Bigger savings for better lives. I believe that's the change that came with the new TRAIN Law. Based on the Revised Withholding Tax Table released by BIR anyone earning a gross compensation of Php20,833 monthly is exempted from income tax.
Compared to the Old Income Tax Table below, the Revised Withholding Tax Table above allows taxpayers to take home more income to meet their needs.
However, the new TRAIN Law does not affect the Minimum Wage Earners or MWE. Their salaries, including basic, over time, hazard pay, holiday pay and night differential pay remains exempted even if it reaches above P20,833.00.
Finally, self-employed individuals and/or professionals, may opt to pay quarterly income tax based on Gross Receipts of 8% in lieu of the above graduated table and monthly percentage tax of 3%. The new VAT threshold has increased from Php1,919,500 to Php3,000,000.00 as well.
Will keep this post updated as new BIR Revenue Regulations are released.
