ENTATIVES

Republic of the Philippines

HOUSE OF REPRESENTATIVE RE CEIVED
zon City bare 0 WN 2016
SEVENTEENTH CONGRESS TIMES £7"
First Regular Session By;

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BULS AND INDEX servi: |
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Introduced by Rep. Winston

EXPLANATORY NOTE

First off, this bill aims to serve as the counterpart of Senate Bill 2149 authored by
Senator Sonny M. Angara beiieving as this humbie author does in the timeliness and
urgency of a measure of this nature. It has for its title “An Act Amending Section 24
of the National Internal Revenue Code of 1997, as Amended, and For Other
Purposes.”

Concurring with the senator's observation that underscores the necessity for lowering
corporate and individual income tax rates, as did some ASEAN Economic
Community (AEC) member-states, with further reductions in the subsequent years,
as soon as the AEC Declaration was signed in 2007, this author submits the urgency
of the matter and calis attention to the wisdom of the measure.

The current individual tax bracket has been in force for 17 years already when the
consumer price index (CPi) already almost doubled

Noted, also, is the fact that the Philippines has one of the highest individual tax rates
in South East Asia at 32 percent.

In order for the Filipino workers to cope with the ever escalating price spikes in basic
services and commodities, the individual income tax schedule should hereby be
equitably reduced.

In order to cushion the revenue impact of the individual incor
and the reduction of individual income tax rates, this bill spre4
period of three (3) years,

bracket adjustmekis

The approval and passage of this bill is therefore most ep
submis:

nestiy enjoined, hence thi



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Sessi

HOUSE BILL NO."

Introduced by Rep. Winston “

AN ACT
AMENDING SECTION 24 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS
AMENDED, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 24{A}(2) of the National Internal Revenue Code of 1997, as
amended, is hereby further amended to read as follows:

“Sec. 24. Income Tax Rates. —

“(A) Rates of income Tax on individual Citizen and individual Resident Alien of
the Philippines. -

(2) Rates of Taxable income of individuals. ~ The tax shail be

computed in accordance with and at the rates established in the following

schedule:
[ “Taxable income Beginning Beginning Beginning
| January 2,2015 _| January 1, 2016 January 1, 2017
“P20,000 but not o1 | 15% | 13% 10%
70,000 ! i | |
“Over P70,000 but not over | P10,500 +20% of P9,100 +18% of P7,000 +15% of
200,000 | the excess over | the excess over _ the excess over
70,000 70,000 70,000
“Over P200,000 but not over | P36,500+25% of | P32,500+23% of _ | P26,500 +20% of
| P500,000 the excess over the excess over the excess over
{re 0 200,000 \
“Over P500,000 but not over | P111,500 +30% of | P101,500+25% of | P86,500 +22% of
| P1,000,000 the excess over the excess over the excessover |
_ P500,000 P500,000 [.P500,000 |
“Over P1,000,000. P261,500 +32% of | P226,500 +28% of | P196,500 +25% of
the excessover | theexcessover _| the excess over

1,000,000 | 2,000,000 | P1,000,000



“{Not over P10,000 5%

“Over P10,000 but not over -P500 + 10% of the excess
30,000 cover P10,000

“Over P30,000 but not over .. .. P2,500 + 15% of the excess
P70,000 over P70,000

“Over P70,000 but not over . P8,500 + 20% of the excess

P140,000 ‘over P70,000

“Over P140,000 but not over P22,500 + 25% of the excess

250,000 over P140,000
“Over P250,000 but not over 50,000 + 30% of the excess
500,000 over P250,000
“Over P500,000 .. 125,000 +32% of the excess
‘over P500,000)”
“0K,
“xx.

SEC. 2. Implementing Rules and Regulations. — The Secretary of Finance shal!

promuigate the necessary rules and regulations for the effective implementation of

the provisions of this Act.

SEC. 3. Repealing Clause. — Ali iaws, orders, issuances, circulars, rules and

regulations or parts thereof, which are inconsistent with the provisions of this Act

are hereby repealed or modified accordingly.

SEC. 4. Separability Clause. — If any provision of this Act is declared

unconstitutional or invalid, other parts or provisions hereof not affected thereby

shall continue to be in full force and effect.

SEC. 5. Effectivity. — This Act shall take effect on January 1, 2015 foliowing its

publication in at least two (2) newspapers of general circulation.

Approved,