Benefits of TRAIN

Health and Education

Estate and Donor’s Tax
Estate tax Donor’s tax TAX
REFORM
TRAIN will fund priority programs and projects in education, health,
and social protection.

100%
NOW
• Single tax rate of 6% of the • Single tax rate of 6% of net
estate’s net value donations for gifts above
Enrollment and 113,553 181,980 • Standard deduction of P100,000 yearly, regardless of
completion rates Classrooms Teachers relationship
P1 million and exemption of
up to P3 million for
family homes
100%
Establish 25 and
upgrade 704 PhilHealth Hire 176,922
Complementary Measures
local hospitals coverage with more health
better services professionals
Tax Administration Unconditional Cash
from 2017 Since 2016, the Duterte Transfers (UCT)
to 2020: administration has focused on
Upgrade and/or relocate 4,824 doctors
263 rural and urban health improving the Bureau of Internal
104,629 nurses
units to disaster-
16,300 midwives
Revenue (BIR) and the Bureau of
resilient facilities Customs (BOC). TRAIN also
51,169 dentists,
Build 15,988 new barangay pharmacists, includes the following A P2,400* one-time support for
health stations medical the poorest 50% of households.
Build 2,424 new rural and technologists, and administrative measures:
public health *Tentative amount based on actual
urban health centers • Mandatory fuel marking tax revenues
associates
• Provision for use of e-receipts
Public Transport
Rural and Urban Infrastructure • Bank secrecy relaxation for Modernization
TRAIN will fund the countryside’s investment needs. Target criminal cases
improvements are: • Connection of business
accounting system to
Concretize Provide Irrigate BIR system
14,187km of Road access 1.3 million Upgrade public transport to
national roads to 7,834 isolated hectares of land be more fuel-efficient and less
and 30,209km barangays and
of local gravel 23,293 sitios polluting to lower
roads transport cost. The Tax Reform for
Funds will be raised for major infrastructure projects, including:
Acceleration and Inclusion
Pulilan-Baliuag Diversion Road Daang Maharlika (NRJ-Sibagat
(TRAIN) seeks to change the
Camarines Sur-Albay Section) (Mandamo-Las current tax system to make it
Diversion Road Nieves Section)
Valencia City-Pangantucan
simpler, fairer, and more
Maasin City Coastal Bypass
Road cum Sea Wall Diversion Road efficient. Through TRAIN, every
Tacloban City Bypass Road Bonifacio Global City-Ortigas Filipino contributes in funding
Panay East-West Road Center Link Road
Cagayan de Oro C-5/Katipunan Viaduct more infrastructure and social
Diversion Road services to eradicate extreme
poverty and reduce inequality.
dof.gov.ph/taxreform
TRAIN is a priority reform of the
DOFPH DOF_PH #TaxReformNow Duterte administration.
4.0
TRAIN corrects the complex and unjust tax system. It reduces personal income tax,
simplifies estate and donor’s taxes, expands the value-added tax base, increases oil and
automobile excise taxes, and places an excise tax sugar-sweetened beverages.

Personal Income Tax Value-Added Tax (VAT) Oil Excise Tax

99% of taxpayers will pay less taxes. Many use the exemptions in our current VAT system to pay less tax. To invest in the country's future, oil excise will be raised by
We need to limit exemptions to stop leakages. P3, P2, and P1 over three years and indexed yearly after the third
Upon implementation
year. This is very progressive.
Annual Taxable Income Tax Rate Philippines 59 lines of exemptions (of which 11 are overlaps
0 - 250,000 0% with special laws) and 84 additional exemptions
in special laws FUEL CONSUMPTION BY INCOME DECILE
Over 250,000 - 400,000 20% of the excess over 250,000
Over 400,000 - 800,000 30,000 + 25% of the excess over 400,000 12%
Over 800,000 - 2,000,000 130,000 + 30% of the excess over 800,000 Indonesia 37 lines of exemptions 0.6% 1.8% 2.8% 4.1% 4.5%
Over 2,000,000 - 5,000,000 490,000 + 32% of the excess over 2,000,000
1 st 2 nd 3 rd 4 th 5 th
Over 5,000,000 1,450,000 + 35% of the excess over 5,000,000 10%
Vietnam 25 lines of exemptions
2021 onwards
Annual Taxable Income Tax Rate 10% 5.2% 6.5% 9.1% 14% 51.5%
0 - 250,000 0% Thailand 35 lines of exemptions 6 th 7th 8 th 9 th 10 th
Over 250,000 - 400,000 15% of the excess over 250,000
Over 400,000 - 800,000 22,500 + 20% of the excess over 400,000 7%
Over 800,000 - 2,000,000 102,500 + 25% of the excess over 800,000 51% of fuel is consumed by top 10% of Filipino
Malaysia 14 lines of exemptions families (earning at least P113,000 per month).
Over 2,000,000 - 5,000,000 402,500 + 30% of the excess over 2,000,000
Over 5,000,000 1,302,500 + 35% of the excess over 5,000,000 6% 13% of fuel is consumed by wealthiest 1% of Filipino families
(earning at least P288,000 per month). The same
This simplified tax system will increase To expand the tax base, TRAIN will limit exemptions to percentage is consumed by the poorest 50%.
take-home pay and put more money in necessities—raw food, education, and health—and instead use the
people’s pockets. budget to help the poor and vulnerable. The VAT base broadening Rates of oil excise have not been adjusted since 1997. Adjusting them
covers: addresses environmental and health problems as well.
Bonuses not exceeding P82,000 will • Cooperatives, except producers • Low cost and
continue to be exempted. of raw agriculture products and socialized housing
with gross sales of P3 million • Lease of residential units Automobile Excise Tax
and below Increase in tax rates of luxury cars will be higher than the increase
Sugar-Sweetened Beverages • Boy scouts and girl scouts
• Domestic shipping importation • Other special laws with in tax rates of basic cars. This makes the tax work for those who
(SSB) Excise Tax • Power transmission VAT exemption
have less.
An excise tax on SSBs will also be imposed. This is a health measure Suggested retail price (SRP) of
designed to curb consumption of SSBs which are linked with diabetes Senior citizens and PWDs will still typical automobiles
and obesity, while raising revenue for health programs that address enjoy exemptions. Brand and Model Tax Rate Change in SRP
these problems.
Toyota
Exempted from this tax include plain milk, Vios 1.3 Base
4% P10,734
SUBSIDIES
Limiting VAT exemptions will raise more
medically-indicated beverages such as meal funds for the poor and vulnerable. Mitsubishi
replacement therapies, and 100% natural fruit Mirage G4 GLS
4% P13,261
and vegetable juices.
Toyota 24,000 + 40% in excess
Innova 2.0 J of 600,000 P43,725

Data are updated as of September 5, 2017.

Figures subject to change as new data are available.