MANILA, Philippines — The tax reform law, which reduces personal income tax but imposes a higher tax on fuel, cars, tobacco and sugary beverages to bankroll the government’s infrastructure and development projects, takes effect today. To kick off the effectivity of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, Revenue Commissioner Caesar Dulay has issued Memorandum Circular 105-2017 revising the withholding tax table on compensation. “With the effectivity of the TRAIN law on Jan. 1, it is imperative that a smooth transition to withholding tax rates is ensured,” he said. The BIR will hold public consultations on Jan. 11 and 12 prior to the issuance various revenue regulations on income tax, withholding tax, value added tax, excise tax on petroleum, excise tax on automobiles, excise tax on mineral products, excise tax on tobacco, excise tax on sweetened beverage, cosmetic procedures, estate and donor’s tax, percentage tax, and documentary stamp tax as well as a revenue memorandum order (RMO) on the VAT refund system. Finance Secretary Carlos Dominguez III said proceeds of the first package of tax reforms would fund about 25 percent of the P8.4 trillion Build Build Build program of the Duterte administration.

Source: Philippine Star December 31, 2017 16:07 UTC