
(upto PhP 12,800) (upto PhP 15,000)
Monthly rental on
residential unit
Exempt
(Provided that the
fuel, goods and
Exempt supplies shall be used
Importation of fuel, goods and for international
supplies by persons engaged in shipping or air
shipping or air transport transport operations)
operations
Slide 42
Transactions
Exempt
(up to 1.5 M from Jan. 1,
Exempt 2018 to Dec 31, 2020)
(up to
Sale of residential lot
1,500,000)* ?
(from Jan 1, 2021)
Exempt
(up to 2.5 M from Jan. 1,
Exempt 2018 to Dec. 31, 2020)
(up to
2,500,000)* Exempt
Sale of house and lot and
other residential dwelling (up to 2,000,000 from
January 1, 2021)
Through the issuance of RR No. 16-11, the amounts of PhP 1,500,000 and PhP 2,500,000 were
adjusted using the consumer price index (CPI) to PhP 1,919,500 and PhP 3,199,200, respectively.
Slide 43

Transactions
Exempt
(from Jan. 1, 2018 to
Dec. 31, 2020)
Exempt
(from Jan, 1, 2021 - for
sale of real property
Sale of real property utilized utilized for socialized
for low-cost and socialized Exempt housing)
housing as defined by RA No.
7279
VATable
(from Jan 1, 2021- for
sale of real property
utilized for low-cost
housing)
Slide 44
Transactions
Exempt
RETAINED with deletion
“… sugar
cane into raw “… sugar cane into raw
sugar or raw sugar.’’
Services by agricultural cane sugar.”
contract growers and
milling for others
RETAINED with revision to
include importation of
TOOLS OF TRADE,
occupation or employment
Exempt and BELONGINGS OF
OVERSEAS FILIPINOS, and
Importation of their families and
professional descendants who are now
instruments and residents or citizens of
implements other countries
Slide 45
Additional VAT-exempt Transactions
Sale or lease of goods Transfer of property Association dues,

and services to pursuant to Section 40 membership fees and
SENIOR CITIZENS (C) (2) of the 1997 Tax other assessments and
and PERSONS WITH
Code charges collected by
DISABILITIES
(TAX FREE EXCHANGE) HOMEOWNERS
ASSOCIATIONS and
CONDOMINIUM
CORPORATIONS
Slide 46
Additional VAT-exempt Transactions
Sale of drugs and medicines Sale of gold to the BSP

prescribed for diabetes, (from zero-rated to VAT-
high cholesterol and exempt)
hypertension
(effective January 1, 2019)
Slide 47
Input VAT on Purchase/Importation of

Capital Goods
Input VAT on goods The amortization of
purchased/imported in the input VAT shall
a calendar month shall only be ALLOWED
be spread evenly over UNTIL DECEMBER 31,
60 months or the 2021 after which
estimated useful life of taxpayers with
the capital good, unutilized input VAT
whichever is shorter, if on capital goods
Creditable Input the aggregate monthly purchased or imported
Tax on Capital acquisition cost shall be allowed to
Goods thereof, excluding VAT, apply the same as
exceeds scheduled until fully
PhP 1,000,000. utilized.
Slide 48
Additional Zero-rated Sales Transactions
Goods Services
u Registered enterprises within a u Registered enterprises within a

separate customs territory as separate customs territory as
provided under special laws provided under special laws
u Registered enterprises within u Registered enterprises within
Tourism Enterprise Zones as Tourism Enterprise Zones as
declared by the TIEZA declared by the TIEZA
VETOED BY THE PRESIDENT VETOED BY THE PRESIDENT
Slide 49
Zero-rated Sale of Goods
1997 TAX
BUYER RA NO. 10963
CODE
RETAINED with
additional provision:
“Provided, that the

goods, supplies,
0% equipment and fuel
shall be USED FOR
Sale of goods, supplies, INTERNATIONAL
equipment and fuel to persons
SHIPPING OR AIR
TRANSPORT
engaged in international shipping
OPERATIONS.”
or international air transport
operations
Slide 50
Zero-rated Sale of Services
1997 TAX
SERVICES RA NO. 10963
CODE
RETAINED with
additional provision:
“Provided, that the
Services rendered to persons engaged in

0% services shall be
EXCLUSIVELY FOR
INTERNATIONAL
INTERNATIONAL SHIPPING and AIR SHIPPING OR AIR
TRANSPORT OPERATIONS, including TRANSPORT
leases of property for use thereof OPERATIONS.”
REVISED as follows:
0% “Transport of passengers
and cargo by DOMESTIC
air or sea vessels from the
Transport of passengers and cargo by Philippines to a foreign
AIR OR SEA VESSELS from the country”
Philippines to a foreign country
Slide 51
Other Zero-rated Sales Transactions
TYPE OF TRANSACTION 1997 TAX CODE RA NO. 10963
0% REPEALED
Foreign currency
denominated sales
0% VAT-EXEMPT
Sale of gold to the BSP
Slide 52
Zero-rated Sale of Goods
Non-resident buyer Export-oriented Those considered Sales to persons or

for delivery to a enterprise whose export sales under entities whose
resident local-export export sales exceed Executive Order exemption under
oriented enterprise 70% of total annual (EO) No. 226, special laws or
to be used in production* otherwise known international
manufacturing, as the "Omnibus agreements to which
processing, packing Investment Code the Philippines is a
or repacking in the of 1987", and signatory effectively
Philippines* other special subjects such sales
laws* to zero rate
*But will no longer be zero-rated once an enhanced VAT refund system is in place and all pending
VAT refund claims as of December 31, 2017 are fully paid in cash by December 31, 2019
Slide 53
Export sales under EO 226 (Art. 23)
Sales to registered export

Sales to bonded manufacturing
traders operating bonded trading
warehouses of export-oriented
warehouses supplying raw
manufacturers
materials used in the
manufacture of export products
Sales to foreign military bases,

diplomatic missions and other Sales to export
agencies and/or instrumentalities processing
granted tax immunities zones
Slide 54
Zero-rated Sale of Services
Performed by subcontractors Processing, manufacturing

and/or contractors in processing, or repacking goods for
converting, or manufacturing other persons doing
goods for an enterprise whose business outside the
export sales exceed seventy Philippines which goods
percent (70%) of total annual are subsequently exported
production.
*But will no longer be zero-rated once an enhanced VAT refund system is in place and
all pending VAT refund claims as of December 31, 2017 are fully paid in cash by
December 31, 2019
Slide 55
Sale of Electricity
Sale of electricity by generation,

transmission by any entity including
National Grid Corporation of the
Philippines (NGCP), and distribution
companies including electric
cooperatives shall be subject to 12%
VAT on their gross receipts.
Slide 56
Enhanced VAT Refund System
RA NO. 10963
1. Refunds of creditable input tax shall be made within 90 days from the filing of the VAT refund
application with the Bureau.
2. All pending VAT refund claims as of December 31, 2017 shall be fully paid in cash by December
31, 2019.
Other Provisions:
► The DOF shall establish a VAT refund center in the BIR and in the BOC that will handle the
processing and granting of cash refunds of creditable input tax.
► 5% of the total VAT collection of the BIR and the BOC from the immediately preceding year shall
be automatically appropriated annually and shall be treated as a special account in the General
Fund or as trust receipts for the purpose of funding claims for VAT refund. Any unused fund, at
the end of the year shall revert to the General Fund.
► The BIR and the BOC shall be required to submit to the Congressional Oversight Committee on
the Comprehensive Tax Reform Program (COCCTRP) a quarterly report of all pending claims for
refund and any unused fund.
Slide 57
Period of VAT Refund/Issuance of Tax

Credit Certificates (TCC)
Within 120 days Within 90 days

from the date of submission of complete “In case of FULL OR PARTIAL DENIAL of the
documents claim for tax refund, the taxpayer affected may,
within thirty (30) days from the receipt of the
decision denying the claim, APPEAL the decision
with the Court of Tax Appeals: Provided,
however, That failure on the part of any official,
agent, or employee of the BIR to act on the
application within the ninety (90)-day period
shall be punishable under Section 269 of this
Code.”
- Deemed denial provision was deleted
Slide 58
VAT Filing and Payment
Monthly Quarterly Filing and payment of

VAT-registered Within 25 DAYS VAT shall be done
persons are following the end within 25 DAYS
required to pay the of the taxable following the close of
VAT on a QUARTER each TAXABLE
MONTHLY BASIS QUARTER.
(Beginning January 1, 2023)
Slide 59
Withholding VAT – Sales to Government
Subject to 5% Withholding VAT withholding system shall

VAT shift from final to a creditable
system*
(Beginning January 1, 2021)
*Payments for purchases of goods

and services arising from projects
funded by Official Development
Assistance (ODA) as defined under
RA No. 8182, otherwise known as
the “Official Development
Assistance Act of 1996”, as
amended, shall not be subject to
the final withholding tax system.
Slide 60
Percentage Tax
TRANSACTION
TYPE
1/2 of 1% of the 6/10 of 1%

gross selling price of the gross selling
or the gross value price or the gross
in money of the
Sale of listed value in money of
shares sold the shares sold
shares
Slide 61
Key Amendments
Excise Tax
Slide 62
Imposition of Excise Tax
Excise taxes apply to GOODS RETAINED and added

manufactured or produced in the SERVICES PERFORMED IN
Philippines for domestic sales or
consumption or for any other THE PHILIPPINES as items
disposition and to things imported subject to excise tax
Slide 63
Excise Tax - Cigarettes Packed by Hand and

Packed by Machine

Effective Date Rate* per
pack
(in PhP)
PhP 30/pack January 1, 2018 until June 30, 2018 32.50
July 1, 2018 until December 31, 2019 35.00
January 1, 2020 until December 31, 2021 37.50
January 1, 2022 until December 31, 2023 40.00
*The rates of tax shall be increased by 4% every year effective on January 1, 2024,
through revenue regulations issued by the Secretary of Finance.
Slide 64
Excise Tax on Fuel & Oil
1997 RA NO. 10963

PRODUCT TAX
CODE 2018 2019 2020
Lubricating oils and greasesC P 4.50 P 8.00 P 9.00 P 10.00
Processed gas P 0.05
Denatured alcohol P 0.05
Waxes and petrolatum P 3.50
Naphtha, regular gasoline, PYROLYSIS P 4.35 P 7.00
GASOLINE and other similar products of
distillationB
Leaded premium gasolineD P 5.35 Repealed Repealed Repealed
Unleaded premium gasoline P 4.35 P 7.00 P 9.00 P 10.00
A. Amounts presented are in Philippine peso per liter of volume capacity (except for greases, waxes and petrolatum which are in
Philippine peso per kilogram).
B. Provided that the production of petroleum products, whether or not they are classified as products of distillation and for use
solely for the production of gasoline shall be exempt from excise tax.
C. Provided that lubricating oils and greases produced from basestocks and additives on which the excise tax has already been paid
shall no longer be subject to excise tax.
D. Leaded Gasoline are now ‘phased out’ globally due to its negative health implications.
Slide 65
1997 RA NO. 10963

PRODUCT TAX
CODE 2018 2019 2020
Aviation turbo jet fuel, AVIATION GAS P 3.67 P 4.00 P 4.00 P 4.00
Kerosene P 0.00 P 3.00 P 4.00 P 5.00
Diesel fuel oil and on similar fuel oils having P 0.00 P 2.50 P 4.50 P 6.00
more or less the same generating power
Liquefied petroleum gasB P 0.00 P 1.00 P 2.00 P 3.00
Asphalts P 0.56 P 8.00 P 9.00 P 10.00
Bunker fuel oil, and on similar fuel oils P 0.00 P 2.50 P 4.50 P 6.00
having more or less the same generating powerC
PETROLEUM COKED N/A P 2.50 P 4.50 P 6.00
A. Amounts presented are in Philippine peso per liter of volume capacity (except for petroleum coke which is in Philippine peso per metric
ton).
B. Provided, that liquefied petroleum gas when used as raw material in the production of petrochemical products, subject to the rules and
regulations to be promulgated by the Secretary of Finance, shall be taxed zero (P0.00) per kilogram.
C. Provided, however, that the excise taxes paid on the purchased basestock (bunker) used in the manufacture of excisable articles and
forming part thereof shall be credited against the excise tax due therefrom
D. Provided, however, that, petroleum coke, when used as feedstock to any power generating facility, per metric ton, zero (P0.00).
Slide 66
Not provided For the period covering 2018 to 2020,

the scheduled increase in the excise
tax on fuel shall be suspended when
the average Dubai crude oil price
BASED ON MEAN OF PLATTS
SINGAPORE (MOPS) for 3 months
prior to the scheduled increase of the
month reaches or exceeds USD 80 per
barrel.
Slide 67
Excise Tax on Automobiles
1997 TAX CODE

Net Manufacturer’s/Importer’s
Tax Rate
Selling Price (in Pesos)
Tax on Tax Rate on excess
Lower Limit Upper Limit
Lower Limit over Lower Limit
0 600,000 - 2%
600,000 1,100,000 12,000 20%
1,100,000 2,100,000 112,000 40%
Over 2,100,000 512,000 60%
Slide 68
RA NO. 10963 (effective January 1, 2018)

Net Manufacturer’s/Importer’s Selling Price
(in Pesos) Tax Rate
Lower Limit Upper Limit
0 600,000 4%
600,001 1,000,000 10%
1,000,001 4,000,000 20%
Over 4,000,000 50%
Slide 69
TYPE OF
AUTOMOBILE
Subject to 50% of
the applicable
Not provided
Hybrid excise tax rates
Vehicles on automobiles
Subject to
excise tax Exempt
(Shall be considered as
(Shall not be
Pick-ups considered as trucks)
trucks)
Slide 70
TYPE OF
AUTOMOBILE
Not provided Exempt

Purely electric-
powered
Not provided Exempt

Used exclusively
within the
Freeport Zone
Slide 71
Excise Tax on Non-Essential Goods and

Services
INVASIVE COSMETIC PROCEDURES/
SURGERIES/BODY ENHANCEMENTS
Directed solely towards
improving, altering, or
enhancing the patient’s
appearance
5% of gross
Do not meaningfully
promote the proper receipts*
function of the body or
prevent or treat illness or
disease
*This tax shall not apply to procedures necessary to ameliorate a deformity arising from, or directly related to, a
congenital or developmental defect or abnormality, a personal injury resulting from an accident or trauma, or
disfiguring disease, tumor, virus or infection.
Slide 72
Excise Tax on Sugar Sweetened Beverages (SSBs)
EXCISE TAX ON SWEETENED BEVERAGES

Using caloric and non-
caloric sweeteners PhP 6/liter
Using high fructose corn
syrup or in combination
with any caloric or non- PhP 12/liter
caloric sweeteners
Using purely coconut sap
sugar/purely steviol EXEMPT
glycosides
Slide 73
Sweetened
Juice Drinks
Sweetened Flavored
Tea Water
Carbonated Inclusions Energy &

beverages Sports Drinks
Powdered Cereal
drinks not & grain
classified as beverages
milk, juice, tea
or coffee
Other non-alcoholic
beverages that contain
added sugar
Slide 74
E
X
C
All milk 100% natural 100% natural
L products fruit juices vegetable juices
U
S
I
O Meal replacement Ground coffee, instant
and medically soluble coffee & pre-
indicated packaged powdered
N beverages coffee products
S
Slide 75
PARTICULARS Deadline
DATE
Filing of Return and
Payment of Excise Before removal from
Tax on Domestic and
Imported Sweetened
the place of
Beverages production
Slide 76
Excise Tax on Mineral Products
1997 TAX
PRODUCT RA NO. 10963
CODE
1. Coal and coke PhP 10.00 u January 1, 2018 – PhP 50.00 per
per metric metric ton
ton u January 1, 2019 – PhP 100.00 per
metric ton
u January 1, 2020 – PhP 150.00 per
metric ton
2. All nonmetallic minerals 2% 4%
and quarry resourcesA
3. All metallic mineralsA 2% 4%
a. Copper and other
metallic minerals
b. Gold and chromite
4. On indigenous petroleumB 3% 6%
A Locallyproduced: based on actual market value of the gross output
Imported: based on the value used by the Bureau of Customs in determining tariff and customs duties, net of excise
tax and VAT
BBased on the fair international market price
Slide 77
Counting or Metering Devices
1 2 3 4
Manufacturers
and/or Importers
to provide
themselves with
The DOF shall
maintain a registry
of all petroleum
The DOF shall
mandate the
creation of a real-
Importers of
finished petroleum
products shall also
manufacturers time inventory of provide
counting or
metering devices and/or importers petroleum articles themselves with
to determine and the articles being Bureau-accredited
volume of being manufactured, metering devices
production and manufactured imported or found to determine as
importation and/or imported in storage depots accurately as
by them. of such petroleum possible the
manufacturers volume of
and/or importers. petroleum
products imported
by them.
Slide 78
Key Amendments
Documentary
Stamp Tax
Slide 79
Documentary Stamp Tax Rates
Transactions with 100% increase in DST rates:

1. Original issuance of shares of stocks
2. Sales, agreements to sell, memoranda of sales, deliveries or transfer of shares or
certificates of stock
3. Certificates of profits or interest in property or accumulations
4. Certificates of profits or interest in property or accumulations
5. Bank checks, drafts, certificates of deposit not bearing interest, and other
instruments
6. All bills of exchange or drafts
7. Life insurance policies
8. Policies of annuities
9. Pre-need plans
10. Certificates
11. Warehouse receipts
12. Jai-alai, horse race tickets, lotto or other authorized numbers games
13. Bills of lading or receipts
14. Proxies
15. Powers of attorney
16. Leases and other hiring agreements
17. Mortgages, pledges, and deeds of trust
18. Charter Parties and Similar Instruments
Slide 80
Transaction with 50% increase in DST rate:
1. All debt instruments
Transaction with no increase DST rate:
1. Deeds of Sale and Conveyances of Real Property
Slide 81
PARTICULARS TAXABLE UNIT OLD NEW
200, or fractional thereof,

1.00 2.00
of the par value
Original issuance of shares of
stocks
200, or fractional part

0.75 1.50
thereof, of the par value
Sales, agreements to sell,
DST paid upon original issue
memoranda of sales, deliveries
in case of stock without par 25% 50%
or transfer of shares or
value
certificates of stock
200 pesos, or fractional part

0.50 1.00
Certificates of profits or thereof, of the face value
interest in property or
accumulations
Slide 82
1.50 3.00
Bank checks, drafts, certificates
of deposit not bearing interest,
and other instruments

thereof, of the issue 1.00 1.50
price
All debt instruments

thereof, of the face 0.30 0.60
value
All bills of exchange or drafts
Slide 83

Amount of insurance not Exempt Exempt
exceeding
PhP 100,000
Amount of insurance exceeds 10.00 20.00
PhP 100,000
but does not exceed
PhP 300,000
Amount of insurance exceeds 25.00 50.00
PhP 300,000
Life insurance
but does not exceed
policies
PhP 500,000
Amount of insurance exceeds

PhP 150,000 50.00 100.00
but does not exceed
PhP 750,000
Slide 84
Amount of insurance
exceeds 75.00 150.00
PhP 750,000
but does not exceed
PhP 1,000,000
Life insurance
policies Amount of insurance 100.00 200.00
exceeds
PhP 1,000,000
Slide 85

PhP 200
or fractional part thereof,
of the premium or 0.50 1.00
installment payment or
Policies of annuities contract price collected
PhP 200
or fractional part thereof, 0.20 0.40
of the premium or
Pre-need plans contribution collected
15.00 30.00
Certificates
Slide 86
15.00 30.00
Warehouse receipts
1 cost of ticket 0.10 0.20
Jai-alai, horse race Additional DST on every

tickets, lotto or 1 cost of ticket if it 0.10 0.20
other authorized exceeds 1
numbers games
Slide 87

2.00
1.00
if the value of
if the value of the
the goods
goods exceed
exceed
100
100
Value of goods
Bills of lading or 20.00
10.00
receipts if the value of
if the value of the
the goods
goods exceed
exceed
1,000
1,000
15.00 30.00
Proxies
Slide 88
5.00 10.00
Powers of attorney
First 2,000
or fractional part 3.00 6.00
thereof
For every 1,000
or fractional part
thereof, in excess of
Leases and other hiring the first 2,000 1.00 2.00
agreements for each year of the
term of the said
contract or agreement
Slide 89
First 5,000
20.00 40.00
of the amount secured
On each 5,000
Mortgages, pledges, and or fractional part thereof
10.00 20.00
deeds of trust in excess of the first
5,000
On the consideration
contracted to be paid RETAINED and
for such realty or on its ADDED
FMV, whichever is 15.00 DONATION as
higher one of the mode
Deed of sale, conveyances of transfer of
and donation of Real property*
Property
*Transfers exempt from donor’s tax under Section 101 (a) and (b) of this Code shall be exempt from the tax imposed
under this Section.
Slide 90

Registered gross tonnage 500 1,000
of the ship, vessel or
steamer does not exceed Additional 50 Additional 100
one thousand (1,000) tons, for each month or for each month or
and the duration of the fraction of a month fraction of a month
charter and contract does in excess of 6 in excess of 6
not exceed six (6) months months months
Charter Parties
and Similar Registered gross tonnage 1,000 2,000
Instruments exceeds one thousand
(1,000) tons and do not Additional 100 Additional 200
exceed ten thousand for each month or for each month or
(10,000) tons, and the fraction of a month fraction of a month
duration of the charter and in excess of 6 in excess of 6
contract does not exceed months months
six (6) months
Slide 91
Registered gross tonnage 1,500 3,000

exceeds ten thousand
(10,000) tons, and the Additional 150 Additional 300
duration of the charter for each month or for each month or
and contract does not fraction of a month fraction of a month
Charter Parties exceed six (6) months in excess of 6 in excess of 6
and Similar months months
Instruments
Slide 92
RMC No. 3-2018
BIR Forms being enhanced and ATC affected:
Changes in Tax
BIR Form Form Name ATC Affected
Rate
DS 101, 102, 104
100% increase
Documentary Stamp Tax to 109, 112, 114 to
2000 (except for DS
Declaration/Return 121, 125, 126,
106, 50%)
130 to 132
Documentary Stamp Tax

2000-OT Declaration/Return One DS 102 and 125 100% Increase
Time Transactions
Slide 93
RMC No. 3-2018

The changes in tax rates previously mentioned are not yet reflected and
implemented in the following:
eFPS eBIRForms Manual
Thus, the following work around procedures in filing the BIR Forms
previously mentioned shall be adopted by the following taxpayers:
Slide 94
RMC No. 3-2018
For eFPS Filers:
1. Use the existing BIR form in the eFPS

2. Fill in the required information (e.g., transaction dates, parties to the
transactions, etc.)
3. Choose the applicable ATC, nature of transaction, and tax rate. The tax due
will automatically appear
4. Change the amount of tax due computed by the system with the correct
amount using the new tax rate
5. File the return then proceed to payment
Slide 95
RMC No. 3-2018

For eBIRForms Filers:
1. File online using existing BIR Forms in the eBIRForms Package and pay via:
► Online Payment thru GCash, LBEPS or BDPTO; or
► Manual payment via OTC of AABs under the jurisdiction of the RDO where
2. The transaction will result to deficiency tax which will be paid via payment
methods discussed above using BIR Form No. 0605. Moreover, the filer should
fill in the information in the Tax Type and ATC fields as stated below:
Supposed BIR Form to

Tax Type ATC
be Used
2000 DS Documentary Stamp Tax All eBIRForms filers

shall use ATC MC 031 –
2000-OT DO Documentary Stamp Tax – One Time Deficiency Tax
Slide 96
RMC No. 3-2018
For Manual Filers:
1. Fill-in the applicable BIR Form downloaded from the BIR Website using the new
tax rates
2. File and pay manually via OTC of AABs under the jurisdiction of the RDO where
Slide 97
Other Provisions
Slide 98
Power of the Commissioner to Obtain Information, and to
Summon, Examine, and Take Testimony of Persons
1997 TAX
PARTICULAR RA NO. 10963
CODE
Not provided Requirement Submission of a Tax Incentive

Report by the Cooperative
Development Authority (CDA)
Coverage of Cooperatives registered and
the report enjoying incentives under RA
Submission of No. 6938
Tax Incentives
Report Content Information on income tax,
VAT and other tax incentives
availed by cooperatives
Slide 99
Power of the Commissioner to Make Assessments and Prescribe

Additional Requirements for Tax Administration and Enforcement

Examination of Returns and RETAINED with additional provision:
Determination of Tax Due
“notwithstanding any law requiring
“After a return has been filed as the prior authorization of any
required under the provisions of this government agency or
Code, the Commissioner or his duly instrumentality:”
authorized representative may
authorize the examination of any
taxpayer and the assessment of the
correct amount of tax:”
Slide 100
Additional Provisions on Commissioner’s Authority to Prescribe
Real Property Values
PARTICULARS RA NO. 10963
MANDATORY
Consultation with competent

appraisers
PRIOR NOTICE MUST BE

GIVEN
Notice to affected taxpayers
Slide 101
Additional Provisions on Commissioner’s Authority to Prescribe

Real Property Values
PARTICULARS RA NO. 10963
Subject to automatic adjustment once

every 3 years
Fair market value
Must be published in a newspaper of

general circulation, or in the absence
thereof, shall be posted in the provincial
capitol, city or municipal hall and in 2
Validity of adjustment in
other conspicuous public places therein
zonal value
Public records open to the inquiry of any

taxpayer
Basis of valuation
Slide 102
Interest on Deficiency Taxes
PARTICULARS 1997 TAX RA NO. 10963

CODE
20% per annum on TWICE THE LEGAL RATE set by the
any unpaid amount Bangko Sentral ng Pilipinas (BSP)
of tax
Current legal rate: 6%
(BSP Circular No. 799 dated June 21, 2013)
Interest Rate
From the date From the date prescribed for its payment
prescribed for its until the full payment thereof, or upon
payment until the issuance of a notice and demand by the
full payment Commissioner of Internal Revenue,
thereof WHICHEVER COMES EARLIER.
Imposition IN NO CASE SHALL THE DEFICIENCY

AND DELINQUENCY INTEREST BE
IMPOSED SIMULTANEOUSLY
Slide 103
Keeping of Books of Accounts
► Journal, ledger or their

Books of equivalents ► Relevant and
Accounts appropriate set of
(All corporations, ► Simplified set of books books
companies, (if quarterly sales, earnings, (repealed the PhP 50K
partnerships or receipts, or output do not exceed
persons required qualification)
PhP 50K)
by law to pay
internal revenue
taxes)
Slide 104
Keeping of Books of Accounts
PhP 150K PhP 3M

Requirement to (Quarterly sales, earnings, (Annual sales,
be audited or receipts or output (600k earnings, receipts or
examined by annual) output)
Independent
CPA
Slide 105
Issuance of Receipts/Invoices

Duly registered receipts or Duly registered receipts or
sale or commercial invoices sale or commercial invoices
FOR EACH sale and transfer AT THE POINT OF sale or
of merchandise or for transfer of merchandise or for
services rendered valued at services rendered valued at
Receipts/ PhP 25 or more
Invoices PhP 100 or more
u Provided, further, that where the purchaser is a VAT-registered person, in addition to the information herein
required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.
u “Within five (5) years from the effectivity of this Act and upon the establishment of a system capable of storing and
processing the required data, the Bureau shall require taxpayers engaged in the export of goods and services,
taxpayers engaged in e-commerce, and taxpayers under the jurisdiction of the Large Taxpayers Service to issue
electronic receipts or sales or commercial invoices in lieu of manual receipts or sales or commercial invoices, subject
to rules and regulations to be issued by the Secretary of Finance upon recommendation of the Commissioner and
after a public hearing shall have been held for this purpose:
u Provided, That taxpayers not covered by the mandate of this provision may issue electronic receipts or, sales or
commercial invoices, in lieu of manual receipts, and sales and commercial invoices.
u Provided, That in case of electronic receipts or sales or commercial invoices, the digital records of the same shall be
kept by the purchaser, customer or client and the issuer for the same period above stated.
Slide 106
Requirement to use Electronic Sales Reporting
System (ESRS)
SALES REPORTING
TYPE OF TAXPAYER
METHOD
Engaged in export of
goods
ELECTRONIC REPORTING OF
SALES DATA THROUGH
Engaged in export of ELECTRONIC POINT OF SALES
services SYSTEM
Large taxpayer
Data processing of sales and purchase data shall comply with the provisions of "Data Privacy Act" (RA No. 10173)
and Section 270 of NIRC, as amended, on unlawful divulgence of taxpayer information and such other laws relating
to confidentiality of information.
The Bureau shall also establish policies, risk management approaches, actions, trainings, and technologies to
protect the cyber environment, organization, and data in compliance with the “Cybercrime Prevention Act of
2012” (RA No. 10175).
Slide 107
Fines and Penalties for Attempt to Evade or

Defeat Tax
PARTICULARS FINE/PENALTY
PhP 500,000 to
PhP 10,000,000
Amount of Fine PhP 30,000 to

PhP 100,000
6 to 10 years
Time of imprisonment 2 to 4 years
Slide 108
Failure or Refusal to Issue Receipts or Sales or Commercial
Invoices, Violations Related to the Printing of such Receipts
or Invoices and Other Violations
TYPE OF VIOLATION 1997 TAX CODE RA NO. 10963

Without authority from Minimum: Minimum:
the Bureau of Internal PhP 1,000 500,000
Revenue
Maximum:
Double or multiple sets of Maximum:
PhP 50,000
invoices or receipts 10,000,000
Unnumbered receipts or Imprisonment of
sales or commercial not less than 2 Imprisonment of
Printing invoices, not bearing the years but not more not less than 6
Violations name, business style, than 4 years years but not more
TIN, and business address than 10 years
of the person or entity
Other fraudulent receipts Not part of the

or sales or commercial enumeration of
invoices violations
Slide 109
Failure to transmit sales data entered on cash register machine (CRM)/point

of sales system (POS) machines to the BIR’s electronic sales reporting
system
1/10 of 1% of the
annual net income
(as reflected in the
taxpayer’s AFS for the
Or PhP 10,000
second year preceding the
current taxable year for
each day of violation)
WHICHEVER IS HIGHER
Failure to
Submit Sales
Data PERMANENT CLOSURE of the
taxpayer
(if the aggregate number of days of violation

exceed 180 days within a taxable year)
Slide 110
Purchase, Use, Possession, Keeping or Maintaining of Sales
Suppression Devices
Cumulative
suppression of
electronic sales
Imprisonment of record in excess of
Minimum:
not less than two the amount of
PhP 500,000 PhP 50,000,000
(2) years but not
Maximum: more than four (4) shall be considered
PhP 10,000,000 years as ECONOMIC
Sales SABOTAGE and
Suppression shall be punished
Devices in the MAXIMUM
PENALTY.
Slide 111
Additional Item on Violations Committed by Government

Enforcement Officers
DELIBERATE FAILURE TO ACT

ON THE APPLICATION FOR
REFUNDS WITH THE
PRESCRIBED PERIOD
PROVIDED UNDER SECTION
112 OF THIS ACT.
► Source: EY Analysis
Slide 112

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DOF Proposed Tax Reform Packages

1a uReduction of tax rates uReduction of tax rate 2

Income Tax Income Tax

OLD TAX CODE PROVISION

Annual Income Bracket Tax Rate

Over 10,000 – 30,000 500 + 10% of the excess over 10,000

Over 30,000 – 70,000 2,500 + 15% of the excess over 30,000

Over 70,000 – 140,000 8,500 + 20% of the excess over 70,000

Over 140,000 – 250,000 22,500 + 25% of the excess over 140,000

Over 250,000 – 500,000 50,000 + 30% of the excess over 250,000

Over 500,000 125,000 + 32% of the excess over 500,000

Annual Income Tax Table

Removed the following:

Personal and Premium payments on Persons with

Non-taxable 13th month pay and other

Compensation Mixed Business/Professional

Non-VAT registered taxpayers who VAT- Yes Revised graduated

8% gross Revised graduated

Income Tax on Alien Employees and Filipino

Passive Income Tax Rates

TYPE OF INCOME 1997 TAX CODE RA NO. 10963

Income Tax Return – Filing & Payment

PARTICULARS 1997 TAX CODE RA NO. 10963

u Taxable income does

4th 15 of the following

4th 15 of the following

Income Tax Return – Filing & Payment

PARTICULARS 1997 TAX CODE RA NO. 10963

Provided that this

4. Income tax due

RMC No. 2-2018

Percentage Tax Return

eFPS eBIRForms Manual

RMC No. 2-2018

For eFPS Filers:

For eBIRForms Filers:

RMC No. 2-2018

For Manual Filers:

FBT – Sample Computation

Particulars 1997 Tax Code RA NO. 10963

ENTITY 1997 TAX CODE RA NO. 10963

Estates and Trusts

ENTITY 1997 TAX CODE RA NO. 10963

PhP 20,000 REPEALED

BIR Form No. 20th day following the

Return and Payment of Taxes Withheld at

ENTITY 1997 TAX CODE RA NO. 10963

Submission of BIR Form No. On or before January

Filing of final and Quarterly

Income Payments 1997 TAX CODE* RA NO. 10963**

Income distribution to beneficiaries of

Income payments to certain brokers and

Commission of independent and/or exclusive

*As provided under RR No. 02-98, as amended

CURRENT TAX CODE AMENDMENT

Graduated tax rates from FLAT RATE of 6%

Deductions for Estate Tax

Estate Tax – Other Provisions

PARTICULARS 1997 TAX CODE RA NO. 10963

Within 2 months after

PARTICULARS 1997 TAX CODE RA NO. 10963

Gross value of Gross value of estate

Within 6 months Within 1 year