2018 BIR Train Income Tax Rates and Tax Tables

The Philippine tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion program, has been signed into law by Pres. Rodrigo Duterte on December 19, 2017 and implementation start on January 1, 2018.

The Bureau of Internal Revenue (BIR) has circularized the Revised Withholding Tax Table which should be used in computing tax withheld on every payment of employee compensation. The Table is effective from January 1, 2018 to December 31, 2022. Under the TRAIN law, there will be revised rates of the individual income tax effective on January 1, 2023.

Withholding tax table is only for purposes of estimating the tax due, it is possible that some of these employees may still be liable for income tax if they receive additional taxable compensation or bonuses during the year. The tax-exempt threshold for 13th month pay and bonuses is now at P90,000. On the other hand, the tax-exempt bracket in the schedule of income tax rates is P250,000.

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