TRAIN Tax Law: Primer, Guide & BIR Sample Computations
TRAIN Tax Law: Primer, Guide & BIR Sample Computations
TRAIN Tax Law: Primer, Guide & BIR Sample Computations
What is TRAIN?
Tax Reform for Acceleration and Inclusion
The goal of the first package of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to
create a more just, simple, and more effective system of tax collection, as per the constitution,
where the rich will have a bigger contribution and the poor will benefit more from the government’s
programs and services.
In his 3rd State of the Nation Address (SONA) on Monday, July 23, Duterte went on to
applaud the "timely passage of the TRAIN law."
"Some have incorrectly blamed our efforts toward a fairer tax system for all the price
increases in the past months, and some irresponsibly suggesting to stop TRAIN's
implementation. We cannot and should not. We need this for sustainable growth that
leaves no Filipino left behind," the President said.
Duterte wants the remaining 4 out of 5 tax reform packages submitted to Congress
before July ends.
Package 2 aims to rationalize or remove certain tax incentives of companies and reduce
the corporate income tax from 30% to 25%. The Department of Finance (DOF)
proposed to make incentives performance-based, targeted, time-bound, and
transparent.
Business groups earlier warned that the removal of incentives would scare away
potential foreign investors.
Duterte also called for reforms in mining taxes and further increasing levies on alcohol
and tobacco.
He also urged Congress to work on on real property valuation, capital income and
financial taxes, and an amnesty program.
"I urge Congress to take them seriously and pass them in succession, for there is no
chance that we can deliver our promises without an equitable tax system," the President
said. – Rappler.com