JOB

INSIDE JOB
history
history
history
history
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 history
history
history
history
History Repeats Itself
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Broken Promise
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Once Upon A Time

Apple Pie
MATHEMATICS OF
FINANCE
Income Tax
VAT
Home Acquisition
 You will be divided into 15 groups.
 Each group will be assigned a category.
 Research every detail concerning the
category you have picked.
 You will be given more or less 10 minutes
to talk about the details of the category
you have picked.
 You have 30 minutes for research. After
30 minutes the presentation will start.
TRAIN LAW
 Tax Reform for Acceleration and Inclusion
 Republic Act (RA) 10963
 initiated by the Department of Finance
(DOF)
 ratified by Congress
 December 19, 2017
 Pres. Rodrigo R. Duterte
 Implementation is effective January 1,
2018
TRAIN LAW Cont.
 provides for the increase in take-home
pay of salaried Filipino by reducing income
tax rates
 increasing and rationalizing tax rates in
other goods and services
What’s included in the TRAIN Law?
What’s included in the TRAIN Law?
What’s included in the TRAIN Law?
New Personal Income Tax Rates
 Personal income tax rates will be
lowered
 Salaried employees earning
annual income P250,000 or
below will be exempted from
paying taxes
New Personal Income Tax Rates
New Personal Income Tax Rates
Lower Tax Rates for Professionals
 Professionals will be charged a
withholding tax of 8% flat rate on
gross sales or receipts
 Self-employed professionals
earning annual income of P3
million and below may choose to
pay the 8% flat tax or follow the
personal income tax table
Tax on 13th Month Pay and Other
Bonuses
 13th
month pay and bonuses paid
to employees that amount to
P90,000 or below will not be
taxed.
Tax on Drinks using Sugar and
Caloric/Non-Caloric Sweeteners
 Beverages that use sugar and
other sweeteners are taxed
effective January 1, 2018
 These include softdrinks and
other cola drinks, fruit juices, and
powdered drinks among others.
Tax on Drinks using Sugar and
Caloric/Non-Caloric Sweeteners
 The sugar tax is as follows:
 P6.00 per liter of drink that uses
caloric and non-caloric
sweeteners
 P12.00 per liter that uses high
fructose corn syrup (HFCS)
Tax Exemption of milk, 3-in-1
coffee, medicines for diabetes, etc.
 Exempted from the sugar tax are
as follows:
 Milk, 3-in-1 coffee, 100% natural
fruit juice or vegetable juice,
medically-indicated beverages,
and drinks and beverages that
use natural sweeteners such as
coco sugar or stevia.
Tax Exemption of milk, 3-in-1
coffee, medicines for diabetes, etc.
 Drugs and medicines prescribed
for diabetes, high cholesterol, or
hypertension will also be
exempted from the 12% VAT
Taxes on LPG, Diesel, Gasoline,
and other fuel products
Taxes on Cars and Automobiles
Tax on Coals
 Previously P10.00 tax per metric
ton
 The approved excise tax on coal
is as follows:
 P50.00 for 2018
 P100.00 for 2019
 P150.00 for 2020
Tax on Tobacco Products
 Excise tax on tobacco products will
initially rise to P32.50 for the first 6
months of 2018, then will rise to
P35.00 for the rest of 2018 and
2019;
 P37.50 for 2020 to 2021;
 P40.00 for 2022 to 2023;
 From 2023 onwards it will rise 4%
annually
Donor’s Tax
 Donations or gifts with at least
P250,000 worth will be charged
a donor’s tax of 6% flat rate
 This will be charged regardless of
the relationship between the
donor and the donee.
Estate Tax
 The estate tax, or tax levied on
the properties or estate of lawful
heirs and beneficiaries inherited
from a deceased person, will now be
subject to a flat rate of 6% on the
amount in excess of P5 million.
 Family homes that are valued at
P10 million or less will be exempted
from estate tax
Tax on Cosmetic Surgeries and
Aesthetic Procedures
 5%tax on cosmetic surgeries,
aesthetic procedures, and body
enhancements.
Documentary Stamp Tax
 The documentary stamp tax
(DST) charged on some legal or
business transactions will double
from P1.50 to P3.00 beginning
2018.
Stock Transaction Tax
 The stock transaction tax — a tax
charged on stock sellers when a buy or
sell transaction is made — will be
increased to 0.6% of the gross trade
amount from the current 0.5% rate.
 Stock-related transactions of
companies not listed in the Philippine
Stock Exchange (PSE) will be slapped
with a higher stock transaction tax of
15%, an increase from the current 5%
or 10%.
Foreign Currency Interest Income
Tax
 The tax on interest income on
foreign currency deposits is
currently pegged at 7.5%. This will
increase to 15% of the interest
on foreign currency deposit unit
(FCDU) under the TRAIN tax
reform.