The document summarizes key changes to the Philippines' Tax Code under Republic Act No. 10963. Some highlights include:
- Interest income from foreign currency deposits subject to a increased final tax rate of 15% instead of 7.5%. Capital gains tax on non-exchange traded shares increased to a flat 15%.
- Amount of exempt 13th month pay and other benefits increased to PHP90,000. Fringe benefits for non-rank and file employees now subject to 35% final tax instead of 32%.
- Estate tax returns for estates over PHP5 million must be certified by a CPA, and must now be filed within 1 year instead of 6 months. Estates can pay tax in installments
The document summarizes key changes to the Philippines' Tax Code under Republic Act No. 10963. Some highlights include:
- Interest income from foreign currency deposits subject to a increased final tax rate of 15% instead of 7.5%. Capital gains tax on non-exchange traded shares increased to a flat 15%.
- Amount of exempt 13th month pay and other benefits increased to PHP90,000. Fringe benefits for non-rank and file employees now subject to 35% final tax instead of 32%.
- Estate tax returns for estates over PHP5 million must be certified by a CPA, and must now be filed within 1 year instead of 6 months. Estates can pay tax in installments
The document summarizes key changes to the Philippines' Tax Code under Republic Act No. 10963. Some highlights include:
- Interest income from foreign currency deposits subject to a increased final tax rate of 15% instead of 7.5%. Capital gains tax on non-exchange traded shares increased to a flat 15%.
- Amount of exempt 13th month pay and other benefits increased to PHP90,000. Fringe benefits for non-rank and file employees now subject to 35% final tax instead of 32%.
- Estate tax returns for estates over PHP5 million must be certified by a CPA, and must now be filed within 1 year instead of 6 months. Estates can pay tax in installments
The document summarizes key changes to the Philippines' Tax Code under Republic Act No. 10963. Some highlights include:
- Interest income from foreign currency deposits subject to a increased final tax rate of 15% instead of 7.5%. Capital gains tax on non-exchange traded shares increased to a flat 15%.
- Amount of exempt 13th month pay and other benefits increased to PHP90,000. Fringe benefits for non-rank and file employees now subject to 35% final tax instead of 32%.
- Estate tax returns for estates over PHP5 million must be certified by a CPA, and must now be filed within 1 year instead of 6 months. Estates can pay tax in installments
“(8) Services rendered to: (i) Registered enterprises within a separate customs territory as provided under special laws; and (ii) Registered enterprises within tourism enterprise zones as declared by the TIEZA subject to the provisions under Republic Act No. 9593 or the Tourism Act of 2009.”
• Sec. 38, amending Sec. 116 of the Tax Code
“And beginning January 1, 2019, self-employed and professionals with total annual gross sales and/or gross sales not exceeding five hundred thousand pesos (P500,000)”
• Sec. 43, amending Sec. 148 of the Tax Code
“Petroleum products, including naphtha, LPG, petroleum, coke, refinery fuel and other products of distillation, when used as input, feedstock or as raw material in the manufacturing of petrochemical products, or in the refining of petroleum products, or as replacement fuel for natural-gas-fired-combined cycle power plant [,] in lieu of locally-extracted natural gas during non-availability thereof, subject to the rules and regulations to be promulgated by the Secretary of Finance, per liter of volume capacity, zero (Php0.00); furthermore, that the by-product including fuel oil, diesel fuel, kerosene, pyrolysis gasoline, liquefied petroleum gases, and similar oils having more or less the same generating power, which are produced in the processing of naphtha into petrochemical products shall be subject to the applicable excise tax specified in the Section, except when such by-products are transferred to any of the local oil refineries through sale, barter, or exchange, for the purpose of further processing or blending into finished products which are subject to excise taxes under this Section.”
• Sec. 82, amending Sec. 288 of the Tax Code
“Notwithstanding any provisions herein to the contrary, the incremental revenues from the tobacco taxes under this Act shall be subject to Section 3 of Republic Act No. 7171, otherwise known as “An Act to Promote the Development of the farmer in the Virginia Tobacco Producing provinces”, and Section 8 of Republic Act No. 8240, otherwise known as “An Act amending Sections 138, 140 & 142 of the National Internal Revenue Code, as amended, and for other purposes.”
R.A. No. 10963 shall take effect on 1 January 2018, following its complete publication in the official gazette or in at least one newspaper of general circulation. The law was published in the official gazette on 27 December 2017.
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963 2 Tax Particulars National Internal Revenue Code of 1997 R. A. No. 10963 Adjustments in corporate income tax provisions Government- Sec. 27 (C) The Government Service Insurance System, the Social Corporate income tax exemption of PCSO was removed owned or controlled Security System, the Philippine Health Insurance Corporation, the corporations, local water districts and the PCSO are exempt from corporate income agencies or tax. instrumentalities Passive income on Sec. 27 (D) (1) Interest income from a depository bank under the Interest income from a depository bank under the interest from deposits expanded foreign currency deposit system is subject to a final tax of expanded foreign currency deposit system is subject to an and yield or any other 7.5%. increased final tax of 15%. monetary benefit from deposit substitutes, trust funds and royalties Capital gains from Sec. 27 (D) (2) Capital gains tax of 5% on the first PHP100,000 and Capital gains tax on sale, exchange or disposition of sale of shares of stock 10% in excess thereof is imposed on sale, exchange or disposition of shares not traded in the local stock exchange is increased not traded in the local shares not traded in the local stock exchange. to a flat rate of 15%. stock exchange of domestic corporations Adjustments on provisions for exclusions and deductions On exemption of 13th Sec. 32 (B) (7) (e) 13th month pay and other benefits amounting to Amount of exempt 13th month pay and other benefits is month pay and other PHP82,000 is excluded from the computation of gross income. increased to PHP90,000. benefits exemption The President shall adjust the amount of income tax exemption to The provision of power of the President to make its present value using the Consumer Price Index (“CPI”) for other adjustments on the said amount is removed. benefits such as productivity incentives and Christmas bonus every three years. Fringe benefit tax Sec. 33 (A) Fringe benefits given to non-rank and file employees Effective 1 January 2018, fringe benefits given to non-rank given to non-rank and are subject to 32% final tax rate. The grossed-up monetary value is and file employees are subject to 35% final tax rate. The file employees determined by dividing the actual monetary value by 68%. grossed-up monetary value is determined by dividing the actual monetary value by 65%. Optional standard Sec. 34 (L) In lieu of the itemized allowable deductions, an individual In case of a general professional partnership, the deduction (“OSD”) subject to tax, other than a nonresident alien, may elect an OSD of OSD may be availed only once by either the general 40% of gross sales or gross receipts. professional partnership or the partners comprising such partnership. Deduction of premium Sec. 34 (M) Allowed deduction of PHP2,400 per year or PHP200 per Repealed payments on health month worth of premium payments on health and/or hospitalization and/or hospitalization insurance of an individual provided that the family has a gross income insurance not exceeding PHP250,000 for the taxable year.
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963 6 Tax Particulars National Internal Revenue Code of 1997 R. A. No. 10963 Estate tax returns Sec. 90 All transfers subject to estate tax, or regardless of the (A) (1) All transfers subject to estate tax or those, though exempt from gross value of the estate where the said estate consists tax, have gross values exceeding PHP200,000, or regardless of the of registered or registrable property shall file an estate tax gross value of the estate where the said estate consists of registered return. or registrable property shall file an estate tax return.
(A) (3) Estate tax returns showing a gross value exceeding Estate tax returns showing a gross value exceeding PHP2,000,000 must be certified by a Certified Public Accountant PHP5m must be certified by a CPA. (“CPA”). Sec. 90 (B) The estate tax return must be filed within six months from The estate tax return must be filed within one year from the decedent’s death. the decedent’s death. Payment of estate Sec. 91 Payment of estate tax Additional provision: taxes An estate with insufficient cash is allowed to pay the estate tax due by installment within two years from the statutory date for its payment without civil penalty and interest. Payment of tax Sec. 97 A bank shall not allow withdrawal from a decedent’s bank Banks, which has knowledge of the death of the person, antecedent to the account without the Commissioner certifying that taxes imposed shall allow withdrawals from a decedent’s deposit account transfer of shares, thereon have already been paid. subject to a 6% final withholding tax. bonds, or rights The administrator of the estate or any one of the heirs may, when authorized by the Commissioner, withdraw an amount not exceeding PHP20,000 even without the certification from the Commissioner that the estate taxes have been paid. Adjustments in donor’s taxation Donor’s tax rate Sec. 99 (A) and (B) Donor’s tax rates are as follows: Donor’s tax rate fixed at 6% based on total gifts in excess of PHP250,000 exempt gift made during the calendar year a. Not stranger – based on total net gift whether the donee is a stranger or not. Over But not over This tax shall be Plus Of the Excess Over PHP100,000 Exempt PHP100,000 200,000 0 2% PHP100,000 200,000 500,000 2,000 4% 200,000 500,000 1,000,000 14,000 6% 500,000 1,000,000 3,000,000 44,000 8% 1,000,000 3,000,000 5,000,000 204,000 10% 3,000,000 5,000,000 10,000,000 404,000 12% 5,000,000 10,000,000 1,004,000 15% 10,000,000
b. Stranger – 30% based on net gifts
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963 10 Tax Particulars National Internal Revenue Code of 1997 R. A. No. 10963 Tax on Persons exempt from VAT Percentage tax Sec. 116 Any person whose sales or receipts are exempt from VAT [ITEM VETOED] Effective 1 January 2019, self- and who is not a VAT-registered person shall pay a tax equivalent to employed and professionals with total annual gross 3% of his gross quarterly sales or receipts. sales and/or gross receipts not exceeding PHP500,000 shall be exempt from 3% gross receipts tax. Disposition of Shares Sec. 127 (A) There shall be levied, assessed, and collected on every The tax rate imposed is increased to 6/10 of 1%. of Stock Listed and sale, barter, exchange or disposition of shares of stock listed and Traded through Local traded through local stock exchange other than the sale by a dealer Stock Exchange or in securities, a tax rate of ½ of 1% of the gross selling price or gross through IPO value in money of the shares of stock. Returns and Payment Sec. 128 The Commissioner may prescribe the time for filing the Repealed of Percentage Taxes return as well as the manner and time of payment, including a scheme of tax prepayment of other percentage taxes. Excise taxes Imposition of excise Sec. 129 Excise taxes apply to goods manufactured or produced in Excise taxes also apply to services performed in the tax the Philippines for domestic sales or consumption or for any other Philippines. disposition and to things imported. On cigars and Sec. 145 (B) and (C) Excise tax on cigarettes packed by hand shall be Imposes excise tax on both cigarettes packed by hand cigarettes based on the following schedule: and packed by machines at the following schedule:
Excise tax on cigarettes packed by machine shall be based on the The rate of tax imposed shall be increased by 4% every following schedule: year effective on 1 January 2024, through revenue regulations issued by the Secretary of Finance. Net retail price
Isla Lipana & Co./PwC Philippines | Tax Alert No. 34 | Republic Act No. 10963 14 Tax Particulars National Internal Revenue Code of 1997 R. A. No. 10963 On manufactured oils Sec. 148 The following items have the corresponding excise tax rates: and other fuels Manufactured Oils and Effective Manufactured Oils and Other Fuels Excise tax rates Other Fuels Lubricating oils and greases P4.50 per liter/kg 01/01/18 01/01/19 01/01/20 Processed gas 0.05 per liter Lubricating oils (per liter) PHP8.00 PHP9.00 PHP10.00 Waxes and petrolatum 3.50 per kg and greases (per kg) Denatured alcohol 0.05 per liter Processed gas (per liter) 8.00 9.00 10.00 Naphtha, regular gasoline and other similar 4.35 per liter Waxes and petrolatum 8.00 9.00 10.00 products of distillation (per kg) Leaded premium gasoline 5.35 per liter Denatured alcohol (per 8.00 9.00 10.00 liter) Aviation turbo jet fuel 3.67 per liter Naphtha, regular 7.00 9.00 10.00 Kerosene 0.00 per liter gasoline, PYROLYSIS Diesel fuel oil 0.00 per liter GASOLINE and other Liquefied Petroleum Gas 0.00 per liter similar products of distillation and (per liter) Asphalt 0.56 per kg UNLEADED premium 7.00 9.00 10.00 Bunker fuel oil 0.00 per liter gasoline (per liter) Aviation turbo jet fuel, 4.00 4.00 4.00 AVIATION GAS (per liter) Kerosene (per liter) 3.00 4.00 5.00 Diesel fuel oil (per liter) 2.50 4.50 6.00 Liquefied Petroleum Gas 1.00 2.00 3.00 (per kg) Asphalt (per kg) 8.00 9.00 10.00 Bunker fuel oil (per liter) 2.50 4.50 6.00 Petroleum coke (per 2.50 4.50 6.00 metric ton)
The scheduled increase in the excise tax on fuel for period
covering 2018 to 2020 shall be suspended if the average Dubai Crude Oil price based on Mean of Platts Singapore (MOPS) for three months prior to the scheduled increase reaches or exceeds USD80 per barrel.
Ali Gerami Matin and Arzhang Angoshtari - Finite Element Methods in Civil and Mechanical Engineering - A Mathematical Introduction (2020) - Libgen - Li
Ali Gerami Matin and Arzhang Angoshtari - Finite Element Methods in Civil and Mechanical Engineering - A Mathematical Introduction (2020) - Libgen - Li
