Hello!

The table below highlights the amendments made by TRAIN to the NIRC. I didn’t include what
the actual changes are because TRAIN isn’t included for Bar 2018. I did include what provisions
were changed—in case you want to skip it since it doesn’t seem fair to ask questions during
the bar exam on provisions that have already been amended or repealed. But, of course, the
safe bet is to at least know what these old provisions are for peace of mind.

The pages refer to the hardbound edition of Tax Made Less Taxing. The heading is also
indicated for easy reference.

Good luck!

Mickey I.

Page/s Heading Comments

INCOME TAX
49 Kinds of income and income tax of The preferential income tax
individuals rate for special aliens have
been removed by TRAIN.
49-50 Income Tax Formula for Individuals TRAIN no longer allows
personal and additional
exemptions.
Optional Standard Deduction Amended to add restriction
on GPPs
51-56 Personal and Additional Exemptions Repealed.
56 Premium payments on health Repealed.
and/or hospitalization insurance
57 Citizens (Resident and nonresident) Income tax rate has been
and Resident Aliens changed.
59 Final income tax TRAIN changed the final tax
rates on
1) winnings, and
2) interest income
under expanded
foreign currency
deposit system.
64, 67, 71 Capital Gains Tax (on Sale or TRAIN has changed the
Disposition of Shares of Stock not 1) final tax rate on
traded through local stock capital gains of
exchange) shares of stock not
traded through the
local stock
exchange;
2) final tax rate of
stock transaction
tax.
73 Special aliens The preferential income tax
rate for special aliens have
been removed by TRAIN.
80 Special rule on General Professional TRAIN has changed the rule
Partnerships and the choice of on GPPs and how it claims
deductions deductions.

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 (I suggest still knowing the
old rule though, and the
basic principle that the GPP
is a mere pass-through
entity whose income is
ultimately passed to the
partners)
88 Passive Income of Domestic TRAIN changed the tax
Corporations rates on:
1) interest income
under the expanded
foreign currency
deposit system,
2) capital gains tax on
shares of stock not
trade in the stock
exchange.
121-123 Estates and trusts TRAIN has repealed Sec.
62, which once gave
estates and trusts a
P20,000 exemption.
127 Taxable income The definition of taxable
income has been amended
because TRAIN no longer
allows personal and
additional exemptions.
129,143, 147, Exclusions from gross income TRAIN has amended the
148, 223 max amount of nontaxable
benefits. (It was P82,000
before. Now it’s P90,000).
148 On the winnings from PCSO and This has been amended by
Lotto TRAIN.
149/150 Deductions from Gross Income Amended by TRAIN to
reflect removal of personal
and additional exemptions
and payments on health
insurance as deductions.
191/194 Optional Standard Deduction TRAIN has changed the rule
on GPPs and how it claims
deductions.

(I suggest still knowing the

old rule though, and the
basic principle that the GPP
is a mere pass-through
entity whose income is
ultimately passed to the
partners)
216/218 Fringe Benefits Tax TRAIN has changed the
rate of FBT.
222 De Minimis Benefits RR 11-2018 (an offshoot of
TRAIN) has changed the
max amounts in the
following de minimis
benefits:

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 1. Medical cash
allowance
2. Rice subsidy
3. Uniform and clothing
allowance

(To be safe, know the

definition of de minimis
benefits and at least 3
benefits aside from the
ones amended)
226 The tables TRAIN changed the final tax
rates on
1) winnings,
2) interest income
under expanded
foreign currency
deposit system,
3) final tax rate on
capital gains of
shares of stock not
traded through the
local stock
exchange;
4) final tax rate of
stock transaction
tax;
5) FBT.
230 Creditable withholding tax The max rate of creditable
withholding tax has been
amended by TRAIN.
232 Creditable withholding tax tables RR 11-2018 has amended
the withholding tax rates,
particularly those for
professional fees. (So you
can skip that)
233 Return and payment of tax TRAIN has amended when
to file and pay taxes
withheld at source
237-239 TRAIN has repealed Section
79 (D) and Section 79 (F).
242-243 Individual return TRAIN has amended
Section 51 (A) (2) (a).

Section 51 (A) (2)(b) – (d)

(i.e. who are not required
to file ITRs) are still valid.
247 When to pay (installments) TRAIN has hanged the
deadline for paying the
second instalment of taxes.
248 Declaration of income tax for TRAIN has moved the
individuals deadline for the filing of
estimated income.

Note: the filing of the

annual ITR is still April 15.

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249 Corporate returns TRAIN has amended the
format and info needed in
the ITRs of corporations.
ESTATE TAX
256 Rates and value of Estate Tax TRAIN has removed the
graduated tax rates for
estate tax.
267 – 276 Deductions from Gross Estate TRAIN has made the
following changes:
1) Removed funeral
expenses;
2) Removed judicial
expenses;
3) Removed medical
expenses;
4) Increased the
amount for standard
deduction; and
5) Increased max
amount for the
family home.
280 Deductions for a non-resident, not TRAIN has changed the
citizen of the Philippines rules for deductions of a
nonresident estate.
282 Miscellaneous provision TRAIN has repealed Section
86 (D).
284-285 Computations and example Disregard as TRAIN has
changed the rules.
289 Notice of Death TRAIN has repealed the
need for the notice of
death.
289 Estate Tax Returns TRAIN has changed:
1) The threshold
amount for the
requirement of CPA
statement,
2) Deadline for filing
the estate tax
return.
291 Payment of Tax TRAIN now allows payment
by installment of estate
tax.
294 Payment of Tax Antecedent to the The codal remains the
Transfer of Shares, Bonds or Rights same, except for the last
paragraph on the
withdrawal of bank
deposits.
DONORS TAX
300 Transfers for insufficient The codal remains the
consideration same, except that TRAIN
now gives an exception to
transfers of insufficient
consideration done in the
course of business.

4
301-303 Deductions from gross gifts TRAIN has removed Section
residents or citizen donors 101 (A) (1) [dowries/gifts
on account of marriage]

Disregard the table in page

303.
305-307 Tax Rates Payable by Donor TRAIN has:
1. Increased the
minimum threshold
for exempt gifts
during the calendar
year;
2. Removed the
graduated rates (it’s
a flat rate now);
3. Removed the
distinction between
strangers and non-
strangers.

No need to study the table

on Mr. and Mrs. Potther.
VAT
330 Zero-rated goods TRAIN has made the
following changes:
1. Sale of gold to the
BSP is no longer
zero-rated;
2. Added a proviso for
the sale of goods
and other stuff to
international
shipping or
international air
transport operations
3. Foreign currency
sales are no longer
zero-rated
332 Zero-rating for services TRAIN has added a proviso
for the sale of services to
international shipping or
international air transport
operations.
336 Exempt transactions TRAIN has made the
following changes to VAT-
exempt transactions:
1. Removed the 90-day
period for
balikbayans and
their goods entering
the Philippines;
2. Increased the
threshold for the
selling price of
houses and lots;
3. Increased the
threshold for the

5
 lease of residential
units;
4. Added a provisio for
the importation of
fuel by international
air transport
operations
5. Explicitly stated that
tax-free exchanges
are VAT-exempt;
6. Association dues of
condos and
associations are
VAT-exempt;
7. Sale of gold to BSP
is now vat-exempt;
8. Increased VAT
threshold to
3,000,000
356 Refunds or Tax credits on Input Tax TRAIN has changed the
mandatory period for the
CIR to process the refund
of input VAT to 90 days
(from 120 days).

Know the doctrine that the

period to process the
refund + 30 day period is
mandatory and
jurisdictional. That’s still
good law.
356 Mandatory Registration TRAIN has changed the
VAT threshold to
3,000,000.
GOVERNMENT REMEDIES
378 Power to make assessments and Under Section 6 (E), TRAIN
inquire into bank deposits has made it explicit that
mandatory consultation
with private and public
sectors and prior notice are
now needed before zonal
values are changed.
405 Interest TRAIN has changed the
rate of interest.