1st tax reform package into law signed by President Duterte

MANILA, Philippines - President Rodrigo Duterte has signed Republic Act 10963 or the Train law – a priority measure of the Duterte administration – at Malacañang's Ceremonial Hall on Tuesday, December 19, 2017. Duterte signed into law the Tax Reform for Acceleration and Inclusion (Train) bill which is expected to generate P130 billion in revenues.

The Train law reduces personal income tax but imposes higher tax on fuel, cars, tobacco, and sugary beverages to fund infrastructure and development projects of the government

Lower income tax- Income taxpayers with an annual salary of P250,000, or those earning approximately P22,000 monthly and below, are now exempt from income tax payment.

With the Train law now signed, almost all the 7.5 million income taxpayers in the country should see a reduction in their income tax rates starting next year, according to a media briefer from the Senate committee on ways and means on the bicameral committee-approved Train bill.

Revenues from the tax reform measure are meant to fund the Duterte government's Build, Build, Build infrastructure program and socio-economic programs.

The law also exempts from tax payment the first P90,000 of the 13th month pay and other bonuses.

Self-employed professionals will see new income tax rates with the introduction of an 8% flat tax on gross sales or receipts instead of income tax and percentage tax to be filed once a year.

Higher income taxes - Higher tax on fuel, cars, tobacco, and sugary beverages to fund infrastructure and development projects of the government. To make up for the loss of revenue due to reduced income tax it will be imposed.