Important Laws and Revenue Issuances Flashcards

1
Q

What law governs taxation in the Philippines?

A

RA 8424 implemented “The National Internal Revenue Code of 1997” or NIRC of 1997, which was further amended by Republic Act (RA) No. 10963 (TRAIN), RA 11256, RA 11346, RA 11467 and RA 11534 (CREATE)

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2
Q

What are the key amendments to the NIRC?

A

The NIRC has been amended by the following laws:
a. Republic Act (RA) No. 10963 (TRAIN),
b. RA 11256,
c. RA 11346,
d. RA 11467 and
e. RA 11534 (CREATE)
f. RA 11976 (EOPT)

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3
Q

What is TRAIN Law?

A

TRAIN Law or RA 10963 stands for Tax Reform for Acceleration and Inclusion. It was passed into law during the Duterte administration, with the objective of eradicating extreme poverty, creating inclusive institutions that will offer equal opportunities to all, and achieving higher income country status.

Key highlights of the TRAIN Law include:
a. Change in income tax rates and threshold
b. Requiring only quarterly VAT Returns

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4
Q

What is RA 11256 all about?

A

RA 11256 IS ENTITLED “An Act to Strengthen the Country’s Gross International Reserves (GIR).”

It exempted small-scale miners and accredited traders from paying income and excise tax for the gold that they sell to the Bangko Sentral ng Pilipinas.

This amendment of the NIRC will allow the central bank to increase gold purchases from domestic sources “to further build up the country’s gross international reserves (GIR).”

Higher GIR would lead to improving the country’s economic standing and lowering the costs of borrowing by the Republic as well as the private sector. Moreover, it prevents the smuggling of Philippine gold through the black market to other countries.

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5
Q

What is RA 11346 all about?

A

It is “An Act Increasing the Excise Tax on Tobacco Products, Imposing Excise Tax on Heated Tobacco Products and Vapor Products, Increasing the Penalties for Violations of Provisions on Articles Subject to Excise Tax, and Earmarking a Portion of the Total Excise Tax Collection from Sugar-Sweetened Beverages, Alcohol, Tobacco, Heated Tobacco and Vapor Products for Universal Health Care”

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6
Q

What is RA 11467 all about?

A

It excluded from VAT medicines for cancer, mental illness, tubercolosis and kidney diseases starting January 2023.

RA 11467 also increases the excise taxes on alcohol products, electronic cigarettes (e-cigarettes), and heated tobacco products (HTPs). The additional revenue will fund the Universal Health Care (UHC), additional medical assistance and support to local governments, and the Sustainable Development Goals (SDGs).

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7
Q

What is RA 11534 all about?

A

RA 11534 is known as the “Corporate Recovery and Tax Incentives for Enterprises Act” or “CREATE”.

It reduced income tax rates for corporations, following the effect of the COVID-19 pandemic.

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8
Q

What is RA 11976 all about?

A

RA 11976, also known as “Ease of Paying Taxes Act” aims to provide a healthy environment for the tax-paying public by:
* protecting and safeguarding their rights and welfare
* modernizing tax administration
* improving efficiency and effectiveness through proper and easy compliance at the least cost and resources possible
* updating the taxation system, adopting best practices, and replacing antiquated procedures
* enacting policies and procedures which are appropriate to different taxpayers.

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