“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)”

“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.”

“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.”

“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.”

“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”.  

“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.”

“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.”

“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”