Five provisions of the newly-signed Tax Reform for Acceleration and Inclusion (Train) Act have been vetoed by President Rodrigo Duterte. One involves the Train provision granting reduced income tax rates to employees of regional headquarters, regional operating headquarters, offshore banking units and petroleum service contractors and subcontractors. Given the significant reduction in the personal income tax, the employees of these firms should follow the regular tax rates applicable to other individual taxpayers,” Duterte added. As to tourism enterprises, Duterte said the current law only allows for the duty and tax free importation of capital equipment, transportation equipment and other goods. “At any rate, the Tax Code already identifies which petroleum products can be exempted,” Duterte said.

Source: Manila Times December 22, 2017 18:11 UTC