{"id":5794,"date":"2018-01-04T15:30:59","date_gmt":"2018-01-04T07:30:59","guid":{"rendered":"http:\/\/primer.com.ph\/tips-guides\/?p=5794"},"modified":"2021-07-14T16:28:00","modified_gmt":"2021-07-14T08:28:00","slug":"train-package-one-a-need-to-know-guide-to-republic-act-10963","status":"publish","type":"post","link":"https:\/\/primer.com.ph\/tips-guides\/2018\/01\/04\/train-package-one-a-need-to-know-guide-to-republic-act-10963\/","title":{"rendered":"TRAIN Package One: A Need-To-Know Guide to Republic Act 10963"},"content":{"rendered":"

It\u2019s not every day that something tax-related makes waves on social media. Taxes usually mean a burden, but with the implementation of the recently-signed Republic Act 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law,\u00a0your upcoming payslip suddenly became a welcome-ish sight.<\/p>\n

\"\"THIS WILL BE A LOT SIMPLER. Computing for your taxes will be simpler thanks to the implementation of TRAIN’s Package One.<\/em><\/span><\/p>\n

Questions have been thrown around regarding TRAIN, most of which has to do with what will happen once that first payslip comes in. To clear up the air, here\u2019s a handy guide paired with graphics from GMA News Online to better understand TRAIN:<\/p>\n

More money in our pockets<\/b><\/strong><\/p>\n

\"\"<\/p>\n

Here\u2019s the deal: if your basic pay per month is at Php 20,833 and below (that\u2019s Php 10,417 if you\u2019re paid twice a month), you won\u2019t be charged any withholding tax. Any higher and you\u2019ll be deducted tax based on the table you see here.<\/p>\n

\"\"<\/a>IN CASE IT WASN’T CLEAR. Here’s how much you’ll be charged (or not charged) for taxes daily, weekly, semi-monthly, or monthly. Click on the image to enlarge.\/IMAGE Bureau of Internal Revenue<\/em><\/span><\/p>\n

\u201cWhat if I\u2019m married or a father\/mother to a number of kids?\u201d That\u2019s all in the past. Those exemptions made withholding tax collections complicated, so they got rid of it. Besides, you\u2019ll be paying even less tax than you will be from now on.<\/p>\n

\"\"<\/p>\n

Self-employed and mixed-income earners will also benefit from TRAIN. Yes, the government didn\u2019t leave you guys out. You have an option of using the new tax table or paying an 8% flat tax rate if you earn less than Php 3 million yearly in gross sales and receipts.<\/p>\n

Are you an expat or Filipino currently working for a multinational corporation who\u2019s RHQ or ROHQ is in the Philippines? Your taxes will be adjusted as well. You\u2019ll be taxed 15% of your gross income, i.e. everything that goes into your paycheck.<\/p>\n

Oh, and by the way, your 13th-month pay and other benefits are considered tax-free if they don\u2019t crack the Php 90,000 ceiling.<\/p>\n

\"\"<\/p>\n

We know how much of a burden paying taxes is if you\u2019re a business owner. You\u2019ll be happy to know that TRAIN also lends a hand to businesses who don\u2019t earn as much as the more established names.<\/p>\n

If your business earns less than Php 3 million yearly, you don\u2019t need to pay the 12% value-added tax.<\/p>\n

\"\"OTHER VAT-RELATED EXEMPTIONS. Yes, adjustments happened in these areas as well.<\/i><\/em><\/span><\/p>\n

All well and good, yes? We get more money in our pockets! But wait, there\u2019s more.<\/p>\n

More taxes collected elsewhere<\/b><\/strong><\/p>\n

\u201cWith the government collecting less from our paycheck, where will they get the funding for their projects?\u201d Well, here are the answers to that one burning question.<\/p>\n

\"\"<\/p>\n

Yes, we all knew this was coming. Every time the price of petrol goes up, the rest of the market gets affected. Make sure you have extra space in your monthly budget for higher fares and gas prices, and probably for everything else you\u2019ll buy in 2018.<\/p>\n

\"\"<\/p>\n

Unless you drink a lot of natural fruit and vegetable juices, milk, coffee (ground, 3-in-1, and powdered), or drink something to replace meals, you\u2019ll be paying more for your cup, can, or bottle of sweetened beverage. A flat rate of Php 6 or Php 12 per liter will be charged depending on the sweetener used.<\/p>\n

Of course, you can get around it by using coco sugar or stevia, but that\u2019s up to the manufacturer.<\/p>\n

\"\"<\/p>\n

Another part of TRAIN that created a lot of buzz was the automobile excise tax. Prices for any four-wheeled (or more) vehicle that runs purely on gas or diesel and isn\u2019t a pick-up or is not 100% electric will be charged a flat tax rate based on what you see here.<\/p>\n

Iffy about going 100% electric? Go for a hybrid; it\u2019ll be taxed at half the rates and you\u2019ll be doing Mother Nature a favor.<\/p>\n

\"\"<\/p>\n

Donating to a cause? The same 6% tax rate applies to net donations that crack the Php 250,000 ceiling, regardless of your relationship to the one accepting your donation.<\/p>\n

Want to know where else the government will get their funds through taxes? Here\u2019s a quick rundown:<\/p>\n

\"\"Estate tax<\/em><\/span><\/p>\n

\"\"Documentary stamps, foreign currency deposits, stocks not traded in\u00a0the stock exchange, stock transaction tax<\/i><\/em><\/span><\/p>\n

\"\"INVASIVE COSMETIC PROCEDURES AND SURGERIES. Yes, Dra. Vicky Belo\u2019s work will be levied a 5% tax unless it is absolutely necessary.<\/i><\/em><\/span><\/p>\n

\"\"<\/p>\n

\"\"COAL MINING AND MINING IN GENERAL. From Php 10 per metric ton all the way to Php 150 per metric ton! Also, double the tax rates for anything else mined from within our territories!<\/i><\/em><\/span><\/p>\n

\"\"TOBACCO EXCISE TAX. Yes, smokers. You all knew this was coming. Time to ditch that deadly habit.<\/i><\/em><\/span><\/p>\n

Now that we\u2019re all up to speed, let\u2019s all pause and take in all that will come out of the implementation of TRAIN.<\/p>\n

By the way, did we mention that this is Package One out of a possible four?<\/p>\n

\n

Written by Andronico Del Rosario<\/i><\/em><\/span><\/p>\n

It\u2019s not every day that something tax-related makes waves on social media.<\/p>\n","protected":false},"author":3,"featured_media":5810,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1727],"tags":[910,911,909,912,354],"class_list":["post-5794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-procedure","tag-package-one","tag-taxes","tag-train","tag-vat","tag-withholding-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/posts\/5794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/comments?post=5794"}],"version-history":[{"count":9,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/posts\/5794\/revisions"}],"predecessor-version":[{"id":9517,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/posts\/5794\/revisions\/9517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/media\/5810"}],"wp:attachment":[{"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/media?parent=5794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/categories?post=5794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/primer.com.ph\/tips-guides\/wp-json\/wp\/v2\/tags?post=5794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

All infographics courtesy of GMA News Online
\n<\/i><\/em>References: <\/i><\/em>GMA News Online<\/i><\/u><\/em><\/a>, <\/i><\/em>National Revenue Code of 1997<\/i><\/u><\/em><\/a>, <\/i><\/em>RA 10963<\/i><\/u><\/em><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"