Based on your readings and research, how would you describe the evolution of

income taxation for both individual taxpayers and non-individual taxpayers over
the past 5 years.

D13

Indeed, the Philippine income taxation, in its totality, has changed drastically over
the past five years. By tracing back to 2016, the National Internal Revenue Code (NIRC)
or RA 8424 was the governing tax law in our country which was enacted in 1997.
Leading to the prevalence of RA 10963 in 2018, the Package 1 of Comprehensive Tax
Reform Program (CTRP) or most commonly recognized as the Tax Reform for
Acceleration and Inclusion (TRAIN) was signed into law by President Rodrigo Duterte.
Primarily, the said law modified the Regular Income Tax (RIT) table for individual
taxpayers, and as compared to NIRC, the TRAIN now fully exempts the first P250,000
annual net taxable income of individual taxpayers which would greatly help individuals
earning compensation & mixed income earners in their corresponding ventures.
Additionally, the tax reform levied a 20% Final Income Tax (FIT) on PCSO and lotto
winnings exceeding 10,000. For Capital Gains Tax (CGT), the rate was simplified to a
flat 15% from the two-tiered 5-10% to all taxpayers except foreign corporations.

Furthermore, the Corporate Recovery and Tax Incentives for Enterprises Act
(CREATE) was signed into law this year 2021. Its provisions were designed to ease the
burden of COVID-19 mainly on both local and foreign corporations, provide tax
assistance to enterprises in financial distress, and boost the country's competitiveness
amidst the unchartered waters brought by the current contagion. Domestic and RF
Corporations can now enjoy a significant reduction in their RCIT and MCIT from 30% to
25% and 2% to 1% respectively, and for NRFCs, a 5% reduction on their RCIT was
made as well. Therefore, the evolution of income taxation shows that our country is
adaptable to the changing situations and circumstances in order to fairly serve and
support its residents.

References
Banggawan, R. B. (2019). Income Taxation: Laws, Principles & Applications. Baguio City: Real Excellence
Publishing.
National Tax Research Center. (2018, March). Tax Changes You Need to Know: Tax Reform Acceleration
and Inclusion (TRAIN). Retrieved from National Tax Research Center:
https://ntrc.gov.ph/images/train/Tax-Changes-You-Need-to-Know-under-RA-10963.pdf

Prodent, L. (2021, April 16). The Philippines CREATE Act Comes into Effect, Pushing for Accelerated
Economic Recovery. Retrieved from ASEAN Briefing: https://www.aseanbriefing.com/news/the-
philippines-create-act-comes-into-effect-pushing-for-accelerated-economic-recovery/

Indeed, the Philippine income tax, in its totality, has changed profoundly over the past five years.
By tracing back to 2016, the National Internal Revenue Code (NIRC) or RA 8424 was the
governing tax law in our country which was enacted in 1997. Leading to the prevalence of RA
10963 in 2018, the Package 1 of the Comprehensive Tax Reform Program (CTRP) or most
commonly recognized as the Tax Reform for Acceleration and Inclusion (TRAIN) was signed
into law by President Rodrigo Duterte. Primarily, the said law modified the Regular Income Tax
(RIT) table for individual taxpayers, and as compared to NIRC, the TRAIN now fully exempts
the first P250,000 annual net taxable income of individual taxpayers which will considerably
benefit those who earn compensation or have a mixed income in their corresponding ventures.
Additionally, the tax reform levied a 20% Final Income Tax (FIT) on PCSO and lotto winnings
exceeding 10,000. For Capital Gains Tax (CGT), the rate was simplified to a flat 15% from the
two-tiered 5-10% for all taxpayers except foreign corporations.

Furthermore, the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) was
signed into law this year 2021. Its provisions were designed to ease the burden of COVID-19
mainly on both local and foreign corporations, provide tax assistance to enterprises in financial
distress, and boost the country's competitiveness amidst the unchartered waters brought by the
current contagion. Domestic and RF Corporations can now enjoy a significant reduction in their
RCIT and MCIT from 30% to 25% and 2% to 1%, respectively, and for NRFCs, a 5% reduction
on their RCIT was made as well. Therefore, the evolution of income taxation shows that our
country is adaptable to the changing situations and circumstances in order to fairly serve and
support its residents.

Indeed, the Philippine income tax, in its totality, has profoundly changed over the past five years.
By tracing back to 2016, the National Internal Revenue Code (NIRC) or RA 8424 was the
governing tax law in our country which was enacted in 1997. Leading to the prevalence of RA
10963 in 2018, the Package 1 of the Comprehensive Tax Reform Program (CTRP) or most
commonly recognized as the Tax Reform for Acceleration and Inclusion (TRAIN) was signed
into law by President Rodrigo Duterte. Primarily, the said law modified the Regular Income Tax
(RIT) table for individual taxpayers, and as compared to NIRC, the TRAIN now fully exempts
the first P250,000 annual net taxable income of individual taxpayers which will considerably
benefit those who earn compensation or have a mixed income in their corresponding ventures.
Additionally, the tax reform levied a 20% Final Income Tax (FIT) on PCSO and lotto winnings
exceeding 10,000. For Capital Gains Tax (CGT), the rate was simplified to a flat 15% from the
two-tiered 5-10% for all taxpayers except foreign corporations.
Furthermore, the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) was
signed into law this year 2021. Its provisions were designed to ease the burden of COVID-19
mainly on both local and foreign corporations, as well as provide tax assistance to enterprises in
financial distress, and boost the country's competitiveness amidst the unchartered waters brought
by the current contagion. Domestic and RF Corporations can now enjoy a significant reduction
in their RCIT and MCIT from 30% to 25% and 2% to 1%, respectively, and for NRFCs, a 5%
reduction in their RCIT was made as well. Therefore, the evolution of income taxation shows
that our country is adaptable to the changing situations and circumstances in order to fairly serve
and support its residents.

Indeed, the Philippine income tax, in its totality, has profoundly changed over the past
five years. By tracing its origins back to 2016, the National Internal Revenue Code
(NIRC) or RA 8424 was the governing tax law in our country which was enacted in
1997. Leading to the prevalence of RA 10963 in 2018, the Package 1 of the
Comprehensive Tax Reform Program or most commonly recognized as the Tax Reform
for Acceleration and Inclusion (TRAIN) was signed into law by President Rodrigo
Duterte. Primarily, the said law modified the Regular Income Tax (RIT) table for
individual taxpayers, and as compared to NIRC, the TRAIN now fully exempts the first
P250,000 annual net taxable income of individual taxpayers which will considerably
benefit those who earn compensation or have a mixed income in their corresponding
ventures.  Additionally, the tax reform levied a 20% Final Income Tax (FIT) on PCSO
and lotto winnings exceeding 10,000. For Capital Gains Tax (CGT), the rate was
simplified to a flat 15% from the two-tiered 5-10% for all taxpayers except foreign
corporations.

Furthermore, the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE)
was signed into law this year 2021. Its provisions were designed to ease the burden of
COVID-19 mainly on both local and foreign corporations, as well as provide tax
assistance to enterprises in financial distress, and boost the country's competitiveness
amidst the unchartered waters brought by the current contagion. Domestic and RF
Corporations can now enjoy a significant reduction in their RCIT and MCIT from 30% to
25% and 2% to 1%, respectively, and for NRFCs, a 5% reduction in their RCIT was
made as well. Therefore, the evolution of income taxation shows that our country is
adaptable to the changing situations and circumstances in order to fairly serve and
support its residents.

Indeed, the Philippine income tax, in its totality, has profoundly changed over the past five years.
By tracing its origins back to 2016, the National Internal Revenue Code (NIRC) or RA 8424 was
the governing tax law in our country which was enacted in 1997. Leading to the prevalence of
RA 10963 in 2018, the Package 1 of the Comprehensive Tax Reform Program or most
commonly recognized as the Tax Reform for Acceleration and Inclusion (TRAIN) was signed
into law by President Rodrigo Duterte. Primarily, the said law modified the Regular Income Tax
(RIT) table for individual taxpayers, and as compared to NIRC, the TRAIN now fully exempts
the first P250,000 annual net taxable income of individual taxpayers which will considerably
benefit those who earn compensation or have a mixed income in their corresponding ventures.
Additionally, the tax reform levied a 20% Final Income Tax (FIT) on PCSO and lotto winnings
exceeding 10,000. For Capital Gains Tax (CGT), the rate was simplified to a flat 15% from the
two-tiered 5-10% for all taxpayers except foreign corporations.

Furthermore, the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) was
signed into law this year 2021. Its provisions were designed to ease the burden of COVID-19
mainly on both local and foreign corporations, as well as provide tax assistance to enterprises in
financial distress, and boost the country's competitiveness amidst the unchartered waters brought
by the current contagion. Domestic and RF Corporations can now enjoy a significant reduction
in their RCIT and MCIT from 30% to 25% and 2% to 1%, respectively, and for NRFCs, a 5%
reduction in their RCIT was made as well. Therefore, the evolution of income taxation shows
that our country is adaptable to the changing situations and circumstances in order to fairly serve
and support its residents.

Indeed, the Philippine income tax, in its totality, has profoundly changed over the past five years.
By tracing its origins back to 2016, the National Internal Revenue Code (NIRC) or RA 8424 was
the governing tax law in our country which was enacted in 1997. Leading to the prevalence of
RA 10963 in 2018, the Package 1 of the Comprehensive Tax Reform Program or most
commonly recognized as the Tax Reform for Acceleration and Inclusion (TRAIN) was signed
into law by President Rodrigo Duterte. Primarily, the said law modified the Regular Income Tax
(RIT) table for individual taxpayers, and as compared to NIRC, the TRAIN now fully exempts
the first P250,000 annual net taxable income of individual taxpayers which will considerably
benefit those who earn compensation or have a mixed income in their corresponding ventures.
Additionally, the tax reform levied a 20% Final Income Tax (FIT) on PCSO and lotto winnings
exceeding 10,000. For Capital Gains Tax (CGT), the rate was simplified to a flat 15% from the
two-tiered 5-10% for all taxpayers except foreign corporations.

Furthermore, the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) was
signed into law this year 2021. Its provisions were designed to ease the burden of COVID-19
mainly on both local and foreign corporations, as well as provide tax assistance to enterprises in
financial distress, and boost the country's competitiveness amidst the unchartered waters brought
by the current contagion. Domestic and RF Corporations can now enjoy a significant reduction
in their RCIT and MCIT from 30% to 25% and 2% to 1%, respectively, and for NRFCs, a 5%
reduction in their RCIT was made as well. Therefore, the evolution of income taxation shows
that our country is adaptable to the changing situations and circumstances in order to fairly serve
and support its residents.

I definitely concur! You provided a concise explanation of the key provisions of the three major
tax laws from the commencement of NIRC to the recently passed CREATE Act. Also, I would
like to accentuate what you mentioned that the changes and modifications in the PH Income
Taxation for the past five years were intended to “foster sustainable economic growth and adapt
to rapid changes” which I think is truly important now as we currently encounter a pandemic
where sustainability and adaptability must be upheld and embraced. I admire as well how the
CREATE Act reduced some tax percentages for corporations in order to assist them in
recovering from the horrendous impacts of Covid-19.
Based on your reading(s) and research(es), how would you describe the
evolution of business taxation for both individual taxpayers and non-individual
taxpayers over the past 5 years.

D13

Just like our prior discussion about income taxation, the Philippine business tax, as one
of the integral pillars of our national taxation, has faced substantial revisions as well
over the past five years from the voyage of NIRC to the arrival of TRAIN and CREATE.
By digging deeper, the TRAIN brought significant changes in the area of Value Added
Tax and some of its noteworthy provisions encompass the inclusion of the following
transactions to the list of VAT exempt ones: (1) sale of gold to BSP; (2) sale of drugs &
medicines for diabetes, high cholesterol and hypertension; (3) association dues,
membership fees and other fees by homeowners’ associations and corporate
condominiums; and (4) transfer of property in pursuance of merger or consolidation.
Also, the VAT-exempt threshold of Php. 1,919,500 was adjusted to Php. 3,000,000,
benefiting a number of small to medium businesses.

Moreover, under CREATE act, the VAT exemption on the sale/importation of capital
equipment needed to produce PPEs and drugs for COVID-19 treatment was passed,
which clearly is crucial now as we fight an unseen culprit. In light with that, selling and
importing medicines for cancer, mental illness, tuberculosis, and kidney diseases is now
VAT exempt as well. Lastly, the percentage tax had a 2% reduction from its previous
3% rate.
 We’re in accord, Justin. Indeed, the recent changes in business taxation are
reflected by the government’s desire of levying fair and reasonable taxes. Also, I
applaud how the CREATE act spared transactions involving COVID-19 supplies and
medications from VAT in order to aid our country in fighting the pandemic. Lastly, the
increases in some excise taxes are admirable since they would encourage Filipinos to
limit their consumption of sin products like cigarettes.

Jenica, you are certainly right! I commend your discussion about the significant
changes in business taxation in our country that were enacted to impose fair and
equitable taxes. By lowering the general percentage tax rate from 3% to 1%, and
exempting specific transactions concerning COVID-19 treatment, the provisions of
CREATE act, indeed, were timely and meant to assist taxpayers in dealing with the
adversities brought by the pandemic.

The provisions of CREATE act were timely and intended to help taxpayers in
dealing with the adversities brought by the pandemic by reducing the general
percentage tax rate and exempting certain transactions concerning COVID-19
treatment.

and exemptions of some transactions such as

Indeed, the exemption of COVID-19 supplies & medicines under the provision of
CREATE Act was truly

Jenica, you are absolutely correct! I commend your description of the important
improvements in our country's corporate taxation that were adopted to levy fair and
equitable taxes.
 Jenica, you are certainly right! I commend your discussion about the significant
changes in business taxation in our country that were enacted to impose fair and
equitable taxes. Indeed, by lowering the general percentage tax rate from 3% to 1%,
and exempting specific transactions concerning COVID-19 treatment, the provisions of
CREATE act were timely and meant to assist taxpayers in dealing with the adversities
brought by the pandemic.

Jenica, you are certainly right! I commend your discussion about the significant
changes in business taxation that were enacted to impose fair and equitable taxes.
Indeed, the provisions of the CREATE act were timely and aimed to benefit taxpayers in
dealing with the adversities brought by the pandemic by lowering the general
percentage tax rate from 3% to 1% and exempting specific transactions concerning
COVID-19 treatment.