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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 Higher fuel prices will have a trickle down
President’s priority and social effect on public transport service
infrastructure programs to reduce poverty providers, therefore higher fares
(Build, Build, Build projects)
Reduced estate and donor’s taxes to a flat The burden imposed on the companies
rate of 6% regardless of the value of the will just be passed on to the consumers
net estate.
Simplified tax compliance (i.e., limiting Minimum wage earners and people with
income tax returns to 4 pages and no fixed income will have a difficulty in
requiring quarterly rather than monthly coping up with the price increase
filing for certain forms)
Amendments in VAT which lessen the Inflation in prices of goods and services
burden of taxpayers (i.e., increase of VAT especially the essential commodities
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)
More job opportunities, better Increased taxes on certain passive
infrastructure that will lower the transport incomes, documentary stamp tax
and distribution costs of goods, and
improved services.
Up to 30% of the incremental revenues Removed the tax exemption of Lotto and
from the Train will help fund a targeted other PCSO winnings amounting to more
cash transfer program for the country’s than P10,000
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
pamdenhil ❤
necessities
The filing of estate tax returns is extended Capital gains tax increased from the
from 6 months to 1 year from the 5/10% to a flat rate of 15%
decedent’s death, thus making it more
favorable to the heirs.
There is now a payment by installment Tax on fringe benefits is increased from
within 2 years from the statutory date of 32% to 35%
payment without civil penalty and interest
incase the estate has no available cash or
insufficient to pay.
Withdrawal from the bank account of the Allowable deduction for premium
decedent is now allowed without the need payments on health and/or hospitalization
of the certification of the Commissioner, insurance is removed
however it is subject to FWT of 6%. This is
better and faster because BIR officials
might just sleep on the application.
Establishment of VAT Refund Centers in Beginning January 1, 2021, VAT
BIR and BOC offices exemptions no longer apply to sale of low-
cost housing and sale of residential lot.
The requirement to keep books of
accounts certified by CPAs is now being
imposed to those whose gross sales,
earnings, receipts or output exceed
P3,000,000. Before it was P150,000.
Threshold amount for self-employed
individuals and/or professionals is
increased to P3,000,000 from P1,500,000.
Electronic Sales Reporting System in
keeping with today’s modern
technological age. Monitoring of taxes are
now easier and faster for the BIR.
pamdenhil ❤