The TRAIN Act, or the Tax Reform for Acceleration and Inclusion Act, is now in effect.
I’ve gone ahead and had my COR updated again at my RDO so that it will correctly display the new payment schedules and the tax table I’ll be under. Alas, I cannot avail of the straight 8% tax due to my status as a BMBE, but it can be changed by next taxation year.
I’m still wrapping my head around the new system, and the agency has yet to update the online filing platform. The existing package does not include the ATC for non-vat businesses yet, so it’s a good thing that we are not expected to file until May.
For now, I’m leaving this here, for easy reference. This is the easiest and the most simplified sample computation of taxes under the two options. This was personally given to me by the Revenue Officer in my municipality, and I don’t think this is in the BIR website.
You can download a copy here.
If you want to read more about the implementing guidelines of the TRAIN Act, go here.
Truth, I read all the 27 pages of that guideline, and I didn’t really get it. Examples of tax computations comparing the graduated income tax versus the 8% flat income tax rate were presented using different taxable income amounts. More like comparing apples to oranges, if I may say so.
So I’m really grateful to our Revenue Officer for giving me this simplified copy.
But of course, I would still recommend that you read RR No. 8-2018 to better familiarize yourself with the inclusions and schedules.
I will update this post as soon as the eBIRForm has been updated, so I can share more information with you.
Do you, have questions, comments or feedback about this post?
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Marge, also known as The Happy WAHM, is a virtual assistant who turned her passion for entrepreneurship into a worthy endeavor of offering complete business solutions to CEOs and business owners around the world. She turned her back on a thriving corporate career to become a hands-on mom and created a lifestyle that allowed her to build a homebased career, homeschool her children, and still have time to pursue her passion for arts and crafting.
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