RA10963: TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN) ACT
Republic Act No. 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act, was enacted on December 19, 2017. This law aims to make the Philippine tax system simpler, fairer, and more efficient.
Highlight of RA 10963
The TRAIN Act lowers personal income tax rates for most taxpayers, providing them with more disposable income. This allows individuals to spend more, save more, or invest more, contributing to economic growth.
Key Features of RA 10963
Lower Income Tax Rates: The Act reduces income tax rates for individuals earning up to P8 million annually. Those earning below P250,000 annually are exempt from paying income tax.
Simplified Tax Brackets: The Act simplifies the income tax brackets, making it easier for taxpayers to understand their tax obligations.
Higher Excise Taxes: To offset the revenue loss from lower income tax rates, the Act increases excise taxes on petroleum products, automobiles, sugar-sweetened beverages, and other non-essential goods.
Estate and Donor's Tax: The Act simplifies the estate and donor's tax and provides a single tax rate of 6% for both.
Documentary Stamp Taxes: The Act adjusts the documentary stamp tax rates on various transactions.
Tax Administration: The Act introduces measures to improve tax administration, such as the use of electronic receipts and invoices, and the mandatory registration of value-added tax (VAT).