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 UNITTAX CODE
1997
TRAIN
2018
Bank Checks, Drafts, Certificate of Deposit not bearing interest and other InstrumentsOn each DocumentPhp 1.50Php 3.00
All Debt InstrumentsPhp200.00 or fraction thereof, of the issue price of any such debt instrumentsPhp 1.50Php 3.00
Upon Acceptance of Bills of Exchange and OthersP200.00 or fractional part thereof, of the face value of any such bill of exchangePhp 0.30Php 0.60
All Bills of Lading or Receiptsif the value of such goods exceeds P100 and does not exceed P1,000Php 1.00Php 2.00
if the value exceeds P1,000Php 10.00Php 20.00
Foreign Bills of Exchange and Letters of CreditP200.00, or fractional part thereof, of the face value of any such bill of exchangePhp 0.30Php 0.60
Mortgages, Pledges, and Deeds of TrustAmount secure does not exceed P5,000.00Php 20.00Php 40.00
On each Php5,000 or fractional part thereof in excess of Php5,000Php 10.00Php 20.00