news and public info
2018 Income Tax Table in the Philippines
Pursuant to the new TRAIN law that was recently approved, a new income tax table was implemented by the Bureau of Internal Revenue or BIR effective January 1, 2018. The objective of the new TRAIN law is to reduce the tax rates, expand the VAT base, excise tax on petroleum products, automobiles and sugary products as well as simplify the tax system.
In addition, the Department of Finance also intend to implement tax reforms on general tax amnesty, estate tax amnesty, lower estate and donor’s tax rates, amendments to bank secrecy law, limit the VAT zero-rating to direct exporters, reduce the rates on transaction taxes on land, VAT refund in cash, rationalization of fiscal incentives, synchronization of capital income tax rates on investments, deposits, equities, dividends and other passive income and increase the tax rate on stock transaction to 1%.
The Package 1 of the TRAIN has started in 2018 and the Package 2 will be implemented this year to 2019. The Packages 3 and 4 along with other tax measures will be implemented soon.
Read also: DTI for Business Name Registration
The new Income Tax table for 2018
The BIR has created a new Income Tax table that will guide taxpayers about the tax rate corresponding to their annual income. It will be implemented from January 1, 2018 to December 31, 2022.
| Range of Taxable Income | Tax Due = a +(b x c) | |||
| Over | Not Over | Basic Amount (a) | Additional rate (b) | Of Excess Over (c) |
| – | 250,000 | – | – | – |
| 250,000 | 400,00 | – | 20% | 250,000 |
| 400,000 | 800,000 | 30,000 | 25% | 400,000 |
| 800,000 | 2,000,000 | 130,000 | 30% | 800,000 |
| 2,000,000 | 8,000,000 | 490,000 | 32% | 2,000,000 |
| 8,000,000 | – | 2,410,000 | 35% | 8,000,000 |
According to the TRAIN law, those workers earning minimum wage are exempted from paying the income tax. In the same manner, the overtime pay, holiday pay, hazard pay and night shift differential pay received by those minimum wage earners are also exempted.
For further information about the TRAIN law, you can visit the official website of BIR.
Tunghayan ang Bonggang bahay ng Simpleng Artista na si Julia Montes
Silipin ang mga artistang sobrang yaman na at popular sa lipunan bago pasukin ang pag-aartista
Kilalanin ang mga artistang dukha noon ngaunit ngayon mayaman at sobrang sikat na dahil sa ginawa nilang pagsisikap
Mag-asawang Sarah Geronimo at Matteo Guidicelli, labis na pinasaya ang kanilang mga empleyado sa ginawa nilang ito
Amain ni Ejay Falcon naluha ng bigyang pugay ng aktor ng manumpa ito bilang Bise-Gobernador ng kanilang Lalawigan
Silipin ang mga artistang sobrang yaman na at popular sa lipunan bago pasukin ang pag-aartista
Mag-asawang Sarah Geronimo at Matteo Guidicelli, labis na pinasaya ang kanilang mga empleyado sa ginawa nilang ito
Tunghayan ang Bonggang bahay ng Simpleng Artista na si Julia Montes
Kilalanin ang mga artistang dukha noon ngaunit ngayon mayaman at sobrang sikat na dahil sa ginawa nilang pagsisikap
Amain ni Ejay Falcon naluha ng bigyang pugay ng aktor ng manumpa ito bilang Bise-Gobernador ng kanilang Lalawigan
-
Celebrity7 months agoSilipin ang mga artistang sobrang yaman na at popular sa lipunan bago pasukin ang pag-aartista
-
Entertainment8 months agoMag-asawang Sarah Geronimo at Matteo Guidicelli, labis na pinasaya ang kanilang mga empleyado sa ginawa nilang ito
-
Celebrity7 months agoTunghayan ang Bonggang bahay ng Simpleng Artista na si Julia Montes
-
Celebrity7 months agoKilalanin ang mga artistang dukha noon ngaunit ngayon mayaman at sobrang sikat na dahil sa ginawa nilang pagsisikap
-
Entertainment9 months ago
Amain ni Ejay Falcon naluha ng bigyang pugay ng aktor ng manumpa ito bilang Bise-Gobernador ng kanilang Lalawigan