1. What is TRAIN LAW standard deductions on income tax?

1a. Pure Compensation

 Annual taxable income below PHP 250,000 are now exempted of paying personal income tax.
- The person who has monthly income of 20,000 and below is not obligated to pay personal
income tax.
 Annual taxable income from PHP 250,000 – PHP 400,000 are about to pay 20% of excess over
250,000 of their personal income taxes effective on January 1, 2018; on January 1, 2023 and
onwards the tax rate lessens to 15% of excess over 250,000.
- Individuals who have their annual taxable income of 250,000 – 400,000 or they have monthly
personal income of 21,000 to 33,000 will pay personal tax of 20% of the excess over 250,000.
 Annual taxable income from PHP 400,00 – 800,000 are about to pay from their personal income
taxes of PHP 30,000 + 25% of excess over 400,000 effectives on January 1, 2018; on January 1, 2023
and onwards the tax rate lessens to P22,500 + 20% of excess over 400,000.
 Annual taxable income from PHP 800,000 – 2M are about to pay from their personal income taxes of
PHP 130,000 + 30% of excess over 800,000 effectives on January 1, 2018; on January 1, 2023 and
onwards the tax rate lessens to P102,500 + 25% of excess over 800,000.
 Annual taxable income from PHP 2M – 8M are about to pay from their personal income taxes of PHP
490,000 + 32% of excess over 2M effectives on January 1, 2018; on January 1, 2023 and onwards the
tax rate lessens to P402,500 + 30% of excess over 2M.
 Annual taxable income from PHP 8M are about to pay from their personal income taxes of PHP
2,410,000 + 35% of excess over 8M effectives on January 1, 2018; on January 1, 2023 and onwards
the tax rate lessens to P2,202,500 + 35% of excess over 400,000.

1b. Professional and/or Business

Effective on January 1, 2018:
 Whose gross sales/receipts not exceeding of P3 million have the option to pay Regular PIT
Rates or 8% of gross sales/receipts in exceeds of P250,000 in lieu of the income and
percentage tax.
 And whose gross sales/receipts above P3 million have to pay the regular PIT Rates.

1c. Mixed Compensation and Business

Effective on January 1, 2018:
 Compensation income will pay the regular PIT rates.
 Whose income from business or practice of profession:
a. Whose gross sales/receipts not exceeding of P3 million have the option to pay
Regular PIT Rates or 8% of gross sales/receipts in exceeds of P250,000 in lieu of
the income and percentage tax.
b. And whose gross sales/receipts above P3 million have to pay the regular PIT
Rates.