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RA 10963: Tax Reform for
Acceleration and Inclusion (TRAIN)
26 March 2018
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Background on the Tax Reform

• The Tax Reform for Acceleration and inclusion amends certain
provisions of Republic Act No. 8424 (The National Internal revenue
Code of 1997), as amended.
• The enrolled bill was sent to President Duterte for approval and was
signed into law as Republic Act No. 10963 on December 19, 2017.
The law takes effect January 1, 2018 following its complete
publication in the Official Gazette last December 27, 2017.
• The President has issued a separate letter vetoing five provisions of the
signed TRAIN law.
• The law is just the first tax reform package. The second package
(reduction of corporate income tax and rationalization of fiscal
incentives) is estimated to be released by early 2018.

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Key amendments
1. Individual Income Tax 1. Excise Tax on:
2. Final Income Tax • Automobiles
3. Estate Tax • Petroleum products
4. Donor’s Tax • Sweetened beverages
5. Value Added Tax • Mineral products
6. Documentary Stamp Tax • Cosmetic procedures
7. Some administrative (non-essential services)
provisions
8. Penalties

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What is the purpose of TRAIN?

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The purpose of TRAIN is to make
our country’s tax system

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It is the first package in the Comprehensive Tax
Reform Program (CTRP) which is expected to
generate
Php 130 Billion

in revenues for the government.

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What is TRAIN?
The goal of the first package of the CTRP or
TRAIN is to create a simpler, fair, and more
efficient system, as per the constitution, where
the rich will have a bigger contribution and the
poor will benefit more from the government’s
programs and services.

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Lowering the Personal Simplifying Estate and Simplified Value Added
Income Tax Donor’s Tax Tax (VAT) System
Increasing the Excise Tax on Increasing the Excise Introducing an Excise

Petroleum Products
Tax on Automobiles Tax on Sweetened
Beverages

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The Vision of TRAIN by 2020….
Poverty rate Law abiding Peace within Achieve high

reduced from country the country middle income
26% to 17% status, where per
and neighbors capita increases
(or some 10
from USD3,000
million to USD4100 by
Filipinos 2022 in today’s
uplifted from money
poverty)

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The Vision of TRAIN by 2040….
Extreme Inclusive Achieve high

poverty economic and income status
where per
eradicated political capita
institutions increased from
where USD 30,000 to
everyone has USD 12,000
equal by 20140 in
today’s money
opportunities

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What is the motive for TRAIN?

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“The benefits to be derived from this tax reform
measure will sustainably finance the government’s
envisioned “BUILD, BUILD, BUILD,
CAMPAIGN”, that pushes for massive investments
in infrastructure thereby encouraging economic
activity and job creation, as well as fund the desired
increase in the public budget for health, education
and social programs to alleviate poverty.

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Benefits of TRAIN
Higher budget for Infrastructure development

•Job Creation
•Lower cost of transporting goods and services
Higher efficiencies, increase in business activities and revenues

•Attract Investors
•Better quality of life for Filipinos

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Benefits of TRAIN
Higher budget for education

Competitive advantages for new graduates
Better employment viability
Higher pay potentials
Attract investors
Better quality of life for Filipinos

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Benefits of TRAIN
Higher budget for health

• More public hospitals and clinics
• Better public access to better health care
• Stronger work force
• Attract investors
• Better quality of life for Filipinos

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Benefits of TRAIN
Higher budget for Social Protection, Welfare and

Employment
•Better government relief and assistance programs
•Better subsidies
•Better social security and overall peace and order
•Better quality of life for Filipinos

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Briefing on RA 10963: Tax Reform
for Acceleration and Inclusion
(TRAIN) – Power and Authority of
the Commissioner

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NIRC Provision NIRC TRAIN
Section 5 (B) Provides for the authority of the Additional provision:

Power of the Commissioner to obtain information
Commissioner to from national and local governments, The Cooperative development Authority
obtain information government agencies and shall submit a report on tax incentives
to summon, instrumentalities availed by cooperatives to the BIR and
examine and take DOF.
testimony of
persons Theses information shall be included in
the Tax Incentives Management and
Transparency Act (TIMTA) database.
TRAIN Briefing – Power & Authority of the CIR

VER 1.0 – January 2018

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NIRC NIRC TRAIN
Provision
Section 6 The Commissioner or his duly Additional proviso:
Power of the authorized representative may This authority is nothwithstanding any
Commissioner to authorize the examination of taxpayer law requiring the prior authorization of
make assessments and assessment of the correct amount any government agency or
and prescribe of tax. instrumentality.
additional
requirements for
tax administration
and enforcement


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Section 6 The Commissioner has the In exercising this authority, the following shall be
Power of the authority to determine fair observed:
Commissioner to market value of real properties. 1.Mandatory consultation with both private and public
make assessments competent appraisers before division of the Philippines
and prescribe into zones.
additional 2.Prior notice to affected taxpayers before the
requirements for tax determination of fair market values of the real
administration and properties.
enforcement 3.Publication or posting of adjustments in zonal value
in a newspaper of general circulation in the province,
city or municipality concerned.
4.The basis of valuation and records of consultation
shall be public records open to the inquiry of any
taxpayer.
5.Zonal valuations shall be automatically adjusted once
every three years.

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(TRAIN) – Excise Taxes

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Tobacco
RA 10351/ TRAIN
RR 17-
CIGARETTES, 2012
2017 January 1, July 1, 2018 January 1, January 1, January
per pack 2018 until until 2020 until 2022 until 1, 2024
June 30, December 31, December December Onwards
2018 2019 31, 2021 31, 2023
Cigarettes P 30.00 P 32.50 P 35.00 P 37.50 P40.00 Effectivity
1/1/2024,
packed by the specific
hand tax rate
shall be
Cigarettes P 30.00 P 32.50 P 35.00 P 37.50 P40.00 increased by
packed by 4% every
machine year
thereafter
TRAIN Briefing – Excise Taxes


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Petroleum
PRODUCTS RA TRAIN
10351/
RR January January 1, January
17-2012 1, 2018 2019 1, 2020
(a) Lubricating oils and greases, including but not P 4.50
limited to basestock for lube oils and greases, high
vacuum distillates, aromatic extracts and other similar
preparations, and additives for lubricating oils and
greases, whether such additives are petroleum based
or not, per liter and kilogram respectively, of volume
capacity or weight. P 8.00 P 9.00 P 10.00
(a.1) Locally produced or imported oils previously taxed P 4.50

but are subsequently reprocessed, refined or
recycled, per liter and kilogram of volume capacity
or weight.

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Petroleum
PRODUCTS RA TRAIN
10351/
17-2012 1, 2018 2019 1, 2020
(b) Processed gas, per liter of volume capacity. P 0.05
(c) Waxes and petrolatum per kilogram. P 3.50

P 0.05 P 8.00 P 9.00 P 10.00
(d) Denatured alcohol to be used for motive
power, per liter of volume capacity.
(e) Asphalts, per kilogram. P 0.56
(f) Naphtha, regular gasoline, and other P 4.35

similar products of distillation, per liter of P 7.00 P 9.00 P 10.00
volume capacity

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Petroleum
PRODUCTS RA TRAIN
10351/
17-2012 1, 2018 2019 1, 2020
-
Pyrolysis gasoline
P 7.00 P 9.00 P 10.00
(g) Unleaded premium gasoline, per liter of P 4.35
volume capacity
(h) Kerosene, per liter of volume capacity P 0.00 P 3.00 P 4.00 P 5.00
(i) Aviation turbo jet fuel, per liter of volume P 3.67

capacity
Aviation gas - P 4.00 P 4.00 P 4.00
(j) Kerosene, when used as aviation fuel, per liter P 3.67
of volume capacity

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Petroleum
PRODUCTS RA TRAIN
10351/
17-2012 1, 2018 2019 1, 2020
(k) Diesel fuel oil, and on similar fuel oils having P 0.00
more or less the same generating power, per liter
of volume capacity
(l) Liquefied petroleum gas used for motive power, P 0.00
per kilogram P 2.50 P 4.50 P 6.00
(m) Bunker fuel oil, and on similar oils having P 0.00
more or less the same generating power, per liter
of volume capacity
(n) Petroleum coke, per metric ton -
(o) Liquefied petroleum gas, per kilogram P 0.00 P 1.00 P 2.00 P 3.00


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Petroleum
PRODUCTS RA TRAIN
10351/
RR January 1, January 1, January
17-2012 2018 2019 1, 2020
(p) Naphtha and pyrolysis gasoline, when used as a raw P 0.00

material in the production of petrochemical products or in
the refining of petroleum products, or as replacement fuel
for natural-gas-fired-combined cycle power plant, in lieu of
locally-extracted natural gas during the non-availability
thereof, per liter of volume capacity
P 0.00 P 0.00 P 0.00
(q) Liquefied petroleum gas, when used as raw material in the P 0.00
production of petrochemical products, per kilogram
(r) Petroleum coke, when used as feedstock to any power -
generating facility, per metric ton


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Exception to Revised Excise Tax Rates
The revised rates under Section 2 shall not apply under the following
instances:
a) Lubricating oils and greases produced from basestocks and
additives on which the excise tax has already been paid shall no
Petroleum longer be subject to excise tax.
b) Unless otherwise provided by special laws, if the denatured
alcohol is mixed with gasoline, the excise tax on which has already
been paid, only the alcohol content shall be subject to the tax herein
prescribed. The removal of denatured alcohol of not less than one
hundred eighty degrees (180°) proof (ninety percent (90%) absolute
alcohol) shall be deemed to have been removed for motive power,
unless shown otherwise;


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Mandatory Marking of all Petroleum Products
The use of an official fuel marking or similar technology on

petroleum products that are refined, manufactured, or imported
into the Philippines, and that are subject to the payment of taxes
Petroleum and duties, such as but not limited to unleaded premium
gasoline, kerosene, and diesel fuel oil shall be required. It shall
be implemented in accordance with rules and regulations to be
issued by the Secretary of Finance in consultation with the
Commissioner of Internal Revenue and Commissioner of
Customs and in coordination with the Secretary of Energy.


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Minerals
PRODUCT TYPE RA TRAIN

10351/
17-2012 1, 2018 2019 1, 2020
On coal and coke, per metric ton P 10.00 P 50.00 P 100.00 P 150.00


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Minerals
PRODUCT TYPE RA 10351/ TRAIN

RR 17-
2012
On all non-metallic mineral and quarry resources

1. Locally extracted or produced, based on actual
2% 4%
market value
1. In the case of importation based on value used by
Bureau of Customs in determining tariff and customs 2% 4%
duties, net of excise tax and VAT
1. Locally-extracted natural gas and liquefied natural
P0.00 Exempt
gas

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Minerals

RR 17-
2012

1. Locally extracted or produced, based on actual
market value
a) Copper and other metallic minerals 2% 4%
b) Gold and chromite 2% 4%


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Minerals
RR 17-
2012

2. In the case of importation based on value used
by Bureau of Customs in determining tariff and
customs duties, net of excise tax and VAT
a) Copper and other metallic minerals 2% 4%
b) Gold and chromite 2% 4%
On indigenous petroleum, based on the fair international

market price thereof, on the first taxable sale, barter, 3% 6%
exchange or similar transaction.

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Automobiles
Based on the Net Manufacturer’s Price/Importer’s Selling Price
RR 25-2003 TRAIN
P 12,000 + 20% in
Over P600,000 up to
excess of P P0 up to P600,000 4%
P 1,100,000
600,000
Over P600,000
P112,000+ 40% 10%
Over P 1,100,000 up to P1,000,000
in excess of
Up to P2,100,000
P1,100,000 Over P1,000,000
20%
P512,000 + 60% up to P4,000,000
Over P2,100,000 in excess of
P2,100,000 Over P4,000,000 50%


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Hybrid Electric Vehicle – refer to a motor
vehicle powered by electric energy, with or
without provision for off-vehicle charging, in
combination with gasoline, diesel or any other
Automobiles
motive power: provided, that, for purposes of
this Act, a Hybrid Electric Vehicle must be able
to propel itself from a stationary condition using
solely electric motor


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Provided, that Hybrid Vehicles shall be taxed at
fifty percent (50%) of the applicable excise tax
rates on automobiles subject to the conditions in
Section 9(E) of this regulation: Provided,
Automobiles
further, that in the case of imported automobiles
not for sale, the tax imposed herein shall be
based on the total landed value, including
transaction value, customs duty and all other
charges.


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Tax-Exempt Removals of Automobiles
A. Purely electric vehicles shall be exempt from the excise
tax on automobiles. Hybrid vehicles shall be subject to fifty
percent (50%) of the applicable excise tax rates on
automobiles. Prior to the removal of the automobiles from
the manufacturing plant or customs custody, the department
Automobiles of energy (DOE) shall determine whether the automobiles
are hybrid vehicles or purely electric vehicles, and furnish
the Commissioner of Internal Revenue, Attention: Chief,
Excise Large Taxpayers Regulatory Division (ELTRD),
certified copies of the results of such examination or
indorsement to that effect.
B. Pick-ups


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Validation of Manufacturer’s and Importer’s
Selling Price
By the end of three months from the imposition of the new rates, the
Bureau of Internal Revenue shall validate the Manufacturer’s or
Importer’s Selling Price of the newly introduced models against the
Manufacturer’s or Importer’s Selling Price as defined herein and
Automobiles initially determine the correct bracket under which a newly
introduced model shall be classified. After the end of one year from
such validation, and every year thereafter, the Bureau of Internal
Revenue shall revalidate the initially validated Net Manufacturer’s or
Importer’s Selling Price against the Net Manufacturer’s or Importer’s
Selling Price as of the time of revalidation in order to finally
determine the correct tax bracket under which a newly introduced
model shall be classified.


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1. All manufacturer’s/assembler’s or importers are hereby
required to file an updated manufacturer’s/assemblers or
importer’s sworn statement for each brands/models of
automobiles as of the day immediately before the date of
Transitory effectivity of these Regulations.
Provisions 2. All manufacturers/assemblers or importers shall submit a
duly notarized list of inventory on-hand that are located within
the manufacturing/assembly plant, storage facility or
warehouse or the customs’ premises for which import entries
have been filed as of the day immediately before the date of
effectivity of these Regulations, indicating therein the brand,
year model, engine, body and chassis numbers thereof,


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Briefing on Republic Act (RA)
10963: Tax Reform for Acceleration
and Inclusion (TRAIN) – Sweetened
Beverages [Section 150B of the Tax
Code]

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Types of Sweeteners
• Caloric Sweetener - refers to a substance that is sweet and
includes sucrose, fructose, and glucose that produces a
Sweetened certain sweetness.
Beverages
• High Fructose Corn Syrup – refers to a sweet saccharide
mixture containing fructose and glucose which is derived
from corn and added to provide sweetness to beverages, and
which includes other similar fructose syrup preparations.


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Types of Sweeteners
• Non-Caloric Sweetener - refers to a substance that is
artificially or chemically processed that produces a
Sweetened certain sweetness. These are substances which can be
directly added to beverages, such as aspartame, sucralose,
Beverages saccharin, acesulfame potassium, neotame, cyclamates
and other non-nutritive sweeteners approved by the codex
alimentarius and adopted by the FDA.


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Subject to Excise Tax
• Sweetened juice drinks;
• Sweetened tea;
• All carbonated beverages;
Sweetened
• Flavored water;
Beverages
• Energy and sports drinks;
Products
• Other powdered drinks not classified as milk, juice, tea,
and coffee;
• Cereal and grain beverages; and
• Other non-alcoholic beverages that contain added sugar


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NOT Subject to Excise Tax
• All milk products
• One Hundred Percent (100%) natural fruit juices w/o
added sugar/ caloric sweetener
Sweetened
• One Hundred Percent (100%) natural vegetable juices
Beverages w/o added sugar/ caloric sweetener
Products • Meal replacement and medically indicated beverages for
oral nutritional therapy
• Ground, instant soluble and pre-packaged powdered
coffee products.


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• Manufacturer
Persons • Owner or Possessor of untaxed
Liable
products
• Importer


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Tax Rate
PRODUCT (per liter)
Using purely caloric sweeteners, and P6.00
Tax Rates and purely non-caloric sweeteners, or a mix of
Bases caloric and non-caloric sweeteners
Using purely high fructose corn syrup or P12.00

in combination with any caloric or non-
caloric sweetener
Using purely coconut sap sugar and Exempt
purely steviol glycosides


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Computation Number of Liters

of Excise Tax EXCISE TAX DUE = X
(Specific Tax) Excise Tax Rate


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Illustration
1. Carbonated Beverages
Dulce Manufacturing Corp. will remove
Computation 100 cases of Super Cola using HFCS and
of Excise Tax non-caloric sweetener from place of
production. Each case contains 6 bottles of
1.5 liters each.
Compute for the excise tax.


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Solution
No. of Cases 100
Multiplied by no. of bottles per case x 6
Computation Total no. of bottles 600
of Excise Tax Multiplied by contents per bottle x 1.5L
Total Volume in Liters 900L
Multiplied by Specific Tax Rate x P12.00
Total Excise Tax Due P10,800.00


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Illustration
1. Powdered Juice
Sweety Import Corp. will remove from
Computation customs custody 50 cases of Four Seasons
of Excise Tax Juice using caloric and non-caloric sweetener
containing 144 packs by 25 grams. Each
25grams pack can make 1Liter.
Compute for the excise tax.


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Solution
No. of Cases 50
Multiplied by no. of packs per case x 144
Computation Total no. of packs 7,200
of Excise Tax Multiplied by consumable yield per pack x 1L
Total Volume in Liters 7,200L
Multiplied by Specific Tax Rate x P6.00
Total Excise Tax Due P 43,200.00


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In general
•Before removal from the place of production, in
case of locally manufactured products
Filing and Advance Payment/Deposit – Taxpayer, at his
Payment of option pay to the BIR using BIR Form 2200S
Excise Tax
•Before release from Customs house, in case of
imported products


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1. Require Manufacturer/Importer to indicate on

the label the:
Specific a. Type of sweetener used
Responsibility of b. Equivalent of each serving per liter
Food and Drug
Administration
2. FDA shall conduct post marketing surveillance
(FDA)
of SBs on display in markets and/or
manufacturing plants


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1. Require Manufacturer/Importer to submit

monthly report of sugar and other sweetener used
Specific in the production
Responsibility of
Food and Drug 2. Provide to BIR summary of Certificate of
Administration Product Registration for each existing brand of
(FDA)
sweetened beverages


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Briefing on Republic Act (RA) 10963:
Tax Reform for Acceleration and
Inclusion (TRAIN) – Invasive Cosmetic
Procedure (Section 150A of the Tax
Code)

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1. Plastic Surgery - refers to a surgical

Definition of specialty dedicated to reconstruction of
Terms facial and body defects due to birth
disorders, trauma, burns, and disease. It
intends to correct dysfunctional areas of the
body and is reconstructive in nature.
TRAIN Briefing – Cosmetic Procedure


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1. Cosmetic Surgery - refers to a type of plastic

surgery that aims to improve a person’s appearance,
through invasive cosmetic procedures, surgeries,
Definition of and body enhancements directed solely on
Terms improving, altering, or enhancing the person’s
appearance and do not necessarily promote the
proper functions of the body or prevent or treat
illness or disease.


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1. Reconstructive Surgery shall refer to

another type of plastic surgery which aims to
improve function and give a normal
Definition of appearance to a part of a person’s body that
Terms has been damaged, ameliorate a deformity
arising from, or directly related to, a
congenital or developmental defect or
abnormality, a personal injury resulting from
accident or trauma, or disfiguring disease,
tumor, virus or infection.


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1. Invasive Cosmetic Procedure - refers to a

surgery that is carried out by entering the body
Definition of through the skin or through a body cavity or
anatomical opening, but with the smallest
Terms
damage possible to these structures. Invasive
Cosmetic Procedures shall include, but not be
limited to the following:


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Invasive Cosmetics Procedures
1. Liposuction
Definition of 2. Mammoplasty
Terms 3. Breastlift
4. Buccal Fat Reduction
5. Buttocks Augmentation


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1. Chin Augmentation
2. Facelift/Necklift
Definition of
3. Thread Lift
Terms
4. Hair Restoration/
Transplantation
5. Eyelid Surgery


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1. Vaginal Plastic Surgery
2. Abdominoplasty or
Definition of Tummy Tuck
Terms 3. Auto Grafting
4. Rhinoplasty/ Alar
Trimming
5. Otoplasty


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1. Non-Invasive Cosmetic Procedure - refers

to a conservative treatment that does not
require incision into the body or the removal
Definition of of tissue, or when no break in the skin is
Terms created and there is no contact with mucosa, or
skin break, or internal body cavity beyond a
natural or artificial body orifice. Non- Invasive
Cosmetic Procedures shall include, but not be
limited to the following:


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Non-invasive Cosmetics Procedures
1. Acupuncture Rejuvenation Therapy
2. Air Dissector
Definition of 3. Botulinum Toxin
Terms Injection/Treatment
4. Collagen Induction Therapy
5. Dermal Fillers (Crosslinked and
Non-Crosslinked)
6. Embedded Protein Threads


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1. Non-surgical facelifting &
skin tightening using radio
frequency, ultrasound,
Definition of infrared
Terms 2. Fractional CO 2
3. Lasers and Light
Treatments
4. Body Treatments and
Contouring Procedures


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1. Cleanings and
Facials
Definition of
Terms 2. Peelings (Face and
Body)
3. Injectables and
Weight Management
Treatment


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Rate and Base of Excise Tax
Rate = five percent (5%)
Coverage, Tax Base = Gross Receipts, net of excise tax and
Nature, Basis VAT
and Rate of
Excise Tax Coverage = invasive cosmetic procedures, surgeries
and body enhancements directed solely towards
improving, altering, or enhancing the patient’s
appearance and do not meaningfully promote the
proper function of the body or prevent or treat illness
or disease.


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1. Non-invasive cosmetic procedures and surgeries

necessary to ameliorate a deformity arising from or
directly related to,
• congenital or developmental defect or
Exclusion abnormality,
• personal injury resulting from an accident or
trauma,
• disfiguring disease, tumor, virus or infection
2. Cases or treatments covered by the National Health
Insurance Program


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Rate and Base of Excise Tax
• “Gross Receipts” means the total amount of money or its
equivalent representing the contract price including
Coverage, deposits applied as payments for services rendered and
Nature, Basis advance payments actually or constructively received for
and Rate of services performed or to be performed for another person
Excise Tax
• “Constructive Receipt” occurs when the money
consideration or its equivalent is placed at the control of
the person who rendered the service without restrictions
by the payor/customer. Also covers exchange deal
arrangement.


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Persons Liable to File a Return
Any person, whether individual or juridical entity,
Filing of performing invasive medical/cosmetic procedures,
Returns and surgeries, body enhancements directed solely on
Payment of improving, altering, or enhancing the patient’s
Excise Tax on appearance and do not meaningfully promote the
Invasive proper functions of the body or prevent or treat illness.
Procedures


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Nature and Characteristic of Excise
Tax
Filing of An excise tax is considered an indirect tax,
Returns and meaning that the service provider who is the
Payment of statutory bearer of the said excise tax is
Excise Tax on expected to shift the tax by billing the same to
Invasive the customer-client.
Procedures


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Nature and Characteristic of Excise Tax
Excise taxes are typically imposed in addition to another
indirect tax such as VAT. The service provider is hereby
Filing of authorized to act as withholding agent for the five
Returns and percent (5%) excise tax billed and is ultimately liable to
Payment of remit the excise tax collected from the client/customer.
Excise Tax on The five percent (5%) excise tax to be withheld and
remitted is based on gross receipts net of VAT and is
Invasive
considered final and no adjustment shall be allowed to
Procedures be made by the statutory bearer of the said excise tax.


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Manner of Remittance of Excise Tax
Under existing rules on goods subject to

Filing of
excise taxes, the excise tax return is required
Returns and
to be filed and the excise tax paid by the
Payment of
manufacturer or producer of the goods before
Excise Tax on
removal from the place of production.
Invasive
Procedures


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However, Section 150-A (Non-Essential Services) of
Filing of the Tax Code involves performance of
Returns and medical/cosmetic services and not goods, hence, an
Payment of innovative remittance scheme is hereby employed
Excise Tax on under which the seller of services/service provider
Invasive collects the five percent (5%) excise tax from its
Procedures client/customer and remits the same to the Bureau
based on gross receipts, net of VAT.


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This practice outlines the circumstances when the
Filing of withholding tax obligation in respect of payment is
Returns and reversed and placed on the recipient of the payment
Payment of instead of the payor, as an exception to the existing tax
rules on withholding on income payments for good and
Excise Tax on services. This concept of withholding tax reverse charge
Invasive obligation on payments is herein prescribed for
Procedures administrative expediency.


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In cases where no service subject to excise tax is performed
Filing of and there are no payments received, the Monthly
Returns and Remittance Return of Final Withholding of Excise Tax
Payment of shall still be filed with Excise Large Taxpayers Field
Excise Tax on Operations Division (ELTFOD) for Large
Taxpayers/Revenue District Office for taxpayers in the
Invasive
National Capital Region (NCR)/Excise Tax Area (EXTA)
Procedures in Regional Offices for taxpayers outside NCR.
Taxpayers filing via EFPS shall comply with the provisions
of the EFPS Regulations.


Page 81 of 240
0
Invoicing Requirements
Every person subject to excise tax herein imposed

shall issue:
Administrative
Requirements 1. An Official Receipt for services performed
whether invasive/non-invasive.
2. The following information shall be indicated
in the Official Receipt:


Page 82 of 240
0
The total amount which the patient/client pays or is obligated
to pay to the service provider including the excise tax and
value added tax: Provided, that:
Administrative • The amount of excise tax shall be shown as a
Requirements separate item in the OR;
• Discounts given shall be indicated in the OR,
otherwise the same shall not be allowed as
deduction from gross receipts;
• If the procedure performed is non-invasive and
considered exempt from excise tax, the term
Exempt from Excise Tax shall be shown on the OR;


Page 83 of 240
0
• If the services performed involved both invasive
(excisable) and non-invasive (exempt from excise tax)
procedures, the receipt shall clearly indicate the
Administrative breakdown of the amount received between its taxable
Requirements and exempt components and the calculation of excise tax
on each portion of the procedure performed shall be
shown on the receipt:
• Provided, that the service provider may issue separate
ORs for the excisable and exempt components of the
services rendered.


Page 84 of 240
0
Illustration
To improve her body shape, Starlet S engaged

the services of Dok Salamat, a well-known
Administrative cosmetic surgeon in the country, to perform a
Requirements liposuction procedure on her thighs, and Dok
Salamat charged Starlet S the amount of
P50,000.00 inclusive of 12% VAT for the
services rendered.


Page 85 of 240
Based on the foregoing, the 5% excise tax shall be computed, as follows:
Contract Price (inclusive of 12% VAT) (50,000/112%) P 50,000.00

Price (net of 12% VAT) (Excise Tax Base) P 44,642.85
Add: 5% excise tax (44,642.85 x 5%) 2,232.15*
12% VAT (44,642.85 x 12%) 5,357.15
Total Amount to be Collected from Customer P 52,232.15
*Represents the excise tax to be withheld and remitted by the service provider to the
BIR
A sample Official Receipt is shown in Annex B hereof.

Page 86 of 240
0
Accounting Entries
CASH 52,232.15
Administrative
Requirements FWT-EXCISE TAX 2,232.15
OUTPUT TAX 5,357.15
SERVICE INCOME 44, 642.85


Page 87 of 240
Page 88 of 240
0
Accounting Requirements
Not withstanding the provisions of Section 233,
all persons subject to excise tax under Section
150-A of the Tax Code shall, in addition to the
Administrative
Requirements
regular accounting records required, maintain a
subsidiary ledger on which every service
rendered/performed on any given day is recorded.
The subsidiary ledger shall contain the following
information:


Page 89 of 240
0
Accounting Requirements
1. Name of Patient
2. Taxpayers Identification Number
3. Invasive Cosmetic Procedures Performed (indicate if excisable or
not; if not excisable, keep records as proof that the procedures are not
taxable)
Administrative 4. Non-invasive Cosmetic Procedures Performed
Requirements 5. Official Receipts Number
6. Gross Receipts Number (net of VAT and 5% excise tax)
7. 5% Excise Tax to be Withheld and Remitted
8. 12% VAT due
9. Total Amount to be Collected from Customer (sum of 6, 7, 8)
10. Remarks (description of cosmetic procedure performed)


Page 90 of 240
0
Time and Place for Filing of Return and Payment
of the Tax
Filing of BIR TIME OF PLACE
FORM FILING AND
Returns and REMITTANCE
Payment of BIR Every 10th of the authorized agent bank (AAB)
Excise Tax on FORM following month under the jurisdiction of the
Invasive 1620- Revenue District Office/BIR
Procedures XC Office where the taxpayer (Head
Office of the business
establishment) is registered or
required to register


Page 91 of 240
0
Time and Place for Filing of Return and Payment
of the Tax
Filing of Submit Summary of Invasive Cosmetic Procedures Performed
Returns and (please refer to prescribed format on Annex A hereof) as an
attachment to the said form for submission via email at
Payment of
xcp.attachment@bir.gov.ph.
Excise Tax on
Invasive NAME OF TAXPAYER
"Annex A"
Procedures Monthly Summary of Invasive Cosmetic Procedures Performed

For the Month _______________
COSMETIC
OFFICIAL RECEIPT PROCEDURES AMOUNT COLLECTED
Gross Receipts
(Net of 5% Excise Tax
No. Date PERFORMED VAT /Excise) Withheld 12% VAT Total


Page 92 of 240
0
Application for Permit to Operate
Any person subject to excise tax under Section

150-A of the Tax Code, as amended, shall file an
Administrative application for a Permit to Operate with the Excise
Requirements LT Regulatory Division (ELTRD) BIR National
Office (whether Large or Non-Large Taxpayers)
not later than fifteen (15) days from the effectivity
of this Regulations.


Page 93 of 240
0
The application shall be accompanied by the following:
1.Request Letter
Attention: Chief, Excise LT Regulatory Division
Administrative
Requirements 2.Certificate of Securities and Exchange Commission, together
with Articles of Incorporation and By-Laws (for corporation and
partnership) and Certificate of Registration with the Office of
the Domestic Trade and Industry (for individual)


Page 94 of 240
0
1. Mayor’s Permit
2. BIR Certificate of Registration (with latest
Administrative registration fee BIR Form 0605)
Requirements 3. Latest Copy of Income Tax Return
4. Location Map of Clinics/Hospitals where the
medical professionals/practitioners perform the
services
5. Price list of Invasive/Non-invasive Medical
Procedures


Page 95 of 240
0
Application for Registration
Every person subject to excise tax under Section 150-A of
the Tax Code, as amended, shall register as Excise
Taxpayer engaged in the performance of Invasive
Administrative Cosmetic Procedures with the ELTRD for Large
Requirements Taxpayers or with the Revenue District Office (RDO) for
Non-Large Taxpayers where the taxpayer is required to be
registered for updating of Certificate of Registration. The
application for registration shall be filed within ten (10)
days from the effectivity date of this Regulations.


Page 96 of 240
(TRAIN) – Income Tax

Page 97 of 240
Section 24 Taxable income of individuals are subject to the Revised personal income tax brackets
Income tax rates on following graduated rates: of 2018-2022:
individual citizen
and individual
resident alien of the
Philippines
TRAIN Briefing – Income Tax


Page 98 of 240
NIRC NIRC TRAIN
Provision
Section 24 Taxable income of individuals are Revised personal income tax brackets of
Income tax subject to the following graduated 2018-2022:
rates on rates:
individual
citizen and
individual
resident alien of
the Philippines


Page 99 of 240
Section 24 For 2023 onwards:

Income tax rates on
individual citizen
and individual
resident alien of the
Philippines


Page 100 of 240
Section 24 Refer to Revenue Memorandum Circular (RMC)

Income tax rates on Nos. 105-2017 and 1-2018, Revised Withholding
individual citizen and Tax on Compensation Table
individual resident
alien of the
Philippines
Section 24 Taxable income is subject to the For purely self-employed and/or professionals
Income tax of self- same graduated rates whose gross sales/receipt and other non-operational
employed and/or income do not exceed the VAT threshold of
professionals P3Million, the tax shall be, at the taxpayer’s option,
either:
1. 8% income tax on gross sales or gross receipts in
excess of P250,000 in lieu of the graduated income
tax rates and the other percentage tax; OR
2. Income tax based on the graduated income tax
rates for individuals

Page 101 of 240
Section 24 Taxable income is subject to For mixed income earners (earning both compensation
Income tax of mixed the same graduated rates income and income from business or practice of
income earners profession, their income taxes shall be:
1. For income from compensation – Graduated income
tax rates fro individuals, AND
2. For income from business or practice of profession:
a. Gross sales/receipts which do not exceed the VAT
threshold of P3Million – 8% income tax on gross
sales/receipts and other non-operating income OR
graduated income tax rates on taxable income, at the
taxpayer’s option
b. Gross sales/receipts and other non-operating income
which exceeds the VAT threshold of P3Million –
graduated income tax rates for individuals


Page 102 of 240
Section 24 (B) (1) Philippine Charity Sweepstakes and Philippine Charity Sweepstakes and Lotto
Final tax on Lotto winnings – exempt from the winnings in excess of P10,000 shall be
winnings 20% final tax subject to the 20% final tax
Section 24 (B) (1) Interest income received by an The rate of final tax on interest income
Final tax on interest individual taxpayer (except a non- received by resident individual taxpayer
on foreign currency resident individual) from a under the expanded foreign currency
deposit depository bank under the expanded deposit system increased from 7.5% to
foreign currency deposit (EFCD) 15% final tax
system is subject to 7.5% final tax


Page 103 of 240
Section 24 (C) The capital gains tax on net capital The final tax rate for net capital gains tax on
Capital gains tax gains realized from sale, barter, or the sale, barter, exchange or other
on sale of shares exchange or other disposition of disposition of shares of stock in a domestic
not traded through shares of stock in a domestic corporation no traded through the stock
the stock exchange corporation not traded through the exchange is increased from 5/10% CGT to a
stock exchange is: flat rate of 15% CGT
Not over P100,000 – 5%
On any amount in excess of

P100,000 – 10%


Page 104 of 240
NIRC NIRC TRAIN
Provision
Section 25 (C) (D) Alien individuals and qualified Filipino Additional provision [Subsection (F)]
(E) employees employed by The 15% preferential tax rate provided
Preferential tax 1.Regional or area and Regional in Subsection (C), (D) and (E) shall not
rate for individuals Operating headquarters or be applicable to RHQs. ROHQs, OBUs
employed by RHQ, multinational companies (RHQs and or Petroleum service contractor and
ROHQ, OBU and ROHQs) [Subsection (C)] subcontractor registering with the SEC
Petroleum 2.Offshore banking units (OBUs) after January 1, 2018
Contractors Capital [Subsection (D)]
and subcontractors 3.Petroleum Service contractor and But existing RHQs, ROHQs, OBUs or
subcontractor [Subsection (E)] Petroleum service contractor and
are subject to a preferential tax of 15% subcontractor shall continuously be
final withholding tax on gross entitled to avail of the preferential tax
compensation income. treatment for their present and future
qualified employees.


Page 105 of 240
NIRC NIRC TRAIN
Provision
Section 24 (C) (D) Presidential Veto:
(E) The President vetoed this line item under
Preferential tax rate Subsection (F)
for individuals “But existing RHQs, ROHQs, OBUs or Petroleum
employed by RHQ, service contractor and subcontractor shall
ROHQ, OBU and continuously be entitled to avail of the preferential
Petroleum tax treatment for their present and future qualified
Contractors Capital employees.”
and subcontractors
for being violative of equal protection
The President stated in his letter that, “given the
significant reduction in the personal income tax, the
employees of these firms should follow the regular
tax rates applicable to other individual taxpayers.”


Page 106 of 240
Section 31 Means the pertinent items of gross The phrase “and/or personal and
Definition of income specified in this Code, less the additional exemptions” is removed in the
Taxable Income deductions and/or personal and definition.
additional exemptions, if any,
authorized for such types of income
by this Code or other special laws
Section 35 Individual taxpayers are entitled to: The Basic Personal and Additional
Personal Basic Personal Exemption – P50,000 Exemptions of individual taxpayers are
Exemptions removed.
and
Additional Exemption – P25,000 per The related provision on furnishing
qualified dependent child exemption certificate is likewise removed.


Page 107 of 240
Section 32 (B) The amount of tax-exempt 13th The amount of tax-exempt 13th month
Tax exempt 13th month pay and other benefits is pay and other benefits is increased to
month pay P82,000. P90,000.
Section 33 (A) • Fringe benefits given to non-rank • The Fringe Benefits Tax is increased to
Tax on fringe and file employees are subject to 35% effective January 1, 2018
benefits given to 32% final tax • The grossed up monetary value of the
non-rank and file • The grossed up monetary value of fringe benefit given to non-rank and
employees the fringe benefit given to non-rank file employees shall be determined by
and file employees shall be dividing the actual monetary value by
determined by dividing the actual 65%
monetary value by 68%


Page 108 of 240
Section 34 (M) The allowable deduction for Allowable deduction for premium
Allowable premium payments on health and/or payments on health and/or hospitalization
deduction for hospitalization insurance of an insurance of an individual taxpayer is
premium payments individual taxpayer is P2400 per removed.
on health and/or year or P200 per month, subject to a
hospitalization gross family income threshold of
insurance P250,000.
Section 51 An individual whose gross income Individual taxpayers whose taxable

Filing of individual does not exceed his total personal income is subject to zero percent under
income tax return and additional exemptions for the new graduated tax table (i.e., does not
dependents are not required to file exceed P250,000) shall not be required to
income tax return (ITR). file an income tax return.


Page 109 of 240
Additional provision:
The ITR shall consist of a maximum of
four (4) pages in paper OR electronic
form. It shall only contain the following
information:
•Personal profile and information
•Gross sales receipts or income from
compensation, from business, or from
exercise of profession (except income
subject to final tax)
•Allowable deductions
•Taxable income
•Income tax due and payable


Page 110 of 240
Section 51-A No provision Substituted filing or ITRs is available for:

Substituted Filing •Individual taxpayers
of income tax •Receiving purely compensation income,
returns by regardless of amount
employees •From only one employer in the Philippines
receiving purely for he calendar year
compensation •The income tax of which has been
income from only correctly withheld by the employer (i.e., tax
one employer in the due = tax withheld)
Philippines The Certificate of Withholding field by the
employers duly stamped “receive” by the
BIR shall be the substituted filing by such
employers


Page 111 of 240
Section 56 (A) (2) When tax due exceeds ₱2,000, the The new deadline of payment of
Installment Payment taxpayer (other than a corporation) second installment is October 15
of tax due for may elect to pay the tax in two equal following the close of the calendar
individuals and installments. Payment of installments: year.
corporations •First installment – time of filing of
return
•Second installment – on or before July
15 following the close of the calendar
year.
Section 62 There is allowed personal exemption of The exemption for estates and trusts is
Exemption for ₱50,000 from the income of the estate removed.
estates and trusts or trust.


Page 112 of 240
Section 74 Every individual subject to income tax The deadline for filing of declaration
Declaration of Income shall make and file a declaration of his estimated income for the current taxable
tax for individuals estimated income for the current taxable year is on or before May15 of the same
year on or before April 15 of the same taxable year.
taxable year.
The amount of estimated income with The payment of the four installments shall
respect to which a declaration is be:
required shall be paid in four (4) •First – May 15
installments: •Second – August 15
•First – at time of declaration •Third – November 15
•Second – August 15 •Fourth – on or before May 15 of the
•Third – November 15 following calendar year when the final
•Fourth – on or before April 15 of the adjusted income tax return is due to be
following calendar year when the final filed.
adjusted income tax return is due to be
filed.

Page 113 of 240
Section 34 (L) Individual taxpayers (except non- For GPPs and the partners comprising
Optional Standard resident alien) and corporations may them, OSD may be availed only once, i.e.,
Deduction elect a standard deduction not either by the GPP itself or by the partners
exceeding 40% of gross sales/ receipts comprising the GPP.
or of gross income, as the case may be,
in lieu of itemized allowable
deductions.
Section 57 The rate of withholding tax on items of Beginning January 1, 2019, the rate of
Withholding of income payable by payor- withholding tax shall be not less than one
creditable tax at source corporations/persons shall be not less percent (1%) but not more than fifteen
than one percent (1%) but not more than percent (15%).
thirty-two percent (32%).
The tax withheld shall be credited

against the income tax liability of the
taxpayer.


Page 114 of 240
Section 27 (C) The Philippine Charity Sweepstakes PCSO is not anymore exempt from
Exemption Office (PCSO) is among the list payment of corporate income tax.
Government-owned GOCCs, agencies, or instrumentalities
or – Controlled that are exempt from payment of
Corporations, corporate income tax.
Agencies or
Instrumentalities
Section 27 (D) (1) Interest income received by a domestic The rate of final tax on interest income
Final Tax on interest corporation from a depository bank received by domestic corporation under
on foreign currency under the expanded foreign currency the expanded foreign currency deposit
deposit deposit (EFCD) system is subject to system increased from 7.5% to 15% final
7.5% final tax. tax.


Page 115 of 240
Section 27 (D) (2) The capital gains tax on net capital The final tax rate for net capital gains tax
Capital gains tax on gains realized from sale, barter, or on the sale, barter, exchange or other
sale of shares not exchange or other disposition of disposition of shares of stock in a
traded through the shares of stock in a domestic domestic corporation not traded through
stock exchange corporation nor traded through the the stock exchange is increased from the
stock exchange is: 5/10% CGT to a flat rate of 15% CGT.
Not over ₱100,000 – 5%
On any amount in excess of ₱100,000

– 10%


Page 116 of 240
Section 52 Every corporation subject to tax, Additional provision:
Filing of corporate except foreign corporations not
income tax return engaged in trade or business in the The ITR shall consist a maximum of four
Philippines, shall render in duplicate, (4) pages in paper OR electronic form.
a true and accurate
•Quarterly income tax return; AND It shall also only contain the information
•Final or adjustment return as required in ITRs of individual
taxpayers.
These requirements shall not affect the

implementation of TIMTA.


Page 117 of 240
Final Withholding Tax and Expanded Withholding Tax Returns
Section 58 The return for FWT and the return for FWT and EWT returns shall be filed and
Return and payments creditable withholding taxes (EWT the payment made not later than the last
of taxes withheld at returns) shall be filed within ten (10) day of the month following the close of
source days after the end of each month [Sec. the quarter during which the
2.58 of RR No. 2-98] withholding was made.
The provision that the Commissioner

may require the payment of the taxes
withheld at more frequent intervals is
removed.


Page 118 of 240
I.
Summary
Income Taxes
of Tax Rates
1. Graduated Tax Rates; or
2. 8% Creditable Income Tax on Gross Sales or Gross Receipts
II. Withholding Tax Rates
Income Rate
Interest from any peso bank deposit, and yield or nay monetary 20%
benefit from deposit substitutes and from trust funds and similar
arrangements
Royalties, in general 20%
Royalties for Books as well as other literary works and musical 10%
compositions
Prizes and other Winnings 20%
[Prizes amounting to ₱10,000 or less shall be subject to tax under
Section 24(A)]
Winnings from PCSO and Lotto (Prizes amounting to ₱10,000 or 20%
less shall be exempt from income tax)

Page 119 of 240
Summary of Tax Rates
Income Rate
Interest Income from a depositary bank under the Expanded Foreign 15%
Currency Deposit system
Cash Dividends 10%
Property Dividends 10%
Capital Gains from Sale of Shares of Stocks Not Traded in the Stock 15%
Exchange (including those received by NRAETB, NRANETB, and
Domestic Corporation)
Fringe Benefits Granted to Employees except Rank and File 35%
Employees
Fringe Benefits Granted to Employees except Rank and File 25%
Employees (NRANETB)

Page 120 of 240
Summary of Tax Rates
Income Rate
Individual Payee (Professionals):
Gross Income for the current year did not exceed ₱3M 5%
Gross Income for the current year exceeded ₱3M 10%
Non-Individual Payee (Professionals): 15%
Gross Income for the current year did not exceed ₱720,000.00 10%
Gross Income for the current year exceeded ₱720,000.00 15%
Rentals:
Real Properties 5%
Personal Properties 5%
Poles, satellites, and transmission facilities 5%
Billboards 5%
Cinematographic film rentals and other payments 5%

Page 121 of 240
Updates on De Minimis Benefits
1. Medical Cash Allowance - ₱1,500 per employee per semester;
- ₱250 per month
2. Rice Subsidy - ₱2,000 or one sack of 50kg rice per month amounting to
not more than ₱2,000
3. Uniform and Clothing Allowance - ₱ 6,000 per annum

Page 122 of 240
Examples
Mr. CSO, a minimum wage earner, works for G.O.D., lnc. He is not
engaged in business nor has any other source of income other than his
employment. For 2018, Mr. CSO earned a total compensation income of
₱135,000.00.
a.The taxpayer contributed to the SSS, Philhealth, and HDMF
amounting to ₱5,000.00 and has received 13th month pay of
₱11,000.00. How much is his income tax liability?

Page 123 of 240
Examples
Total Compensation Income ₱135,000.00
Less: Mandatory Contributions ₱ 5,000.00
Non-taxable Contributions 11,000.00 16,000.00
Taxable Income ₱135,000.00
TAX DUE 0

Page 124 of 240
Examples
b. The following year, Mr. CSO earned, aside from his basic wage,
additional pay of ₱140,000.00 which consists of the overtime pay-
₱80,000.00, night shift differential-₱30,000.00, hazard pay- ₱15,000.00
and holiday pay-₱15,000.00. The taxpayer contributed to the SSS,
Philhealth, and HDMF amounting to ₱5,000.00 and has received 13th
month pay of ₱11,000.00.

Page 125 of 240
Examples
Add: OT, NSD, Hazard, and Holiday Pay 140,000.00

Total Income ₱275,000.00
Less: Mandatory Contributions ₱ 5,000.00
Non-taxable Contributions 11,000.00 16,000.00
Taxable Income ₱259,000.00
Tax Due 0

Page 126 of 240
Examples
Ms ABC is a CPA. She also operates a convenience store. In 2018, her
gross sales amounted to ₱800,000.00, in addition to her gross receipts
from her accounting practice of ₱1,300,000.00. She incurred costs of
sales and operating expenses amounting to ₱400,000.00 and
₱500,000.00, respectively. She already signified her intention to be
taxed at 8% income tax rate in her 1st Quarter Return. How much is her
income tax liability for the year 2018?

Page 127 of 240
Examples
Gross Receipts – Practice ₱1,300,000.00
Gross Sales – Convenience Store 800,000.00
Total Receipts/Sales ₱2,100,000.00
Less: Amount allowed as deduction under Sec. 24(A) 250,000.00
(2)(b)
Taxable Income ₱1,850,000.00
TAX DUE (8%) ₱148,000.00

Page 128 of 240
Ms ABC failed to signify her intention to be taxed at 8% income
tax rate in her initial quarterly ITR. She incurred costs of sales
and operating expenses amounting to ₱400,000.00 and
₱500,000.00, respectively. How much is her income tax liability?


Page 129 of 240
Total Receipts/Sales ₱2,100,000.00
Less: Cost of Sales 400,000.00
Gross Income ₱1,700,000.00
Less: Operating Expenses 500,000.00


Page 130 of 240

Page 131 of 240
Less: 4TH Tier Tax Base 800,000.00
Excess ₱400,000.00
Tax on the Excess ₱120,000.00
Add: Tax on the 4TH Tier Tax 130,000.00
TOTAL TAX DUE (Graduated Rates) ₱250,000.00


Page 132 of 240
Mr. XYZ, a business man, signified his intention to use the 8% income tax
rate in his 1st Quarter ITR. He has no other source of income. His total
receipts per quarter is as follows:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total Sales ₱500,000.00 ₱500,000.00 ₱2,000,000.00 ₱3,500,000.00
Less: COS 300,000.00 300,000.00 1,200,000.00 1,200,000.00
Gross Income ₱200,000.00 ₱200,000.00 ₱800,000.00 ₱2,300,000.00
Less: OpEx 120,000.00 120,000.00 480,000.00 720,000.00
Taxable Income ₱80,000.00 ₱80,000.00 ₱320,000.00 ₱1,580,000.00
A. What is his Taxable Income?

B. What is his tax liability?


Page 133 of 240

Page 134 of 240
Tax Under the Graduated Tax Rates ₱509,200.00
Less: 8% income tax previously paid 220,000.00
Annual Income Tax Payable ₱289,200.00


Page 135 of 240
Ms. MAL is a prominent independent contractor who offers
architectural and engineering services. Since here career
flourished, her total gross receipts amounted to ₱4,250,000.00 for
taxable year 2018. Her recorded cost of service and operating
expenses were ₱2,150,000.00 and ₱1,000,000.00, respectively.
a. How much is her taxable income?
b. How much is her tax liability?


Page 136 of 240
Gross Receipts ₱4,250,000.00
Less: Cost of Services 2,150,000.00
Less: Operating Expenses 1,000,000.00


Page 137 of 240

Page 138 of 240
On ₱800,000.00 ₱130,000.00
On Excess 90,000.00
Income Tax Due ₱220,000.00


Page 139 of 240
In 2018, Mr. GRO owns a nightclub and videoke bar, with gross
receipts of ₱2,500,000.00. His cost of sales and operating
expenses are ₱1,000,000.00 and ₱600,000.00, respectively, and
with non-operating income of ₱100,000.00.
a. Is the taxpayer allowed to use the 8% option?
b. How much is his taxable income?
c. How much is his tax liability?


Page 140 of 240
Less: Cost of Sales 1,000,000.00
Net Income from Operation ₱900,000.00
Add: Non-operating Income 100,000.00


Page 141 of 240

Page 142 of 240
On ₱800,000.00 ₱130,000.00
On excess 60,000.00
Income Tax Due ₱190,000.00


Page 143 of 240
Mr. LMN, a Financial Comptroller of ABC Corporation, earned
annual compensation income of ₱1,500,000.00, inclusive of 13th
month pay and other benefits in the amount of ₱120,000.00 but
net of mandatory contributions to SSS, Philhealth, and HDMF.
Aside from employment income, he owns a convenience store,
with gross sales of ₱2,400,000.00. His cost of sales and operating
expenses are ₱1,000,000.00 and ₱600,000.00 respectively, and
with non-operating income of ₱100,000.00.


Page 144 of 240
A. How much is his total taxable income?
B. Can he use the 8% option? If yes, how much is his total tax
liability?
C. If he uses the graduated tax rates under Section 24(A), how
much is his total tax liability?
D. What if, instead of earning ₱1,500,000.00 from
compensation, the taxpayer only earned ₱100,000.00 without
benefits, what is his total tax liability?


Page 145 of 240
Total Compensation Income ₱1,500,000.00
Less: Non-Taxable 13th Month Pay 90,000.00
Taxable Compensation Income ₱1,410,000.00
Add: Business Income
Net Income from Operations ₱800,000.00
Add: Non-operating Income 100,000.00 900,000.00
Total Taxable Income ₱2,310,000.00


Page 146 of 240

Page 147 of 240
Tax Due on Compensation (Graduated) ₱313,000.00
Gross Sales ₱2,400,000.00
Add: Non-operating Income 100,000.00
Taxable Business Income ₱2,500,000.00
Multiply: Income Tax Rate 8% 200,000.00
Total Tax Due ₱513,000.00


Page 148 of 240
Total Compensation Income ₱1,500,000.00
Less: Non-Taxable 13th Month Pay 90,000.00
Taxable Compensation Income ₱1,410,000.00


Page 149 of 240

Page 150 of 240
TAX DUE
On ₱2,000,000.00 ₱ 490,000.00
On Excess (32%) 99,200.00
Tax Due ₱ 589,200.00


Page 151 of 240
A. How much is his total taxable income?
B. Can he use the 8% option? If yes, how much is his total tax
liability?
C. If he uses the graduated tax rates under Section 24(A), how
much is his total tax liability?
D. What if, instead of earning ₱1,500,000.00 from
compensation, the taxpayer only earned ₱100,000.00 without
benefits, how do you compute his tax liability?


Page 152 of 240
The excess of ₱150,000.00 from deducting ₱250,000.00 income subject to

0% from the ₱100,000.00 compensation income CANNOT be offset with the
taxpayer’s business income.

Page 153 of 240
Mr. BAC, an alien employed in MNT Corporation, a petroleum
service contractor, received compensation income of
₱5,000,000.00 for 2018, inclusive of ₱400,000.00 13th month pay
and other benefits.
a. How much is his taxable income? Is he still subject to the
15% gross income tax?
b. How much is tax liability?


Page 154 of 240
Compensation Income ₱5,000,000.00
Less: Non-Taxable 13th month pay and other benefits 90,000.00


Page 155 of 240

Page 156 of 240
TAX DUE
On ₱2,000,000.00 ₱ 490,000.00
On Excess (32%) 931,200.00
Tax Due ₱ 1,421,200.00


Page 157 of 240
Mr. A is a partner of ABC & Co., CPAs, a general professional
partnership. He owns 25% interest therein. The gross receipts of
the partnership for taxable year 2018 amounted to
₱10,000,000.00. The recorded cost of services and operating
expenses were ₱2,750,000.00 and ₱1,500,000.00, respectively.
a. How much is the GPP’s net income?
b. Is the partnership’s net income taxable?
b. How much is the share of Mr. A from the partnership?
c. What is the tax treatment for Mr. A’s share?


Page 158 of 240
Less: Cost of Services 2,750,000.00
Less: OSD 2,900,000.00
Net Income for distribution to partners ₱4,350,000.00


Page 159 of 240
Share of Mr. A (25%) ₱1,087,500.00
On ₱800,000.00 ₱ 130,000.00
On Excess (30%) 86,250.00
Income Tax Due ₱ 216,250.00


Page 160 of 240
Briefing on RA 10963: Tax Reform for
Acceleration and Inclusion (TRAIN) –
Value Added Tax

Page 161 of 240
Section 106 (A)(2) The following are entitled to VAT zero- The following sales by VAT registered
Zero-rated Sale of rating: persons shall be subject to zero percent
Goods or Properties 0% rate:
1.The sale and actual shipment of goods
from the Philippines to a foreign country, 1.The sale and actual shipment of goods
irrespective of any shipping arrangement from the Philippines to a foreign
that may be agreed upon which may country, irrespective of any shipping
influence or determine the transfer of arrangement, paid for in acceptable
ownership of the goods so exported and foreign currency or its equivalent in
paid for in acceptable foreign currency or goods or services, and accounted for in
its equivalent in goods or services, and accordance with the rules and
accounted for in accordance with the rules regulations of the Bangko Sentral ng
and regulations of the Bangko Sentral ng Pilipinas (BSP).
Pilipinas (BSP).
TRAIN Briefing – VAT


Page 162 of 240
Section 106 (A)(2) 1. Sale and delivery of goods to:
Zero-rated Sale of
Goods or Properties • Registered enterprises within a separate
customs territory
• Registered enterprises within tourism

enterprise zones
(The above provision was vetoed by President

Duterte because this go against the principle
of limiting the VAT zero-rating to direct
exporters.)


Page 163 of 240
Section 106 (A)(2) 1. Sale of raw materials or1. Sale of raw materials or packaging
Zero-rated Sale of packaging materials to a materials to a nonresident buyer for
Goods or Properties nonresident buyer for delivery delivery to a resident local export-
to a resident local export- oriented enterprise to be used in
oriented enterprise to be used in manufacturing, processing, packing or
manufacturing, processing, repacking and paid for in acceptable
packing or repacking in the foreign currency and accounted for in
Philippines of the said buyer's accordance with the rules and
goods and paid for in acceptable regulations of the Bangko Sentral ng
foreign currency and accounted Pilipinas (BSP).
for in accordance with the rules
and regulations of the Bangko
Sentral ng Pilipinas (BSP).


Page 164 of 240
Section 106 (A)(2) 1. Sale of raw materials or1. Sale of raw materials or
Zero-rated Sale of packaging materials to packaging materials to export-
Goods or Properties export-oriented enterprise oriented enterprise whose
whose export sales exceed export sales exceed seventy
seventy percent (70%) of percent (70%) of total annual
total annual production. production.
2. Sale of gold to BSP.


Page 165 of 240
Section 106 (A)(2) 1. Those considered export1. Those considered export sales under
Zero-rated Sale of Goods sales under Executive Order Executive Order No. 226, otherwise
or Properties NO. 226, otherwise known as known as the “Omnibus Investment
the “Omnibus Investment Code Code of 1987”, and other special
of 1987”, and other special laws; and
laws.
2. The sale of goods, supplies,
2. The sale of goods, supplies, equipment and fuel to persons
equipment and fuel to persons engaged in international shipping or
engaged in international international air transport; provided,
shipping or international air that the goods, supplies, equipment
transport operations. and fuel have been sold and used for
international shipping or air transport
operations.


Page 166 of 240
Section 106 (A)(2) Additional provision:
Zero-rated Sale of Items 3, 4, and 5 shall be subject to the 12% VAT and
Goods or Properties no longer be considered export sales subject to 0%
VAT upon satisfaction of the following conditions:
•There is a successful establishment and
implementation of an enhanced VAT refund system that
grants refunds of creditable input tax within 90 days
from the filing of the VAT refund application with the
Bureau.
•All pending VAT refund claims as of December 31,

2017 shall be fully paid in cash by December 31, 2019.


Page 167 of 240
Section 106 (A)(2) The Department of Finance shall establish a VAT Refund
Zero-rated Sale of Center in the BIR and BOC that will handle the processing
Goods or Properties and granting of cash refunds of creditable input tax.
An amount equivalent to 5% of the total VAT collection of
the BIR and BOC from the immediately preceding year
shall automatically be appropriated annually and shall be
treated as a special account in the General Fund or as trust
receipts for funding VAT refund claims.
Further, the BIR and BOC shall be required to submit to the
Congressional Oversight Committee on the CTRP a
quarterly report of all pending claims for refund and any
unused fund.


Page 168 of 240
Section 106 (A)(2) Deleted provision:
Zero-rated Sale of
Goods or Properties The following shall no longer be subject to 0% VAT:
1.Sale of gold to BSP

2.Foreign-currency denominated sales
Section 108 (A) Sale or exchange of Sale or exchange of services include “sale of
Definition of Sale or services include electricity by generation companies, transmission by
Exchange of Services “sale of electricity by any entity including the National Grid
generation Corporations of the Philippines [NGCP], and
companies, distribution companies, including electric
transmission, and Cooperatives”.
distribution
companies”


Page 169 of 240
Section 108 (B) The following are entitled to VAT The following are entitled to VAT zero-
Zero-rated Sale of zero-rating: rating:
Services
1.Processing, manufacturing or 1.Processing, manufacturing or
repacking goods for other persons repacking goods for other persons
doing business outside the doing business outside the Philippines
Philippines which goods are which goods are subsequently
subsequently exported, where the exported, where the services are paid
services are paid for in acceptable for in acceptable foreign currency and
foreign currency and accounted for accounted for in accordance with the
in accordance with the rules and rules and regulations of the Bangko
regulations of the Bangko Sentral ng Sentral ng Pilipinas (BSP).
Pilipinas (BSP).


Page 170 of 240
NIRC NIRC TRAIN
Provision
Section 108 (B) 1. Services other than those1. Services other than those mentioned
Zero-rated Sale of mentioned in the preceding in the preceding paragraph, rendered
Services paragraph, rendered to a person to a person engaged in business
engaged in business conducted conducted outside the Philippines or
outside the Philippines or to a to a nonresident person not engaged in
nonresident person not engaged in business who is outside the
business who is outside the Philippines when the services are
Philippines when the services are performed, the consideration for
performed, [51] the consideration for which is paid for in acceptable foreign
which is paid for in acceptable currency and accounted for in
foreign currency and accounted for accordance with the rules and
in accordance with the rules and regulations of the Bangko Sentral ng
regulations of the Bangko Sentral ng Pilipinas (BSP);
Pilipinas (BSP);


Page 171 of 240
NIRC NIRC TRAIN
Provision
Section 108 (B) 1. Services rendered to persons or1. Services rendered to persons or entities
Zero-rated Sale of entities whose exemption under special whose exemption under special laws or
Services laws or international agreements to international agreements to which the
which the Philippines is a signatory Philippines is a signatory effectively
effectively subjects the supply of such subjects the supply of such services to
services to zero percent (0%) rate; zero percent (0%) rate;
2. Services rendered to persons engaged
in international shipping or2. Services rendered to persons engaged
international air transport operations, in international shipping or international
including leases of property for use air transport operations, including leases
thereof; of property for use thereof: provided,
that these services shall be exclusively
for international shipping or air transport
operations;


Page 172 of 240
NIRC NIRC TRAIN
Provision
Section 108 (B) 1. Services performed by1. Services performed by
Zero-rated Sale of subcontractors and/or contractors in subcontractors and/or contractors in
Services processing, converting, or processing, converting, or
manufacturing goods for an enterprise manufacturing goods for an enterprise
whose export sales exceed seventy whose export sales exceed seventy
percent (70%) of total annual percent (70%) of total annual
production; production are no longer entitled to
VAT zero-rating.


Page 173 of 240
NIRC NIRC TRAIN
Provision
Section 108 (B) 1. Transport of passengers and cargo1. Transport of passengers and cargo
Zero-rated Sale of by domestic air or sea vessels from by domestic air or sea vessels from the
Services the Philippines to a foreign country. Philippines to a foreign country.
2. Sale of power or fuel generated2. Sale of power or fuel generated

through renewable sourced of energy through renewable sourced of energy
such as, but not limited to, biomass, such as but not limited to biomass,
solar, wind, hydropower, geothermal, solar, wind, hydropower, geothermal,
ocean energy, and other emerging ocean energy, and other emerging
energy sources using technologies energy sources using technologies
such as fuel cells and hydrogen fuels. such as fuel cells and hydrogen fuels.


Page 174 of 240
NIRC NIRC TRAIN
Provision
Section 108 (B) 1. Services rendered to:
Zero-rated Sale of
Services • Registered enterprises within a separate
customs territory
• Registered enterprises within tourism

enterprise
(Above provision was votoed by President

Duterte)


Page 175 of 240
NIRC NIRC TRAIN
Provision
Section 108 (B) Additional provision:
Zero-rated Sale of
Services Items 1 and 5 shall be subject to the 12% VAT and no
longer be considered export sales subject to 0% VAT
upon satisfaction of the following conditions:
•There is a successful establishment and
implementation of an enhanced VAT refund system
that grants refunds of creditable input tax within 90
days from the filing of the VAT refund application
with the Bureau.
•All pending VAT refund claims as of December 31,

2017 shall be fully paid in cash by December 31,
2019.


Page 176 of 240
Section 108 (B) Additional provision:

Zero-rated Sale of
Goods or properties and The Department of Finance shall establish a VAT Refund
zero-rated sale of Center in the BIR and BOC that will handle the
services processing and granting of cash refunds of creditable
input tax.
To fund claims for VAT refund 5% of the total VAT

collection of the BIR and BOC from the immediately
preceding year shall be:
•Automatically appropriated annually.

•Treated as a special account in the General Fund or as
trust receipts.


Page 177 of 240
Section 108 Additional provision:

Zero-rated Sale of
Goods or Properties The BIR and BOC shall submit to the Congressional
and Zero-rated Sale of Oversight Committee on the Comprehensive Tax Reform
Services Program a quarterly report of all pending claims for
refund and unused fund.


Page 178 of 240
NIRC NIRC TRAIN
Provision
Section 109 The following transactions, among others, are The following are the changes on VAT-
VAT-exempt exempt from value-added tax: exempt transactions:
Transactions (D) Importation of professional instruments and (D) Importation of professional
implements, wearing apparel, domestic animals, instruments and implements, tools of
and personal household effects (except any trade, occupation or employment, wearing
vehicle, vessel, aircraft, machinery other goods apparel, domestic animals, and personal
for use in the manufacture and merchandise of and household effects belonging to
any kind in commercial quantity) belonging to persons coming to settle in the Philippines
persons coming to settle in the Philippines, for or Filipinos or their families and
their own use and not for sale, barter or descendants who are now residents or
exchange, accompanying such persons, or citizens of other countries, such parties
arriving within ninety (90) days before or after hereinafter referred to as overseas
their arrival, Filipinos, in quantities and of the class
suitable to the profession, rank or position
of the persons importing said items,


Page 179 of 240
Section 109 upon the production of evidence for their own use and not for barter or sale,
VAT-exempt satisfactory to the Commissioner, accompanying such persons, or arriving within
transactions that such persons are actually a reasonable time: Provided, That the Bureau of
coming to settle in the Philippines Customs may, upon the production of
and that the change of residence satisfactory evidence that such persons are
is bona fide. actually coming to settle in the Philippines and
that the goods are brought from their former
place of abode, exempt such goods from
payment of duties and taxes:


Page 180 of 240
Section 109 Provided, further, That vehicles, vessels, aircrafts,

VAT-exempt machineries and other similar goods for use in
Transactions manufacture, shall not fall within this
classification and shall therefore be subject to
duties, taxes and other charges.


Page 181 of 240
NIRC NIRC TRAIN
Provision
Section 109 Sale of real properties not Sale of real properties not primarily held for sale to
VAT-exempt primarily held for sale to customers or held for lease in the ordinary course of
Transactions customers or held for lease in trade or business or real property utilized for low-cost
the ordinary course of trade and socialized housing, residential lot valued at
or business or real property P1,500,000.00 and below; house and lot, and other
utilized for low-cost and residential dwellings valued at P2,500,000.00 and below.
socialized housing, residential
lot valued at P1,919,500.00 Beginning January 1, 2021:
and below; house and lot, •The VAT exemption shall not anymore apply to:
and other residential - Sale of low-cast housing
dwellings valued at - Sale of residential lot
P3,199,200.00 and below. •The threshold selling price amount for sale of house and
lot, and other residential dwellings shall be
P2,000,000.00


Page 182 of 240
Section 109 Every 3 years, the threshold Every 3 years, the threshold amount shall be
VAT-exempt amount shall be adjusted to its adjusted to its present value using the Consumer
Transactions present value using the Price Index, as published by the Philippine
Consumer Price Index, as Statistics Authority (PSA).
published by the National
Statistics Office.
Section 109 (Q) Lease of a residential unit (Q) Lease of a residential unit with a monthly
VAT-exempt with a monthly rental not rental not exceeding P15,000.00.
Transactions exceeding P12,800.00.
(U) Importation of fuel, goods (U) Additional provision:

and supplies by persons
engaged in international Xxx Provided, That the fuel, goods, and supplies
shipping or air transport shall be used for international shipping or air
operations. transport operations.


Page 183 of 240
Section 109 Additional exempt transactions:

VAT-exempt
Transactions (W) Sale or lease of goods and services to
senior citizens and person with disabilities.
(X) Transfer of property in merger or

consolidation [under Section 40(C)(2) of the
NIRC/tax-free exchange].
(Y) Association dues, membership fees, and

other assessments and charges collected by
homeowners associations and condominium
corporations.


Page 184 of 240
Section 109 (W) Sale or lease of goods or (Z) Sale of gold to the BSP.
VAT-exempt properties or the performance
Transactions of services other than the (AA) Sale of drugs and medicines prescribed for
transactions specifically diabetes, high cholesterol, and hypertension
mentioned as VAT-exempt, the beginning January 1, 2019.
gross annual sales and/or
receipts do not exceed the Now (BB) Sale or lease of goods or properties or
amount of P1,919,500.00 (as the performance of services other than the
amended). transactions mentioned in the preceding
paragraphs, the gross annual sales and/or receipts
do not exceed the amount of P3,000,000.


Page 185 of 240
Section 110 (A)(2) The input tax on the Amortization of input VAT shall only
(b) purchase of capital goods allowed until December 31, 2021.
Amortization of with a cost exceeding
Input VAT from P1,000,000.00 shall be After such date, taxpayers with
Purchases of Capital amortized based on its unutilized input VAT on capital goods
Goods useful life or 60 months, purchased or imported shall be allowed
whichever is shorter. to apply the same as scheduled until fully
utilized.


Page 186 of 240
Section 112 The Commissioner shall• The period of granting by the Commissioner of
Refunds or Tax Credit grant a refund or issue a tax refunds is decreased to 90 days (from 120 days)
of Input VAT credit certificate for from the date of submission of complete
creditable input taxes within documents in support of the application.
120 days from the date of
submission of complete• The granting of tax credit instead of refund is
documents. removed.
Additional provision:
Should the Commissioner find that the grant of
refund is not proper, the Commissioner must sate
in writing the legal and factual basis for denial.


Page 187 of 240
Section 112 Failure on the part of the The deemed denial of failure to act on the
Refunds or Tax Credit Commissioner to act on the application is removed.
of Input VAT application within the
period prescribed shall be Additional provision:
deemed a denial of the
application. 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 the Tax Code (administrative
fine and imprisonment).


Page 188 of 240
Section 114 (A) VAT taxpayers shall file Beginning January 1, 2023, the filing and
Return and Payment of quarterly return within 25 payment shall be done within 25 days following
VAT days following the close of the close of each taxable quarter.
each taxable quarter, while
payment of the VAT shall be
made on a monthly basis
upon filing of monthly VAT
declaration.


Page 189 of 240
Section 114 (B) Government or any of its political Additional provision:

Withholding of VAT subdivisions, instrumentalities or
agencies, including government- Beginning January 1, 2021, the VAT
owned or -controlled withholding system shall shift from final to a
corporations (GOCCs) shall, creditable system.
before making payment on
account of each purchase of Payments for purchases of goods and
goods and services which are services arising from projects funded by
subject to the value-added tax Official Development Assistance (ODA)
shall deduct and withhold a final shall not be subject to the final withholding
value-added tax at the rate of five tax system.
percent (5%) of the gross
payment thereof.


Page 190 of 240
NIRC NIRC TRAIN
Provision
Section 116 Cooperatives are exempt from the Additional exemption:
3% gross receipts 3% gross receipts tax
tax of persons Beginning January 1, 2019, self-employed
exempt from the and professionals with total annual gross
VAT sales and/or gross receipts not exceeding
P500,000 shall be exempt from the 3%
gross receipts
(The above provision was vetoed by

President Duterte because the proposed
exemption will result in unnecessary
erosion of revenues and would lead to
abuse and leakages.)


Page 191 of 240
NIRC NIRC TRAIN
Provision
Section 127 Sale, barter or exchange of shares of The rate of the stock transaction tax is
Stock transaction stock listed and traded through the local increased to 6/10 of 1%
tax stock exchange shall be subject to a tax
of ½ of 1% of the gross selling price or
gross value in money of the shares of
stock sold, bartered, exchanged or
otherwise disposed

Violations
committed by “(j) Deliberate failure to act on the
government application for refunds within the
enforcement prescribed period provided under
officers Section 112 of this Act.”


Page 192 of 240
A lessor rents his 15 residential units for ₱14,500 per unit. During
the year, his accumulated gross receipts amount to ₱2,610,000.00.
a. Is he subject to percentage tax or VAT?
b. If his accumulated gross receipts amounted to
₱3,500,000.00, is he liable to pay VAT?


Page 193 of 240
A lessor rents his 15 residential units for ₱15,500 per unit. During
the year, his accumulated gross receipts amount to ₱2,610,000.00.


Page 194 of 240
A lessor rents his 2 commercial units and 15 residential units for
₱60,000 and ₱15,000 per unit, respectively. During the year, his
accumulated gross receipts amount to ₱3,240,000.00:
₱1,440,000.00 from commercial units and ₱1,800,000.00 from
residential units.


Page 195 of 240
Mr. Q is a rice dealer. His total annual sales amounted to
₱5,000,000.00.
a. How much is his VAT liability?


Page 196 of 240
ABC Corp. purchased capital goods as follows:
Month of Amount Input Tax Useful Life Monthly Last Month of
Amortization Amortization
Purchase
January ₱8,500,000 ₱1,020,000 6 years 60 December

2018 2022
February ₱8,500,000 ₱1,020,000 4 years 48 January
2018 2022
December ₱10,000,000 ₱1,200,000 5 years 60 November
2018 2022
January ₱10,000,000 ₱1,200,000 5 years 0 Outright
2022 claim


Page 197 of 240
Briefing on RA 10963: Tax Reform for
Acceleration and Inclusion (TRAIN) –
Transfer Taxes

Page 198 of 240
Estate Tax
NIRC NIRC TRAIN
Provision
Section 84 The Estate Tax rate is based on graduated schedule. The Estate Tax rate is fixed at 6%
Rates of Estate based on the value of the net
Tax estate.
TRAIN Briefing – Transfer Taxes


Page 199 of 240
Estate Tax
Section 86 (A) The value of the net estate of a The following are the allowable
Allowable deductions resident or citizen is determined by deductions from the gross estate of a
from the gross estate deducting the following from the resident or citizen:
of a citizen/resident gross estate: 1.Standard deduction of ₱5,000,000;
1.Standard deduction of ₱1,000,000; 2.Claims against the estate;
2.Expenses, losses, indebtedness, and 3.Claims against insolvent persons;
taxes 4.Unpaid mortgage or indebtedness on
c.Funeral expenses property;
d.Judicial expenses
e.Claims against insolvent persons
f.Unpaid mortgages


Page 200 of 240
Estate Tax
Section 86 (A) 3. Property previously taxed; 5. Property previously taxed;
Allowable deductions 4. Transfers for public use; 6. Transfers for public use;
from the gross estate 5. Family home in the amount of 7. Family home, in the increased
of a citizen/resident ₱100,000,000; amount of ₱10,000,000;
6. Medical expenses, not 8. Amounts received by heirs RA No.
exceeding ₱500,000; 4917 (Retirement benefits of
7. Amount received by heirs private firm employees)
under RA No. 4917
(Retirement benefits of private
firm employees)


Page 201 of 240
Estate Tax
Section 86 (B) The value of the net estate of a non- For Non-residents:
Allowable deductions resident is determined by deducting 1.Standard deduction in the amount of
from the gross estate the following from the gross estate: ₱500,000;
of a non-resident 1. Expenses, losses, 2.Value of
alien indebtedness, and taxes in •Claims against the estate
proportion to the value of •Claims against the insolvent person
entire gross estate situated in •Unpaid mortgages
the Philippines; In proportion to the value of the entire
2. Property previously taxed; gross estate situated in the Philippines
3. Transfers for public use 3. Property previously taxed;
4. Transfers for public use


Page 202 of 240
Estate Tax
Section 86 (D) No deduction shall be allowed in the Miscellaneous provision is deleted.
Miscellaneous case of a non-resident not a citizen of
provision for non- the Philippines, unless the executor,
residents administrator, or anyone of the heirs,
as the case may be, includes in the
return required to be filed under the
Section 90 the value at the time of his
death of that part of the gross estate of
the non-resident not situated in the
Philippines.


Page 203 of 240
Estate Tax
Section 89 Notice of decedent’s death shall be Requirement for filing of notice of death
Notice of Death filed by the executor, administrator, or is removed.
any of the legal heirs within two
months after death or after qualifying
as such executor or administrator:
•In all cases of transfers subject to tax
•In cases where though exempt from
tax, the gross value of the estate
exceeds ₱20,000.


Page 204 of 240
Estate Tax
Section 90 Estate tax returns showing a gross The threshold amount for the
Attachment to Estate value exceeding ₱2,000,000 shall be requirement of attaching a statement duly
Tax Return – CPA supported with a statement duly certified by a CPA is increased to
certification certified by a CPA ₱5,000,000 (from ₱2,000,000).
Section 90 Estate tax returns shall be filed within The filing of estate tax returns shall be
Time of filing of six (6) months from the decedent’s within one (1) year from the decedent’s
estate tax return death. death.


Page 205 of 240
Estate Tax
Section 91 (C) No provision In case the available cash of the estate is
Payment by insufficient to pay the total estate tax due,
installment of estate payment by installment shall be allowed
tax [new] within two (2) years from the statutory
date of payments, without civil penalty
and interest.


Page 206 of 240
Estate Tax
Section 97 If a bank has knowledge of the death If a bank has knowledge of the death of a
Payment of tax of a person, who maintained a bank person, who maintained a bank deposit
antecedent to the deposit account alone, or jointly with account alone, or jointly with another, it
transfer of shares, another, it shall not allow any shall allow any withdrawal from the said
bonds, or rights withdrawal from the said deposit deposit account, subject to a final
account unless the Commissioner has withholding tax of (6%).
certified that the taxes imposed
thereon have been paid.


Page 207 of 240
Donor’s Tax
NIRC NIRC TRAIN
Provision
Section 99 The donor’s tax for each calendar year shall be The donor’s tax for is fixed at 6% based on
Rates of tax computed on the basis of the total net gifts made during annual total gifts exceeding ₱250,000
the calendar year in accordance with the graduated tax (exempt gift), regardless of whether the
table. done is a stranger or not.
NET GIFT TAX NET GIFT TAX
Not over ₱100,000 Exempt Over ₱1M but ₱44,000 + 8% of the
Over ₱100,000 but 2% of the excess not over ₱3M excess over ₱1M
not over ₱200,000 over ₱100,000 Over ₱3M but ₱204,000 + 10% of the
not over ₱5M excess over ₱3M
Over ₱200,000 but ₱2,000 + 4% of the
not over ₱500,000 excess over Over ₱5M but ₱404,000 + 12% of the
₱200,000 not over ₱10M excess over ₱5M
Over ₱500,000but ₱14,000 + 6% of
not over ₱1M the excess over Over ₱10M ₱1,004,000 + 15% of
₱500,000 the excess over ₱10M

Page 208 of 240
Donor’s Tax
Section 99 The donor’s tax shall be 30% of the The donor’s at is fixed at 6% based on
Rates of tax net gifts when the done or beneficiary annual total gifts exceeding ₱250,000
is a stranger. (exempt gift) regardless of whether the
donee is a stranger or not.


Page 209 of 240
Donor’s Tax
Section 100 The amount by which the fair market Additional proviso:
Transfer for less than value of the property transferred Even if the sale, exchange or other
adequate exceeded the value of the transfer of property is for an insufficient
consideration consideration received for such consideration, the same will still be
transfer, shall for purpose of donor’s considered made for adequate and full
tax, be deemed a gift and included in consideration provided that such transfer
computing the amount of gifts made is made in the ordinary course of
during the year. business, i.e.,:
•A bona fide transaction;
•At arm’s length; and
•Free from donative intent.


Page 210 of 240
Donor’s Tax
Section 101 Dowries or gifts made on account of The exemption of dowries (gifts made on
Exemption of certain marriage by parents to each of their account of marriage) is removed.
gifts legitimate, recognized , natural, or
adopted children to the extent of the
first ₱10,000 shall be exempt from
donor’s tax.


Page 211 of 240
Decedent is unmarried. The estate is composed of the following:
a. Real and personal properties ₱ 14,000,000.00
b. Family Home ₱ 30,000,000.00
c. Unpaid Real Estate Tax ₱ 2,000,000.00
1.How much is the gross estate?

2.How much is the net taxable estate?


Page 212 of 240
Real and Personal Properties ₱14,000,000.00
Family Home 30,000,000.00
Gross Estate ₱44,000,000.00
Less: Deductions
Ordinary Deductions:
Unpaid Real Estate Tax ₱2,000,000.00
Special Deductions:
Family Home 10,000,000.00
Standard Deduction 5,000,000.00 17,000,000.00
Net Taxable Estate ₱27,000,000.00


Page 213 of 240
Decedent is married. The estate is composed of the following:
b. Family Home (conjugal) ₱ 30,000,000.00
c. Exclusive Properties ₱ 5,000,000.00
d. Ordinary Deductions ₱ 2,000,000.00



Page 214 of 240
EXCLUSIVE CONJUGAL TOTAL
Family Home ₱30,000,000.00 ₱30,000,000.00
Real and Personal ₱14,000,000.00 14,000,000.00
Properties
Exclusive ₱5,000,000.00 5,000,000.00
Properties
Gross Estate ₱5,000,000.00 ₱44,000,000.00 ₱49,000,000.00


Page 215 of 240
Gross Estate ₱5,000,000.00 ₱44,000,000.00 ₱49,000,000.00
Ordinary Deductions 2,000,000.00
Special Deductions
FH ₱10,000,000.00
SD 5,000,000.00 15,000,000.00
Net Estate ₱32,000,000.00
Less: SSS 21,000,000.00


Page 216 of 240
b. Family Home (exclusive) ₱ 30,000,000.00
c. Ordinary Deductions ₱ 2,000,000.00



Page 217 of 240
Family Home ₱30,000,000.00 ₱30,000,000.00
Properties
Gross Estate ₱30,000,000.00 ₱14,000,000.00 ₱44,000,000.00


Page 218 of 240
Gross Estate ₱30,000,000.00 ₱14,000,000.00 ₱44,000,000.00
Special Deductions
FH ₱10,000,000.00
SD 5,000,000.00 15,000,000.00
Net Estate ₱27,000,000.00
Less: SSS 6,000,000.00


Page 219 of 240
b. Family Home (conjugal) ₱ 9,000,000.00
c. Exclusive Properties ₱ 5,000,000.00
d. Ordinary Deductions ₱ 2,000,000.00



Page 220 of 240
Family Home ₱9,000,000.00 ₱9,000,000.00
Properties
Exclusive ₱5,000,000.00 5,000,000.00
Properties
Gross Estate ₱5,000,000.00 ₱23,000,000.00 ₱28,000,000.00


Page 221 of 240
Gross Estate ₱5,000,000.00 ₱23,000,000.00 ₱28,000,000.00
Special Deductions
FH ₱4,500,000.00
SD 5,000,000.00 9,500,000.00
Net Estate ₱16,500,000.00
Less: SSS 10,500,000.00


Page 222 of 240
b. Family Home (exclusive) ₱ 9,000,000.00
c. Ordinary Deductions ₱ 2,000,000.00



Page 223 of 240
Family Home ₱9,000,000.00 ₱9,000,000.00
Properties
Gross Estate ₱9,000,000.00 ₱14,000,000.00 ₱23,000,000.00


Page 224 of 240
Gross Estate ₱9,000,000.00 ₱14,000,000.00 ₱23,000,000.00
Special Deductions
FH ₱9,000,000.00
SD 5,000,000.00 14,000,000.00
Net Estate ₱7,000,000.00
Less: SSS 6,000,000.00


Page 225 of 240
The following donations were made:
1.January 15, 2018 ₱100,000.00
2.January 30, 2018 ₱2,000,000.00
3.March 30, 2018 ₱1,000,000.00
4.August 15, 2018 ₱500,000.00
5.December 25, 2018 ₱50,000.00
Compute for the donor’s taxes.


Page 226 of 240
DATE NET GIFT DONOR’S
January 15 ₱100,000.00 TAX₱0.00
January 30 ₱1,850,000.00 ₱111,000.00
March 30 ₱2,850,000.00 ₱60,000.00
August 15 ₱3,350,000.00 ₱30,000.00
December 25 ₱3,400,000.00 ₱3,000.00


Page 227 of 240
(TRAIN) – Administrative Provisions

Page 228 of 240
Section 232 All corporations, companies,All corporations, companies, partnerships

Keeping of books partnerships or persons required by or persons required by law to pay internal
of accounts law to pay internal revenue taxes shallrevenue taxes shall keep and use relevant
keep a journal and a ledger. and appropriate set of bookkeeping
records duly authorized by the Secretary
Those whose quarterly sales, earnings, of Finance.
receipts, or output do not exceed
PHP50,000 shall keep and use
simplified set of bookkeeping records.
TRAIN Briefing – Administrative Provisions


Page 229 of 240
NIRC NIRC TRAIN
Provision
Section 232 Those whose gross quarterly sales, Those whose gross annual sales,
Keeping of books earnings, receipts or output exceed earnings, receipts or output exceed
of accounts P150,000 shall have their books of ₱3,000,000 shall have their books of
accounts audited and examined yearly accounts audited and examined yearly by
by independent Certified Public independent CPAs and their ITRs
Accountants (CPAs) and their ITRs accompanied with a duly accomplished
accompanied Account Information AIF.
Form (AIF).


Page 230 of 240
NIRC NIRC TRAIN
Provision
Section 232 All corporations, companies, All corporations, companies, partnerships
Keeping of books partnerships, or persons required by or persons required by law to pay internal
of accounts law to pay internal revenue taxes shall revenue taxes shall keep and use relevant
keep a journal and a ledger. and appropriate set of bookkeeping
records duly authorized by the Secretary
Those whose quarterly sales, of Finance.
earnings, receipts, or output do not
exceed P50,000 shall keep and use
simplified set of bookkeeping records


Page 231 of 240
Section 236 The taxpayer’s registration shall contain Additional proviso:

Registration the information as may be required by the
Requirements Commissioner in the form prescribed The Commissioner shall simplify the
business registration and tax compliance
requirements of self-employed individuals
and/or professionals.
Persons required to register for VAT:

those whose gross receipts
•for the past 12 months have exceeded Threshold amount is increased to
₱1,500,000 ₱3,000,000.


Page 232 of 240
Section 236 • For the next 12 months can be Additional proviso:

Registration reasonably believe to exceed
Requirements ₱1,500,000 Any taxable individual who elects to pay
the 8% tax on gross sales or receipts shall
not be allowed to avail of optional VAT
registration.
Any person not required to register for
VAT may elect to register for VAT.
Section 237 A duly-registered receipt or sales or It is expressly provided that the issuance of
Receipts or Invoices commercial invoice , prepared at least in the receipt or invoice shall be made at the
duplicate, shall be issued for each sale of point of sale.
merchandise or service rendered valued
at ₱25 or more.
The threshold amount is increased to
₱100.00

Page 233 of 240

Receipts or Invoices Within 5 years from the effectivity of the
law and upon the establishment of the
necessary storing and processing system, the
following shall be required to issue
electronic receipts or sales or commercial
invoices in lieu of manual receipts/invoices:
•taxpayers engaged in the export of goods
and services
•taxpayers engaged in e-commerce, and
•taxpayers under the jurisdiction of the
Large Taxpayers Service


Page 234 of 240
Section 237 Other taxpayers may also opt to issue

Receipts or Invoices electronic receipts/invoices in lieu of manual
ones.
The digital record of electronic receipts/

invoices shall be kept by the purchaser,
customer or client and the issuer for a period
of 3 years from the close of the taxable year.


Page 235 of 240
Section 237 (A) No provision The taxpayers that will be mandated under
Electronic Sales Sections 236 to issue electronic
Reporting System receipts/invoices shall be required to
[new] electronically report their sales data to the
BIR through the use of electronic point of
sales systems.
The machines, fiscal devices, and fiscal

memory devices shall be at the expense of
the taxpayers.


Page 236 of 240
Section 237 (A) No provision The data processing of sales and purchase
Electronic Sales data shall comply with:
Reporting System •the Data Privacy Act
[new] •the provision of the Tax Code on unlawful
divulgence of taxpayer information (Section
270)
•other laws relating to the confidentiality of
information
The BIR shall also establish policies, risk

management approaches, actions, trainings,
and technologies to protect the cyber
environment, organization, and data.


Page 237 of 240
(TRAIN) – Penalties

Page 238 of 240
General interest 20% interest on any unpaid amount of General interest on unpaid amount of tax
tax from the date prescribed for is changed to 12% (at double the rate of
payment until the amount fully paid legal interest rate for loans or forbearance
of any money in the absence of an
express stipulation as set by the BSP;
prevailing BSP-set legal interest is 6%)
Additional proviso:
Deficiency and delinquency interest shall
in no case be imposed simultaneously.
TRAIN Briefing – Penalties


Page 239 of 240
(TRAIN) Thank You

Page 240 of 240

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token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Background on the Tax Reform

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https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

What is the purpose of TRAIN?

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Php 130 Billion

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Increasing the Excise Tax on Increasing the Excise Introducing an Excise

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Poverty rate Law abiding Peace within Achieve high

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Extreme Inclusive Achieve high

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

What is the motive for TRAIN?

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Higher budget for Infrastructure development

Higher efficiencies, increase in business activities and revenues

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Higher budget for education

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Higher budget for health

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Higher budget for Social Protection, Welfare and

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

Section 5 (B) Provides for the authority of the Additional provision:

TRAIN Briefing – Power & Authority of the CIR

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

TRAIN Briefing – Power & Authority of the CIR

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

TRAIN Briefing – Excise Taxes

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

(a.1) Locally produced or imported oils previously taxed P 4.50

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

(c) Waxes and petrolatum per kilogram. P 3.50

(f) Naphtha, regular gasoline, and other P 4.35

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

(i) Aviation turbo jet fuel, per liter of volume P 3.67

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

TRAIN Briefing – Excise Taxes

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

(p) Naphtha and pyrolysis gasoline, when used as a raw P 0.00

TRAIN Briefing – Excise Taxes

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

TRAIN Briefing – Excise Taxes

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

The use of an official fuel marking or similar technology on

TRAIN Briefing – Excise Taxes

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

PRODUCT TYPE RA TRAIN

TRAIN Briefing – Excise Taxes

https://lookaside.fbsbx.com/file/SICAP_SLU%20train%20%281%29.ppt?token=AWyAlWpJRrrVtO…ebKfUneMPY59aKsAAkZntAfYSWrLM9RntQukhpgDgajvBk9qu_kEoC7c3wAZ1ON4zbtM9HSfGl7Aw 2/14/19, 7e32 PM

PRODUCT TYPE RA 10351/ TRAIN

On all non-metallic mineral and quarry resources