TRAIN Tax Law: Primer, Guide & BIR Sample Computations

December 19, 2017, Pres. Rodrigo Duterte signed Law No. 10963 of the Republic Act or Accelerated Tax Reform or the Railway Act. It will raise the tax rate of other goods and services, while providing a reduction in the income tax rate to raise the paid wages of Filipinos paid.

Below are related articles related to TRAIN law and related guidelines issued by the National Taxation Bureau or BIR to deal with the implementation of the law.

Meanwhile, Artie. Velasco updated participants in the BIR tax reform on TRAIN law, mainly. She first showed the 2018 World Well-being Report and Philippines was No. 71. Important variables to measure people's happiness are wages and income, social services, infrastructure. To link these to her announcement, she showed that our main goal is to increase the income, social support of the Philippines, and to construct as many public transport and road networks as possible It is.

One of the most realistic but difficult results of the TRAIN law is the change in submission and submission of the Income Tax Return (ITR). After the "Railroad Act" was enforced on January 1, the tax authorities immediately announced some implementation rules and notices. We also released a quarterly ITR form for individuals, real estate and trusts. All of these were released in the first quarter of this year, but the new company's quarterly ITR and annual ITR are not included. Therefore, even if the "train law" was enforced at the beginning of the New Year, the company taxpayers realized that it was necessary to submit and submit the BIR ITR form of expired (2013) for compliance with annual legislation .

The TRAIN method is not the first attempt to modify or standardize an ITR form for individuals or businesses. Since 2013, BIR Tax Regulation (RR) No. 2-2014 has been enacted that states that taxpayers must list ITR as one of five categories. . These papers are not only lengthy, they consist of 8 to 13 pages, respectively. It also includes the application of specific legal requirements. One of the problems is the application of optional standard deduction (OSD) restrictions on companies and self-employed persons subject to multiple taxation. Such a situation may cause concern about income composition of taxpayers.