Foreword
This edition of the Tax Code includes the amendments introduced by
the TRAIN Law. It also includes RA No. 11256 (An Act to Strengthen the
Country’s Gross International Reserves), RA No. 11346 (An Act Increasing the
Excise Tax on Tobacco Products, Imposing Excise Tax on Heated Tobacco
Products and Vapor Products, Increasing the Penalties for Violations of
Provisions on Articles Subject to Excise Tax, and Earmarking a Portion of
the Total Excise Tax Collection from Sugar-Sweetened Beverages, Alcohol,
Tobacco, Heated Tobacco and Vapor Products for Universal Health Care),
and RA No. 11467 (An Act Amending Sections 109, 141, 142, 143, 144, 147,
152, 263, 263-A, 265, and 288-A, and Adding a New Section 290-A to the
National Internal Revenue Code).
The TRAIN Law, which took effect on 1 January 2018, lowered personal
income tax rates, introduced the 8% gross income tax for self-employed
individuals and professionals, increased income tax rates on passive income,
doubled most of the documentary stamp tax rates, reduced donor’s and
estate taxes to a uniform six percent (6%) rate, and restructured some of
the excise tax rates. It also provided for the conditional removal of the zero
percent (0%) value-added tax (VAT) on indirect exports and services, and
introduced changes to and added inclusions in VAT-exempt transactions
under Section 109 of the Tax Code.
Tax administration reforms were also introduced by the TRAIN Law, such as
fuel marking, reduction of the number of pages and amount of information
contained in income tax returns, automatic adjustment of zonal values,
issuance of electronic receipts and invoices, and electronic reporting of sales.
The deficiency interest penalty was amended from 20% per annum to
double the legal interest rate for loans or forbearance of money as set by the
Bangko Sentral ng Pilipinas. In no case shall the deficiency and delinquency
interest be imposed simultaneously. Notably, the penalties for violation of the
provisions of the Tax Code were substantially increased.
Isla Lipana & Co., the Philippine member firm of the PwC network
Seleccionar párrafo de destino3
Conectar a un párrafo
Connect to an entity
Disable highlights
Añadir a la tabla de contenidos