1997 NATIONAL INTERNAL REVENUE CODE (NIRC)

vs
TAX REFORM FOR ACCELERATION AND INCLUSION ACT
(TRAIN)

TAXATION 1
ATTY. ANGELO ANDRO SUAN, C.P.A.

Submitted by:
Christine Iyle Q. Balgos
 SECTION REPUBLIC ACT NO. TAX CODE PROVISIONS AMENDMENTS
10963(TRAIN LAW) (Before R.A. No. 10963)
SECTION 5. Power of the In ascertaining the correctness of any In ascertaining the correctness of any Tax Incentive Report. -
Commissioner to Obtain return, or in making a return when none has return, or in making a return when none The Cooperative
Information and to been made, or in determining the liability of has been made, or in determining the Development Authority
Summon, Examine, and any person for any internal revenue tax, or liability of any person for any internal (“CDA”) has to submit to
Take Testimony of in collecting any such liability, or in revenue tax, or in collecting any such the Bureau of Internal
Persons evaluating tax compliance, the liability, or in evaluating tax compliance, Revenue (“BIR”) and the
Commissioner is authorized: the Commissioner is authorized: Department of Finance a
tax incentive report,
(A) xxx (A) xxx which shall be included in
the database created
(B) To obtain on a regular basis from any (B) To obtain on a regular basis from any under the Tax Incentives
person other than the person whose person other than the person whose Management and
internal revenue tax liability is subject to internal revenue tax liability is subject to Transparency Act
audit or investigation, or from any office or audit or investigation, or from any office or (“TIMTA”).
officer of the national and local officer of the national and local
governments, government agencies and governments, government agencies and
instrumentalities, including the Bangko instrumentalities, including the Bangko
Sentral ng Pilipinas and government-owned Sentral ng Pilipinas and government-
or -controlled corporations, any information owned or -controlled corporations, any
such as, but not limited to, costs and information such as, but not limited to,
volume of production, receipts or sales and costs and volume of production, receipts or
gross incomes of taxpayers, and the sales and gross incomes of taxpayers, and
names, addresses, and financial the names, addresses, and financial
statements of corporations, mutual fund statements of corporations, mutual fund
companies, insurance companies, regional companies, insurance companies, regional
operating headquarters of multinational operating headquarters of multinational
companies, joint accounts, associations, companies, joint accounts, associations,
joint ventures or consortia and registered joint ventures or consortia and registered
partnerships, and their members: partnerships, and their members; xxx
Provided, That the Cooperative
Development Authority shall submit to
the Bureau a tax incentive report, which
shall include information on the income
tax, value-added tax, and other tax
 incentives availed of by cooperatives
registered and enjoying incentives
under Republic Act No. 6938, as
amended: Provided, further, That the
information submitted by the
Cooperative Development Authority to
the Bureau shall be submitted to the
Department of Finance and shall be
included in the database created under
Republic Act No. 10708, otherwise
known as the ‘Tax Incentives
Management and Transparency Act
(TIMTA)’.
SECTION 25. Tax on (A) Nonresident Alien Engaged in trade (A) Nonresident Alien Engaged in trade • Withdrawal of the 15%
Nonresident Alien or Business Within the Philippines. - or Business Within the Philippines. Preferential Tax
Individual Presidential xxx - xxx Treatment for Employees
Veto (1 of 6): Reduced of Regional Operating
income tax rate of (B) Nonresident Alien Individual Not (B) Nonresident Alien Individual Not Headquarters (“ROHQs”)
employees RHQs, Engaged in Trade or Business Engaged in Trade or Business and Regional Area
ROHQs, OBUs, and Within the Philippines. Within the Philippines. Headquarters (“RHQs”)
Petroleum Service which shall be registered
Contractors and (C) Alien Individual Employed by (C) Alien Individual Employed by in the Securities and
Subcontractors Regional or Area Headquarters and Regional or Area Headquarters and Exchange Commission
Regional Operating Headquarters of Regional Operating Headquarters (“SEC”) after 01 January
Multinational Companies. - There of Multinational Companies. - There 2018. – Withdraws the
shall be levied, collected and paid shall be levied, collected and paid 15% preferential tax in
for each taxable year upon the for each taxable year upon the favor of employees of
gross income received by every gross income received by every RHQs, ROHQs, Offshore
alien individual employed by alien individual employed by Banking Units (“OBUs”)
regional or area headquarters and regional or area headquarters and or Petroleum Service
regional operating headquarters regional operating headquarters Contractors and
established in the Philippines by established in the Philippines by Subcontractors
multinational companies as salaries, multinational companies as registering with the SEC
wages, annuities, compensation, salaries, wages, annuities, after 1 January 2018. RA
remuneration and other compensation, remuneration and 10963, however,
emoluments, such as honoraria and other emoluments, such as maintained the 15%
 allowances, from such regional or honoraria and allowances, from preferential tax treatment
area headquarters and regional such regional or area headquarters to qualified employees of
operating headquarters, a tax equal and regional operating existing ROHQs and
to fifteen percent (15%) of such headquarters, a tax equal to fifteen RHQs.
gross income: Provided, however, percent (15%) of such gross
That the same tax treatment shall income: Provided, however, That Presidential Veto (1 of
apply to Filipinos employed and the same tax treatment shall apply 6): “Provided, however,
occupying the same position as to Filipinos employed and that existing
those of aliens employed by these occupying the same position as RHQs/ROHQs, OBUs or
multinational companies. For those of aliens employed by these Petroleum Service
purposes of this Chapter, the term multinational companies. For Contractors and
'multinational company' means a purposes of this Chapter, the term Subcontractors presently
foreign firm or entity engaged in 'multinational company' means a availing of preferential
international trade with affiliates or foreign firm or entity engaged in tax rates for qualified
subsidiaries or branch offices in the international trade with affiliates or employees shall continue
Asia-Pacific Region and other subsidiaries or branch offices in the to be entitled to avail of
foreign markets. Asia-Pacific Region and other the preferential tax rate
foreign markets. for present and future
(D) Alien Individual Employed by qualified employees.”
Offshore Banking Units. - There (D) Alien Individual Employed by The President vetoed the
shall be levied, collected and paid Offshore Banking Units. - There amendment on the
for each taxable year upon the shall be levied, collected and paid ground that the different
gross income received by every for each taxable year upon the tax treatment imposed on
alien individual employed by gross income received by every qualified employees of
offshore banking units established in alien individual employed by existing RHQs/ROHQs
the Philippines as salaries, wages, offshore banking units established and of those registered
annuities, compensation, in the Philippines as salaries, after 1 January 2018 is
remuneration and other wages, annuities, compensation, violative of the Equal
emoluments, such as honoraria and remuneration and other Protection Clause under
allowances, from such off-shore emoluments, such as honoraria Section 1, Article III of
banking units, a tax equal to fifteen and allowances, from such off- the 1987 Constitution.
percent (15%) of such gross shore banking units, a tax equal to The intention of the veto
income: Provided, however, That fifteen percent (15%) of such gross is to subject said
the same tax treatment shall apply income: Provided, however, That previously qualified
to Filipinos employed and occupying the same tax treatment shall apply employees to the
the same positions as those of to Filipinos employed and graduated rates.
 aliens employed by these offshore occupying the same positions as
banking units those of aliens employed by these
offshore banking units
(E) Alien Individual Employed by (E) Alien Individual Employed by
Petroleum Service Contractor and Petroleum Service Contractor and
Subcontractor. - An Alien individual Subcontractor. - An Alien individual
who is a permanent resident of a who is a permanent resident of a
foreign country but who is employed foreign country but who is
and assigned in the Philippines by a employed and assigned in the
foreign service contractor or by a Philippines by a foreign service
foreign service subcontractor contractor or by a foreign service
engaged in petroleum operations in subcontractor engaged in
the Philippines shall be liable to a petroleum operations in the
tax of fifteen percent (15%) of the Philippines shall be liable to a tax of
salaries, wages, annuities, fifteen percent (15%) of the
compensation, remuneration and salaries, wages, annuities,
other emoluments, such as compensation, remuneration and
honoraria and allowances, received other emoluments, such as
from such contractor or honoraria and allowances, received
subcontractor: Provided, however, from such contractor or
That the same tax treatment shall subcontractor: Provided, however,
apply to a Filipino employed and That the same tax treatment shall
occupying the same position as an apply to a Filipino employed and
alien employed by petroleum occupying the same position as an
service contractor and alien employed by petroleum
subcontractor. Any income earned service contractor and
from all other sources within the subcontractor. Any income earned
Philippines by the alien employees from all other sources within the
referred to under Subsections (C), Philippines by the alien employees
(D) and (E) hereof shall be subject referred to under Subsections (C),
to the pertinent income tax, as the (D) and (E) hereof shall be subject
case may be, imposed under this to the pertinent income tax, as the
Code. case may be, imposed under this
Code
(F) The preferential tax treatment
provided in Subsections (C), (D),
 and (E) of this Section shall not
be applicable to Regional
Headquarters (RHQs), Regional
Operating Headquarters
(ROHQs), Offshore Banking Units
(OBUs) or Petroleum Service
Contractors and Subcontractors
registering with the Securities
and Exchange Commission (SEC)
after January 1, 2018: Provided,
however, that existing
RHQs/ROHQs, OBUs or
Petroleum Service Contractors
and Subcontractors presently
availing of preferential tax rates
for qualified employees shall
continue to be entitled to avail of
the preferential tax rate for
present and future qualified
employees.
SECTION 27. Rates of (A) In General. – xxx (A) In General. – xxx • Exempt GOCCs –
Income tax on Domestic Removes PCSO from list
Corporations. Xxx Xxx of GOCCs exempt from
income tax.
(C) Government-owned or - (C)Government-owned or -
Controlled Corporations, Controlled Corporations, Agencies • Interest income in a
Agencies or Instrumentalities. - or Instrumentalities. - The depository bank under
The provisions of existing provisions of existing special or the expanded foreign
special or general laws to the general laws to the contrary currency deposit system
contrary notwithstanding, all notwithstanding, all corporations, – Increases the final
corporations, agencies, or agencies, or instrumentalities income tax rate on
instrumentalities owned or owned or controlled by the interest income received
controlled by the Government, Government, except the by domestic corporation
except the Government Service Government Service Insurance from a depositary bank
Insurance System (GSIS), the System (GSIS), the Social Security under the expanded
Social Security System (SSS), System (SSS), the Philippine foreign currency deposit
 the Philippine Health Insurance Health Insurance Corporation system from 7.5% to
Corporation (PHIC), and the (PHIC), the local water districts 15%
local water districts (LWDs), and (LWDs), and the Philippine Charity
the Philippine Charity Sweepstakes Office (PCSO), shall • Capital Gains from Sale
Sweepstakes Office (PCSO), pay such rate of tax upon their of Shares of Stock not
shall pay such rate of tax upon taxable income as are imposed by Traded in the Stock
their taxable income as are this Section upon corporations or Exchange. – Increases
imposed by this Section upon associations engaged in a similar the capital gains tax to
corporations or associations business, industry, or activity. 15% final tax on net
engaged in a similar business, capital gains from the
industry, or activity. (D) Rates of Tax on Certain Passive graduated rates of 5%
Incomes. – and 10%.
(D) Rates of Tax on Certain Passive
Incomes. – (1) Interest from Deposits and Yield or any
other Monetary Benefit from Deposit
(1) Interest from Deposits and Yield or any Substitutes and from Trust Funds and
other Monetary Benefit from Deposit Similar Arrangements, and Royalties. - A
Substitutes and from Trust Funds and final tax at the rate of twenty percent (20%)
Similar Arrangements, and Royalties. - A is hereby imposed upon the amount of
final tax at the rate of twenty percent (20%) interest on currency bank deposit and yield
is hereby imposed upon the amount of or any other monetary benefit from deposit
interest on currency bank deposit and yield substitutes and from trust funds and similar
or any other monetary benefit from deposit arrangements received by domestic
substitutes and from trust funds and similar corporations, and royalties, derived from
arrangements received by domestic sources within the Philippines: Provided,
corporations, and royalties, derived from however, That interest income derived by a
sources within the Philippines: Provided, domestic corporation from a depository
however, That interest income derived by a bank under the expanded foreign currency
domestic corporation from a depository deposit system shall be subject to a final
bank under the expanded foreign currency income tax at the rate of seven and one-
deposit system shall be subject to a final half percent (7 1 /2%) of such interest
income tax at the rate of fifteen percent income.
(15%) of such interest income.
(2) Capital Gains from the Sale of Shares
(2) Capital Gains from the Sale of Shares of Stock Not Traded in the Stock
of Stock Not Traded in the Stock Exchange. Exchange. - A final tax at the rates
 - A final tax at the rates prescribed below prescribed below shall be imposed on net
shall be imposed on net capital gains capital gains realized during the taxable
realized during the taxable year from the year from the sale, exchange or other
sale, exchange or other disposition of disposition of shares of stock in a domestic
shares of stock in a domestic corporation corporation except shares sold or disposed
except shares sold or disposed of through of through the stock exchange:
the stock exchange.
Not over P 100,000 5%
XXX On any amount in
excess of P 100,000 10%
SECTION 32. Gross (A) General Definition. - xxx A) General Definition. – xxx • Exclusion from Gross
Income (B) Exclusions from Gross Income. – xxx (B) Exclusions from Gross Income. – xxx Income of 13th Month
(1) xxx (1) xxx Pay and Other Benefits.
(7) Miscellaneous Items. – (7) Miscellaneous Items. – – Increases the amount
(a) xxx (a) xxx of 13th month pay and
(e) 13th Month Pay and Other Benefits. - (e) 13th Month Pay and Other Benefits. - other benefits from gross
Gross benefits received by officials and Gross benefits received by officials and income which may be
employees of public and private entities: employees of public and private entities: excluded from gross
Provided, however, That the total exclusion Provided, however, That the total exclusion income P82,000.00 to
under this subparagraph shall not exceed under this subparagraph shall not exceed P90,000.00.
Ninety thousand pesos (P90,000) which eighty-two thousand pesos (P82,000)
shall cover: which shall cover: (i) Benefits received by
(i) Benefits received by officials and officials and employees of the national and
employees of the national and local local government pursuant to Republic Act
government pursuant to Republic Act No. No. 6686; (ii) Benefits received by
6686; employees pursuant to Presidential Decree
(ii) Benefits received by employees No. 851, as amended by Memorandum
pursuant to Presidential Decree No. 851, as Order No. 28, dated August 13, 1986; (iii)
amended by Memorandum Order No. 28, Benefits received by officials and
dated August 13, 1986; employees not covered by Presidential
(iii) Benefits received by officials and decree No. 851, as amended by
employees not covered by Presidential Memorandum Order No. 28, dated August
Decree No. 851, as amended by 13, 1986; and (iv) Other benefits such as
Memorandum Order No. 28, dated August productivity incentives and Christmas
13, 1986; and (iv) Other benefits such as bonus: Provided, That every three (3)
years after the effectivity of this Act, the
 productivity incentives and Christmas President of the Philippines shall adjust the
bonus. amount herein stated to its present value
using the Consumer Price Index (CPI), as
published by the National Statistics Office.

SECTION 31. Taxable The term taxable income means the The term taxable income means the • Personal and Additional
Income Defined pertinent items of gross income specified in pertinent items of gross income specified Exemption. – Removes
this Code, less deductions, if any, in this Code, less the deductions and/or personal and additional
authorized for such types of income by this personal and additional exemptions, if any, exemption from among
Code or other special laws. authorized for such types of income by this the allowable deductions
Code or other special laws. to determine taxable
income.
SECTION 33. Special (A) Imposition of Tax. - Effective January (A) Imposition of Tax. - A final tax of thirty- • Fringe Benefit Tax
Treatment of Fringe 1, 2018 and onwards, a final tax of thirty four percent (34%) effective January 1, (“FBT”) Rate. – Increases
Benefit five percent (35%) is hereby imposed on 1998; thirty-three percent (33%) effective the FBT rate from 32% to
the grossed-up monetary value of fringe January 1, 1999; and thirty-two percent 35%.
benefit furnished or granted to the (32%) effective January 1, 2000 and
employee (except rank and file employees thereafter, is hereby imposed on the
as defined herein) by the employer, grossed-up monetary value of fringe
whether an individual or a corporation benefit furnished or granted to the
(unless the fringe benefit is required by the employee (except rank and file employees
nature of, or necessary to the trade, as defined herein) by the employer,
business or profession of the employer, or whether an individual or a corporation
when the fringe benefit is for the (unless the fringe benefit is required by the
convenience or advantage of the nature of, or necessary to the trade,
employer). The tax herein imposed is business or profession of the employer, or
payable by the employer which tax shall be when the fringe benefit is for the
paid in the same manner as provided for convenience or advantage of the
under Section 57 (A) of this Code. The employer). The tax herein imposed is
grossed-up monetary value of the fringe payable by the employer which tax shall be
benefit shall be determined by dividing the paid in the same manner as provided for
actual monetary value of the fringe benefit under Section 57 (A) of this Code. The
by sixty-five percent (65%) effective grossed-up monetary value of the fringe
January 1, 2018 and onwards: Provided, benefit shall be determined by dividing the
however, That fringe benefit furnished to actual monetary value of the fringe benefit
 employees and taxable under Subsections by sixty-six percent (66%) effective
(B), (C), (D) and (E) of Section 25 shall be January 1, 1998; sixty-seven percent
taxed at the applicable rates imposed (67%) effective January 1, 1999; and sixty-
thereat: Provided, further, That the grossed eight percent (68%) effective January 1,
-up monetary value of the fringe benefit 2000 and thereafter: Provided, however,
shall be determined by dividing the actual That fringe benefit furnished to employees
monetary value of the fringe benefit by the and taxable under Subsections (B), (C),
difference between one hundred percent (D) and (E) of Section 25 shall be taxed at
(100%) and the applicable rates of income the applicable rates imposed thereat:
tax under Subsections (B), (C), (D), and (E) Provided, further, That the grossed -up
of Section 25. xxx monetary value of the fringe benefit shall
be determined by dividing the actual
monetary value of the fringe benefit by the
difference between one hundred percent
(100%) and the applicable rates of income
tax under Subsections (B), (C), (D), and
(E) of Section 25.
SECTION 52. Corporation (A) Requirements. - Every corporation (A) Requirements. - Every corporation • Corporate taxpayers’
Returns. subject to the tax herein imposed, subject to the tax herein imposed, except ITR. – Limits the
except foreign corporations not foreign corporations not engaged in trade information required to
engaged in trade or business in the or business in the Philippines, shall render, be contained in the ITRs
Philippines, shall render, in in duplicate, a true and accurate quarterly of corporate taxpayers,
duplicate, a true and accurate income tax return and final or adjustment which shall not exceed 4
quarterly income tax return and final return in accordance with the provisions of pages in paper form or
or adjustment return in accordance Chapter XII of this Title. The return shall be electronic form, to wit: 1.
with the provisions of Chapter XII of filed by the president, vice-president or Corporate profile and
this Title. The income tax return other principal officer, and shall be sworn information; 2. Gross
shall consist a maximum of four to by such officer and by the treasurer or sales, receipts or income,
(4) pages in paper form or assistant treasurer. except income subject to
electronic form, be filed by the final tax; 3. Allowable
president, vice-president or other deductions; 4. Taxable
principal officer, shall be sworn to by income; and 5. Income
such officer and by the treasurer or tax due and payable.
assistant treasurer, and shall only
contain the following information:
 (1) Corporate profile and information;
(2) Gross sales, receipts or income from
services rendered, or conduct of trade
or business, except income subject to
final tax as provided under this Code;
(3) Allowable deductions under this
Code;
(4) Taxable income as defined in Section
31 of this Code; and
(5) Income tax due and payable.
Provided, That the foregoing provisions
shall not affect the implementation of
Republic Act No. 10708 or TIMTA.
SECTION 56. Payment (A) Payment of Tax. – (A) Payment of Tax. – • Installment Payment –
and Assessment of Extends the deadline of
Income Tax for Individuals (1) xxx (1) xxx the second installment
and Corporations. from 15 July to 15
(2) Installment of Payment. - When the tax (2) Installment of Payment. - When the tax October following the
due is in excess of Two thousand pesos due is in excess of Two thousand pesos close of the calendar
(P2,000), the taxpayer other than a (P2,000), the taxpayer other than a year in case a taxpayer,
corporation may elect to pay the tax in two corporation may elect to pay the tax in two except a corporation,
(2) equal installments in which case, the (2) equal installments in which case, the elects to pay in 2 equal
first installment shall be paid at the time the first installment shall be paid at the time installment payments.
return is filed and the second installment, the return is filed and the second
on or before October 15 following the close installment, on or before July 15 following
of the calendar year, if any installment is the close of the calendar year. If any
not paid on or before the date fixed for its installment is not paid on or before the
payment, the whole amount of the tax date fixed for its payment, the whole
unpaid becomes due and payable, together amount of the tax unpaid becomes due
with the delinquency penalties. and payable, together with the delinquency
penalties.
SECTION 58. Returns and (A) xxx (A) xxx • Quarterly Returns and
Payment of Taxes xxx xxx Payments of Taxes
Withheld at Source. Withheld. – Fixes the
The return for final and creditable The return for final withholding tax shall be deadline for filing of
withholding taxes shall be filed and the filed and the payment made within twenty- return for and payment of
payment made not later than the last day of five (25) days from the close of each both final and creditable
the month following the close of the quarter calendar quarter, while the return for withholding taxes which
during which withholding was made. creditable withholding taxes shall be filed shall not be later than the
and the payment made not later than the last day of the month
last day of the month following the close of following the close of the
the quarter during which withholding was quarter during which
made: Provided, That the Commissioner, withholding was made.
with the approval of the Secretary of RA 10963 amendment
Finance, may require these withholding also removes the
agents to pay or deposit the taxes authority of the BIR and
deducted or withheld at more frequent DOF to require
intervals when necessary to protect the remittance of taxes and
interest of the government. filing of withholding tax
returns at more frequent
intervals.
SECTION 97. Payment of If a bank has knowledge of the death of a If a bank has knowledge of the death of a • Final Withholding Tax
Tax Antecedent to the person, who maintained a bank deposit person, who maintained a bank deposit on Withdrawal from the
Transfer of Shares, Bonds account alone, or jointly with another, it account alone, or jointly with another, it Bank Deposit of the
or Rights. shall allow any withdrawal from the said shall not allow any withdrawal from the Decedent. – Imposes a
deposit account, subject to a final said deposit account, unless the final withholding tax of
withholding tax of six percent (6%). For Commissioner has certified that the taxes 6% on drawings from
this purpose, all withdrawal slips shall imposed thereon by this Title have been bank deposit account of
contain a statement to the effect that all of paid: Provided, however, That the a decedent, and allows
the joint depositors are still living at the time administrator of the estate or any one (1) the withdrawal on the
of withdrawal by any one of the joint of the heirs of the decedent may, upon bank account of such
depositors and such statement shall be authorization by the Commissioner, decedent upon such
under oath by the said depositors. withdraw an amount not exceeding Twenty withholding. Further
thousand pesos (P20,000) without the said requires statement under
certification. For this purpose, all oath on all withdrawal
withdrawal slips shall contain a statement slips that all joint
to the effect that all of the joint depositors depositors are still living
 are still living at the time of withdrawal by at the time of the
any one of the joint depositors and such withdrawal.
statement shall be under oath by the said
depositors.

SECTION 100. Transfer Where property, other than real property Where property, other than real property • Sale, Exchange, or
for Less Than Adequate referred to in Section 24(D), is transferred referred to in Section 24(D), is transferred Other Transfer of
and Full Consideration. for less than an adequate and full for less than an adequate and full Property Made in the
consideration in money or money's worth, consideration in money or money's worth, Ordinary Course of
then the amount by which the fair market then the amount by which the fair market Business. – No donor’s
value of the property exceeded the value of value of the property exceeded the value tax shall be imposed on
the consideration shall, for the purpose of of the consideration shall, for the purpose sale, exchange, or other
the tax imposed by this Chapter, be of the tax imposed by this Chapter, be transfer of property made
deemed a gift, and shall be included in deemed a gift, and shall be included in in the ordinary course of
computing the amount of gifts made during computing the amount of gifts made during business, i.e.
the calendar year: Provided, however, the calendar year. transactions which are (i)
That a sale, exchange, or other transfer bona fide, (ii) made at
of property made in the ordinary course arm’s length, and (iii) free
of business (a transaction which is a from any donative intent.
bona fide, at arm’s length, and free from
any donative intent), will be considered
as made for an adequate and full
consideration in money or money’s
worth.
SEC. 116. TAX ON Any person whose sales or receipts are Any person whose sales or receipts are Presidential Veto (4 of 6):
PERSONS EXEMPT exempt under Section 109(BB) of this Code exempt under Section 109(V) of this Code “and beginning January
FROM VALUE-ADDED from the payment of value-added tax and from the payment of value-added tax and 1, 2019, self-employed
TAX (VAT). Presidential who is not a VAT registered person shall who is not a VAT-registered person shall and professionals with
Veto (4 of 6): Percentage pay a tax equivalent to three percent (3%) pay a tax equivalent to three percent (3%) total annual gross sales
Tax Exemption of Self- of his gross quarterly sales or receipts: of his gross quarterly sales or receipts: and/or gross receipts not
Employed and Provided, That cooperatives and Provided, That cooperatives shall be exceeding Five hundred
Professionals. beginning January 1, 2019, self- exempt from the three percent (3%) gross thousand pesos
employed and professionals with total receipts tax herein imposed. (P500,000)” The
annual gross sales and/or gross receipts provision exempts
 not exceeding Five hundred thousand selfemployed individuals
pesos (P500,000) shall be exempt from the and professionals with
three percent (3%) gross receipts tax herein total annual gross sales
imposed. and/or gross receipts not
exceeding P500,000.00.
However, this was
vetoed by Pres. Duterte
on the basis that it will
result in unnecessary
erosion of revenues and
would lead to abuse and
leakages.
SEC. 127. TAX ON SALE, (A) Tax on Sale, Barter or Exchange of (A) Tax on Sale, Barter or Exchange of • Percentage Tax on
BARTER OR EXCHANGE Shares of Stock Listed and Traded through Shares of Stock Listed and Traded through Listed Shares. –
OF SHARES OF STOCK the Local Stock Exchange. - There shall be the Local Stock Exchange. - There shall be Increased the percentage
LISTED AND TRADED levied, assessed and collected on every levied, assessed and collected on every tax on listed shares from
THROUGH THE LOCAL sale, barter, exchange, or other disposition sale, barter, exchange, or other disposition 0.50% to 0.60% of the
STOCK EXCHANGE OR of shares of stock listed and traded through of shares of stock listed and traded gross selling price.
THROUGH INITIAL the local stock exchange other than the through the local stock exchange other
PUBLIC OFFERING. sale by a dealer in securities, a tax at the than the sale by a dealer in securities, a
rate of six-tenths of one percent (6/10 of tax at the rate of one-half of one percent (
1%) of the gross selling price or gross value 1 /2 of 1%) of the gross selling price or
in money of the shares of stock sold, gross value in money of the shares of
bartered, exchanged or otherwise disposed stock sold, bartered, exchanged or
which shall be paid by the seller or otherwise disposed which shall be paid by
transferor. the seller or transferor.
SEC. 129. GOODS AND Excise taxes apply to goods manufactured Excise taxes apply to goods manufactured • Excise Taxes on
SERVICES SUBJECT TO or produced in the Philippines for domestic or produced in the Philippines for domestic Services. – Expands the
EXCISE TAXES. sales or consumption or for any other sales or consumption or for any other application of excise
disposition and to things imported as well disposition and to things imported. The taxes to include services
as services performed in the Philippines. excise tax imposed herein shall be in performed in the
The excise tax imposed herein shall be in addition to the value-added tax imposed Philippines.
addition to the value-added tax imposed under Title IV. For purposes of this Title,
under Title IV. For purposes of this Title, excise taxes herein imposed and based on
excise taxes herein imposed and based on weight or volume capacity or any other
weight or volume capacity or any other physical unit of measurement shall be
 physical unit of measurement shall be referred to as 'specific tax' and an excise
referred to as 'specific tax' and an excise tax herein imposed and based on selling
tax herein imposed and based on selling price or other specified value of the good
price or other specified value of the good or shall be referred to as 'ad valorem tax.'
service performed shall be referred to as
'ad valorem tax.'

SEC. 155. Manufacturers of cigarettes, alcoholic Manufacturers of cigarettes, alcoholic • Registry of Petroleum
MANUFACTURERS products, oil products, and other articles products, oil products and other articles Manufacturers and
AND/OR IMPORTERS TO subject to excise tax that can be similarly subject to excise tax that can be similarly Importers. – Mandates
PROVIDE THEMSELVES measured shall provide themselves with measured shall provide themselves with the Department of
WITH COUNTING OR such necessary number of suitable such necessary number of suitable Finance to maintain a
METERING DEVICES TO counting or metering devices to determine counting or metering devices to determine registry of petroleum
DETERMINE VOLUME as accurately as possible the volume, as accurately as possible the volume, manufacturers and/or
OF PRODUCTION AND quantity or number of the articles produced quantity or number of the articles produced importers and the articles
IMPORTATION. - by them under rules and regulations by them under rules and regulations manufactured or
promulgated by the Secretary of Finance, promulgated by the Secretary of Finance, imported by them, and to
upon recommendation of the upon recommendation of the further create a real-time
Commissioner: Provided, That the Commissioner. inventory of petroleum
Department of Finance shall maintain a articles being
registry of all petroleum manufacturers This requirement shall be complied with manufactured and
and/or importers and the articles being before commencement of operations. imported.
manufactured and/or imported by them:
Provided, further, that the Department of • Metering Devices to
Finance shall mandate the creation of a Determine Volume of
real-time inventory of petroleum articles Production and
being manufactured, imported or found Importation. – Requires
in storage depots of such petroleum importers of finished
manufacturers and/or importers: petroleum products to
Provided, finally, That importers of obtain Bureau-accredited
finished petroleum products shall also metering devices to
provide themselves with Bureau- determine the volume of
accredited metering devices to production and
determine as accurately as possible the importation.
volume of petroleum products imported
by them.
 This requirement shall be complied with
before commencement of operations.

SECTION 174. Stamp Tax On every original issue, whether on On every original issue, whether on • DST on Original Issue
on Original Issue of organization, reorganization or for any organization, reorganization or for any of Shares of Stock. –
Shares of Stock. lawful purpose, of shares of stock by any lawful purpose, of shares of stock by any Increases the stamp tax
association, company or corporation, there association, company or corporation, there on original issuance of
shall be collected a documentary stamp tax shall be collected a documentary stamp shares of stock of from
of Two pesos (P2.00) on each Two tax of One peso (P1.00) on each Two P1.00 to P2.00 on each
hundred pesos (P200), or fractional part hundred pesos (P200), or fractional part P200, or fractional part
thereof, of the par value, of such shares of thereof, of the par value, of such shares of thereof, of the par value
stock: Provided, That in the case of the stock: Provided, That in the case of the of the shares of stock.
original issue of shares of stock without par original issue of shares of stock without par
value, the amount of the documentary value the amount of the documentary
stamp tax herein prescribed shall be based stamp tax herein prescribed shall be based
upon the actual consideration for the upon the actual consideration for the
issuance of such shares of stock: Provided, issuance of such shares of stock: provided,
further, That in the case of stock dividends, further, That in the case of stock dividends,
on the actual value represented by each on the actual value represented by each
share. share.
SECTION 177. Stamp Tax On all certificates of profits, or any On all certificates of profits, or any • DST on Certificates of
on Certificates of Profits or certificate or memorandum showing interest certificate or memorandum showing Profits or Interest in
Interest in Property or in the property or accumulations of any interest in the property or accumulations of Property or
Accumulations. association, company or corporation, and any association, company or corporation, Accumulations. –
on all transfers of such certificates or and on all transfers of such certificates or Increases the stamp tax
memoranda, there shall be collected a memoranda, there shall be collected a on certificates of profits
documentary stamp tax of One peso documentary stamp tax of Fifty centavos or interest from P0.50 to
(P1.00) on each Two hundred pesos (P0.50) on each Two hundred pesos P1.00 on each P200, or
(P200), or fractional part thereof, of the face (P200), or fractional part thereof, of the fractional part thereof, of
value of such certificate or memorandum. face value of such certificate or the face value of the
memorandum. certificate or
memorandum.
SECTION 178. Stamp Tax On each bank check, draft, or certificate of On each bank check, draft, or certificate of • DST on Bank Checks,
on Bank Checks, Drafts, deposit not drawing interest, or order for the deposit not drawing interest, or order for Drafts, Certificates of
Certificates of Deposit not payment of any sum of money drawn upon the payment of any sum of money drawn Deposit not Bearing
Bearing Interest, and or issued by any bank, trust company, or upon or issued by any bank, trust Interest, and Other
Other Instruments any person or persons, companies or company, or any person or persons, Instruments. – Increases
corporations, at sight or on demand, there companies or corporations, at sight or on the stamp tax from P1.50
shall be collected a documentary stamp tax demand, there shall be collected a to P3.00.
of Three pesos (P3.00). documentary stamp tax of One peso and
fifty centavos (P1.50).