TRAIN

Effective


Republic Act No. 10963 (with Veto Message)



December 19, 2017


December 28, 2017


January 1, 2018


“Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) was passed into law on December 19, 2017. The TRAIN law aims to enhance the progressivity of the tax system through the rationalization of the Philippine internal revenue tax system, thereby promoting sustainable and inclusive economic growth; to provide, as much as possible, an equitable relief to a greater number of taxpayers and their families in order to improve levels of disposable income and increase economic activity; and to ensure that the government is able to provide for needs of those under its jurisdiction and care through the provision of better infrastructure, health, education, jobs, and social protection of the people. 

The TRAIN law provides, among others, the: 

  • Reduction in personal income tax rates
  • Simplified tax for self-employed individuals
  • Reduction in estate tax and donor’s tax rates
  • Expanded Value-added Tax (VAT) base
  • Adjusted excise tax rates
  • Introduction of excise tax on sugar sweetened beverages and excise tax on non-essential services (cosmetic procedures)”
  • Great equalizer: TRAIN law introduces new transfer tax rates (08 – 20 – 2018)
  • TRAIN Law: Updating the Certificate of Registration (08 -27 – 2018)
  • TRAIN Law: PEZA tax incentives for registered enterprises (09 – 03 – 2018)
  • TRAIN Law: Revisions to Income Tax Return forms ((09 – 24 -2018)
  • VAT refund claims under the TRAIN Law ((06 – 17 – 2019)

  • https://www.bir.gov.ph/index.php/train.html

Tax Amnesty

Effective (except “ The General Tax Amnesty”)


Republic Act No. 11213



Republic Act No. 11213 (with Veto Message)



February 14, 2019


February 18, 2019


March 5, 2019


“The law provides for estate tax amnesty and tax amnesty on delinquencies. 

The grant of a tax amnesty on delinquencies is a novelty. It allows delinquent taxpayers a chance for a fresh start and also help clear the dockets of the BIR so that they can focus their attention on more pressing cases.

On the other hand, the estate tax amnesty allows unpaid estate tax obligations to be settled at the rate of 6%, without any penalties imposed. This covers the estates of decedents who passed away on or before Dec. 31, 2017, with or without tax assessments issued by the BIR and that have remained unpaid as of the same date. The amnesty also covers “undeclared estates” or properties that were not included in a previously filed estate tax return and not subjected to estate tax.”

  • The Tax Amnesty Act of 2019: Welcome news for delinquent taxpayers (04-29-2019)
  • Estate tax amnesty for non-resident Pinoys: Yay or nay? (1 – 20 -2020)

  • https://www.bir.gov.ph/index.php/tax-amnesty-act.html

Motor Vehicle Users Charge

DOF Proposal Stage



“Package 1C aims to provide adequate funding for the maintenance of national and provincial roads. It also aims to address air pollution from motor vehicles. the Department of Finance proposes to increase the MVUC rates with the following features:

  • Impose a unitary rate based on weight for all vehicles, private or government and for hire vehicles.

Adopt a longer phased-year period of 3 years to increase MVUC rates.”

CREATE

Effective 


Republic Act No. 11534 (with Veto Message)



March 26, 2021


March 27, 2021


April 11, 2021


“The CREATE Act is said to be the first-ever revenue-eroding tax reform package and the largest economic stimulus program in the country’s history, with major amendments to our tax and incentives laws. With the pandemic continuing to negatively impact the business landscape, it is hoped that these changes will support post-pandemic recovery while attracting more foreign investment into the country.

CREATE was drafted to improve the equity and efficiency of the corporate tax system by lowering the tax rate, widening the tax base, reducing tax distortions and leakages, and developing a more responsive and globally-competitive tax incentives regime that is performance-based, targeted, time-bound, and transparent.”

  • Special Tax Bulletin on CREATE
  • Infographic 
  • CREATE: Tax reform response to COVID – 19 (06-22-2020 and 06-29-2020)
  • The Tax Reform Package 2: CREATE-ing opportunities for business (01-25-2020)
  • Redefining Philippine Taxation: CREATE (04-12-2020, 04-19-2020, and 04-26-2020)

  • https://www.bir.gov.ph/index.php/create.html

Sin Taxes

Effective 


Republic Act No. 11346 (Tobacco Tax Law of 2019)



Republic Act No. 11467 on alcoholic beverages and e-cigarettes (with Veto Message)



July 25, 2019

January 22, 2020


July 26, 2019

January 23, 2020


January 1, 2020

January 1, 2020

 


Tax Reform Package 2+ (Sin Taxes) increased taxes on tobacco, alcohol, and e-cigarette products to provide funds to the universal health care and to reduce health risks associated with consumption of these “sin” products”.  

Mining Taxes

House of Representatives: Passed on third and final reading (12 November 2018)

Senate: Senate bill is filed and pending in the Committee


House Bill No. 8400



Senate Bill No. 1979




“As explained in Senate Bill No. 1979, Package 2+ (Mining Taxes) aims to amend existing mining fiscal regime and further enhance the equitable share of the government in the utilization of natural resources. A rationalized and single fiscal regime applicable to all mineral agreements is sought as it promotes fairness. This complements the enacted Tax Reform for Acceleration and Inclusion (TRAIN) law which aimed to make tax system simpler, fairer, and more efficient.”

Real Property Valuation

House of Representatives: Passed on third and final reading (25 November 2019)

Senate: Pending in the Committees on Ways and Means, Local Government, and Finance


House Bill No. 4664




“As mentioned in House Bill No. 4664, Package 3 aims to promote the development and maintenance of a just, equitable, impartial, and nationally consistent real property valuation based on internationally accepted valuation standards, concepts, and practices.”

Passive Income and Financial Intermediary Taxation Act

House of Representatives: Passed and approved on third reading – House Bill No. 304

Senate: Ongoing committee hearings


House Bill No. 8645




“As mentioned in House Bill No. 8645, Package 4 aims to promote and develop a tax system that provides neutrality in the tax treatment across financial institutions and financial instruments, simplify an otherwise complex tax system for easy compliance, ensure that the taxation of passive income and financial transactions is equitable across all stakeholders and discourage arbitrage opportunities, and promote capital market development and tax competitiveness within the context of globalization, increased capital mobility, and financial inclusion”

Tax tools and information

Tax calendar

The Tax Calendar is an installable progressive web application (PWA). To install the app on your mobile device, please click this link for the installation guide, then follow the link below.

Go to tax calendar