TRAIN Law PDF

Tax Reform for Acceleration
and Inclusion
On 19 December 2017, the President signed into law package 1 of
the Tax Reform for Acceleration and Inclusion (“TRAIN”) bill or
Republic Act (“R.A.”) No. 10963. The law contains amendments to
several provisions of the National Internal Revenue Code of 1997
(“Tax Code”) on individual income taxation, passive income for both
individuals and corporations, estate tax, donor’s tax, value-added
tax (“VAT”), excise tax, and documentary stamp tax (“DST”), among
others.
R.A. No. 10963 shall take effect on 1 January 2018, following its
complete publication in the official gazette or in at least one
newspaper of general circulation. The law was published in the
official gazette on 27 December 2017
Among the provisions of the TRAIN, the President has vetoed certain items
• Sec 6, amending Sec 25 of the Tax Code
“Provided, however, that existing RHQs/ROHQs, OBUs or Petroleum

service contractors and subcontractors presently availing of
preferential tax rates for qualified employees shall continue to avail
of the preferential tax rate for present and future qualified
employees.”
“(2) Sale and delivery of goods to:
(i) Registered enterprises within a separate customs territory

as provided under special laws; and
(ii) Registered enterprises within tourism enterprise zones as

declared by the Tourism Infrastructure and Enterprise Zone
Authority (“TIEZA”) subject to the provisions under Republic
Act No. 9593 or the Tourism Act of 2009.”
“(8) Services rendered to:
(i) Registered enterprises within a separate customs territory

as provided under special laws; and
(ii) Registered enterprises within tourism enterprise zones as

declared by the TIEZA subject to the provisions under
Republic Act No. 9593 or the Tourism Act of 2009.”
“And beginning January 1, 2019, self-employed and professionals

with total annual gross sales and/or gross sales not exceeding five
hundred thousand pesos (P500,000)”

“Petroleum products, including naphtha, LPG, petroleum, coke, refinery fuel
and other products of distillation, when used as input, feedstock or as raw
material in the manufacturing of petrochemical products, or in the refining
of petroleum products, or as replacement fuel for natural-gas-fired-
combined cycle power plant [,] in lieu of locally-extracted natural gas during
non-availability thereof, subject to the rules and regulations to be
promulgated by the Secretary of Finance, per liter of volume capacity, zero
(Php0.00); furthermore, that the by-product including fuel oil, diesel fuel,
kerosene, pyrolysis gasoline, liquefied petroleum gases, and similar oils
having more or less the same generating power, which are produced in the
processing of naphtha into petrochemical products shall be subject to the
applicable excise tax specified in the Section, except when such by-products
are transferred to any of the local oil refineries through sale, barter, or
exchange, for the purpose of further processing or blending into finished
products which are subject to excise taxes under this Section.”
“Notwithstanding any provisions herein to the contrary, the

incremental revenues from the tobacco taxes under this Act shall be
subject to Section 3 of Republic Act No. 7171, otherwise known as
“An Act to Promote the Development of the farmer in the Virginia
Tobacco Producing provinces”, and Section 8 of Republic Act No.
8240, otherwise known as “An Act amending Sections 138, 140 & 142
of the National Internal Revenue Code, as amended, and for other
purposes.”
TAX PARTICULARS
• On powers and authority granted
to the Commissioner of Internal
Revenue
• Adjustments in Estate Taxation
• Adjustments in Personal Income
Taxation • Adjustments in Donor’s Taxation
• Adjustments in Corporate Income • Expansion of VAT Base

Tax provisions
• Tax on Persons Exempt from VAT
• Adjustment on provisions for
Exclusions and Deductions
• Filing of Tax Returns

TAX PARTICULARS
• Excise Taxes
• Provisions related to petroleum

and other excisable products
• Adjustments in Documentary
Stamp Tax (DST)
• On compliance requirements
• Other tax provisions

On powers and authority granted to the
Commissioner of Internal Revenue
• Power to obtain information, and to summon,

examine, and take testimony of persons
• Examination of returns and determination of tax

due
On powers and authority granted to the Commissioner of Internal Revenue
• Power to obtain information, and to summon, examine, and take testimony of persons
NIRC TRAIN Law
Sec. 5 (B) Commissioner’s power to Additional provision:

obtain information from any person
other than the person whose Submission of a tax incentive report by
internal revenue tax liability is Cooperatives Development Authority to
subject to audit or investigation or the Bureau of Internal Revenue (“BIR”)
from any office or officer of the and the Department of Finance (“DOF”).
national and local governments,
government agencies and The report shall include information on
instrumentalities the income tax, VAT and other tax
incentive availed of. The tax incentive
report shall be included in the database
created under the Tax Incentives
Management and Transparency Act
(“TIMTA”).
On powers and authority granted to the Commissioner of Internal Revenue
• Examination of returns and determination of tax due
NIRC TRAIN Law
Sec. 6 (A) The Commissioner or his The Commissioner or his duly authorized
duly authorized representative may representative shall have the said
authorize the examination of any authority notwithstanding any law
taxpayer and the assessment of the requiring the prior authorization of any
correct amount of tax after a return government agency or instrumentality
has been filed.
Adjustments in Personal Income Taxation
• Individual Income Tax Rates
• Passive income from interest, royalties, prizes and other

winnings of individual citizen and resident alien
• Capital gains from sale of shares of stock not traded in the

local stock exchange of individual citizen and resident aliens
• Alien individuals and qualified Filipinos employed by specific

employers
Sec. 24 (A) (2) Personal income tax

table for both compensation income
NIRC
earners, and self-employed and/or
professionals:
TRAIN Law A. For compensation income earners :

TRAIN Law B. Purely self-employed professionals :
If gross sales/receipts and other non-operating income do

not exceed the PHP3m VAT threshold, taxpayer may opt to
be taxed at:
• 8% of gross sales/receipts and other non-operating

income in excess of PHP250,000 in lieu of graduated
rates and percentage tax; or
• Graduated rates in (A) above.

TRAIN Law C. Mixed income earners shall be taxed as follows:
On their compensation income – at graduated rates
On their income from the conduct of trade or business or

the practice of profession:
• If exceeding the VAT threshold – at graduated rates
• If below the VAT threshold – either 8% of gross sales/

receipts and other non-operating income in excess of
PHP250,000 in lieu of graduated rates and
percentage tax or graduated rates, at the option of
the taxpayer
• Passive income from interest, royalties, prizes and other winnings of individual citizen
and resident alien
NIRC TRAIN Law

Sec. 24 (B) (1) Philippine Charity PCSO and lotto winnings exceeding
Sweepstakes Office (“PCSO”) and PHP10,000 would be subject to the 20%
lotto winnings are exempt from the final tax.
20% final tax.
Interest income from a depository bank
Interest income from a depository under the Expanded foreign currency
bank under the expanded foreign deposit system is subject to an
currency deposit system is subject to increased final tax of 15%
a final tax of 7.5%.
• Capital gains from sale of shares of stock not traded in the local stock exchange of
individual citizen and resident aliens
NIRC TRAIN Law

Sec. 24 (C) Capital gains tax of 5% on Capital gains tax on sale of shares not
the first PHP100,000 and 10% in traded in the local stock exchange is
excess thereof is imposed on sale of increased to a flat rate of 15%.
shares not traded in the local stock
exchange.
• Alien individuals and qualified Filipinos employed by specific employers
NIRC TRAIN Law

Sec. 25 (C), (D) and (E) A rate of 15% Preferential tax treatment shall not
final withholding tax on the gross apply for employees of ROHQ, RHQ,
compensation income of alien OBU, and Petroleum service contractors
individuals and qualified Filipinos and subcontractors which registered
employed by the following with the Securities and Exchange
employers: Commission beginning 1 January 2018.
• Regional or area headquarters [ITEM VETOED] Present and future

(“RHQ”) and regional operating qualified employees of existing ROHQ,
headquarters (“ROHQ”) of RHQ, OBU, and Petroleum service
multinational companies; contractors and subcontractors as of 31
• Offshore banking units (“OBU”); December 2017 shall enjoy preferential
and tax treatment.
• Petroleum service contractors and
subcontractors..
Adjustments in Corporate Income Tax provisions
• Government-owed and controlled corporations, agencies, or

instrumentalities
• Passive income on interest from deposits and yield or any

other monetary benefit from deposit substitutes, trust funds
and royalties
• Capital gains from sale of shares of stock not traded in the

local stock exchange of domestic corporations
Adjustments in Corporate Income Tax Provisions
•Government-owed and controlled corporations, agencies, or instrumentalities
NIRC TRAIN Law

Sec. 27 (C) The Government Service Corporate income tax exemption of
Insurance System, the Social Security PCSO was removed
System, the Philippine Health
Insurance Corporation, the local
water districts and the PCSO are
exempt from corporate income tax.
•Passive income on interest from deposits and yield or any other monetary benefit from
deposit substitutes, trust funds and royalties
NIRC TRAIN Law

Sec. 27 (D) (1) Interest income from Interest income from a depository bank
a depository bank under the under the expanded foreign currency
expanded foreign currency deposit deposit system is subject to an
system is subject to a final tax of increased final tax of 15%.
7.5%.
•Capital gains from sale of shares of stock not traded in the local stock exchange of domestic
corporations
NIRC TRAIN Law

Sec. 27 (D) (2) Capital gains tax of 5% Capital gains tax on sale, exchange or
on the first PHP100,000 and 10% in disposition of shares not traded in the
excess thereof is imposed on sale, local stock exchange is increased to a
exchange or disposition of shares not flat rate of 15%
traded in the local stock exchange.
Adjustments on provisions for Exclusions
and Deductions
• On exemption of 13th month pay and other benefits

exemption
• Fringe benefit tax given to non-rank and file employees
• Optional standard deduction (“OSD”)
• Deduction of premium payments on health and/or

hospitalization insurance
Adjustments on provisions for Exclusions
and Deductions
• On personal and additional exemptions
• Exemption allowed to estate and trust
• Income tax collected at source – husband and wife

Adjustments on provisions for Exclusions and Deductions
•On exemption of 13th month pay and other benefits exemption
NIRC TRAIN Law

Sec. 32 (B) (7) (e) 13th month pay Amount of exempt 13th month pay and
and other benefits amounting to other benefits is increased to
PHP82,000 is excluded from the PHP90,000.
computation of gross income.
The provision of power of the President
The President shall adjust the to make adjustments on the said
amount of income tax exemption to amount is removed
its present value using the Consumer
Price Index (“CPI”) for other benefits
such as productivity incentives and
Christmas bonus every three years.
• Fringe benefit tax given to non-rank and file employees
NIRC TRAIN Law

Sec. 33 (A) Fringe benefits given to Effective 1 January 2018, fringe benefits
non-rank and file employees are given to non-rank and file employees
subject to 32% final tax rate. The are subject to 35% final tax rate.
grossed-up monetary value is
determined by dividing the actual The grossed-up monetary value is
monetary value by 68%. determined by dividing the actual
monetary value by 65%
•Optional standard deduction (“OSD”)
NIRC TRAIN Law
Sec. 34 (L) In lieu of the itemized In case of a general professional

allowable deductions, an individual partnership, the OSD may be availed
subject to tax, other than a only once by either the general
nonresident alien, may elect an OSD professional partnership or the partners
of 40% of gross sales or gross comprising such partnership
receipts
•Deduction of premium payments on health and/or hospitalization insurance
NIRC TRAIN Law
Sec. 34 (M) Allowed deduction of Repealed

PHP2,400 per year or PHP200 per
month worth of premium payments
on health and/or hospitalization
Insurance of an individual provided
that the family has a gross income
not exceeding PHP250,000 for the
taxable year
• On personal and additional deductions
NIRC TRAIN Law
Secs. 35 and 79 (D) Exemptions on Repealed

the following:
• PHP50,000 worth of basic personal

exemption
• PHP25,000 worth of additional

exemption per qualified dependent
not exceeding four.
• Personal exemption allowable to

nonresident alien individual
• Exemptions allowed to estate and trust
NIRC TRAIN Law
Sec. 62 Exemption of PHP20,000 Repealed

allowed from the income of the
estate or trust.
• Income tax collected at source – husband and wife
NIRC TRAIN Law
Sec. 79 (F) Husband deemed head of Repealed

the family and proper claimant of the
additional exemption. Taxes to be
withheld from the wages of the wife
must be in accordance with the table
for zero exemption of the
withholding tax table
Filing of Tax Returns
• Individual
• Corporate
• Payment and assessment of income tax for individuals and

corporations
• Withholding of creditable tax at source

• On return and payment of taxes withheld at source
• Declaration of income tax for individuals
• Return of payment of estimated income tax

• Individual
NIRC TRAIN Law

Sec. 51 (A) (2) (a) An individual An individual whose taxable income
whose gross income does not exceed does not exceed PHP250,000 based on
his total personal and additional the tax schedule for compensation
exemptions for dependents are not income earners shall not be required to
required to file an income tax return file an ITR.
(“ITR”).
• Individual
TRAIN Law
Additional Provisions:
The ITR shall consist of a maximum of four pages in Sec. 51-A An individual receiving
paper or electronic form containing only the purely compensation income from
following information:
one employer wherein the tax of
• Personal profile and information; which has been correctly withheld
shall not be required to file an
• Total gross sales, receipts or income from annual ITR.
compensation of services rendered, conduct of trade
or business or the exercise of a profession, except The certificate of withholding, filed
income subject to final tax as provided under the Tax by the employer and stamped
Code; “received” by the BIR, shall be
tantamount to the substituted filing
• Allowable deductions under the Tax Code;
of income tax return of the
• Taxable income as defined in the Tax Code; and employees
• Income tax due and payable.

• Corporate
TRAIN Law
NIRC
The ITR shall consist of a maximum of four
pages in paper or electronic form containing
Sec 52(A) The return shall be filed by only the following information:
the president, vice president or other
principal officer, and shall be sworn • Corporate profile and information;
to by such officer and by the
treasurer or assistant treasure • Gross sales, receipts or income from
services rendered, or conduct of trade or
business, except income subject to final tax
as provided under the Tax Code;
• Allowable deductions under the Tax Code;
• Taxable income as defined in the Tax Code;

and
• Income tax due and payable.
The foregoing provisions shall not affect the

implementation of TIMTA
• Payment and assessment of income tax for individuals and corporations
NIRC TRAIN Law

Sec. 56 (A) (2) When a tax due is in The second installment of the tax due to
excess of PHP2,000, the taxpayer be paid on or before 15 October
other than a corporation may elect following the close of the calendar year.
to pay the tax due in two equal
installments; the first installment
paid at the time the return is filed
and the second installment on or
before 15 July following the close of
the calendar year
• Withholding of creditable tax at source
NIRC TRAIN Law

Sec. 57 (B) The Secretary of Finance Beginning 1 January 2019, the rate of
may require the withholding of a tax withholding shall not be less than 1%
on the items of income payable to but not more than 15% of the income
natural or juridical persons, residing payment
in the Philippines by payor-
corporations/persons at the rate of
1% to 32% thereof, which shall be
credited against the income tax
liability of the taxpayer for the
taxable year.
• On return and payment of taxes withheld at source
NIRC TRAIN Law
Sec. 58 The return for final withholding

tax shall be filed and the payment The return for both final and creditable
made within 25 days from the close of withholding taxes shall be filed and the
each calendar quarter. The return for payment made not later than the last
creditable withholding taxes shall be day of the month following the close of
filed and payment made not later than the quarter during which the
the last day of the month following the withholding was made.
close of the quarter during which the
withholding taxes was made. The provision allowing the
Commissioner of Internal Revenue to
The Commissioner, with the approval adjust the withholding of tax at more
of the Secretary of Finance, may frequent intervals is removed.
require the withholding agents to pay
or deposit the taxes deducted or
withheld at more frequent intervals
when necessary to protect the interest
of the government.
• Declaration of income tax for individuals
NIRC TRAIN Law

Sec. 74 (A) Every individual subject Filing of declaration of estimated
to income tax and is receiving self- income shall be on or before 15 May of
employment income shall make and the same taxable year.
file a declaration of his estimated
income for the current taxable year
on or before 15 April of the same
taxable year
• Return and payment of estimated income tax
NIRC TRAIN Law

Sec. 74 (B) The amount of estimated Payment of the fourth installment shall
income shall be paid in 4 be paid on or before 15 May of the
installments with the fourth following calendar year.
installment to be paid on or before
15 April of the following calendar
year.
Adjustments in Estate Taxation
• On estate tax rates
• Allowed deductions
• Filing a notice of death

• Estate tax returns
• Payment of estate taxes
• Payment of tax antecedent to the transfer of shares, bonds

or rights
On Estate Tax rates
NIRC
TRAIN Law Estate tax rate is fixed at 6%

NIRC TRAIN Law
Sec. 86 (A) Citizens or residents are • Removed the allowance for

allowed the following deductions, deductions of funeral expenses, judicial
among others expenses, and medical expenses.
• Expenses, losses, indebtedness, • Increased allowance for deduction of

and taxes (among others, funeral family home to PHP10M.
expenses not to exceed PHP200,000
and judicial expenses) • Increased the standard deduction to
PHP5M.
• Family home not to exceed PHP1M
• Standard deduction of PHP1M
• Medical expenses not to exceed

PHP500,000
NIRC TRAIN Law
Sec. 86 (B) A nonresident not a • Removed allowance for deduction of

citizen of the Philippines is allowed expenses, losses, indebtedness, and
the following deductions, among taxes.
others:
• Provides for a standard deduction of
• Expenses, losses, indebtedness, PHP500,000.
and taxes (among others, funeral
expenses not to exceed PHP200,000 • Provides that a proportion of the
and judicial expenses) claims against the estate, claims
against insolvent persons, and unpaid
• Property previously taxed mortgages may be claimed as a
deduction from the estate.
• Transfers for public use
NIRC TRAIN Law
Sec. 86 (D) An Individual who is a Repealed

nonresident not citizen of the
Philippines shall not be allowed to
claim any deduction unless the value
of the nonresident’s gross estate
situated outside the Philippines is
included in the return filed.
• Filing a notice of death
NIRC TRAIN Law
Sec. 89 Written notice of death Repealed

required for gross estates exceeding
PHP20,000
• Estate Tax Returns
NIRC TRAIN Law
Sec. 90 (A) (1) All transfers subject to All transfers subject to estate tax, or
estate tax or those, though exempt regardless of the gross value of the
from tax, have gross values estate where the said estate consists of
exceeding PHP200,000, or regardless registered or registrable property shall
of the gross value of the estate file an estate tax return.
where the said estate consists of
registered or registrable property Estate tax returns showing a gross value
shall file an estate tax return. exceeding PHP5M must be certified by a
CPA.
(A) (3) Estate tax returns showing a
gross value exceeding PHP2,000,000 The estate tax return must be filed
must be certified by a Certified within one year from the decedent’s
Public Accountant (“CPA”). death
Sec. 90 (B) The estate tax return

must be filed within six months from
the decedent’s death
• Payment of estate taxes
NIRC TRAIN Law

Sec. 91 Payment of estate tax Additional provision:
An estate with insufficient cash is

allowed to pay the estate tax due by
installment within two years from the
statutory date for its payment without
civil penalty and interest.
• Payment of tax antecedent to the transfer of shares, bonds, or rights
NIRC TRAIN Law
Sec. 97 A bank shall not allow Banks, which has knowledge of the
withdrawal from a decedent’s bank death of the person, shall allow
account without the Commissioner withdrawals from a decedent’s deposit
certifying that taxes imposed account subject to a 6% final
thereon have already been paid. withholding tax.
The administrator of the estate or

any one of the heirs may, when
authorized by the Commissioner,
withdraw an amount not exceeding
PHP20,000 even without the
certification from the Commissioner
that the estate taxes have been paid
Adjustments in Donor’s Taxation
• Donor’s tax rate
• Transfer for less than adequate and full consideration
• Exemption of certain gifts

Donor’s tax rate
NIRC
Sec. 99 (A) and (B) Donor’s tax rates are as follows:

a. Not stranger – based on total net gift
b. Stranger – 30% based on net gifts
Donor’s tax rate fixed at 6% based on total gifts in excess of

TRAIN Law PHP250,000 exempt gift made during the calendar year
whether the donee is a stranger or not
• Transfer for less than adequate and full consideration
NIRC TRAIN Law
Sec. 100 The amount by which the Additional provision:

fair market value exceeded the value
of the consideration in a transfer of A sale, exchange, or other transfer made
property shall be deemed a gift. in the ordinary course of business (i.e.,
bona fide transaction, at arm’s length,
and free from donative intent) shall be
considered as made for an adequate
and full consideration
• Exemption of certain gifts
NIRC TRAIN Law
Sec. 101 (A) PHP10,000 amount of Repealed

dowries or gifts made on account of
marriage are exempt from donor’s
tax.
Expansion of VAT Base
• On Zero-rated sale of goods
• Scope of sale or exchange of services
• Zero-rated sales of services
• VAT Exemptions
• Creditable Input Tax
• Period within which VAT refund of input taxes shall be made
• VAT returns and payment
• Withholding of VAT
Expansion of the VAT Base
NIRC
Sec. 106 (A) (2) VAT zero-rating on sale of goods classified as

a) Export sales which include the following:
1. sale and actual shipment of goods from the Philippines to a foreign country;
2. sale of raw materials or packaging materials to a nonresident buyer for
delivery to a resident local export-oriented enterprise;
3. sale of raw materials or packaging materials to exportoriented enterprise
whose export sales exceed seventy percent (70%) of total annual
production;
4. sale of gold to the Bangko Sentral ng Pilipinas (BSP);
5. those considered export sales under Executive Order No. 226, otherwise
known as the Omnibus Investment Code of 1987, and other special laws;
6. sale of goods, supplies, equipment and fuel to persons engaged in
international shipping or international air transport operations.
b) Foreign currency denominated sales; and

c) Sales to persons or entities exempted under special laws or
international agreement
[ITEM VETOED] Expressly added as “export sales” the sale and
TRAIN Law
delivery of goods to registered enterprises within a separate
customs territory as provided under special laws and within Tourism
Enterprise Zones declared by TIEZA
• Sale of gold to BSP is reclassified from export sales to exempt transactions.
• Item 6 will qualify as export sales provided that the goods, supplies, equipment and
fuel shall be used for international shipping and air transport operations.
• Items 2, 3, and 5 shall be subject to 12% VAT upon the successful establishment and
implementation of an enhanced VAT refund system that grants refunds of creditable
input tax within 90 days from filing of the VAT refund application with the BIR and all
pending VAT refund claims as of 31 December 2017 shall be fully paid in cash by 31
December 2019.
• Foreign currency denominated sales are removed from zero-rated sale of goods.
• Scope of sale or exchange of services
NIRC TRAIN Law
Sec. 108 (A) Provision defines sale or Inclusion of sale of electricity by

exchange of services generation companies, transmission by
any entity, and distribution companies,
including electric cooperatives in the
definition of sale or exchange of
services.
NIRC
Sec. 108 (B) Zero-rated sales of services include:
1. Services rendered to persons engaged in international shipping or

international air transport operations;
2. Transport of passengers and cargo by air or sea vessels from the

Philippines to a foreign country;
3. Services performed by subcontractors and/or contractors in

processing, converting, of manufacturing goods for an enterprise
whose export sales exceed 70% of total annual production; and
4. Processing, manufacturing or repacking goods for other persons doing

business outside the Philippines which goods are subsequently
exported, where the services are paid for in acceptable foreign
currency and accounted for in accordance with the rules and regulations
of BSP
TRAIN Law
• Item 1 will qualify as zero-rated sale of services if these services are
exclusively for international shipping and air transport operations.
• Zero-rating for transport of passenger and cargo from the Philippines to

foreign country shall apply for domestic air or sea vessels only.
• [ITEM VETOED] Expressly added as zero-rated transactions the sale of

services to registered enterprises within a separate customs territory as
provided under special laws and within Tourism Enterprise Zones as
declared by TIEZA
• Items 3 and 4 shall be subjected to 12% VAT upon successful

establishment and implementation of an enhanced VAT refund system
that grants refunds of creditable input tax within 90 days from filing of
the VAT refund application with the BIR and all pending VAT refund
claims as of 31 December 2017 shall be fully paid in cash by 31
December 2019.
• Vat exemptions
NIRC
Sec. 109 (1) VAT exemptions include, among others, the following transactions:
1. Importation of professional instruments, etc. belonging to persons coming to

settle in the Philippines, for their personal use, accompanying such persons or arriving
within 90 days before or after their arrival;
2. Sale of real property utilized for low- cost housing, sale of residential lot valued
at PHP1.5m (as adjusted by Revenue Regulations (“RR”) No. 16-2011, PHP1,919,500) and
sale of house and lot and other residential dwellings valued at PHP2.5m (as adjusted by RR
No. 16-2011, PHP3,199,200);
3. Lease of residential unit with monthly rental of PHP10,000 (as adjusted by RR

No. 16-2011, PHP12,800);
4. Importation of fuel, goods, and supplies by persons engaged in international

shipping of air transport operations; and
5. Other sale of lease of goods or properties or the performance of services, the

amount of which does not exceed PHP1.5m (as adjusted by RR No. 16-2011, PHP1,919,500)
• VAT Exemptions
TRAIN Law
Expansion of the importation exemption on professional instruments to include those

belonging to overseas Filipinos, and their families and descendants who are now
residents or citizens of other countries.
• Beginning 1 January 2021, the VAT exemption shall only apply to sale of real
properties not primarily held for sale to customers or held for lease in the ordinary
course of trade or business, sale of real property utilized for socialized housing
and sale of house and lot and other residential dwellings with threshold reduced
to PHP2M.
• For item 3, the lease threshold of PHP10,000 would be increased to PHP15,000

and it will no longer be adjusted to its present value using the CPI, as published by
Philippine Statistics Authority.
• Exemption of the importation of fuel, goods and supplies shall only apply if such
are used for international shipping or air transport operations
• VAT Exemptions
TRAIN Law
• For item 5, the VAT threshold is increased to PHP3M.
• Added the exemption of sale or lease of goods and services to senior citizens
and persons with disabilities.
• Added the exemption for transfers of property pursuant to Section 40 (C)(2) of

the Tax Code.
• Added the exemption for association dues, membership fees, and other
assessments and charges collected by homeowners associations and condominium
corporations.
• Sale of gold to BSP is now classified under VAT exempt transactions.
• Beginning 1 January 2019, sale of drugs and medicines prescribed for diabetes,
high cholesterol and hypertension would be included as VAT exempt transactions.
• Creditable Input Tax
NIRC TRAIN Law
Sec. 110 (A) (2)(b) The input tax on The amortization of the input VAT shall
goods purchased or imported for use only be allowed until 31 December 2021
in trade or business for which after which taxpayers with unutilized
deduction for depreciation is allowed input VAT on capital goods purchased or
shall be spread evenly over the imported shall be allowed to apply the
month of acquisition and the 59 same as scheduled until fully utilized
succeeding months if the aggregate
acquisition cost for such goods,
excluding the VAT component
thereof, exceeds PHP1m.
• Period within which VAT refund of input taxes shall be made
TRAIN Law
NIRC
The Commissioner shall grant a refund for
Sec. 112 (C) The Commissioner shall creditable input taxes within 90 days from the
grant a refund or issue the tax credit date of submission of the official receipts or
invoices and other documents in support of
certificate for creditable input taxes
the application filed.
within 120 days from the date of
submission of complete documents.
Should the Commissioner find that the grant
of refund is not proper, the Commissioner
In case of full or partial denial of the must state in writing the legal and factual
claim for tax refund or tax credit, or the basis for the denial.
failure on the part of the Commissioner
to act on the application within the In case of full or partial denial of claim for tax
period prescribed above, the taxpayer refund, the taxpayer may within 30 days from
affected may, within 30 days from the receipt of the decision denying the claim
receipt of the decision denying claim or appeal the decision with the CTA.
after the expiration of the 120 day
period, appeal the decision or the Penalty for failure on the part of any official,
unacted claim with the Court of Tax agent, or employee of the BIR to act on the
Appeals (CTA). application within the 90-day period shall be
imposed.
• VAT returns and payment
NIRC TRAIN Law
Sec. 114 (A) Every person liable to Effective 1 January 2023, the filing and
pay the VAT shall file a quarterly payment of VAT shall be done within 25
return of his gross amount of his days following the close of each taxable
gross sales/receipts within 25 days quarter.
following the close of each taxable
quarter.
Furthermore, VAT-registered persons

shall pay VAT on a monthly basis
• Withholding of VAT
NIRC TRAIN Law
Sec. 114 (C) The Government or any Effective 1 January 2021, the VAT
of its political subdivisions, withholding system shall shift from final
instrumentalities or agencies shall, to a creditable system.
before making payment of purchase
of goods and services, deduct and Payments for purchase of goods and
withhold a final VAT at the rate of services arising from Official
5% of the gross payment thereof. Development Assistance funded projects
shall not be subject to the final
Payment for lease or use of withholding VAT.
properties or property rights to
nonresident owners shall be subject
to 12% withholding tax at the time of
payment.
Tax on Persons Exempt from VAT
• Percentage tax
• Disposition of shares of stocks listed and traded through

local stock exchange or through IPO
• Returns and Payment of Percentage taxes

• Percentage Tax
NIRC TRAIN Law
Sec. 116 Any person whose sales or [ITEM VETOED] Effective 1 January 2019,
receipts are exempt from VAT and self- employed and professionals with
who is not a VAT-registered person total annual gross sales and/or gross
shall pay a tax equivalent to 3% of his receipts not exceeding PHP500,000 shall
gross quarterly sales or receipt be exempt from 3% gross receipts tax.
• Disposition of Shares of Stock Listed and Traded through Local Stock Exchange or through
IPO
NIRC TRAIN Law
Sec. 127 (A) There shall be levied, The tax rate imposed is increased to
assessed, and collected on every 6/10 of 1%.
sale, barter, exchange or disposition
of shares of stock listed and traded
through local stock exchange other
than the sale by a dealer in
securities, a tax rate of ½ of 1% of
the gross selling price or gross value
in money of the shares of stock
• Returns and Payment of Percentage Taxes
NIRC TRAIN Law
Sec. 128 The Commissioner may Repealed

prescribe the time for filing the
return as well as the manner and
time of payment, including a scheme
of tax prepayment of other
percentage taxes.
Excise Taxes
• Imposition of Excise tax
• On cigars and cigarettes
• On manufactured oils and other fuels
• Mandatory fuel markings

Excise Taxes
• On excise tax on automobiles
• On non-essential services
• On sweetened beverages
• On mineral products
Excise Taxes
• Imposition of Excise Tax
NIRC TRAIN Law
Sec. 129 Excise taxes apply to goods Excise taxes also apply to services
manufactured or produced in the performed in the Philippines.
Philippines for domestic sales or
consumption or for any other
disposition and to things imported.
Excise Taxes
NIRC Sec. 145 (B) and (C) Excise tax on cigarettes packed
by hand shall be based on the following schedule:
Excise Taxes
TRAIN Law
Excise Taxes
• On manufactured oils and fuels
NIRC Sec. 148 The following items have the

corresponding excise tax rates:
Excise Taxes
TRAIN Law
The scheduled increase in the

excise tax on fuel for period
covering 2018 to 2020 shall be
suspended if the average
Dubai Crude Oil price based
on Mean of Platts Singapore
(MOPS) for three months prior
to the scheduled increase
reaches or exceeds USD80 per
barrel.
Excise Taxes
TRAIN Law
The following items are exempt from excise tax:
• Naphtha and pyrolysis gasoline used as raw material in the production of
petrochemical products or in the refining of petroleum products, or as
replacement fuel for natural-gas-fired-combined cycle power plant;
• Production of petroleum products, whether or not they are classified as

products of distillation and for use solely for production of gasoline;
• Liquefied petroleum gas when used as raw material in the production of

petrochemical products;
• Petroleum coke, when used as feedstock to any power generating facility.
• Excise taxes paid on the purchased basestock (bunker) used in the

manufacture or excisable articles and forming part thereof shall be credited
against the excise tax due therefrom.
Excise Taxes
TRAIN Law
[ITEM VETOED] Petroleum products, including naphtha, LPG, petroleum, coke,

refinery fuel and other products of distillation, when used as input, feedstock or as
raw material in the manufacturing of petrochemical products, or in the refining of
petroleum products, or as replacement fuel for natural-gas-firedcombined cycle
power plant in lieu of locally-extracted natural gas during non-availability thereof,
subject to the rules and regulations to be promulgated by the Secretary of Finance,
shall be subject to PHP0 per liter of volume capacity.
[ITEM VETOED] By-products including fuel oil, diesel fuel, kerosene, pyrolysis
gasoline, liquefied petroleum gases, and similar oils having more or less the same
generating power, which are produced in the processing of naphtha into
petrochemical products shall be subject to the applicable excise tax specified in the
Section, except when such by-products are transferred to any of the local oil
refineries through sale, barter, or exchange, for the purpose of further processing or
blending into finished products which are subject to excise taxes
Excise Taxes
• Mandatory fuel markings
NIRC TRAIN Law

No existing provision Sec 148-A The Secretary of Finance shall
require the use of an official fuel
marking or similar technology on
petroleum products refined,
manufactured or imported in the
Philippines, and that are subject to the
payment of taxes and duties
Excise Taxes
NIRC Sec. 149 Excise tax imposed on

automobiles are as follows:
Indexation of brackets by the Secretary of Finance every two years is pegged on a

percentage of the change in the exchange rate of the Philippine peso against the
United States dollar
Excise Taxes
TRAIN Law Amended the schedule to read as

follows:
Hybrid vehicles shall be subject to 50% of the applicable excise tax rates
on automobiles.
Purely electric vehicles and pick-ups shall be exempt from excise tax on
automobiles
Excise Taxes
• On non-essential services
NIRC No existing provision
TRAIN Law
Sec. 150-A Imposes a 5% tax on gross receipts, net of excise tax and VAT
derived from performance of invasive cosmetic surgeries, procedures, and
body enhancements for aesthetic purposes.
Excise tax exempt are the following:

• Procedures necessary to ameliorate a deformity arising from, or
directly related to a congenital or developmental defect or
abnormality, a personal injury resulting from an accident or trauma, or
disfiguring disease, tumor, virus or infection; and
• Cases or treatments covered by the National Health Insurance

Program.
Excise Taxes
• On sweetened beverages
TRAIN Law Sec. 150-B Imposes a tax per liter of volume capacity on
sweetened beverages based on the following schedule:
The following products are not considered excisable products under this provision:
1. All milk products
2. 100% natural fruit juices
3. 100% natural vegetable juices
4. Meal replacement and medically indicated beverages
5. Ground coffee, instant soluble coffee, and pre- packaged powdered
coffee products
Excise Taxes
NIRC
Sec. 151
• Excise tax of P10/metric ton on coal and coke
• 2% of actual market value of the gross output of all

nonmetallic minerals and quarry resources
• Metallic minerals are subject to the following taxes:

- copper and other metallic minerals – 1 to 2%;
- gold and chromite – 2%
• Indigenous petroleum is subject to 3% excise tax

Excise Taxes
TRAIN Law
Increased excise taxes on domestic or imported coal and coke,

notwithstanding any incentives granted in any law or special law, to wit:
• Increased excise tax on nonmetallic and metallic minerals to 4%
• Increased excise tax on indigenous petroleum to 6%

Provisions related to petroleum and other
excisable products
• Provision on counting and/or metering devices to determine

volume of production and implementation
• Authority of Internal Revenue Officer in Searching and

Testing Taxable Articles
• Mandatory earmarking of all petroleum products

Provisions related to petroleum and other excisable products
•Provision on counting and/or metering devices to determine volume of production and
implementation
Sec. 155 Manufacturers of cigarettes, alcoholic products, oil
NIRC products and other articles subject to excise tax shall provide
themselves with necessary number of suitable counting or
metering device to determine as accurately as possible the
volume, quantity and number of articles produced.
Manufacturers and/or importers to provide themselves with counting

TRAIN Law or metering devices to determine volume of production and
importation.
• DOF shall maintain a registry of all petroleum manufacturers and/or
importers and the articles being manufactured and/or imported by
them.
• DOF shall mandate the creation of a real-time inventory if petroleum
articles being manufactured, imported or found in storage depots of
such petroleum manufacturers and/or importers
• Importers of finished petroleum products shall also provide themselves
with accredited metering devices.
•Authority of Internal Revenue Officer in Searching and Testing Taxable Articles
NIRC Sec. 171 Authority of Internal Revenue Officer in Searching Taxable Articles
TRAIN Law Authority of Internal Revenue Officer in Searching and Testing Taxable Articles
•The Commissioner or his authorized representatives may conduct periodic
random field tests and confirmatory tests on fuel required to be marked and
found in warehouses, storage tanks, gas stations and other retail outlets, and in
such other properties of persons engaged in the sale, delivery, trading,
transportation, distribution or importation of fuel intended for the domestic
market.
•Random testing shall be conducted in the presence of revenue or customs

offices, fuel marking provider and the authorized representative of the owner
of the fuel being tested.
•Authority of Internal Revenue Officer in Searching and Testing Taxable Articles
TRAIN Law
• Employee assigned or working at the place where the random field test is
conducted shall be deemed an authorized representative of the owner.
• All field tests shall be properly filmed or video-taped and documented.
• A sample of the randomly tested fuel shall be immediately obtained by the

revenue or customs officer upon discovering that the same is unmarked,
adultered, or diluted.
• Confirmatory fuel test certificates issued by fuel testing facilities shall be valid
for any legal purpose from the date of issue, and shall constitute admissible
and conclusive evidence before any court.
•Mandatory earmarking of all petroleum products
NIRC TRAIN Law

No existing provision The Secretary of Finance shall require
the use of an official
fuel marking agent or similar technology
in petroleum
products that are refined,
manufactured, or imported into
the Philippines, and that are subject to
the payment of
taxes and duties
Adjustments in DST
• Stamp taxes
Adjustments in DST
Stamp taxes
NIRC
Adjustments in DST
Stamp taxes
TRAIN Law
Adjustments in DST
Stamp taxes
NIRC
Adjustments in DST
Stamp taxes
TRAIN Law
Adjustments in DST
Stamp taxes
NIRC
Adjustments in DST
Stamp taxes
TRAIN Law
Adjustments in DST
Stamp Taxes
NIRC TRAIN Law
Sec. 196 DST is collected on deeds of DST collected on deeds of sale,

sale and conveyances of real conveyances and donations of real
property only property.
Transfers exempt from donor’s tax are

exempted from DST.
Adjustments in DST
Stamp Taxes
NIRC
Adjustments in DST
Stamp Taxes
TRAIN Law
On Compliance Requirements
• Keeping of books and accounts
• Registration Requirements
• Issuance of receipts or sales or commercial invoices

Keeping of books and accounts
NIRC TRAIN Law

Sec. 232 All that are required by law All that are required by law to pay
to pay internal revenue taxes shall internal revenue taxes shall keep and
keep a journal and a ledger or their use relevant and appropriate set of
equivalents. Those whose quarterly bookkeeping records.
sales, earnings, receipts, or output
do not exceed PHP50,000 shall keep Books of accounts with gross annual
and use simplified set of sales, earnings, receipts or output
bookkeeping records. Books of exceeding PHP 3M must be audited by
accounts with gross quarterly sales, a CPA
earnings, receipts or output
exceeding PHP150,000 must be
audited by a CPA.
Registration requirements
NIRC TRAIN Law

Sec. 236 (A) Registration shall Additional provision:
contain a taxpayer’s name, style, The Commissioner shall simplify the
place of residence, business and business registration
other information required by the and tax compliance requirements of
Commissioner. self-employed
Sec. 236 (G) The following are the individuals and/or professionals.
persons required to register for VAT: The following are the persons required
• With gross sales or receipts for the to register for
past 12 months, other than value-added tax:
those that are VAT–exempt, have • With gross sales or receipts for the
exceeded PHP1.5m. past 12 months,
• With reasonable grounds that the other than those that are VAT–exempt,
gross sales or receipts for the have exceeded
next 12 months, other than those PHP3m.
that are VAT-exempt, will exceed • With reasonable grounds that the
PHP1.5m. gross sales or receipts
NIRC TRAIN Law
Sec. 237 (A) All persons subject to an All persons subject to an internal
internal revenue tax shall for each revenue tax shall at the point of each
sale and transfer of merchandise or sale and transfer of merchandise or for
for services rendered valued at services rendered valued at PHP100 or
PHP25 or more, issue duly registered more, issue duly registered receipts or
receipts or sale or commercial sale or commercial invoices.
invoices prepared in duplicates
TRAIN Law
Additional provisions:
• Within five years from the effectivity of the Act and upon
establishment of a system capable of storing and processing the
required data, taxpayers engaged in the export of goods and
services, e-commerce, and under the jurisdiction of the Large
Taxpayers Service are required to issue electronic receipts or sales
or commercial invoices in lieu of manual receipts or sales or
commercial invoices.
• Taxpayers not required to issue electronic receipts or sales or

commercial invoices may opt to do so.
• Digital records must be kept in the place of business for a period

of three years.
Issuance of receipts or sales or commercial invoices
TRAIN Law
Sec. 237-A. Within 5 years from the effectivity of the Act and upon establishment of
a system capable of storing and processing the required data, taxpayers engaged in
the export of goods and services, and under the jurisdiction of the large taxpayers
service are required to electronically report their sales data to the BIR through the
use of electronic point of sales systems. Machines, fiscal devices and fiscal memory
devices shall be at the expense of the taxpayer.
The data processing of sales and purchase data shall comply with the provisions of
R.A. No. 10173 or the Data Privacy Act, the unlawful divulgence of taxpayer
information under the Tax Code and other laws relating to the confidentiality of
information.
Policies, risk management approaches, actions, trainings, and technologies to

protect the cyber environment, organization, and data shall be established in
compliance with R.A. No. 10175 or the Cybercrime Prevention Act
Other Tax Provisions
• Interest
• Penalty Provisions
• Interest
NIRC TRAIN Law

Sec. 249. Interest of 20% per annum Interest imposed shall be double the
on any unpaid amount of tax. legal interest rate for loans or
forbearance of any money in the
Deficiency interest is due from the absence of an express stipulation as set
date prescribed for its payment by BSP.
until full payment thereof.
Delinquency and deficiency interest
shall in no case be imposed
simultaneously
NIRC TRAIN Law
Sec. 254. Fine of not less than Increased the fine to not less than
PHP30,000 but not more than PHP500,000 but not more than PHP10M
PHP100,000 and imprisonment of and imprisonment of not less than six
not less than two years but not more years but not more than ten years.
than four years for attempt to evade
or defeat any tax.
NIRC TRAIN Law
Sec. 264 Fine of not less than Increased the fine to not less than
PHP1,000 but not more than PHP500,000 but not more than PHP10M
PHP50,000 and imprisonment of not and imprisonment of not less than six
less than two years but not more years but not more than ten years.
than four years for the following:
• Printing of receipts or sales or Includes printing of fraudulent receipts
commercial invoices without to the list of offenses.
authority from the BIR; or
• Printing of double or multiple
sets of invoices or receipts; or
• Printing of unnumbered
receipts or sales or commercial
invoices, not bearing the name,
business style, TIN, and business
address of the person or entity
NIRC TRAIN Law
No existing penalty provisions in case Sec. 264-A Imposes a penalty of 1/10 of

of failure to transmit data entered on 1% of annual net income reflected in the
Cash Register Machine (CRM)/ Point audited financial statements for the 2nd
of Sales System (POS) machines to year preceding the current taxable year
BIR’s electronic sales reporting for each day of violation or PHP10,000
system. whichever is higher, except if failure to
transmit is due to force majeure or
causes beyond the control of the
taxpayer.
If the aggregate number of days of

violation exceed 180 days within a
taxable year, an additional penalty of
permanent closure of the taxpayer shall
be imposed
NIRC TRAIN Law

No existing penalty provisions in case Sec. 264-B Imposes a fine of not less
of purchase, use, possession, sale or than PHP500,000 but not more than
offer to sell, installment, transfer, PHP10M and imprisonment of not less
update, upgrade, keeping or than two years but not more than four
maintaining of sales suppression years.
devices.
Cumulative suppression of electronic
sales record in excess of PHP50M shall
be considered as economic sabotage
and shall be punished in the maximum
penalty.
No existing penalty provisions for offenses relating

NIRC to fuel marking
Sec. 265-A Any person found to be engaged in the sale,

TRAIN Law trade, delivery, distribution or transportation of
unmarked fuel in commercial quantity held for domestic
use or merchandise and any person who causes the
removal of the official fuel marking agent from marked
fuel, and the adulteration or dilution of fuel intended for
sale to the domestic market, or the knowing possession,
storage, transfer or offer for sale of fuel obtained as a
result of such removal, adulteration or dilution shall be
penalized as follows:
• 1st offense: a fine of PHP2.5M
• 2nd offense: a fine of PHP5M
• 3rd offense: a fine of PHP10M and
revocation of license to engage in any
trade or business
Penalty Provisions

TRAIN Law
Any person who commits any of the following acts shall, upon conviction, be
punished by a fine of not less than PHP1M but not more than PHP5M and
suffer imprisonment of not less than four years but not more than eight years:
1. making, importing, selling, using or possessing fuel markers without

express authority;
2. making, importing, selling, using or possessing counterfeit fuel markers
3. causing another person or entity to commit any of the 2 preceding acts; or
4. causing the sale, distribution, supply or transport of legitimately imported,
in-transit, manufactured or procured controlled precursors and essential
chemicals, in diluted, mixtures or in concentrated form, to any person or
entity penalized in subsections(a), (b), or (c) hereof.

TRAIN Law
Any person who willfully inserts, places, adds or attaches directly or indirectly, through
any overt or covert act, whatever quantity of any unmarked fuel, counterfeit additive or
chemical in the person, house, effects, inventory, or in the immediate vicinity of an
innocent individual for the purpose of implicating, incriminating or imputing the
commission of any violation of this Act shall, upon conviction, be punished by a fine of
not less than PHP5M but not more than PHP10M, and suffer imprisonment of not less
than four years but not more than eight years.
Any person who is authorized, licensed or accredited to conduct fuel tests, who issues
false or fraudulent fuel test results knowingly, willfully or through gross negligence, shall
suffer the additional penalty of imprisonment ranging from one year and one day to
two years and six months.
The additional penalties of revocation of the license to practice his/her profession in

case of a practitioner, and the closure of the fuel testing facility, may also be imposed at
the instance of the court.
NIRC TRAIN Law

Sec. 269 Violations committed by Added in the list of offenses the
government enforcement officers deliberate failure on the application for
VAT refunds within the prescribed
period under Section 112 of the Tax
Code.
• Earmarking of incremental revenues
NIRC Sec. 288 on Disposition of Incremental Revenues
TRAIN Law
For the incremental revenues from the TRAIN, for 5 years from effectivity,
incremental revenues shall be appropriated as follows:
• Not more than 70% to fund infrastructure projects (e.g., mass

transport and new road network, military infrastructure, sports
facilities for public schools, potable drinking water supplies)
• Note more than 30% to fund:
- Programs supporting the sugarcane industry
- Social mitigating measures and investments in education, health,
social protection, and housing among others.
- Social welfare and benefits programs
• [ITEM VETOED] Incremental revenues from tobacco taxes shall be covered

by Section 3 of R.A. No. 7171 and Section 8 of R.A. No. 8240.

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Tax Reform for Acceleration

• Sec 6, amending Sec 25 of the Tax Code

“Provided, however, that existing RHQs/ROHQs, OBUs or Petroleum

• Sec 31, amending Sec 106 of the Tax Code

“(2) Sale and delivery of goods to:

(i) Registered enterprises within a separate customs territory

(ii) Registered enterprises within tourism enterprise zones as

• Sec 33, amending Sec 108 of the Tax Code

“(8) Services rendered to:

(i) Registered enterprises within a separate customs territory

(ii) Registered enterprises within tourism enterprise zones as

• Sec 38, amending Sec 116 of the Tax Code

“And beginning January 1, 2019, self-employed and professionals

• Sec 43, amending Sec 148 of the Tax Code

• Sec 82, amending Sec 288 of the Tax Code

“Notwithstanding any provisions herein to the contrary, the

• Adjustments in Corporate Income • Expansion of VAT Base

• Filing of Tax Returns

• Provisions related to petroleum

• Other tax provisions

• Power to obtain information, and to summon,

• Examination of returns and determination of tax

NIRC TRAIN Law

Sec. 5 (B) Commissioner’s power to Additional provision:

NIRC TRAIN Law

• Individual Income Tax Rates

• Passive income from interest, royalties, prizes and other

• Capital gains from sale of shares of stock not traded in the

• Alien individuals and qualified Filipinos employed by specific

Sec. 24 (A) (2) Personal income tax

TRAIN Law A. For compensation income earners :

TRAIN Law B. Purely self-employed professionals :

If gross sales/receipts and other non-operating income do

• 8% of gross sales/receipts and other non-operating

• Graduated rates in (A) above.

TRAIN Law C. Mixed income earners shall be taxed as follows:

On their compensation income – at graduated rates

On their income from the conduct of trade or business or

• If exceeding the VAT threshold – at graduated rates

• If below the VAT threshold – either 8% of gross sales/

NIRC TRAIN Law

NIRC TRAIN Law

NIRC TRAIN Law

• Regional or area headquarters [ITEM VETOED] Present and future

• Government-owed and controlled corporations, agencies, or

• Passive income on interest from deposits and yield or any

• Capital gains from sale of shares of stock not traded in the

NIRC TRAIN Law

NIRC TRAIN Law

NIRC TRAIN Law

• On exemption of 13th month pay and other benefits

• Fringe benefit tax given to non-rank and file employees

• Optional standard deduction (“OSD”)

• Deduction of premium payments on health and/or

• On personal and additional exemptions

• Exemption allowed to estate and trust

• Income tax collected at source – husband and wife

NIRC TRAIN Law

NIRC TRAIN Law