The New Adjusted Income Tax Rates Under TRAIN Law
Here is the new adjusted income tax rated under the TRAIN law, which will surely affect the lives of both rich and poor Filipino people.
Previously, President Rodrigo Roa Duterte promised during his first State of the Nation Address (SONA) to implement a fairer tax reform program revising most of the 20-year-old Philippines tax regime.
Mr. Duterte has already signed the Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) bill aiming to earn revenues to fund the country’s infrastructure program.
The TRAIN law will reduce the personal income tax rates of each individual, while people earning a lower personal income will be free from tax.
The new TRAIN law will foregone the tax rates from those who have an annual income, not over P250, 000. While people earning more than P250, 000 but not over P400, 000 annually will be charged with 20 percent tax on the excess over P250, 000.
Annual income over P400, 000 but not more than P800, 000 will pay worth P30, 000 and will be charged about 25 percent of the excess over P400, 000.
People earning more than P800, 000 but not over P2 million per year will be charged with P130, 000 plus 30 percent of the excess over P800, 000.
Individuals with over P2 million annual income will pay P490, 000 plus 32 percent of the excess over P2 million.
The yearly income of over P8 million will have a tax of P2, 410, 000 plus 35 percent of the excess over P8 million.
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