Bir Train Vs Nirc Full

RA 10963: Tax Reform for
Acceleration and Inclusion

(TRAIN)
2
Background on the Tax Reform

ü  The Tax Reform for Acceleration and inclusion amends certain
provisions of Republic Act No. 8424 (The National Internal
revenue Code of 1997), as amended.
ü  The enrolled bill was sent to President Duterte for approval and
was signed into law as Republic Act No. 10963 on December
19, 2017. The law takes effect January 1, 2018 following its
complete publication in the Official Gazette last December 27,
2017.
ü  The President has issued a separate letter vetoing five
provisions of the signed TRAIN law.
ü  The law is just the first tax reform package. The second
package (reduction of corporate income tax and rationalization
of fiscal incentives) is estimated to be released by early 2018.
3
Key amendments
1.  Individual Income Tax 9.  Excise Tax on:
2.  Final Income Tax ü  Automobiles
3.  Estate Tax ü  Petroleum products
4.  Donor’s Tax ü  Tobacco products
5.  Value Added Tax ü  Sweetened beverages
6.  Documentary Stamp Tax ü  Mineral products
7.  Some administrative ü  Cosmetic procedures
provisions (non-essential
8.  Penalties services)
4
What is the purpose of TRAIN?

5
What is TRAIN?
The goal of the first package of the CTRP or
TRAIN is to create a simpler, fair, and more
efficient system, as per the constitution,
where the rich will have a bigger contribution
and the poor will benefit more from the
government’s programs and services.
The purpose of TRAIN is
to make our country’s tax
system
system
system
It is the first package in the
Comprehensive Tax Reform
Program (CTRP) which is expected
to generate for 2018
Php 130 Billion

in revenues for the government.
Lowering the Simplifying Estate and Simplified Value Added
Personal Income Tax Donor’s Tax Tax (VAT) System
Increasing the Excise Tax Increasing the Excise Introducing an Excise

on Petroleum Products
Tax on Automobiles Tax on Sweetened
Beverages
11
The Vision of TRAIN by 2020….
Poverty rate Law abiding Peace within Achieve high

reduced from middle income
country the country status, where
26% to 17% and per capita
(or some 10 neighbors increases from
million USD3,000 to
Filipinos USD4,100 by
uplifted from 2022 in today’s
poverty) money
12
The Vision of TRAIN by 2040….
Extreme Inclusive Achieve high

economic income
poverty
status where
eradicated and political
per capita
institutions increased
where from USD
everyone has 3,000 to USD
equal 12,000 by
opportunities 2040 in
today’s
money
13
What are the benefits of TRAIN?

Benefits of TRAIN
Higher budget for Infrastructure development

•  Job Creation
•  Lower cost of transporting goods and services
Higher efficiencies, increase in business

activities and revenues
•  Attract Investors
•  Better quality of life for Filipinos
Benefits of TRAIN
Higher budget for education

•  Competitive advantages for new graduates
•  Better employment viability
•  Higher pay potentials
•  Attract investors
Benefits of TRAIN
Higher budget for health

•  More public hospitals and clinics
•  Better public access to better health care
•  Stronger work force
•  Attract investors
Benefits of TRAIN
Higher budget for Social Protection, Welfare and

Employment
•  Better government relief and assistance programs
•  Better subsidies
•  Better social security and overall peace and order
(TRAIN)
– Power and Authority of the

Commissioner
NIRC NIRC TRAIN
Provision
Section 5 (B) Provides for the authority of the Additional provision:
Power of the Commissioner to obtain information
Commissioner to from national and local The Cooperative Development
obtain governments, government Authority shall submit a report on tax
information to agencies and instrumentalities incentives availed by cooperatives to
summon, the BIR and DOF.
examine and take
testimony of Theses information shall be included
persons in the Tax Incentives Management
and Transparency Act (TIMTA)
database.
NIRC NIRC TRAIN
Provision
Section 6 The Commissioner or his duly Additional provision:
Power of the authorized representative may This authority is nothwithstanding any
Commissioner to authorize the examination of law requiring the prior authorization of
make taxpayer and assessment of the any government agency or
assessments and correct amount of tax. instrumentality.
prescribe
additional
requirements for
tax
administration
and enforcement
NIRC NIRC TRAIN
Provision
Section 6 The Commissioner has the In exercising this authority, the following shall be
Power of the authority to determine fair observed:
Commissioner to m a r k e t v a l u e o f r e a l 1.  Mandatory consultation with both private and
make properties. public competent appraisers before division of
assessments and the Philippines into zones.
prescribe 2.  Prior notice to affected taxpayers before the
additional determination of fair market values of the real
requirements for properties.
tax administration 3.  Publication or posting of adjustments in zonal
and enforcement value in a newspaper of general circulation in
the province, city or municipality concerned.
4.  The basis of valuation and records of
consultation shall be public records open to the
inquiry of any taxpayer.
5.  Zonal valuations shall be automatically
adjusted once every three years based on
Philippine Valuation Standards.
(TRAIN)
– Income Tax: Personal

Income Tax
NIRC NIRC TRAIN
Provision
Section 24 Taxable income of individuals are subject to the Revised personal income tax
Income tax rates following graduated rates: brackets of 2018-2022:
on individual Tax Schedule
citizen and Tax Schedule effective January 1, 2018 to
individual resident December 31, 2022
alien of the Not over P10,000 5%
Philippines Not over 0%
Over P10,000 but P500 + 10% of the P250,000
not over P30,000 excess over P10,000
Over P30,000 but P2,500 + 15% of the
Over P70,000 but P8,500 + 20% of the

Over P140,000 but P22,500 + 25% of

not over P250,000 the excess over
P140,000
NIRC Provision NIRC TRAIN
Sec'on 24 Taxable income of individuals are subject Revised personal income tax brackets of
Income tax rates to the following graduated rates: 2018-2022:
on individual Tax Schedule effective January 1, 2018 to
Tax Schedule
ci'zen and December 31, 2022
individual Over P250,000 P50,000 + 30% of Over P250,000 but 20% of the excess over
resident alien of but not over the excess over not over P400000 P250,000
the Philippines P500,000 P250,000
Over P400,000 but P30,000 + 25% of the
Over P500,000 P125,000 + 32% not over P800,000 excess over P400,000
of the excess
Over P800,000 but P130,000 + 30% of the
over P500,000
not over P2million excess over P800,000
Over P2Million but P490,000 + 32% of the

not over P8Million excess over P2Million
Over P8Million P2,410,000 + 35% of
the excess over
P8Million
NIRC NIRC TRAIN
Provision
Section 24 For 2023 onwards:
Income tax rates Tax Schedule
on individual effective January 1, 2018
citizen and to December 31, 2022
individual resident
Not over P250,000 0%
alien of the
Philippines Over P250,000 but 15% of the excess over
not over P400,000 P250,000
Over P400,000 but P22,500 +20% of the
Over P800,000 but P102,500 + 25% of the
not over P2,000,000 excess over P800,000
Over P2Million but P402,500 + 30% of the
not over P8Million excess over P2Million
Over P8Million P2,202,500 + 35% of the
excess over P2Million
NIRC NIRC TRAIN
Provision
Section 24 Refer to Revenue Memorandum Circular
Income tax rates (RMC) Nos. 105-2017 and 1-2018, Revised
on individual Withholding Tax on Compensation Table
citizen and
individual resident
alien of the
Philippines
Section 24 Taxable income is subject to the For purely self-employed and/or professionals
Income tax of self- same graduated rates whose gross sales/receipt and other non-
employed and/or operational income do not exceed the VAT
professionals threshold of P3Million, the tax shall be, at the
taxpayer’s option, either:
1.  8% income tax on gross sales or gross
receipts in excess of P250,000 in lieu of the
graduated income tax rates and the other
percentage tax; OR
2.  Income tax based on the graduated income
tax rates for individuals
NIRC NIRC TRAIN
Provision
Section 24 Taxable income is subject F o r m i x e d i n c o m e e a r n e r s ( e a r n i n g b o t h
Income tax of to the same graduated compensation income and income from business or
mixed income rates practice of profession, their income taxes shall be:
earners 1.  For income from compensation – Graduated
income tax rates fro individuals, AND
2.  For income from business or practice of
profession:
a. Gross sales/receipts which do not exceed the
VAT threshold of P3Million – 8% income tax on
gross sales/receipts and other non-operating
income OR graduated income tax rates on
taxable income, at the taxpayer’s option
b. Gross sales/receipts and other non-operating
income which exceeds the VAT threshold of
P3Million – graduated income tax rates for
individuals
Section 24 (B) (1) Philippine Charity Sweepstakes Philippine Charity Sweepstakes and
Final tax on and Lotto winnings – exempt Lotto winnings in excess of P10,000
winnings from the 20% final tax shall be subject to the 20% final tax
Section 24 (B) (1) Interest income received by an The rate of final tax on interest
Final tax on individual taxpayer (except a income received by resident individual
interest on foreign non-resident individual) from a taxpayer under the expanded foreign
currency deposit depository bank under the currency deposit system increased
expanded foreign currency from 7.5% to 15% final tax
deposit (EFCD) system is
subject to 7.5% final tax
NIRC NIRC TRAIN
Provision
Section 24 (C) The capital gains tax on net The final tax rate for net capital gains
Capital gains tax capital gains realized from sale, tax on the sale, barter, exchange or
on sale of shares barter, or exchange or other other disposition of shares of stock in a
not traded disposition of shares of stock in domestic corporation no traded through
through the stock a domestic corporation not the stock exchange is increased from
exchange traded through the stock 5/10% CGT to a flat rate of 15% CGT
exchange is:
Not over P100,000 – 5%
On any amount in excess of

P100,000 – 10%
Section 25 (C) Alien individuals and qualified Additional provision [Subsection (F)]
(D) (E) Filipino employees employed by The 15% preferential tax rate
Preferential tax 1.  Regional or area and Regional provided in Subsection (C), (D) and
rate for Operating headquarters or (E) shall not be applicable to RHQs.
individuals multinational companies (RHQs ROHQs, OBUs or Petroleum service
employed by and ROHQs) [Subsection (C)] contractor and subcontractor
RHQ, ROHQ, 2.  Offshore banking units (OBUs) registering with the SEC after
OBU and [Subsection (D)] January 1, 2018. But existing
Petroleum 3.  Petroleum Service contractor RHQs, ROHQs, OBUs or Petroleum
Contractors and subcontractor [Subsection service contractor and subcontractor
Capital and (E)] shall continuously be entitled to avail
subcontractors are subject to a preferential tax of of the preferential tax treatment for
15% final withholding tax on gross their present and future qualified
compensation income. employees.
Section 24 (C) Presidential Veto:

(D) (E) The President vetoed this line item under
Preferential tax Subsection (F)
rate for “But existing RHQs, ROHQs, OBUs or
individuals Petroleum service contractor and subcontractor
employed by shall continuously be entitled to avail of the
RHQ, ROHQ, preferential tax treatment for their present and
OBU and future qualified employees.”
Petroleum
for being violative of equal protection
Contractors
Capital and The President stated in his letter that, “given
subcontractors the significant reduction in the personal income
tax, the employees of these firms should
follow the regular tax rates applicable to other
individual taxpayers.”
NIRC NIRC TRAIN
Provision
Section 31 Means the pertinent items of gross The phrase “and/or personal and
Definition of income specified in this Code, less additional exemptions” is removed in
Taxable Income the deductions and/or personal the definition.
and additional exemptions, if any,
authorized for such types of
income by this Code or other
special laws
Section 35 Individual taxpayers are entitled The Basic Personal and Additional
Personal to: Exemptions of individual taxpayers
Exemptions Basic Personal Exemption – are removed.
P50,000
The related provision on furnishing
and
exemption certificate is likewise
Additional Exemption – P25,000 removed.
per qualified dependent child
NIRC NIRC TRAIN
Provision
Section 32 (B) The amount of tax-exempt 13th The amount of tax-exempt 13th month
Tax exempt 13th month pay and other benefits is pay and other benefits is increased to
month pay P82,000. P90,000.
Section 33 (A) ü  Fringe benefits given to non- ü  T h e F r i n g e B e n e f i t s Ta x i s
Tax on fringe rank and file employees are increased to 35% effective January
benefits given to subject to 32% final tax 1, 2018
non-rank and file ü  The grossed up monetary value ü  The grossed up monetary value of
employees of the fringe benefit given to the fringe benefit given to non-rank
non-rank and file employees and file employees shall be
shall be determined by dividing determined by dividing the actual
the actual monetary value by monetary value by 65%
68%
NIRC NIRC TRAIN
Provision
Section 34 (M) The allowable deduction for Allowable deduction for premium
Allowable premium payments on health payments on health and/or
deduction for and/or hospitalization insurance hospitalization insurance of an
premium of an individual taxpayer is individual taxpayer is removed.
payments on P2400 per year or P200 per
health and/or month, subject to a gross family
hospitalization income threshold of P250,000.
insurance
Section 51 An individual whose gross Individual taxpayers whose taxable
Filing of individual income does not exceed his total income is subject to zero percent
income tax return personal and additional under the new graduated tax table
exemptions for dependents are (i.e., does not exceed P250,000) shall
not required to file income tax not be required to file an income tax
return (ITR). return.
NIRC NIRC TRAIN
Provision
Additional provision:
The ITR shall consist of a maximum
of four (4) pages in paper OR
electronic form. It shall only contain
the following information:
ü  Personal profile and information
ü  Gross sales receipts or income
from compensation, from business,
or from exercise of profession
(except income subject to final tax)
ü  Allowable deductions
ü  Taxable income
ü  Income tax due and payable
NIRC NIRC TRAIN
Provision
Section 51-A No provision Substituted filing or ITRs is available
Substituted Filing for:
of income tax ü  Individual taxpayers
returns by ü  Receiving purely compensation
employees income, regardless of amount
receiving purely ü  From only one employer in the
compensation Philippines for he calendar year
income from only ü  The income tax of which has been
one employer in correctly withheld by the employer
the Philippines (i.e., tax due = tax withheld)
The Certificate of Withholding field by
the employers duly stamped “receive”
by the BIR shall be the substituted filing
by such employers
Section 56 (A) (2) When tax due exceeds ₱2,000, the The new deadline of payment of
Installment taxpayer (other than a corporation) second installment is October 15
Payment of tax due may elect to pay the tax in two following the close of the calendar
for individuals and equal installments. Payment of year.
corporations installments:
ü  First installment – time of filing of
return
ü  Second installment – on or
before July 15 following the close
of the calendar year.
Section 62 T h e r e i s a l l o w e d p e r s o n a l The exemption for estates and
Exemption for exemption of ₱50,000 from the trusts is removed.
estates and trusts income of the estate or trust.
Section 74 Every individual subject to income The deadline for filing of declaration
Declaration of tax shall make and file a declaration estimated income for the current
Income tax for of his estimated income for the taxable year is on or before May15 of
individuals current taxable year on or before the same taxable year.
April 15 of the same taxable year.
The amount of estimated income The payment of the four installments

with respect to which a declaration shall be:
is required shall be paid in four (4) ü  First – May 15
installments: ü  Second – August 15
ü  First – at time of declaration ü  Third – November 15
ü  Second – August 15 ü  Fourth – on or before May 15 of the
ü  Third – November 15 following calendar year when the
ü  Fourth – on or before April 15 of final adjusted income tax return is
the following calendar year when due to be filed.
the final adjusted income tax
return is due to be filed.
Section 34 (L) Individual taxpayers (except non- For GPPs and the partners comprising
Optional Standard resident alien) and corporations them, OSD may be availed only once,
Deduction may elect a standard deduction not i.e., either by the GPP itself or by the
exceeding 40% of gross sales/ partners comprising the GPP.
receipts or of gross income, as the
case may be, in lieu of itemized
allowable deductions.
Section 57 The rate of withholding tax on items Beginning January 1, 2019, the rate of
Withholding of of income payable by payor- withholding tax shall be not less than
creditable tax at corporations/persons shall be not one percent (1%) but not more than
source less than one percent (1%) but not fifteen percent (15%).
more than thirty-two percent (32%).
The tax withheld shall be credited

against the income tax liability of the
taxpayer.
(TRAIN)
– Income Tax: Corporate

Income Tax
Section 27 (C) T h e P h i l i p p i n e C h a r i t y PCSO is not anymore exempt from
Exemption Sweepstakes Office (PCSO) is payment of corporate income tax.
Government-owned among the list GOCCs, agencies,
or – Controlled or instrumentalities that are exempt
Corporations, from payment of corporate income
Agencies or tax.
Instrumentalities
Section 27 (D) (1) Interest income received by a The rate of final tax on interest
Final Tax on interest domestic corporation from a income received by domestic
on foreign currency depository bank under the corporation under the expanded
deposit expanded foreign currency deposit foreign currency deposit system
(EFCD) system is subject to 7.5% increased from 7.5% to 15% final tax.
final tax.
Section 27 (D) (2) The capital gains tax on net capital The final tax rate for net capital gains
Capital gains tax on gains realized from sale, barter, or tax on the sale, barter, exchange or
sale of shares not exchange or other disposition of other disposition of shares of stock in
traded through the shares of stock in a domestic a domestic corporation not traded
stock exchange corporation nor traded through the through the stock exchange is
stock exchange is: increased from the 5/10% CGT to a
flat rate of 15% CGT.
Not over ₱100,000 – 5%
On any amount in excess of

₱100,000 – 10%
Section 52 Every corporation subject to tax, Additional provision:
Filing of corporate except foreign corporations not
income tax return engaged in trade or business in The ITR shall consist a maximum of
the Philippines, shall render in four (4) pages in paper OR electronic
duplicate, a true and accurate form.
ü  Quarterly income tax return;
AND It shall also only contain the
ü  Final or adjustment return information as required in ITRs of
individual taxpayers.
These requirements shall not affect

the implementation of TIMTA.
Section 58 The return for FWT and the return FWT and EWT returns shall be filed
Return and for creditable withholding taxes and the payment made not later than
payments of taxes (EWT returns) shall be filed within the last day of the month following
withheld at source ten (10) days after the end of each the close of the quarter during
month [Sec. 2.58 of RR No. 2-98] which the withholding was made.
The provision that the Commissioner

may require the payment of the taxes
withheld at more frequent intervals is
removed.
(TRAIN)
– Transfer Taxes
Estate Tax
NIRC NIRC TRAIN
Provision
Section 84 The Estate Tax rate is based on graduated schedule. The Estate Tax rate is fixed at
Rates of 6% based on the value of the
Estate Tax NET ESTATE TAX net estate.
Not over ₱200,000 Exempt
Over ₱200,000 but not 5% of the excess over
over ₱500,000 ₱200,000
Over ₱500,000 but not ₱15,000 + 8% of the excess
over ₱2M over ₱500,000
Over ₱2M but not over ₱135,000 + 11% of the excess
₱5M over ₱2M
Over ₱5M but not over ₱465,000 + 15% of the excess
P10M over ₱5M
Over ₱10M ₱1,215,000 + 20% of the
excess over ₱10M
Estate Tax
Section 86 (A) The value of the net estate of a The following are the allowable
Allowable resident or citizen is determined by deductions from the gross estate of a
deductions from the deducting the following from the resident or citizen:
gross estate of a gross estate: 1.  Standard deduction of
citizen/resident 1.  Standard deduction of ₱5,000,000;
₱1,000,000; 2.  Claims against the estate;
2.  Expenses, losses, 3.  Claims against insolvent persons;
indebtedness, and taxes 4.  Unpaid mortgage or indebtedness
a. Funeral expenses on property;
b. Judicial expenses
c. Claims against insolvent
persons
d. Unpaid mortgages
Estate Tax
Section 86 (A) 3. Property previously taxed; 5. Property previously taxed;
Allowable 4. Transfers for public use; 6. Transfers for public use;
deductions from the 5. Family home in the amount of 7. Family home, in the increased
gross estate of a ₱100,000,000; amount of ₱10,000,000;
citizen/resident 6. Medical expenses, not 8. Amounts received by heirs RA No.
exceeding ₱500,000; 4917 (Retirement benefits of
7. Amount received by heirs private firm employees)
under RA No. 4917
(Retirement benefits of private
firm employees)
Estate Tax
Section 86 (B) The value of the net estate of a For Non-residents:
Allowable non-resident is determined by 1.  Standard deduction in the amount
deductions from the deducting the following from the of ₱500,000;
gross estate of a gross estate: 2.  Value of
non-resident alien 1. Expenses, losses, ü  Claims against the estate
indebtedness, and taxes in ü  Claims against the insolvent
proportion to the value of person
entire gross estate situated in ü  Unpaid mortgages
the Philippines; In proportion to the value of the
2. Property previously taxed; entire gross estate situated in the
3. Transfers for public use Philippines
3. Property previously taxed;
4. Transfers for public use
Estate Tax
Section 86 (D) No deduction shall be allowed in Miscellaneous provision is deleted.
Miscellaneous the case of a non-resident not a
provision for non- citizen of the Philippines, unless
residents the executor, administrator, or
anyone of the heirs, as the case
may be, includes in the return
required to be filed under the
Section 90 the value at the time of
his death of that part of the gross
estate of the non-resident not
situated in the Philippines.
Estate Tax
Section 89 Notice of decedent’s death shall be Requirement for filing of notice of
Notice of Death filed by the executor, administrator, death is removed.
or any of the legal heirs within two
months after death or after
qualifying as such executor or
administrator:
ü  In all cases of transfers subject
to tax
ü  In cases where though exempt
from tax, the gross value of the
estate exceeds ₱20,000.
Estate Tax
Section 90 Estate tax returns showing a gross The threshold amount for the
Attachment to value exceeding ₱2,000,000 shall requirement of attaching a statement
Estate Tax Return – be supported with a statement duly duly certified by a CPA is increased
CPA certification certified by a CPA to ₱5,000,000 (from ₱2,000,000).
Section 90 Estate tax returns shall be filed The filing of estate tax returns shall
Time of filing of within six (6) months from the be within one (1) year from the
estate tax return decedent’s death. decedent’s death.
Estate Tax
Section 91 (C) No provision In case the available cash of the
Payment by estate is insufficient to pay the total
installment of estate estate tax due, payment by
tax [new] installment shall be allowed within
two (2) years from the statutory
date of payments, without civil
penalty and interest.
Estate Tax
Section 97 If a bank has knowledge of the If a bank has knowledge of the death
Payment of tax death of a person, who maintained of a person, who maintained a bank
antecedent to the a bank deposit account alone, or deposit account alone, or jointly with
transfer of shares, jointly with another, it shall not another, it shall allow any withdrawal
bonds, or rights allow any withdrawal from the said from the said deposit account,
deposit account unless the subject to a final withholding tax
Commissioner has certified that of (6%).
the taxes imposed thereon have
been paid.
Donor’s Tax
NIRC NIRC TRAIN
Provision
Section 99 The donor’s tax for each calendar year shall be The donor’s tax for is fixed at 6%
Rates of tax computed on the basis of the total net gifts made based on annual total gifts exceeding
during the calendar year in accordance with the ₱250,000 (exempt gift), regardless of
graduated tax table. whether the done is a stranger or not.
NET GIFT TAX NET GIFT TAX

Not over ₱100,000 Exempt Over ₱1M but ₱44,000 + 8% of the
not over ₱3M excess over ₱1M
Over ₱100,000 but 2% of the excess
not over ₱200,000 over ₱100,000 Over ₱3M but ₱204,000 + 10% of
not over ₱5M the excess over ₱3M
Over ₱200,000 but ₱2,000 + 4% of
not over ₱500,000 the excess over Over ₱5M but ₱404,000 + 12% of
₱200,000 not over the excess over ₱5M
₱10M
Over ₱500,000but ₱14,000 + 6% of
not over ₱1M the excess over Over ₱10M ₱1,004,000 + 15% of
₱500,000 the excess over
₱10M
Donor’s Tax
Section 99 The donor’s tax shall be 30% of The donor’s at is fixed at 6% based
Rates of tax the net gifts when the done or on annual total gifts exceeding
beneficiary is a stranger. ₱250,000 (exempt gift) regardless of
whether the donee is a stranger or
not.
Donor’s Tax
Section 100 The amount by which the fair Additional proviso:
Transfer for less market value of the property Even if the sale, exchange or other
than adequate transferred exceeded the value of transfer of property is for an
consideration the consideration received for such insufficient consideration, the same
transfer, shall for purpose of will still be considered made for
donor’s tax, be deemed a gift and adequate and full consideration
included in computing the amount provided that such transfer is made in
of gifts made during the year. the ordinary course of business, i.e.,:
ü  A bona fide transaction;
ü  At arm’s length; and
ü  Free from donative intent.
Donor’s Tax
Section 101 Dowries or gifts made on account The exemption of dowries (gifts made
Exemption of of marriage by parents to each of on account of marriage) is removed.
certain gifts their legitimate, recognized ,
natural, or adopted children to the
extent of the first ₱10,000 shall be
exempt from donor’s tax.
(TRAIN)
– Value Added Tax

Section 106 (A)(2) The following are entitled to VAT The following sales by VAT registered
Zero-rated Sale of zero-rating: persons shall be subject to zero
Goods or Properties percent 0% rate:
1.  The sale and actual shipment of
goods from the Philippines to a 1.  The sale and actual shipment of
foreign country, irrespective of goods from the Philippines to a
any shipping arrangement that foreign country, irrespective of any
may be agreed upon which may shipping arrangement, paid for in
influence or determine the acceptable foreign currency or its
transfer of ownership of the equivalent in goods or services,
goods so exported and paid for in and accounted for in accordance
acceptable foreign currency or its with the rules and regulations of
equivalent in goods or services, the Bangko Sentral ng Pilipinas
and accounted for in accordance (BSP).
with the rules and regulations of
the Bangko Sentral ng Pilipinas
(BSP).
Section 106 (A)(2) 2.  Sale and delivery of goods to:
Zero-rated Sale of
Goods or Properties ü Registered enterprises within a
separate customs territory
ü Registered enterprises within tourism

enterprise zones
(The above provision was vetoed by

President Duterte because this go
against the principle of limiting the VAT
zero-rating to direct exporters.)
Section 106 (A)(2) 2.  Sale of raw materials or 3.  Sale of raw materials or packaging
Zero-rated Sale of packaging materials to a materials to a nonresident buyer
Goods or Properties nonresident buyer for for delivery to a resident local
delivery to a resident local export-oriented enterprise to be
export-oriented enterprise to used in manufacturing, processing,
be used in manufacturing, packing or repacking and paid for
processing, packing or in acceptable foreign currency and
repacking in the Philippines accounted for in accordance with
of the said buyer's goods and the rules and regulations of the
paid for in acceptable foreign Bangko Sentral ng Pilipinas (BSP).
currency and accounted for
in accordance with the rules
and regulations of the
Bangko Sentral ng Pilipinas
(BSP).
Section 106 (A)(2) 3.  Sale of raw materials or 4.  Sale of raw materials or
Zero-rated Sale of packaging materials to packaging materials to
Goods or Properties export-oriented enterprise export-oriented enterprise
whose export sales whose export sales exceed
exceed seventy percent seventy percent (70%) of
(70%) of total annual total annual production.
production.
4.  Sale of gold to BSP.

Section 106 (A)(2) 5.  Those considered export 5.  Those considered export sales
Zero-rated Sale of sales under Executive Order under Executive Order No. 226,
Goods or Properties NO. 226, otherwise known otherwise known as the “Omnibus
as the “Omnibus Investment Investment Code of 1987”, and
Code of 1987”, and other other special laws; and
special laws.
6.  The sale of goods, supplies, 6.  The sale of goods, supplies,
equipment and fuel to equipment and fuel to persons
persons engaged in engaged in international shipping
international shipping or or international air transport;
international air transport provided, that the goods, supplies,
operations. equipment and fuel have been
sold and used for international
shipping or air transport
operations.
Section 106 (A)(2) Additional provision:
Zero-rated Sale of Items 3, 4, and 5 shall be subject to the 12% VAT
Goods or Properties and no longer be considered export sales subject
to 0% VAT upon satisfaction of the following
conditions:
ü  There is a successful establishment and
implementation of an enhanced VAT refund
system that grants refunds of creditable input
tax within 90 days from the filing of the VAT
refund application with the Bureau.
ü  All pending VAT refund claims as of December

31, 2017 shall be fully paid in cash by
December 31, 2019.
NIRC NIRC TRAIN
Provision
The Department of Finance shall establish a VAT
Section 106 (A)
Refund Center in the BIR and BOC that will handle the
(2)
processing and granting of cash refunds of creditable
Zero-rated Sale
input tax.
of Goods or
Properties An amount equivalent to 5% of the total VAT collection
of the BIR and BOC from the immediately preceding
year shall automatically be appropriated annually and
shall be treated as a special account in the General
Fund or as trust receipts for funding VAT refund
claims.
Further, the BIR and BOC shall be required to submit
to the Congressional Oversight Committee on the
CTRP a quarterly report of all pending claims for
refund and any unused fund.
Section 106 (A)(2) Deleted provision:
Zero-rated Sale of
Goods or Properties The following shall no longer be subject to 0%
VAT:
1.  Sale of gold to BSP

2.  Foreign-currency denominated sales
Section 108 (A) Sale or exchange Sale or exchange of services include “sale of
Definition of Sale or of services include electricity by generation companies,
Exchange of Services “sale of electricity transmission by any entity including the
by generation National Grid Corporations of the Philippines
companies, [NGCP], and distribution companies, including
transmission, and electric Cooperatives”.
distribution
companies”
Section 108 (B) The following are entitled to The following are entitled to VAT
Zero-rated Sale of VAT zero-rating: zero-rating:
Services
1.  Processing, manufacturing 1.  Processing, manufacturing or
or repacking goods for other repacking goods for other persons
persons doing business doing business outside the
outside the Philippines Philippines which goods are
which goods are subsequently exported, where the
subsequently exported, services are paid for in acceptable
where the services are paid foreign currency and accounted for
for in acceptable foreign in accordance with the rules and
currency and accounted for regulations of the Bangko Sentral
in accordance with the rules ng Pilipinas (BSP).
and regulations of the
Bangko Sentral ng Pilipinas
(BSP).
NIRC NIRC TRAIN
Provision
Section 108 (B) 2.  S e r v i c e s o t h e r t h a n t h o s e 2.  S e r v i c e s o t h e r t h a n t h o s e
Zero-rated Sale mentioned in the preceding mentioned in the preceding
of Services paragraph, rendered to a person paragraph, rendered to a person
engaged in business conducted engaged in business conducted
outside the Philippines or to a outside the Philippines or to a
nonresident person not engaged nonresident person not engaged
in business who is outside the in business who is outside the
Philippines when the services are Philippines when the services are
performed, [51] the consideration performed, the consideration for
for which is paid for in acceptable which is paid for in acceptable
foreign currency and accounted foreign currency and accounted
for in accordance with the rules for in accordance with the rules
and regulations of the Bangko and regulations of the Bangko
Sentral ng Pilipinas (BSP); Sentral ng Pilipinas (BSP);
NIRC NIRC TRAIN
Provision
Section 108 (B) 3.  Services rendered to persons or 3.  Services rendered to persons or
Zero-rated Sale of entities whose exemption under entities whose exemption under
Services special laws or international special laws or international
agreements to which the Philippines agreements to which the Philippines
is a signatory effectively subjects is a signatory effectively subjects the
the supply of such services to zero supply of such services to zero
percent (0%) rate; percent (0%) rate;
4.  Services rendered to persons 4.  Services rendered to persons

engaged in international shipping or engaged in international shipping or
international air transport international air transport operations,
operations, including leases of including leases of property for use
property for use thereof; thereof: provided, that these services
shall be exclusively for international
shipping or air transport operations;
NIRC NIRC TRAIN
Provision
Section 108 (B) 5.  S e r v i c e s p e r f o r m e d b y 5.  S e r v i c e s p e r f o r m e d b y
Zero-rated Sale subcontractors and/or contractors subcontractors and/or contractors
of Services in processing, converting, or in processing, converting, or
manufacturing goods for an manufacturing goods for an
enterprise whose export sales enterprise whose export sales
exceed seventy percent (70%) of exceed seventy percent (70%) of
total annual production; total annual production are no
longer entitled to VAT zero-rating.
NIRC NIRC TRAIN
Provision
Section 108 (B) 6.  Transport of passengers and 6.  Transport of passengers and cargo
Zero-rated Sale cargo by domestic air or sea by domestic air or sea vessels
of Services vessels from the Philippines to a from the Philippines to a foreign
foreign country. country.
7.  Sale of power or fuel generated 7.  Sale of power or fuel generated
through renewable sourced of through renewable sourced of
energy such as, but not limited to, energy such as but not limited to
biomass, solar, wind, hydropower, biomass, solar, wind, hydropower,
geothermal, ocean energy, and geothermal, ocean energy, and
other emerging energy sources other emerging energy sources
using technologies such as fuel using technologies such as fuel
cells and hydrogen fuels. cells and hydrogen fuels.
NIRC NIRC TRAIN
Provision
Section 108 (B) 8.  Services rendered to:
Zero-rated Sale
of Services ü  Registered enterprises within a
separate customs territory
ü  Registered enterprises within

tourism enterprise
(Above provision was votoed by

President Duterte)
NIRC NIRC TRAIN
Provision
Section 108 (B) Additional provision:
Zero-rated Sale
of Services Items 1 and 5 shall be subject to the 12% VAT
and no longer be considered export sales subject
to 0% VAT upon satisfaction of the following
conditions:
ü  There is a successful establishment and
implementation of an enhanced VAT refund
system that grants refunds of creditable input
tax within 90 days from the filing of the VAT
refund application with the Bureau.
ü  All pending VAT refund claims as of December

31, 2017 shall be fully paid in cash by
December 31, 2019.
Section 108 (B) Additional provision:

Zero-rated Sale of
Goods or properties The Department of Finance shall establish a VAT
and zero-rated sale Refund Center in the BIR and BOC that will handle
of services the processing and granting of cash refunds of
creditable input tax.
To fund claims for VAT refund 5% of the total VAT

collection of the BIR and BOC from the immediately
preceding year shall be:
ü  Automatically appropriated annually.

ü  Treated as a special account in the General Fund
or as trust receipts.
Section 108 Additional provision:

Zero-rated Sale of
Goods or Properties The BIR and BOC shall submit to the
and Zero-rated Sale Congressional Oversight Committee on the
of Services Comprehensive Tax Reform Program a quarterly
report of all pending claims for refund and unused
fund.
NIRC NIRC TRAIN
Provision
Section 109 The following transactions, among others, The following are the changes on VAT-
(D) are exempt from value-added tax: exempt transactions:
VAT- e x e m p t (D) Importation of professional instruments (D) Importation of professional
Transactions and implements, wearing apparel, domestic instruments and implements, tools of
animals, and personal household effects trade, occupation or employment,
(except any vehicle, vessel, aircraft, wearing apparel, domestic animals,
machinery other goods for use in the and personal and household effects
manufacture and merchandise of any kind in belonging to persons coming to settle
commercial quantity) belonging to persons in the Philippines or Filipinos or their
coming to settle in the Philippines, for their families and descendants who are
own use and not for sale, barter or now residents or citizens of other
exchange, accompanying such persons, or countries, such parties hereinafter
arriving within ninety (90) days before or referred to as overseas Filipinos, in
after their arrival, quantities and of the class suitable to
the profession, rank or position of the
persons importing said items,
Section 109 (D) upon the production of for their own use and not for barter or sale,
V A T - e x e m p t evidence satisfactory to the accompanying such persons, or arriving
transactions Commissioner, that such within a reasonable time: Provided, That
persons are actually coming to the Bureau of Customs may, upon the
settle in the Philippines and production of satisfactory evidence that
that the change of residence is such persons are actually coming to settle
bona fide. in the Philippines and that the goods are
brought from their former place of abode,
exempt such goods from payment of duties
and taxes: Provided, further, That vehicles,
vessels, aircrafts, machineries and other
similar goods for use in manufacture, shall
not fall within this classification and shall
therefore be subject to duties, taxes and
other charges.
NIRC NIRC TRAIN
Provision
Section 109 Sale of real properties not Sale of real properties not primarily held for sale
(P) primarily held for sale to to customers or held for lease in the ordinary
VAT-exempt customers or held for lease course of trade or business or real property utilized
Transactions in the ordinary course of for low-cost and socialized housing, residential lot
trade or business or real valued at P1,500,000.00 and below; house and lot,
property utilized for low-cost and other residential dwellings valued at
and socialized housing, P2,500,000.00 and below.
residential lot valued at
P1,919,500.00 and below; Beginning January 1, 2021:
house and lot, and other ü  The VAT exemption shall not anymore apply to:
residential dwellings valued - Sale of low-cast housing
at P3,199,200.00 and - Sale of residential lot
below. ü  The threshold selling price amount for sale of
house and lot, and other residential dwellings
shall be P2,000,000.00
NIRC NIRC TRAIN
Provision
Section 109 Every 3 years, the threshold Every 3 years, the threshold amount shall be
(P) amount shall be adjusted to its adjusted to its present value using the
VAT-exempt present value using the Consumer Price Index, as published by the
Transactions Consumer Price Index, as Philippine Statistics Authority (PSA).
published by the National
Statistics Office.
Section 109 (Q) Lease of a residential unit with (Q) Lease of a residential unit with a
VAT-exempt a monthly rental not exceeding monthly rental not exceeding P15,000.00.
Transactions P12,800.00.
(U) Importation of fuel, goods and (U) Additional provision:

supplies by persons engaged in
international shipping or air xxx Provided, That the fuel, goods, and
transport operations. supplies shall be used for international
shipping or air transport operations.
Section 109 Additional exempt transactions:

VAT- e x e m p t
Transactions (W) Sale or lease of goods and services to
senior citizens and person with disabilities.
(X) Transfer of property in merger or

consolidation [under Section 40(C)(2) of
the NIRC/tax-free exchange].
(Y) Association dues, membership fees,

and other assessments and charges
collected by homeowners associations and
condominium corporations.
Section 109 (W) Sale or lease of goods (Z) Sale of gold to the BSP.
V A T - e x e m p t or properties or the
Transactions performance of services (AA) Sale of drugs and medicines prescribed
other than the transactions for diabetes, high cholesterol, and
specifically mentioned as hypertension beginning January 1, 2019.
VAT-exempt, the gross
annual sales and/or Now (BB) Sale or lease of goods or
receipts do not exceed the properties or the performance of services
amount of P1,919,500.00 other than the transactions mentioned in the
(as amended). preceding paragraphs, the gross annual
sales and/or receipts do not exceed the
amount of P3,000,000.
Section 110 (A)(2) The input tax on the Amortization of input VAT shall only
(b) purchase of capital allowed until December 31, 2021.
Amortization of goods with a cost
Input VAT from e x c e e d i n g After such date, taxpayers with
Purchases of P1,000,000.00 shall be unutilized input VAT on capital goods
Capital Goods amortized based on its purchased or imported shall be
useful life or 60 months, allowed to apply the same as
whichever is shorter. scheduled until fully utilized.
Section 112 The Commissioner shall ü  The period of granting by the Commissioner
R e f u n d s o r Ta x grant a refund or issue a of refunds is decreased to 90 days (from 120
Credit of Input VAT tax credit certificate for days) from the date of submission of
creditable input taxes complete documents in support of the
within 120 days from the application.
date of submission of
complete documents. ü  The granting of tax credit instead of refund is
removed.
Additional provision:
Should the Commissioner find that the grant of
refund is not proper, the Commissioner must
sate in writing the legal and factual basis for
denial.
Section 112 Failure on the part of the The deemed denial of failure to act on the
R e f u n d s o r Ta x Commissioner to act on application is removed.
Credit of Input VAT the application within the
period prescribed shall Additional provision:
be deemed a denial of
the application. Failure on the part of any official, agent, or
employee of the BIR to act on the application
within the ninety (90) – day period shall be
punishable under Section 269 of the Tax Code
(administrative fine and imprisonment).
Section 114 (A) VAT taxpayers shall file Beginning January 1, 2023, the filing and
Return and Payment quarterly return within 25 payment shall be done within 25 days
of VAT days following the close of following the close of each taxable
each taxable quarter, quarter.
while payment of the VAT
shall be made on a
monthly basis upon filing
of monthly VAT
declaration.
Section 114 (B) Government or any of its Additional provision:

Withholding of VAT political subdivisions,
instrumentalities or agencies, Beginning January 1, 2021, the VAT
including government-owned withholding system shall shift from final
or -controlled corporations to a creditable system.
(GOCCs) shall, before making
payment on account of each Payments for purchases of goods and
purchase of goods and services arising from projects funded by
services which are subject to Official Development Assistance (ODA)
the value-added tax shall shall not be subject to the final
deduct and withhold a final withholding tax system.
value-added tax at the rate of
five percent (5%) of the gross
payment thereof.
NIRC NIRC TRAIN
Provision
Violations
committed by “(j) Deliberate failure to act on the
government application for refunds within the
enforcement prescribed period provided under
officers Section 112 of this Act.”
(TRAIN)
– Other Percentage Taxes

NIRC NIRC TRAIN
Provision
Section 116 Cooperatives are exempt from Additional exemption:
3% gross receipts the 3% gross receipts tax
tax of persons Beginning January 1, 2019, self-
exempt from the employed and professionals with
VAT total annual gross sales and/or gross
receipts not exceeding P500,000 shall
be exempt from the 3% gross receipts
(The above provision was vetoed by

President Duterte because the
proposed exemption will result in
unnecessary erosion of revenues
and would lead to abuse and
leakages.)
NIRC NIRC TRAIN
Provision
Section 127 Sale, barter or exchange of shares of The rate of the stock transaction
Stock transaction stock listed and traded through the tax is increased to 6/10 of 1%
tax local stock exchange shall be subject
to a tax of ½ of 1% of the gross
selling price or gross value in money
of the shares of stock sold, bartered,
exchanged or otherwise disposed
Section 128 The Commissioner may prescribe by This power of the Commissioner
Return and rules and regulations other intervals was removed.
payment of of time for filing the percentage tax
percentage taxes return, also including a scheme of tax
prepayment.
(TRAIN)
– Excise Taxes

Sec'on 129 Excise taxes apply to goods Excise tax shall also be
Goods and services subject to manufactured or produced in imposed to services
excise tax the Philippines for domes'c performed in the
sales or consump'on or for Philippines
any other disposi'on and to
things imported
Tobacco
Sec4on 145 RA 10351/ TRAIN
(B) and (C) RR 17-2012
CIGARETTES, per 2017 January 1, July 1, 2018 January 1, January 1, January 1,
pack 2018 un'l un'l December 2020 un'l 2022 un'l 2024
June 30, 31, 2019 December December Onwards
2018 31, 2021 31, 2021
CigareZes P 30.00 P 32.50 P 35.00 P 37.50 P40.00 Effec'vity
1/1/2024,
packed by the specific
hand tax rate
shall be
CigareZes P 30.00 P 32.50 P 35.00 P 37.50 P40.00
increased
packed by by 4%
machine every year
therea_er
Petroleum
RA 10351/ TRAIN
RR 17-2012
Sec4on 148 January January 1, January
Excise tax on petroleum products 1, 2018 2019 1, 2020
(a) Lubrica'ng oils and greases, including but not P 4.50
limited to basestock for lube oils and greases,
high vacuum dis'llates, aroma'c extracts and
other similar prepara'ons, and addi'ves for
lubrica'ng oils and greases, whether such
addi'ves are petroleum based or not, per liter
and kilogram respec'vely, of volume capacity or P 8.00 P 9.00 P 10.00
weight.
(a.1) Locally produced or imported oils previously P 4.50
taxed but are subsequently reprocessed,
refined or recycled, per liter and kilogram of
volume capacity or weight.
Petroleum
RA TRAIN
10351/
RR
Excise tax on petroleum products 17-2012 1, 2018 2019 1, 2020
(b) Processed gas, per liter of volume capacity. P 0.05
(c) Waxes and petrolatum per kilogram. P 3.50

P 8.00 P 9.00 P 10.00
(d) Denatured alcohol to be used for mo've P 0.05
power, per liter of volume capacity.
(e) Asphalts, per kilogram. P 0.56
(f) Naphtha, regular gasoline, and other P 4.35
similar products of dis'lla'on, per liter of P 7.00 P 9.00 P 10.00
volume capacity
Petroleum
RA TRAIN
10351/
RR
Pyrolysis gasoline -
P 7.00 P 9.00 P 10.00
(g) Unleaded premium gasoline, per liter of P 4.35
volume capacity
(h) Kerosene, per liter of volume capacity P 0.00 P 3.00 P 4.00 P 5.00
(i)  Avia'on turbo jet fuel, per liter of volume P 3.67
capacity
Avia'on gas - P 4.00 P 4.00 P 4.00
(j) Kerosene, when used as avia'on fuel, per liter P 3.67
of volume capacity
Petroleum
RA TRAIN
10351/
RR
(k) Diesel fuel oil, and on similar fuel oils having P 0.00
more or less the same genera'ng power, per
liter of volume capacity
(l) Liquefied petroleum gas used for mo've power, P 0.00
per kilogram P 2.50 P 4.50 P 6.00
(m) Bunker fuel oil, and on similar oils having more P 0.00
or less the same genera'ng power, per liter of
volume capacity
(n) Petroleum coke, per metric ton -
(o) Liquefied petroleum gas, per kilogram P 0.00 P 1.00 P 2.00 P 3.00
Petroleum
RA TRAIN
10351/
Sec4on 148 January 1, January 1, January
RR
Excise tax on petroleum products 17-2012 2018 2019 1, 2020
(p) Naphtha and pyrolysis gasoline, when used as a raw P 0.00
material in the produc'on of petrochemical products or in
the refining of petroleum products, or as replacement fuel
for natural-gas-fired-combined cycle power plant, in lieu
of locally-extracted natural gas during the non-availability
thereof, per liter of volume capacity
P 0.00 P 0.00 P 0.00
(q) Liquefied petroleum gas, when used as raw material in P 0.00
the produc'on of petrochemical products, per kilogram
(r) Petroleum coke, when used as feedstock to any power -
genera'ng facility, per metric ton
NIRC Provision TRAIN
Sec'on 148 Addi'onal proviso:

Excise tax on
petroleum Naphtha and pyrolisis gasoline will also be subject to zero excise tax when used in the
products refining of petroleum products.

The produc'on of petroleum products, whether or not they are classified as products
of dis'lla'on and for use solely for the produc'on of gasoline shall be exempt from
excise tax.

Liquefied petroleum gas when used as raw material in the produc'on of
petrochemical products, subject to the rules and regula'ons to be promulgated by the
Secretary of Finance, shall be taxed zero per kilogram.

The excise taxes paid on the purchased basestock (bunker) used in the manufacture of
excisable ar'cles and forming part thereof shall be credited against the excise tax due
therefrom.

Petroleum coke is now subject to excise tax. But, when used as feedstock to any
power genera'ng facility, it shall be taxed at zero per metric ton.
Sec'on 148 Addi'onal proviso:

Excise tax on
petroleum Zero excise tax for Petroleum products, including naphtha, LPG, petroleum
products coke, refinery fuel and other products of dis'lla'on, when used as input,
feedstock or as raw material
•  in the manufacturing of petrochemical products, or
•  in the refining of petroleum products,
or as replacement fuel for natural-gas-fired-combined cycle power plant

(The above provision was vetoed by President Duterte because of the risk of
being too general which may be subject to abuse by taxpayers.)
Sec'on 148 The by-product from the processing of naphtha into petrochemical products
Excise tax on shall be subject to the applicable excise tax.
petroleum
products Except when the by-products are transferred to any of the local oil refineries
through sale, barter or exchange, for the purpose of further processing or
blending into finished products which are subject to excise tax herein.

For the period 2018 – 2020, the scheduled increase in rate shall be suspended
when the DUBAI crude oil price reaches or exceeds USD80 per barrel for 3
months prior to the scheduled increase.
Sec'on 148-A No provision The Secretary of Finance shall require the use of an
Marking of official fuel marking or similar technology on
petroleum porducts petroleum products that are refined, manufactured
(new) or imported into the Philippines, and that are subject
to the payment of taxes and du'es.
Sec'on 148-A No provision Official fuel markers

Marking of
petroleum porducts •  shall be dis'nct and to the greatest degree possible,
(new) impossible to imitate or replicate.
•  must be unique to the Philippines
•  The chemical composi'on and quan'ta've ra'o must
persist for at least 3 years from their applica'on or
administra'on to the unmarked fuel
Sec'on 148-A No provision Who shall cause and accommodate the marking with
Marking of the official marking agent:
petroleum porducts
(new) •  the person, en'ty, or taxpayer who owns or enters
the petroleum products into the country, OR
•  the person to whom the petroleum products are
consigned

Internal revenue or customs officers shall administer
the declara'on of taxes and du'es imposed and
oversee the applica'on of the fuel marking.
Sec'on 148-A No provision Absence of official or dilu'on of the official marker on

Marking of petroleum products shall raise the presump'on that
petroleum porducts the products were withdrawn with the inten'on to
(new) evade the payment of the taxes and du'es thereon.

The use of fraudulent marker on the petroleum
products shall be considered prima facie evidence
that the same have been withdrawn or imported
without the payment of taxes and du'es due
thereon.
Sec'on 148-A No provision The government shall engage only one fuel marking
Marking of provider necessary for the proper implementa'on of
petroleum porducts this provision.
(new)
All costs pertaining to the procurement of the official
fuel markers shall be borne by the refiner,
manufacturer or importer, of petroleum products.
The government may subsidize the cost of official fuel
markers in the first year of implementa'on.

The marking shall be mandatory within 5 years from
the effec'vity of the tax reform law.
Sec'on 149 Effec've January 1, 2018:

Excise tax on
automobiles Tax Schedule Tax Schedule
(RR 25-2003)
Up to 600,000 2% Up to 600,000 4%
Over 600,000 12,000 + 20% in Over 600,000 up 10%

up to 1.1M excess of 600,000 to 1M
Over 1.1M up 112,000 + 40% in Over 1M up to 4M 20%
to 2.1M excess of 1.1M
Over 2.1M 512,000 + 60% in Over 4M 50%

excess of 2.1M
Hybrid vehicles shall be subject to 50% of the
applicable taxes
Purely electric vehicles and pick-ups shall be
exempt from excise tax on automobiles
Sec'on 150-A No provision Invasive cosme'c procedures, surgeries, and body

On non-essen'al enhancements for aesthe'c reasons shall be subject
services [new] to 5% excise tax based on the gross receipts derived
from the performance of services, net of excise tax
and VAT.

Body enhancements shall refer to those:

•  Directed solely towards improving, altering or
enhancing a pa'ent’s appearance,
•  That do not meaningfully promote the func'on of
the body or prevent or treat illness or disease.
Sec'on 150-A No provision The tax shall not apply to nor cover:
On non-essen'al
services [new] 1.  Procedures necessary to ameliorate a deformity
arising from, or directly related to:
•  a congenital or developmental defect or
abnormality
•  a personal injury resul'ng from an accident or
trauma
•  a disfiguring disease, tumor, virus or infec'on

2. Cases or treatments covered by the Na'onal
Health Insurance Program
Sec'on 150-B No provision Effec've January 1, 2018:

On sweetened
beverages [new] Tax (Per
Basis Liter of
Volume
Capacity)
Sweetened beverages using purely P6.00
caloric sweeteners and
purely non-caloric sweeteners, or a mix
of caloric and non-caloric sweeteners
Sweetened beverages using purely high P12.00
fructose corn syrup or in combina'on
with any caloric or non-caloric sweetener
Sec'on 150-B No provision The rate of ₱6.00 shall not apply to sweetened
On sweetened beverages using high fructose corn syrup
beverages [new]
Exempt: Sweetened beverages using
1.  Purely coconut sap sugar
2.  Purely steviol glycosides
Sec'on 150-B No provision Sweetened beverages – non- alcoholic beverages of

On sweetened any cons'tu'on (liquid, powder, or concentrates)
beverages [new] pre-packaged and sealed according to FDA standards,
containing caloric and/or non-caloric sweeteners
added by the manufacturers.
Sec'on 150-B No provision List of sweetened beverages (not exclusive):

On sweetened 1.  Sweetened juice drinks
beverages [new] 2.  Sweetened tea
3.  All carbonated beverages
4.  Flavored water
5.  Energy and sports drink
6.  Other powdered drinks not classified as milk, juice,
tea, and coffee
7.  Cereal and grain beverages
8.  Other non-alcoholic beverages that contain added
sugar
Sec'on 150-B No provision Caloric sweetener — substance that is sweet and

On sweetened includes sucrose, fructose, and glucose that produces
beverages [new] a certain sweetness

High fructose corn syrup — a sweet saccharide
mixture containing fructose and glucose which:
•  is derived from corn, and
•  added to provide sweetness to beverages, and
•  includes other similar fructose syrup prepara'ons;
Sec'on 150-B No provision Non-caloric sweetener – a substance that:

On sweetened •  is ar'ficially or chemically processed
beverages [new] •  produces a certain sweetness
•  Can be directly added to beverages
•  Such as: aspartame, sucralose, saccharin,
acesulfame potassium, neotame, cyclamates and
other non-nutri've sweeteners approved by the
Codex Alimentarius and adopted by the FDA.
Sec'on 150-B No provision Excluded products:

On sweetened •  All milk products, including plain milk, infant
beverages [new] formula milk, follow-on milk, and growing up milk,
powdered milk, ready to drink milk and flavored
milk, fermented milk, soymilk, and flavored
soymilk
•  100% natural fruit juices
•  100% natural vegetable juices
•  Meal replacement and medically indicated
beverages
•  Ground coffee, instant soluble coffee, and pre-
packaged powdered coffee products (with or
without added sugar)
Sec'on 150-B No provision Penal'es and fines for misrepresenta'on or

On sweetened misdeclara'on in the required Manufacturer’s or
beverages [new] Producer’s Sworn Statement
•  Summary cancella'on or withdrawal of the permit
to engage in business as manufacturer or importer
of sweetened beverages
•  For corpora'on, associa'on, or partnership: fine of
triple the amount of deficiency taxes, surcharges,
and interest
•  Criminal liability
•  For non-resident: immediate deporta'on a_er
serving sentence
Minerals
RA 10351/ TRAIN
RR 17-2012
Excise tax on mineral products 1, 2018 2019 1, 2020
On coal and coke, per metric ton P 10.00 P 50.00 P 100.00 P 150.00
Minerals

RR 17-2012
Excise tax on mineral products
On all non-metallic mineral and quarry resources
1.  Locally extracted or produced, based on actual market
2% 4%
value
2.  In the case of importa'on based on value used by
Bureau of Customs in determining tariff and customs 2% 4%
du'es, net of excise tax and VAT
3.  Locally-extracted natural gas and liquefied natural gas P0.00 Exempt
Minerals

RR 17-2012
Excise tax on mineral products
1. Locally extracted or produced, based on actual
market value
a) Copper and other metallic minerals 2% 4%
b) Gold and chromite 2% 4%
Minerals
Excise tax on mineral products RR 17-2012

2. In the case of importa'on based on value used
by Bureau of Customs in determining tariff and
customs du'es, net of excise tax and VAT
a) Copper and other metallic minerals 2% 4%
b) Gold and chromite 2% 4%
On indigenous petroleum, based on the fair interna'onal
market price thereof, on the first taxable sale, barter, exchange 3% 6%
or similar transac'on.
Sec'on 155 Manufacturers of Importers are likewise required to provide

Mandatory ar'cles subject to excise themselves with such Bureau-accredited coun'ng or
metering devices tax shall provide metering devices to determine volume, quan'ty or
themselves with number of ar'cles imported.
coun'ng or metering
devices to determine as
accurately as possible
the volume, quan'ty, or
number of the ar'cles
produced, to be
complied with before
commencement of
opera'ons.
Sec'on 171 Any internal revenue The internal revenue officer now also has the
Authority of officer may enter any authority to TEST the ar'cles subject to excise tax.
Internal Revenue house, building, or
Officer to search place where ar'cles are The Commissioner or his authorized representa've
[and test] taxable produced or kept so far may conduct periodic random field tests and
ar'cles as may be necessary to confirmatory tests on fuel required to be marked
examine, discover, or found in warehouses, storage tanks, gas sta'ons and
seize the same. other retail outlets, and in such other proper'es of
persons engaged in the sale, delivery, trading,
transporta'on, distribu'on, or importa'on of fuel
intended for the domes'c market.
Sec'on 171 Random field tes'ng shall be conducted in the

Authority of presence of:
Internal Revenue •  Revenue or customs officer
Officer to search •  Fuel marking provider
[and test] taxable •  Authorized representa've of the owner of the fuel
ar'cles to be tested
•  Employee assigned or working at the place where
the test is conducted – deemed an authorized
representa've
Sec'on 171 All field tests shall be

Authority of
Internal Revenue • Properly filmed or video- taped AND
Officer to search • Documented
[and test] taxable
ar'cles Sample of Unmarked, adulterated, or diluted fuel
from the random tes'ng shall be immediately
obtained upon discovery.
(TRAIN)
– Documentary Stamp Tax

Section 174 ₱ 1.00 / ₱ 200.00 ₱2.00 / ₱ 200.00
Original Issue of Shares
of Stock
Section 175 ₱ 0.75 / ₱ 200.00 ₱ 1.50 / ₱ 200.00

Sales, Agreements to
Sell, Memoranda of
Sales, Deliveries or
Transfer of Shares or
Certificates of Stock
with par value
Section 175 25% of DST paid on 50% of DST paid on
Sales, Agreements to original issue original issue
Sell, Memoranda of
Sales, Deliveries or
Transfer of Shares or
Certificates of Stock
without par value
Section 177 ₱ 0.50 / ₱ 200.00 ₱ 1.00 / ₱ 200.00
Certificates of Profits or
Interest in Property or
Accumulations
Note: Sec 176 ( no rate) refers to bonds, debentures cer'ficate of stocks issued in Foreign Countries
Section 178 ₱ 1.50 / piece of check ₱ 3.00 / piece of check
Bank Checks, Drafts,
Certificates of Deposit
not Bearing Interest,
and Other Instruments
Section 179 ₱ 1.00 / ₱ 200.00 of FV ₱ 1.50 / ₱ 200.00 of FV

All Debt Instruments or a fraction of 365 or a fraction of 365
days for instruments days for instruments
with term of less than 1 with term of less than 1
year year
Section 180 ₱ 0.30 / ₱200.00 ₱ 0.60 / ₱200.00
All Bills of Exchange
(between points within
the Philippines) or
Drafts
Section 181 ₱ 0.30 / ₱200.00 ₱ 0.60 / ₱200.00
Acceptance of Bills of
Exchange or Order
Drawn in a Foreign
Country but Payable in
the Philippines
Section 182 ₱ 0.30 / ₱200.00 ₱ 0.60 / ₱200.00
Foreign Bills of
Exchange and Letters
of Credit
Section 183 Not Over ₱ 100K = Not Over ₱ 100K =
Life Insurance Policies Exempt Exempt
Over ₱ 100K but not Over ₱ 100K but not

over ₱ 300K = ₱ 10.00 over ₱ 300K = ₱ 20.00
Section 183 Over ₱ 300K but not Over ₱ 300K but not
Life Insurance Policies over ₱ 500K – ₱ 25.00 over ₱ 500K – ₱ 50.00

over ₱ 750K – ₱ 50.00 over ₱ 750K – ₱ 100.00

over ₱ 1M – ₱ 75.00 over ₱ 1M – ₱ 150.00
Section 183 Over ₱ 1M - ₱ 100.00 Over ₱ 1M - ₱ 200.00
Life Insurance Policies
Section 186 ₱ 0.50 / ₱200.00 ₱ 1.00 / ₱200.00

Policies of Annuities
Section 186 ₱ 0.20 / ₱200.00 ₱ 0.40 / ₱200.00

Pre-Need Plans
Section 188 ₱ 15.00 / Certificate ₱ 30.00 / Certificate

Certificates Issued
Note: Sec 184 refers to Insurance Policies upon Property (0.50 / 4.00 premium charge)
Sec 185 refers to fidelity bonds and other insurance policies (0.50 / 4.00 premium charge)
Sec 187 refers to indemnity bonds (0.30 / 4.00 premium charge)
Section 189 Above ₱ 200.00 = Above ₱ 200.00 =
Warehouse Receipts ₱15.00 ₱30.00
Section 190 ₱ 1.00 and below = ₱ 1.00 and below =

Jai-Alai, Horse Race, ₱ 0.10 ₱ 0.20
Tickets, Lotto or Other
Authorized Number
Games Above ₱ 1.00 = Above ₱ 1.00 =
₱ 0.10/₱ 1.00 ₱ 0.20/₱ 1.00
Section 191 Over ₱ 100.00 but not Over ₱ 100.00 but not
Bills of Lading or over ₱ 1K = ₱1.00 over ₱ 1K = ₱2.00
Receipts
Over ₱ 1K = ₱10.00 Over ₱ 1K = ₱ 20.00
Section 192 ₱ 15.00 / proxy vote ₱ 30.00 / proxy vote

Proxies for Voting at
any Election
Section 193 ₱ 5.00 / issued power ₱ 10.00 / issued power
Powers of Attorney of attorney of attorney
Section 194 First ₱ 2K = ₱ 3.00 First ₱ 2K = ₱ 6.00

Leases and Other
Hiring Agreements
Over ₱ 2K = Over ₱ 2K =
₱ 1.00 / ₱ 1K ₱ 2.00 / ₱ 1K
Section 195 First ₱ 5K = ₱ 20.00 First ₱ 5K = ₱ 40.00
Mortgages, Pledges
and Deeds of Trust
Over ₱ 5K = Over ₱ 5K =
₱ 10.00 / ₱ 5K ₱ 20.00 / ₱ 5K
Section 197 First 6 months = First 6 months =
Charter Parties and ₱ 500.00 + ₱ 50.00 for ₱ 1K + ₱ 100.00 for
Similar Instruments if each month or fractions each month or fractions
gross tonnage of ship, of a month in excess of of a month in excess of
vessel or steamer is 6 months 6 months
1,000 tons and below
Charter Parties and ₱ 1K + ₱ 100.00 for ₱ 2K + ₱ 200.00 for
Similar Instruments if each month or fractions each month or
gross tonnage of ship, of a month in excess of fractions of a month in
vessel or steamer is 6 months excess of 6 months
1,001 tons to 10,000 tons
Charter Parties and ₱ 1.5K + ₱ 150.00 for ₱ 3K + ₱ 300.00 for
Similar Instruments if each month or fractions each month or
gross tonnage of ship, of a month in excess of fractions of a month in
vessel or steamer is 6 months excess of 6 months
more than 10,000 tons
Section 196 On first ₱ 1K = ₱15.00 No Change
Deeds of Sale,
Conveyances and of In excess of ₱ 1K or
Real Property fractional part thereof =
₱ 15.00 / ₱ 1K
Transfers exempt from

donor’s tax under
Section 101 (a) and (b)
of the Tax Code shall
be exempt from DST
Section 196 No DST On first ₱ 1K = ₱15.00
Deeds of Sale,
Conveyances and In excess of ₱ 1K or
Donations of Real fractional part thereof =
Property ₱ 15.00 / ₱ 1K
New inclusion: Transfers exempt from

Donations of Real donor’s tax under
Property Section 101 (a) and (b)
of the Tax Code shall
be exempt from DST
(TRAIN)
– Administrative Provisions
NIRC NIRC TRAIN
Provision
Section 232 All corporations, companies, All corporations, companies,
Keeping of books partnerships or persons required partnerships or persons required by
of accounts by law to pay internal revenue law to pay internal revenue taxes
taxes shall keep a journal and a shall keep and use relevant and
ledger. appropriate set of bookkeeping
records duly authorized by the
Those whose quarterly sales, Secretary of Finance.
earnings, receipts, or output do not
exceed PHP50,000 shall keep and
use simplified set of bookkeeping
records.
NIRC NIRC TRAIN
Provision
Section 232 Those whose gross quarterly Those whose gross annual sales,
Keeping of books sales, earnings, receipts or output earnings, receipts or output exceed
of accounts exceed P150,000 shall have their ₱3,000,000 shall have their books of
books of accounts audited and accounts audited and examined
examined yearly by independent yearly by independent CPAs and their
Certified Public Accountants ITRs accompanied with a duly
( C PA s ) a n d t h e i r I T R s accomplished AIF.
accompanied Account Information
Form (AIF).
NIRC NIRC TRAIN
Provision
Section 232 All corporations, companies, All corporations, companies,
Keeping of books partnerships, or persons required partnerships or persons required by
of accounts by law to pay internal revenue law to pay internal revenue taxes
taxes shall keep a journal and a shall keep and use relevant and
ledger. appropriate set of bookkeeping
records duly authorized by the
Those whose quarterly sales, Secretary of Finance.
earnings, receipts, or output do
not exceed P50,000 shall keep
and use simplified set of
bookkeeping records
NIRC NIRC TRAIN
Provision
Section 236 The taxpayer’s registration shall Additional proviso:
Registration contain the information as may be
Requirements required by the Commissioner in the The Commissioner shall simplify the
form prescribed business registration and tax
compliance requirements of self-
employed individuals and/or
professionals.
Persons required to register for VAT:

those whose gross receipts
•  for the past 12 months have Threshold amount is increased to
exceeded ₱1,500,000 ₱3,000,000.
NIRC NIRC TRAIN
Provision
Section 236 •  For the next 12 months can be Additional proviso:
Registration reasonably believe to exceed
Requirements ₱1,500,000 Any taxable individual who elects to pay
the 8% tax on gross sales or receipts
shall not be allowed to avail of optional
VAT registration.
Any person not required to register
for VAT may elect to register for VAT.
Section 237 A duly-registered receipt or sales or It is expressly provided that the

Receipts or commercial invoice , prepared at issuance of the receipt or invoice shall
Invoices least in duplicate, shall be issued for be made at the point of sale.
each sale of merchandise or service
rendered valued at ₱25 or more.
The threshold amount is increased to
₱100.00
NIRC NIRC TRAIN
Provision
Receipts or Within 5 years from the effectivity of the
Invoices law and upon the establishment of the
necessary storing and processing
system, the following shall be required
to issue electronic receipts or sales or
commercial invoices in lieu of manual
receipts/invoices:
•  taxpayers engaged in the export of
goods and services
•  taxpayers engaged in e-commerce,
and
•  taxpayers under the jurisdiction of the
Large Taxpayers Service
NIRC NIRC TRAIN
Provision
Section 237 Other taxpayers may also opt to issue
Receipts or electronic receipts/invoices in lieu of
Invoices manual ones.
The digital record of electronic receipts/

invoices shall be kept by the purchaser,
customer or client and the issuer for a
period of 3 years from the close of the
taxable year.
NIRC NIRC TRAIN
Provision
Section 237 (A) No provision The taxpayers that will be mandated
Electronic Sales under Sections 236 to issue electronic
Reporting System receipts/invoices shall be required to
[new] electronically report their sales data to
the BIR through the use of electronic
point of sales systems.
The machines, fiscal devices, and fiscal

memory devices shall be at the expense
of the taxpayers.
NIRC NIRC TRAIN
Provision
Section 237 (A) No provision The data processing of sales and
Electronic Sales purchase data shall comply with:
Reporting System •  the Data Privacy Act
[new] •  the provision of the Tax Code on
unlawful divulgence of taxpayer
information (Section 270)
•  o t h e r l a w s r e l a t i n g t o t h e
confidentiality of information
The BIR shall also establish policies,

risk management approaches, actions,
trainings, and technologies to protect the
cyber environment, organization, and
data.
(TRAIN)
– Penalties
NIRC NIRC TRAIN
Provision
Section 249 (A) 20% interest on any unpaid amount General interest on unpaid amount of
General interest of tax from the date prescribed for tax is changed to 12% (at double the
payment until the amount fully paid rate of legal interest rate for loans or
forbearance of any money in the
absence of an express stipulation as
set by the BSP; prevailing BSP-set
legal interest is 6%)
Additional proviso:
Deficiency and delinquency interest
shall in no case be imposed
simultaneously.
NIRC NIRC TRAIN
Provision
Section 249 (B) Deficiency interest is assessed and The period when deficiency interest
Deficiency collected from the date prescribed shall stop to run is until full payment
interest for its payment until full payment OR upon issuance of a notice and
thereof. demand by the BIR Commissioner;
whichever comes earlier.
NIRC NIRC TRAIN
Provision
Section 254 Any person who willfully attempts Fine is increased to not less than
Attempt to evade in any manner to evade or defeat P500,000 but not more than
or defeat tax any tax imposed under this Code P10,000,000
or the payment thereof shall, in
addition to other penalties provided Imprisonment is increased to not
by law, upon conviction thereof; be less than 6 years but not more
punished by a fine of not less than than 10 years
P30,000 but not more than
P100,000 and suffer imprisonment
of not less than 2 years but not
more than 4 years.
NIRC NIRC TRAIN
Provision
Section 264 Any person who: Same
Failure or refusal ü  fails or refuses to issue receipts/
to issue receipts invoices
or invoices ü  issues receipts/invoices that do
not fully reflect required
information
ü  uses multiple or double receipts
or invoices
shall upon conviction be punished
by a fine of not less than P1,000
but not more than P50,000 and
suffer imprisonment of not less
than 2 years but not more than 4
years
NIRC NIRC TRAIN
Provision
Section 264 Fine of not less than P1,000 but Fine is increased to not less than
Failure or refusal not more than P50,000 and P500,000 but not more than
to issue receipts imprisonment of not less than 2 P10,000,000
or invoices years but not more than 4 years for
any person who: Imprisonment is increased to not
(on printer’s ü  Print receipts/invoices without less than 6 years but not more
violation) authority from the BIR than 10 years
ü  Print double or multiple sets of
invoices or receipts Additional punishable offense:
ü  Print unnumbered receipts/ Printing of other fraudulent receipts
invoices not bearing the name, or sales or commercial invoices
business style, TIN and
business address of the entity
NIRC NIRC TRAIN
Provision
Section 264-A No provision Any taxpayer required to transmit
Failure or sales data to the BIR’s electronic
transmit Sales sales reporting system but fails to do
Data Entered on so, shall pay:
Cash Register
Machine/Point of For each day of violation:
Sales System 1/10 of 1% of the annual net income
(POS) Machines as reflected in the Audited FS for the
to the BIR’s second year preceding the current
Electronic Sales taxable year OR P10,000, whichever
Reporting is higher.
System [new]
NIRC NIRC TRAIN
Provision
Section 264-A No provision IF the aggregate number of days of
Failure or violation exceed 180 days within a
transmit Sales taxable year, additional penalty shall
Data Entered on be: permanent closure of the
Cash Register taxpayer
Machine/Point of
Sales System The penalty shall not apply if the
(POS) Machines failure to transmit is due to force
to the BIR’s majeure or any causes beyond the
Electronic Sales control of the taxpayer
Reporting
System [new]
NIRC NIRC TRAIN
Provision
Section 264-B No provision Covered person shall be any person
Sales who purchase, use, possess, sell or
suppression offer to sell, install, transfer, update,
devices [new] upgrade, keep, or maintain such
automated sales suppression device
or software designed for or is capable
of:
ü  Suppressing the creation of
electronic records of sale
transactions that a taxpayer is
required to keep under existing tax
laws and/or regulation; or
ü  Modifying, hiding or deleting
electronic records of sales
transactions and providing ready
means of access to them
NIRC NIRC TRAIN
Provision
Section 264-B No provision Penalty:
Sales Fine of not less than P500,000 but
suppression not more than P10,000,000 and
devices [new] imprisonment of not less than 2
years but not more than 4 years
Cumulative suppression of electronic

sales record in excess of
P50,000,000 shall be considered as
economic sabotage and shall be
subject to maximum penalty
NIRC NIRC TRAIN
Provision
Section 265-A No provision Additional punishment for all offenses
Offenses relating relating to fuel marking:
to fuel marking a.  Any person engaged in the sale,
trade, delivery, distribution or
transportation of unmarked fuel in
commercial quantity held for domestic
use or merchandise (upon conviction)
b.  Any person who:
ü  causes removal of the official fuel
marking agent from marked fuel, and
the adulteration or dilution of the fuel
intended for sale to the domestic
market, or
NIRC NIRC TRAIN
Provision
Section 265-A No provision ü  knows the possession, storage,
Offenses relating transfer or offer for sale of fuel
to fuel marking obtained as a result of such removal,
adulteration or dilution
First offense ₱2,500,000
Second ₱5,0100,000
offense
Third offense ₱10,000,000 plus
revocation of license to
engage in any trade or
business
NIRC NIRC TRAIN
Provision
Section 265-A No provision c.  fine of not less than P1,000,000 but
Offenses relating not more than P5,000,000 AND
to fuel marking imprisonment of not less than 4
years but not more than 8 years for
any person who commits any of the
following acts:
ü Making, importing, selling, using or
possessing fuel markers without
express authority
ü Making, importing, selling, using or
possessing counterfeit fuel markers
NIRC NIRC TRAIN
Provision
Section 265-A No provision ü Causing another person or entity to
Offenses relating commit any of the two preceding
to fuel marking acts
ü Causing the sale, distribution,
supply or transport of legitimately
imported, in-transit, manufactured
or procured controlled precursors
and essential chemicals to any
person or entity penalized under
the preceding and this subsection
NIRC NIRC TRAIN
Provision
Section 265-A No provision d.  Fine of not less than P5,000,000 but
Offenses relating no more than P10,000,000 AND
to fuel marking imprisonment of not less than 4
years but not more than 8 years for
any person who willfully inserts,
places, adds or attaches whatever
quantity of any unmarked fuel,
counterfeit additive or chemical in the
person, house, effects, inventory, or
in the immediate vicinity of an
innocent individual for the purpose of
implicating, incriminating or imputing
the commission of any violation
herein
NIRC NIRC TRAIN
Provision
Section 265-A No provision e.  Any person authorized, licensed or
Offenses relating accredited to conduct fuel tests, who
to fuel marking issues false or fraudulent test
results knowingly, willfully OR
through gross negligence, shall suffer
additional penalty of imprisonment
from 1 year and 1 day to 2 years and
6 months
Additional penalties that may be

imposed by the court:
ü  Revocation of the license to practice
profession in case of a practitioner
ü  Closure of the fuel testing facility
NIRC NIRC TRAIN
Provision
Section 269 No provision Additional punishable offense:
Violations (j) Deliberate failure to act on the
committed by application for VAT refunds within the
Government prescribed period
Enforcement
Officers
Thank you!

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Bir Train Vs Nirc Full

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RA 10963: Tax Reform for

Acceleration and Inclusion

Background on the Tax Reform

What is the purpose of TRAIN?

Php 130 Billion

Increasing the Excise Tax Increasing the Excise Introducing an Excise

The Vision of TRAIN by 2020….

Poverty rate Law abiding Peace within Achieve high

The Vision of TRAIN by 2040….

Extreme Inclusive Achieve high

What are the benefits of TRAIN?

Higher budget for Infrastructure development

Higher efficiencies, increase in business

Higher budget for education

Higher budget for health

Higher budget for Social Protection, Welfare and

– Power and Authority of the

– Income Tax: Personal

Over P70,000 but P8,500 + 20% of the

Over P140,000 but P22,500 + 25% of

Over P2Million but P490,000 + 32% of the

Not over P100,000 – 5%

On any amount in excess of

Section 24 (C) Presidential Veto:

The amount of estimated income The payment of the four installments

The tax withheld shall be credited

– Income Tax: Corporate

On any amount in excess of

These requirements shall not affect

The provision that the Commissioner

NET GIFT TAX NET GIFT TAX

– Value Added Tax

ü Registered enterprises within tourism

(The above provision was vetoed by

4. Sale of gold to BSP.

ü All pending VAT refund claims as of December

1. Sale of gold to BSP

4. Services rendered to persons 4. Services rendered to persons

ü Registered enterprises within

(Above provision was votoed by

ü All pending VAT refund claims as of December

Section 108 (B) Additional provision:

To fund claims for VAT refund 5% of the total VAT

ü Automatically appropriated annually.

Section 108 Additional provision:

(U) Importation of fuel, goods and (U) Additional provision:

Section 109 Additional exempt transactions:

(X) Transfer of property in merger or

(Y) Association dues, membership fees,

Section 114 (B) Government or any of its Additional provision:

– Other Percentage Taxes

(The above provision was vetoed by

(c) Waxes and petrolatum per kilogram. P 3.50

Sec'on 148 Addi'onal proviso:

Sec'on 148 Addi'onal proviso:

Sec'on 148-A No provision Oﬃcial fuel markers

Sec'on 148-A No provision Absence of oﬃcial or dilu'on of the oﬃcial marker on

Sec'on 149 Eﬀec've January 1, 2018:

Over 600,000 12,000 + 20% in Over 600,000 up 10%

Over 2.1M 512,000 + 60% in Over 4M 50%

Sec'on 150-A No provision Invasive cosme'c procedures, surgeries, and body

Sec'on 150-B No provision Eﬀec've January 1, 2018:

Sec'on 150-B No provision Sweetened beverages – non- alcoholic beverages of

ü Registered enterprises within tourism

4.  Sale of gold to BSP.

ü  All pending VAT refund claims as of December

1.  Sale of gold to BSP

4.  Services rendered to persons 4.  Services rendered to persons

ü  Registered enterprises within

ü  All pending VAT refund claims as of December

ü  Automatically appropriated annually.