Changes in Final Tax

1. All PCSO and lotto winnings are now taxable.

a. Prizes = 20%
b. Winnings = 20%
c. PCSO and Lotto winnings = 20%
*in the old tax law, PSCO and lotto winnings were tax exempted.

2. Capital Gains on Share NOT traded in the Stock Exchange

- Before, there was a two-tier rate (depending on how much gain was
received). But after TRAIN law, there was no more such tier and the
tax rate will be the same throughout.
a. Net Capital Gains = First Php 100,000 = 15%
In excess of Php 100,000 = 15%
*Before, it was 5% to the first Php 100,000 then 10% in the excess.

3. Fringe Benefit Tax

- Got an increase from 32% to 35%.
- It is computed based on the gross monetary value of the benefit
received by the employee by dividing 65%.

4. Foreign Currency Deposit Unit

- It is a final tax on interest income received by an individual taxpayer
(except non-resident individual) from a depositary band under a
foreign currency deposit system.
- Got an increase from 7.5% to 15%