BIR releases new TRAIN individual income tax schedule.
By Jun Ramirez
The Bureau of Internal Revenue (BIR) released on Wednesday the new individual income tax schedule implementing the provisions of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Revenue Regulations No. 8-2018 covered the range of taxable income for wage or compensation earners, self-employed, mixed income, resident and non-resident aliens with earnings here.
The guideline has separate illustration tables for each type of filers guiding them how to compute the taxable income.
Individual earning up to P250,000 are exempted from paying tax.
Husband and wife are required to compute their individual income tax separately based on their respective taxable income.
"If any income cannot be definitely attributed to or identified as income exclusively earned by either of the spouses, the same shall be divided equally between the spouses for the purpose of determining their respective taxable income," the 27-page regulations stated.
Minimum wage earners are exempted from the payment of income tax and holiday pay, overtime pay, night shift differential and hazard pay received by them are likewise exempt.
Self-employed individuals like businessmen and doctors whose gross income does not exceed the R3-million value-added tax threshold may elect to avail of either the graduated rates under Section 24 (A)(2)(a) of the Tax Code, or an eight percent tax on gross income.
However, they are automatically subject to the graduated tax rate even if the flat eight percent income tax rate is initially selected when their gross sales or receipts exceeded the VAT threshold during the taxable year.
The regulations were signed by Finance Secretary Carlos Dominguez last Feb. 15 based on the recommendation of BIR Commissioner Caesar Dulay.
The full text is scheduled to be published in today's issue of the Manila Bulletin.
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|Date:||Feb 22, 2018|
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