Escolar Documentos
Profissional Documentos
Cultura Documentos
Self-employed & professionals with gross Exempt effective January 1, 2019 if annual
receipts of Php1,919,500.00 and less- gross receipts not exceeding
subject to 3% Php500,000.00 BUT VETOED
Php32.50-January 2018
Php31.20 per pack with 4% increase Php35.00-January 2019
annually Php37.50-January 2020
Php40.00-January 2022
4% annual increase
2% for up to Php600,000.00 4%
Php12,000.00 + 20% in excess of 10% for over Php600,000.00-Php1
Php600,00.00 Million
Php112,000.00 + 40% in excess over
Php1.1 Million 20% for over Php1 Million-Php4 Million
Php512,000.00 + 60% of excess over
Php2.1 Million 50% for over Php4 Million
Php50.00-2018
Php10.00. per metric ton of coal
Php100.00-2019
Php150.00-2020
Various rates for other minerals
100% increase in rate for other minerals
RELATED PRONOUNCEMENTS
• SAMPLES\VETOED PROVISIONS OF THE PRESIDENT ON TRAIL
BILL.pdf
• SAMPLES\DRAFT OF IMPLEMENTING RULES ON REGULATIONS
ON EXCISE TAX ON INVASIVE COSMETIC PROCEDURES.pdf
• SAMPLES\DRAFT OF IMPLEMENTING RULES ON REGULATIONS
ON SWEETENED BEVERAGES TAX FOR PUBLIC
CONSULTATION.pdf
• SAMPLES\RMC No 4-2018-TRANSITIONAL WORK AROUND
PROCEDURES FOR EFPS FILERS FOR EXCISABLE ARTICLES.pdf
• SAMPLES\RR NO. 1-2018-REVISED RATES ON MINERAL
PRODUCTS.pdf
• SAMPLES\RR NO. 3-2018-REVISED RATES ON TOBACCO
PRODUCTS.pdf
• SAMPLES\RR NO. 5-2018-ADJUSTMENTS ON EXCISE TAX RATES
ON AUTOMOBILES.pdf
ON EXCISE TAX ON SWEETENED
BEVERAGE
•Non-alcoholic
beverages in liquid
• powdered or concentrate form
• sold pre-packed & sealed
• contains caloric & or non-caloric
sweeteners
PERSONS LIABLE
•Local manufacturer
•Importer
•Person in possession
of untaxed beverage
TAX RATE & BASE
• With Caloric & or Non-Caloric
Sweetener-Php 6.00 per liter
• With purely/partly High Fructose Corn
Syrup-Php 12.00 per liter
TIME OF PAYMENT
•enhancing patient’s
appearance
EXCLUDED
• Non-invasive procedures or
• procedures necessary to ameliorate a
deformity
• arising from congenital or developmental
defect
• injury from an accident/ trauma or
• disfiguring disease
• Tumor
• infection
TAX RATE & BASE
• 5% on gross receipts
• net of ET &
• VAT
PERSONS LIABLE
• Doctor
• Clinic
• Hospital
• which performed the procedure
– issued the OR
• Tax shall be passed on to
patient
F. DOCUMENTARY STAMP TAXES
AMENDMENTS INTRODUCED BY
OLD TAX CODE TRAIN LAW
Various transactions subject to different 100% increase in rate except DST on loans
rates & amounts from Php 1.00 to Php 1.50 per Php 200.00
& no increase in sale of real property &
insurance policies
RELATED BIR PRONOUNCEMENTS
& ISSUANCES
• SAMPLES\RR NO. 4-2018-REVISED RATES ON
DST.pdf
• SAMPLES\9-2018-NEW ALPHANUMERIC TAX
CODE.pdf
G. COMPLIANCE REQUIREMENTS
AMENDMENTS INTRODUCED BY
OLD TAX CODE TRAIN LAW
Electronic sales reporting-none except the Mandatory electronic receipts for LTS & TP
current Quarterly Summary List of Sales & engaged in export of goods & services &
Purchases & List of Importation, e-Sales within 5 yrs from enactment of TRAIN &
Reporting establishment of BIR system
Monthly filing of withholding tax & Quarterly filing of withholding tax except
percentage tax/VAT compensation & VAT/percentage
Penalty for failure to transmit sales data 1/10 of 1% of the annual net income for
the 2nd year preceding the current taxable
entered on Cash Register Machine/Point of
year for each day of violation or Php 10,000
Sales Machine to the BIR’s Electronic Sales whichever is higher & permanent closure if
Reporting System-administrative penalty violation exceeds 180 days
PART II INCOME TAX
HIGHLIGHTS
A. ADMINISTRATIVE
AMENDMENTS INTRODUCED BY
OLD TAX CODE TRAIN LAW
or
graduated income tax rates
BOTH COMPENSATION INCOME EARNER &
SELF-EMPLOYED/PROFESSIONAL
COMPENSATION INCOME SUBJECT TO GRADUATED
INCOME TAX RATES
Employees of RHQ, ROHQ, OBU, & Preferential tax treatment of 15% shall not
Petroleum Service Contractors taxed at apply anymore to registrants after January
15% 1, 2018
employer-
• under an
employee
relationship
• name by which the remuneration for services is
designated is immaterial
• Thus, salaries, wages, emoluments & honoraria,
allowances, commissions (e.g. transportation,
representation, entertainment)
• fees including director's fees, if the director is,
at the same time, an employee of the employer
• taxable bonuses & FB
– except those which are subject to FBT
• taxable pensions & retirement pay
professional
body
– belonging to a specific profession
– by virtue of having completed a required course of
studies &/or practice
– whose competence can usually be measured
against an established set of standards
PROFESSIONAL
• person who engages in some art or sport for
money
• as a means of livelihood
• rather than as a hobby
– includes professional entertainers
– professional athletes
– directors, producers
– insurance agents, insurance adjusters
– management & technical consultants,
bookkeeping agents &
– other recipients of professional, promotional &
talent fees
FRINGE BENEFITS
• any good
•service or
•other benefits furnished or
granted in cash or in kind
• apart from the basic compensation
• by R to individual E (except rank & file E)
• such as, but not limited to the following:
•Housing
• Expense account
• Vehicle of any kind
• Household personnel, such as maid, driver
• Interest on loan at less than market rate to the
extent of the difference between the market
rate & actual rate granted
• Membership fees, dues and other expenses
borne by the R for the E in social & athletic
clubs or other similar ORG
• Expenses for foreign travel
• Holiday & vacation expenses
•Education assistance
to the E or his
dependents
• Life or health insurance & other non-life
insurance premiums or similar amounts in
excess of what the law allows.
STATUTORY MINIMUM WAGE
• worker in the private sector
who is paid with SMW or to E
in the public sector
• with compensation income of
not more than SMW in the
non-agricultural sector
• where the E is assigned.
EXCLUSIONS FROM GROSS INCOME
Other
• 13th Month Pay &
Benefits
• ₱90,000.00, which shall cover:
such as productivity
– Other benefits
incentives &
– Christmas bonus
DEDUCTIONS FROM GROSS INCOME
• OSD at 40% or
• itemized deductions
• at the option of TP
• In case of individual TP,
• OSD shall be computed at the rate of 40% of
gross sales/receipts
• Corporations may elect SD
• in an amount not exceeding 40% of its gross
income
• no deductions shall be allowed to
individual TP earning
compensation income
• those who opted to be taxed at
itemized deductions
• Such election, when made in the return
convenience of or
advantage of R
NOT REQUIRED TO FILE ITR
• Those earning purely compensation
Php
income of
250,000.00 or less
October 15
MARCH 31, 2018 DEADLINE
• all existing VAT registered TP
• whose gross sales/receipts in the preceding
year did not exceed the VAT threshold of Php
3M
• have the option to update their registration to
non-VAT
• ..\..\..\weekly tax updates\2018\january\22-
26\BIR TAX ADVISORY ON SELF-EMPLOYED
PROFESSIONALS CHANGE OF REGISTRATION
FROM VAT TO NON-VAT PERCENTAGE TYPE.pdf
KEEP YOUR
QUESTIONS
COMING. SEND THEM TO
ME? We are learning
together! Keep in touch!
willie.santiago@dmdcpa.com.ph