(Note: For those who are excited to get to the Train Law PDF Download, simply scroll to the bottom of this post.)
On December 19, 2017, President Rodrigo Duterte signed Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act into law, the first tranche of the Comprehensive Tax Reform Program in Malacanang.
The TRAIN aims to provide significant income tax cuts for majority of Filipino taxpayers and at the same time raise additional funds to finance the government’s accelerated spending on its “Build, Build, Build” and social services programs.
Pro Individual Income Earners
This tax reform package is expected to correct the longstanding inequity of the tax system by reducing personal income taxes for 99 percent of taxpayers, thereby giving them the much needed relief after 20 years of non-adjustment of the tax rates and brackets.
The government is also giving the poorest 10 million households targeted cash transfers of PHP 200 per month in 2018 and P300 per month in 2019 and 2020, which is taken from higher consumption taxes that the rich will contribute. Better social services, healthcare, and education is also expected. All these will prepare the people for better job opportunities.
The TRAIN Law will raise a hefty amount of revenue that will support the President’s priority social and infrastructure programs, which will help realize his administration’s goal of reducing the poverty rate from 21.6 to 14% by 2022. About 70% of the incremental revenues will be used to fund the infrastructure modernization program of the government, while the balance will go to social services.
The government seeks the people’s support and understanding of this tax reform act, and would like to assure all citizens of the Philippines that the Train Law should result to a brighter future for every Filipino.
For a complete list of Revenue Regulations (RRs) and Revenue Memorandum Circulars (RMCs) regarding the Train Law, click here.
Download the complete PDF version of the Train law by clicking the button below: