Newspaper Icon Green Facebook Icon 2 Instagram Logo Twitter Logo Youtube Logo

The TRAIN Law

News

News

The TRAIN Law

The Tax Reform for Acceleration and Inclusion law

In line with Republic Act No 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) bill was signed into law last December 19, 2017, please be advised regarding the upcoming adjustments in tax rates that will impact bank transactions effective January 1, 2018.

Tax on Passive Income

FCDU

Tax on interest income of foreign currency deposits (except for resident foreign corporations which will still be subject to existing rate of 7.5%)

TAX CODE
1997
TRAIN
2018
7.50% 15%

Documentary Stamp Tax

DST for: TAXABLE UNIT TAX CODE
1997
TRAIN
2018
Bank Checks, Drafts, Certificate of Deposit not bearing interest and other Instruments On each Document Php 1.50 Php 3.00
All Debt Instruments Php200.00 or fraction thereof, of the issue price of any such debt instruments Php 1.50 Php 3.00
Upon Acceptance of Bills of Exchange and Others P200.00 or fractional part thereof, of the face value of any such bill of exchange Php 0.30 Php 0.60
All Bills of Lading or Receipts if the value of such goods exceeds P100 and does not exceed P1,000 Php 1.00 Php 2.00
if the value exceeds P1,000 Php 10.00 Php 20.00
Foreign Bills of Exchange and Letters of Credit P200.00, or fractional part thereof, of the face value of any such bill of exchange Php 0.30 Php 0.60
Mortgages, Pledges, and Deeds of Trust Amount secure does not exceed P5,000.00 Php 20.00 Php 40.00
On each Php5,000 or fractional part thereof in excess of Php5,000 Php 10.00 Php 20.00