|New Filipino Income Tax Reform Bill Tabled|
Philippine has tabled a new Income Tax Reform Bill, which would overhaul personal income tax thresholds, to make the regime more "equitable" and "progressive."
Under the National Internal Revenue Code of 1997, individuals with taxable income of over PHP500,000 (USD10,617) are subject to a fixed levy of PHP125,000 plus a 32 percent rate on the excess over PHP500,000. This 32 percent is among the highest in the region, only behind Thailand and Vietnam's 35 percent.
Under Senate Bill 3003, the seven tax brackets will be retained but the thresholds would be adjusted as follows:
To avoid bracket creep in the future, income tax thresholds would be adjusted automatically, in line with the consumer price index, every three years.
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Published on our website on Nov.13, 2015