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Lower income taxes seen in 2023 as TRAIN's third tranche takes effect

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Sherrie Ann Torres, ABS-CBN News

MANILA - Government and private sector workers will enjoy their reduced income tax obligation starting January 1, 2023, as dictated by the provisions of the TRAIN (Tax Reform for Acceleration and Inclusion) Law.The reduced taxes is the “third tranche” of Republic Act 10963 or the TRAIN Law which aims to lessen the tax burden of workers.Based on the tax table released by the Bureau of Internal Revenue (BIR), workers who yearly earn P250,000 or less will be tax-free.Meanwhile, only 15 percent of the excess of P250,000 to those who earn P250,000 to P400,000 will be taxed.For those earning between P400,000 to P800,000, a tax due of P22,500 plus 20 percent of the excess of P400,000 will be subjected to tax.For workers earning P800,000 but not over P2 million, a tax of P102,500 plus 25 percent of the excess over P800,000 will be taxed.Workers who earn between P2 million to P8 million will be taxed P405,500 plus 30% of the excess over P2 million.And those earning P8 million will be taxed 35 percent, from the current 32 percent, the BIR said.Mon Abrea, founding Chairman and Tax Advisor of Asian Consulting Group, told ABS-CBN News a worker who earns P30,000 a month will soon enjoy an additional take home pay of P485.35 monthly.Those who earn P50,000 per month will have P1,485.23 in tax savings, while those earning P100,000 monthly can expect P3,958.23 in savings per month.People who earn P250,000 every month will enjoy an additional P18,124.49 savings per month, according to Abrea.“Ito ay dapat ding gamitin ng ating mga kababayan sa pagharap sa patuloy na pagtaas ng presyo... huwag nating waldasin o basta na lang gastusin itong savings… relief kasi permanent kaya hindi na tataas ulit unless amyendahan &#x27;yung batas,” Abrea said.Jessamin Aranas who has been working in the government for 23 years now shared, that she will add her additional take home pay to their family’s emergency savings.“Personally kasi aging na tao eh, 56, malapit na tayong mag-retire. By 60 balak ko na pong mag-retire… magandang balita po kung may kabawasan ang tax natin, lalaki na po ang e-fund savings namin para sa aming kalusugan, alam mo na &#x27;pag aging ka kailangan mo ng maintenance, medication,” Aranas, Department of Agriculture’s Personnel Division OIC-Chief, said.But for labor group Partido ng Manggagawa, that P250,000 tax exemption bracket can still be increased by the government if only it would apply an additional tax to the country’s billionaires.“Meron tayong napakaliit na layer sa taas, tuktok ng pyramid natin na napakaliit pero sobrang laki ng income… mag-charge lang tayo ng one percent, two percent, three percent doon sa sobra-sobrang kayamanan… na concentrated sa iilang kamay ng mga tao, kung hahabulin natin ang tax on wealth na yan,” Wilson Fortaleza, PM Deputy Secretary General said.But according to Abrea, increasing taxes will not be necessary, if only people are paying the correct taxes.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/14/22/house-oks-reforms-to-taxes-on-financial-deals-passive-income">House approves reforms to taxes on financial transactions, passive income</a></li>	<li><a href="https://news.abs-cbn.com/focus/multimedia/infographic/12/19/17/the-tax-reform-for-acceleration-and-inclusion-or-train-law">The Tax Reform for Acceleration and Inclusion or TRAIN Law</a></li></ul><div>RELATED VIDEO</div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2395103" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The reduced taxes is the “third tranche” of Republic Act 10963 or the TRAIN Law which aims to lessen the tax burden of workers.

Lower income taxes seen in 2023 as TRAIN's third tranche takes effect

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Lower income taxes seen in 2023 as TRAIN's third tranche takes effect

Sherrie Ann Torres,

ABS-CBN News

Published Dec 27, 2022 08:40 PM PHT

Read More:

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BIR

TRAIN Law

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