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    Btax

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    cristine albano
    The document discusses the Tax Reform for Acceleration and Inclusion (TRAIN) law in the Philippines. TRAIN is the first package of the government's comprehensive tax reform program that aims to make the tax system simpler, fairer and more efficient. It lowers personal income taxes for 99% of taxpayers and increases excise taxes on some products. The goal of TRAIN and the tax reform program is to create a more equitable system where the wealthy pay more taxes to fund government programs and services that benefit the poor.

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    Btax

    Uploaded by

    cristine albano
    19 views2 pages
    The document discusses the Tax Reform for Acceleration and Inclusion (TRAIN) law in the Philippines. TRAIN is the first package of the government's comprehensive tax reform program that aims to make the tax system simpler, fairer and more efficient. It lowers personal income taxes for 99% of taxpayers and increases excise taxes on some products. The goal of TRAIN and the tax reform program is to create a more equitable system where the wealthy pay more taxes to fund government programs and services that benefit the poor.

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    The document discusses the Tax Reform for Acceleration and Inclusion (TRAIN) law in the Philippines. TRAIN is the first package of the government's comprehensive tax reform program that aims to make the tax system simpler, fairer and more efficient. It lowers personal income taxes for 99% of taxpayers and increases excise taxes on some products. The goal of TRAIN and the tax reform program is to create a more equitable system where the wealthy pay more taxes to fund government programs and services that benefit the poor.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    19 views2 pages

    Btax

    Uploaded by

    cristine albano
    The document discusses the Tax Reform for Acceleration and Inclusion (TRAIN) law in the Philippines. TRAIN is the first package of the government's comprehensive tax reform program that aims to make the tax system simpler, fairer and more efficient. It lowers personal income taxes for 99% of taxpayers and increases excise taxes on some products. The goal of TRAIN and the tax reform program is to create a more equitable system where the wealthy pay more taxes to fund government programs and services that benefit the poor.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    WHAT IS TRAIN LAW?

    By the Department of Finance, Republic of the Philippines TRAIN stands for Tax Reform for
    Acceleration and Inclusion. The Tax Reform for Acceleration and Inclusion ( TRAIN ) is the
    first package of the comprehensive tax reform program ( CTRP ) envisioned by the
    President's administration, which seeks to correct a number of deficiencies in the tax system
    to make it simpler, fairer, and more efficient. The TRAIN law is the first package of the
    administration's much-awaited COMPREHENSIVE TAX REFORM PROGRAM. It takes
    effect 15 days after it is published in the official Gazette or publications of general
    circulations. The aim is to make the current tax system simpler, fairer, and more efficient.
    TRAIN imposed or increased excise taxes on certain products and services. These new rates
    need to be supported by specific regulations.

    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. The major features of the TRAIN are as
    follows:➢Lowering Personal Income Tax (PIT)TRAIN lowers personal income tax (PIT) for
    all taxpayers except the richest. Under TRAIN, those with annual taxable income below
    P250,000 are exempt from paying PIT, while the rest of tax pavers, except the richest, will
    see lower tax rates ranging from 15% to 80% by 2023. To maintain progressivity, the top
    individual taxpayers whose annual taxable income exceeds P8 million, face a higher tax rate
    from the current 32% to 35%.Husbands and wives who are both working can benefit from a
    total of up to P500,000 exemptions. In addition, the first P90,000 of the 13th month pay and
    other bonuses will be exempt from income tax. Overall, the effective tax rates will be
    lowered for 99% of taxpayers. Currently, a person who has a taxable income of P500,000
    annually is taxed at 32% at the margin. TRAIN will bring this down to 25% in 2018 and will
    be further brought down 20%after five years.

    RATIONALE FOR PASSING TAX REFORM

    Tax reform can lessen tax avoidance and evasion while enabling more effective and fair
    revenue collection that can be used to pay for public goods and services. Tax reform is the
    process of altering how taxes are managed or collected by the government. It is typically
    carried out to enhance tax administration or to offer financial or social advantages. Reform of
    the tax code is proposed for several reasons. The main goal is to reduce even the remotest
    likelihood of tax avoidance and evasion from the economy.
    THE FOLLOWING ARE SOME BENEFITS OF TAX REFORM:
    1. Single valuation base: Achieves stability in real property valuation by eliminating
    significant differences. For planners, the predictability of valuation will be advantageous.

    2. The harmonization of real estate assessment among the various governmental bodies is
    made possible by uniform standards. the integrity of real estate appraisal should be
    improved in conformity with recognised value standards. Make sure there is transparency
    available throughout the appraisal and valuation process. It will increase the trust that
    businesses, financial institutions, lenders, and investors have in valuation reports at the
    federal, state, and local levels.

    3. Complete database: The real estate market is more confident when land transactions are
    more transparent. Property-related policies are made easier by having quick access to
    databases since it enhances planning and decision-making (Sanggunian).

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