Repco ipa Gongeoss ofthe Philippines Ses Sais Ser Gongs Set ReprSesae ‘Begun and Fld in Metro Manila, er Monday, twenty-fourth "dy of ly, two thousand eeventon, (Repusuic Act No. 10963] ‘ANAT AMINDING SECTIONS 5,6, 4, 25,27, 81, 82, 38,24 ‘1, 52,56 87, 8, 74,78, 84, 86,80, 91, 97, 99, 10,101, 106,107,108, 109,10, 112,114, 16,127,128, 129,145, 248, Lao, 154,155,171, 174,175,177, 178, 79,180,181, 182 182, 16,188,189, 190,191, 192 199, 14 198,166 17,288 256, 27,249,254, 264,209, AND 28% CREATING [NEW SECTIONS 51-4, 148-4, 160-A, 150-B, 237-4, 254-8, 248, AND 265A: AND REPEATING SECTIONS 85,62, AND 89, ALL UNDER REPUBLIC ACT NO. 8424, OTHERWISE KNOWN AS THE NATIONALINTERNAL [REVENUE CODE OF 1997, AS AMENDED, AND POR (OTHIERPURPOSES ‘Be enacted y the Senate and Hous of Representatives ofthe ‘Philipines Conga asad[SHCTION 1. Tide. hia Aet shale knowns the “Tas Reform for Acloation and Incusion (TRAIN) ‘82.2, Declaration ofPolioy.— Ttiehershy declared the alia the State (@) Toeahanc the proreciity fhe tax estan hroegh (he ralionalsation ofthe Phitppine internal reveaar tx eye, ‘heoby promoting sustainaleendiaslasve somone grow (©) Toprovide, ac much ae pus, anouitable ee toa greier numberof expayers and User amis none time Iivelsof disposable income and incraseeconemic activity an needs thon under itsuraieton and ear Uaough ie provisca, of bottor infrastructure, health, education, jabs, an soil protectin forbs peopl, ‘Se, 3. Socton ofthe National Internal Revenue Ca of 1807 (MIRC), as amended in ore further amended to ead ox low "800.5. Power ofthe Commissioner a Obtain Information, and to Summon Ezamine, ond Take Testimony of Persons. ~ In ascertaining the coretones ofan atu, crinmaking msm sh ‘oe iss been made, or in dstrminng te aise (t any poroon for any internal revent tax i collecting any such Lebilty, or im evaluating ta ‘ompliane, the Commissions ie authoriaed “Wass "W)To obtain on a regular basi fom any person other than the pemon whore internal revenue tax liability e subject to audit ‘investigation, or from any efice or ocr ofthe ‘atonal anol goveraments, govoraman agen fandinsiumentaltes,incding the Bargho Seatral ‘hg Plipine and government-owned or -contelled ‘Srporations animation ach am hin iia {o, costsand volume ofproducton, reper sale sand rose incomes of taxpayers, and the names, aareccs and Gonna ettement of ooportins, ‘mutual fend companies, ineurance compaaien, ‘gion operating headquarters of multsationl ‘companies joint assum, aboot, ant ventures br eamorta and registered partnerships, nd het Saembers: Provided, Taat the Cooperative Enowa at ‘The Tax Incentives Management aad ‘Teanepreney Ac (UIMTAY: sexe See. 4. Section 6 of tho NIRC, et amended, is hotehy farthor amend to ea allows: "$00. 6. Power of the Commissioner to Moke Assessments and Preseribe Additional Requirements for Tox Administration ond Bryorcement— “W) Beomination of Returns and Determination of Tox Due. ~ Afr a retara haa ‘oon Med a required under the provisions of this Code, the Commissioner or his daly eutherized _spretnttivemay authors te examination ofan {taxpayer and the anssemont ofthe sores mount ott rittndine any lon eit re Suthousation of any government ayoncy oF instrumentality: Provided, however, Tote los eur ball act prevent te Commoner fo, suthorsing the examination af any taxpayer waxom ‘Dex some ‘wars “0 Authority of the Commissioner to ‘private and publi secors and wit prior note to ‘Minctd taxpayers dotrmine the fair market aloe (real prperticeoatd i eachone or ea cujoct “Rewepaperof general oaltioniath proviny, ty ‘rmumiapalty concered, one abownce there, Shall be ported in the provincial capitol ety or ‘napa al andin we other enepicwnts public places therein: Provided, further, That te basis say auton, including the rsd of consultations ‘done, aball be publierecards open to te ingiy of ‘sy tapayer, Forpurone afcomputing any ints ‘even tax te valve of the property shall be, ‘whichever iste higher of *() the fir market value an determined by the Ccomnietioner ae “te fais markat value as shown in the schoiala of vals of the Provincial and City Kasco” 19) Onthe taxable inoome dined in Section 1 of thie Code ther than ince subject ta ‘under Subsections (8, (C), and () of his Section, deve foreach taxable year from al saree within ‘he Philippines by an individual alien who is 2 residertofthePuilppines. °W Rotes of Tax on Taxable Income of Individuals. ~ The tax shall be computed in ‘stcordnce with nd st the rates eataliabed in the ‘ollewingachelus“() Tax Schedule Rfptire January 1, 2018 ‘until Deomber SI, 2022; spn aa stn “Tex Schedule Esective January 1, 2023 and ona: een Some attributed to or ientied as income exclusively ‘arned or realised by either ofthe spose, the same ‘Sal bedvided equally between the spouses forthe purpose of determining thos weepoctive taxable “Provided, hat minimus wage earners 28 einodn Section 20H) of ae Cade shal boat ‘rom the peymont ef come ta on their taxable {eome Provided, farther, That the boiday ey, py nceive by ouch minimim wag earners ball kewie be exempt fom ince ta. “) Rate of Tax on Income of Partly ‘Saifenployed Indtiduale and/or Professionals Whose Grose Soles or Gross Becipts and Other Non-operating Income Does Not Exceed the Valuecdad Tax (VAT) Threshold as Provided in ‘Sectlen 1090BB). — Self-employed individasle andlor profesional abll have the option aval ‘an elehtperoent (9%) tax on rose sles or gress ‘cis and ther non operating nome excel! ‘Two handed fit thousand pos (P250,000) ina ofthe zadustod income tax rates under Shootin (GO) ofthis Socton end percentage eset Section 116of this Code “© Rote of Tx for Mized Income Barnes, a) [Total Gro Sales andlor Grose Resins snd Othe Nonaperating Income Do Not sod the ‘VA Tireshali as Provided in ection 109(85) of s Cos, ~The ratar prvcribed under Subeecton (AGS of this Seton an taxable income, o eit ‘percent ncome texbasd on gro talo or som ‘ceipt and other non-operating income in ow ot the gratuetod iscome tax rates under Subsection (GG of thin Seton end the percentage tartar Section! ofthis Cade‘Busca compositions which sballbsimpored x nal in a i pron COM); ple niet ‘amounting to Ten thousand pas ress ‘which shall bo sabjct tax under Subsection (A) Section 24 and other winnings (excapt winnings ‘amounting ten thousand peso (P10000 or lose ‘Esa Philippine Charity Swonptnkar nd Lat which ‘ll be examp!, derived fram sources within the hippies: Provided, however, That interest income received by an individual texpayer (except Desubjocttoa final nonme txt the rte of fifteen ‘pereat (15%) of such interet income: Provided, urther, Tat otoree income om lng er dept ‘or javestment in tho form of sings, common or ‘dividual rast fds, depos bites invent ‘management accounts end other investments ‘videnced by certificates in such farm preaarbed by {hengtarm depositor investment certificate based ‘nth romalniog maturity here sere! {Gash and/or Property Dividends. — & final ax athe rte of ta perent (10%) abl be {imposed upon the cash andlor property dividends sctualy or constrocival recived by anindivdal ‘ram ¢ dameatie corporation or from a nt stack iste nee income after tox of pertnerhip, (crcp:2 general yrteeional partnership) of which, ‘beisepartaer or onthe share of an individual in ‘he ne income after tax ofan ansccation a joint scons or aint venture or consrsua eta ns ‘cxrperatio f whch ho ios member oronetce =O) Capt! Gain fram Sale of Sharsof Stock sat Treded inthe Stock Rachange. ~The provisions ‘Sectin 388) aotwitetending, a nal axe the ‘aero Rao porent Gat) iaheby impesedpen ‘henetcaital pins reali! Surng the axle year ‘ium the ale barter, exchange or other dipositon fchare of toc in domes corporation, except hares sald, or ‘xchange, sxx! Spc. 6. Section 25 of tho NIRC, as amended is herby ‘trthoramenied toreedafillows: “sxc. 25. Tax on Nonresident Alien Indio. “W) Nonresident Alin Begnged in Trade or Pasiness Within the Philippines, sax