At 145 words, the official title of the new tax law just signed by President Rodrigo Duterte on Dec. 19 – “An Act Amending Sections … “ already makes for tedious reading. How much more the body of the Tax Reform for Acceleration and Inclusion (TRAIN) law, its short name, which runs to some 107 pages?
To help you see how the new TRAIN law will affect your personal income tax obligations in 2018, here's an infographic that provides information on the tax due on selected annual net taxable income levels under the current tax regime and under the TRAIN law. (via Entrepreneur.com.ph)
*Taxable income is not the same as total income for the year. The taxable income is part of your total income subject to income tax, and is calculated by deducting personal and other deductions and allowable expenses from your total income.
And to get a better idea as to all the major changes we should expect, here's a reproduced and very concise summary prepared by one of the country’s most prominent tax accountants, Raymond Abrea.
The law takes effect 15 days after it is published in the Official Gazette or publications of general circulation.
Popularly known as “The Philippine Tax Whiz,” Abrea is founder of the Abrea Consulting Group and the Center for Strategic Reforms of the Philippines, which conducts tax planning seminars for taxpayers. One of 2015’s The Outstanding Young Men of the Philippines (TOYM), Abrea also serves as advisor to the Bureau of Internal Revenue on tax administration matters.
This story originally appeared on Entrepreneur.com.ph.
* Minor edits have been made by the Femalenetwork.com editors.