March 2018
PRIMER ON REPUBLIC ACT NO. 10963
TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN) LAW
PERSONAL INCOME TAX
Starting 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:
AMOUNT | RATES |
Not Over P250,000 | 0% |
Over P250,000 but not over P400,000 | 20% of the Excess Over P250,000 |
Over P400,000 but not over P800,000 | P30,000 + 25% of the Excess over P400,000 |
Over P800,000 but not over P2,000,000 | P130,000 + 30% of the Excess over P800,000 |
Over P2,000,000 but not over P8,000,000 | P490,000 + 32% of the Excess over P2,000,000 |
Over P8,000,000 | P2,410,000 + 35% of the Excess over P8,000,000 |
Tax schedule effective January 1, 2023 and onwards:
AMOUNT | RATES |
Not Over P250,000 | 0% |
Over P250,000 but not over P400,000 | 15% of the Excess Over P250,000 |
Over P400,000 but not over P800,000 | P22,500 + 20% of the Excess over P400,000 |
Over P800,000 but not over P2,000,000 | P102,500 + 25% of the Excess over P800,000 |
Over P2,000,000 but not over P8,000,000 | P402,500 + 30% of...
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