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396914639 Advantages and Disadvantages
Introduction to italian law (115EC)
Università degli Studi di Trieste
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Italian LawAnteprima del testo
TRAIN LAW
Tax Reform for Acceleration and Inclusion Law
ADVANTAGES DISADVANTAGES
Higher take home pay Higher household bills Reduced personal income taxes Higher imposition of excise taxes on cars, tobacco, sugar-sweetened beverages, and fuel. Raises significant revenue to fund the President’s priority and social infrastructure programs to reduce poverty (Build, Build, Build projects)
Higher fuel prices will have a trickle down effect on public transport service providers, therefore higher fares
Reduced estate and donor’s taxes to a flat rate of 6% regardless of the value of the net estate.
The burden imposed on the companies will just be passed on to the consumers
Simplified tax compliance (i., limiting income tax returns to 4 pages and requiring quarterly rather than monthly filing for certain forms)
Minimum wage earners and people with no fixed income will have a difficulty in coping up with the price increase
Amendments in VAT which lessen the burden of taxpayers (i., increase of VAT threshold from P1,919,500 to 3,000,000, sale of drugs and medicines for diabetes, high cholesterol, and hypertension will be exempt from VAT, increase of Vat exemption from 12,800 to P15,000, association dues, membership fees, and other assessments and charges collected by homeowners associations and condominium corporations, sale of gold to BSP, transfer of property in merger or consolidation are now exempt)
Inflation in prices of goods and services especially the essential commodities
More job opportunities, better infrastructure that will lower the transport and distribution costs of goods, and improved services.
Increased taxes on certain passive incomes, documentary stamp tax
Up to 30% of the incremental revenues from the Train will help fund a targeted cash transfer program for the country’s poorest 10 million households to aid the bottom 50 percent of the population in coping with the initial effects of the tax reform law on the prices of basic
Removed the tax exemption of Lotto and other PCSO winnings amounting to more than P10,
necessities
Officials, agents, or employees of the BIR who fail to act on the application for VAT refund are now punished. The deemed denial of failure to act on the application is removed.
Personal exemption of P50,000, additional exemption of P25,000 per dependent child, and the premium for health and hospitalization insurance of P2,400 per year were removed Purely self-employed individuals and/or professionals who do not exceed the VAT threshold of P3M have now the option to be taxed at 8% income tax on gross sales or gross receipts in excess of P250,000 or income tax based on the graduated income tax rates for individuals.
Laying off of employees because of higher production costs (ex: Coke PH)
Those earning P250,000 and below are tax exempt. Wider tax bases.
Foreign currency deposit units increased from 7 to 15-percent final tax on interest income. Capital gains of non-traded stocks increased from 5 to 10-percent to 15- percent final tax on net gains only Tax exemption of 13th month pay and other benefits is increased from P82, to P90,
Tax on petroleum products usually causes a domino effect on prices of basic commodities, public transport fares, services, and electricity rates among others. Substituted filing of ITRs by employees receiving purely compensation income from only one employer, to ensure compliance in tax procedures
the data of 7 million who would no longer pay taxes that the government kept on mentioning appeared to have included minimum wage earners who have long been exempted from paying personal income tax because of another law Standard deduction in the estate tax is increased from P1,000,000 to P5,000, for resident or citizens and added a standard deduction of P500,000 for non residents. Deductions on family home increased from P1,000,000 to P10,000,
Several VAT exemptions will be removed
The threshold amount for the requirement of attaching a statement duly certified by a CPA is increased from P2,000,000 to P5,000,000 which is more practical.
‘Build Build Build’ is mainly about flagship transport infrastructure projects concentrated in the country’s highest- income regions National Capital Region, Southern Tagalog and Central Luzon with little for the poorest regions in the rest of Luzon, Visayas and Mindanao.
396914639 Advantages and Disadvantages
Corso: Introduction to italian law (115EC)
Università: Università degli Studi di Trieste
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