New Tax Bill pushing for 20% cap; free for Php400k and below

A new tax reform bill is being pushed at the House of representatives to further lower the personal income tax of Filipinos.

The new bill, filed by Rep. France castro (ACT) and other members of the Makabayan bloc, aims to put the maximum income tax to just 20% (current income tax rate is 32% tops). Likewise, it also increases the exemption of tax payments for folks who earn less than Php400,000 a year (previously capped at Php250,000). This also includes tax exemptions for fringe benefits and other bonuses for up to Php150,000 (from Php90,000).

Dubbed the Tax Reform Act for the Masses and the Middle Class (TRAMM) aims to soften the blow of increasing inflation rates in the country.

In the previous administration, the TRAIN Law and the CREATE Law have already passed and effectively reduced business and personal income tax. This new bill aims to further those rates.

Source: Yugatech