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MA. DANIELLA R.

MAPALAD
BSBS – IV

 TRAIN LAW

THE TAX REFORM FOR ACCELERATION AND INCLUSION (TRAIN) ACT.


President Rodrigo Roa Duterte signed into law Republic Act No. 10963, otherwise
known as the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the first
package of the Comprehensive Tax Reform Program (CTRP, on December 19, 2017
in Malacanang.

The TRAIN will provide hefty income tax cuts for majority of Filipino taxpayers
while raising additional funds to help support the government’s accelerated
spending on its “Build, Build, Build” and social services programs.

This tax reform package corrects a longstanding inequity of the tax system by
reducing personal income taxes for 99 percent of taxpayers, thereby giving them the
much needed relief after 20 years of non-adjustment of the tax rates and brackets.
This is the biggest Christmas and New Year gift the government is giving to the
people.

For the poorest 10 million households, the government is giving them targeted cash
transfers of PHP 200 per month in 2018 and P300 per month in 2019 and 2020,
sourced from higher consumption taxes that the rich will contribute, as well as
better social services, healthcare, and education. All these will prepare the people
for better job opportunities.

In a separate message, President Duterte has vetoed certain provisions of the


TRAIN. The vetoed five line items are the following provisions:
1. Reduced income tax rate of employees of Regional Headquarters (RHQs),
Regional Operating Headquarters (ROHQs), Offshore Banking Units (OBUs),
and Petroleum Service Contractors and Subcontractors;

2. Zero-rating of sales of goods and services to separate customs territory and


tourism enterprise zones;
3. Exemption from percentage tax of gross sales/receipts not exceeding five
hundred thousand pesos (P500,000.00);
4. Exemption of various petroleum products from excise tax 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 plants; and Earmarking of
incremental tobacco taxes.
5. The TRAIN raises significant revenues to support the President’s priority
social and infrastructure programs, which will help realize his
administration’s goal of reducing the poverty rate from 21.6 to 14 percent by
2022. Some 70 percent of the incremental revenues will help fund the
government’s infrastructure modernization program, while the balance will
go to social services.

Starting 2018, the government expects to raise funds equivalent to about two-thirds
of the incremental revenues targeted under this tax reform law. The Congress has
committed to pass the rest of the TRAIN’s provisions representing the remaining
one-third of the targeted revenues in early 2018 to help us achieve our revenue and
deficit targets.

With the people’s support and understanding, all these reforms will result in more
and better jobs, lower prices, and a brighter future for every Filipino.

 SITUS TAX

SITUS OF TAXATION- literally means the place of taxation, or the country that has
jurisdiction to levy a particular tax on persons, property, rights or business.

Basis: Symbiotic relationship. The jurisdiction, state or political unit that gives
protection has the right to demand support.

The situs of taxation is determined by a number of factors

a. Subject matter- or what is being taxed. He may be a person or it may be a


property, an act or activity
b. Nature of tax- or which tax to impose. It may be an income tax, an import
duty or a real property tax;
c. Citizenship of the taxpayer
d. Residence of the taxpayer.

SITUS OF PERSONS:
1. Residence tax- place where the person resides
2. Income Tax-
a. citizenship, or the country of which he is a citizen
b. legal residence
c. place where the income is derived.
3. Estate Tax- residence of the decedent at the time of his death
4. Donor’s Tax- residence of the donor at the time of donation
5. Business/occupation tax- where the business is done or the occupation is
engaged in;

SITUS OF TAXATION OF PROPERTY:


1. Real Property- location of the property
2. Tangible personal property- location of the property
3. Intangible personal property- domicile or residence of the owner

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