MANILA: Philippines’ much awaited tax reform package or Tax Reform for Acceleration and Inclusion (TRAIN) was signed into law, paving the way for a simpler and fairer tax regime in the country. The revised law provides for personal income tax cuts and revises several other decade-old tax provisions that will have important implications for taxpayers and businesses in the Philippines.
Train exempts those earning an annual income of up to ₱250,000 (US$4,975) from Personal Income Tax (PIT), and raises the tax exemption for 13th-month pay and other bonuses to ₱90,000 (US$1,791). In addition, it lowers income tax rates for those earning up to ₱8 million (US$159,200). After 2022, the income tax rates will further be reduced for all taxpayers, except those earning an annual income above ₱8 million.
