Revised withholding tax table of BIR
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has released the revised withholding tax table in relation to the government’s tax reform law. However, Bayan Muna Partylist Representative Carlos Zarate said a petition against TRAIN is now being crafted.
Under the Tax Reform for Acceleration and Inclusion or TRAIN Law, those who are earning lower than P20,833 per month or P200,000 a year are exempted from paying income tax.
In relation to the new law, the Bureau of Internal Revenue released a revised withholding tax table.
There are four modes of payment between an employer and an employee: daily, weekly, semi-monthly or every 15th and 30th of the month.
For those who are not exempted, for instance, a worker earning 25,000 pesos a month, a P3,333 tax every cut-off will be deducted from his salary every 15th and 30th.
The Bureau of Internal Revenue clarified that the old taxation law will still be the basis when filing the income tax return on April 15.
“So the annual income tax return that was supposed to be filed by our taxpayers on April 15, 2018, refers to the taxable year 2017,” the spokesperson added.
The revised withholding tax table has already been uploaded to the website of the agency at bir.gov.ph.
Public consultations are also set on January 11 and 12 to explain the new law to taxpayers.
In the meantime, Bayan Muna is set to question the tax reform law before the Supreme Court.
The group stressed that proper process was not followed in the passing of the law.
They are currently preparing the petition that they will submit to the high court.
Bayan Muna Partylist Representative Carlos Zarate insists that the new law is not needed for tax collection.
“There are so many taxes that are being shouldered but in reality—this was not fully collected by the agencies which are supposed to collect especially taxes from big taxpayers,” Representative Zarate said in a phone interview.
Meanwhile, the BIR welcomes the challenge of intensifying their collection efficiency.
“I agree with Congressman Zarate that we really have to work all the time, double time,” Commissioner Cesar Dulay said. — Mai Bermudez | UNTV News & Rescue