An Act Instituting Income Tax Reform For Individual And Corporate Taxpayers, Amending For This Purpose Sections 24(A)(2), 27(A) And 35(A) Of The National Internal Revenue Code Of 1997, And For Other Purposes
- This bill seeks to amend Section 24(A)(2) of the National Internal Revenue Code of 1997 (NIRC), as amended, by adjusting the levels of net taxable income and the nominal tax rates for purposes of computing the individual income tax.
“NOT OVER P300,000 … 5%
“OVER P300,000 BUT … P15,000 + 10% OF THE
NOT OVER P600,000 EXCESS OVER P300,000
“OVER P600,000 BUT … P45,000 + 15% OF THE
NOT OVER P900,000 EXCESS OVER P600,000
“OVER P900,000 BUT … P90,000 + 20% OF THE
NOT OVER P1,200,000 EXCESS OVER P900,000
“OVER P1,200,000 … P150,000 + 25% OF THE
. EXCESS OVER P1,200,000
- Also, this bill seeks to amend Section 27(A) of the NIRC, as amended, to replace the unitary or single income tax rate with a graduated income tax schedule for corporate taxpayers similar to those provided for the individual taxpayers. The basis for adopting this tax system is to align income taxation for corporations with the constitutional mandate of a progressive system of taxation and the rule on uniform and equitable taxation.
- It also seeks to amend Section 35(A) of the NIRC, as amended, by adjusting the basic personal exemption for each individual taxpayers from P50,000 to P150,000 to counter the steady increase of prices of consumer goods and services and to help our hardworking middle class in meeting the demands of daily living.