Tax Reform for Acceleration and Inclusion (TRAIN) Law

March 2018PRIMER ON REPUBLIC ACT NO. 10963TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN) LAWPERSONAL INCOME TAXStarting January 1, 2018, compensation income earners, self-employed and professional taxpayers (SEPs) whose annual taxable incomes are P250,000 or less are exempt from the personal income tax (PIT). The 13th month pay and other benefits amounting to P90,000 are likewise tax-exempt.Tax schedule effective January 1, 2018 until December 31, 2022 is as follows: AMOUNTRATESNot Over P250,0000%Over P250,000 but not over P400,00020% of the Excess Over P250,000Over P400,000 but not over P800,000P30,000 + 25% of the Excess over P400,000Over P800,000 but not over P2,000,000P130,000 + 30% of the Excess over P800,000Over P2,000,000 but not over P8,000,000P490,000 + 32% of the Excess over P2,000,000Over P8,000,000P2,410,000 + 35% of the Excess over P8,000,000 Tax schedule effective January 1, 2023 and onwards: AMOUNTRATESNot Over P250,0000%Over P250,000 but not over P400,00015% of the Excess Over P250,000Over P400,000 but not over P800,000P22,500 + 20% of the Excess over P400,000Over P800,000 but not over P2,000,000P102,500 + 25% of the Excess over P800,000Over P2,000,000 but not over P8,000,000P402,500...