Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House BILL No. 1563

Introduced by Representative WALFREDO R. DIMAGUILA, JR.

AN ACT
AMENDING SECTION 24 OF THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED

EXPLANATORY NOTE

The TRAIN law was enacted in December 2017 and took effect on January 1, 2018,
amending the income tax rates for individuals. Meanwhile, several laws were passed like
the EOPT, VAT on Digital Providers, CREATE Act, CREATE More, and the CMEPA, that
amended several provisions of the NIRC as amended. Incentives were provided to certain
sectors of taxpayers. It is about time that individual income taxpayers are given relief from
the tax burden by amending the tax schedules imposed under the TRAIN LAW, increasing
the threshold exempt from the tax, and lowering the rates accordingly. This is in pursuit
of fairness and compassion for our taxpayers, especially the middle-income tax group.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

A WALFREDO R,, LA. JR.
fember, House of itive
in

Lone District


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 1553

Introduced by Representative WALFREDO R. DIMAGUILA, JR.

AN ACT
AMENDING SECTION 24 OF THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED

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

1 SECTION 1. Section 24 of the National Internal Revenue Code, as amended, is
hereby further amended to read as follows:

N

3 Section 24. Income Tax Rates. - (A) Rates of Income Tax on Individual Citizen

4 and Individual Resident Alien of the Philippines. -

5 (1) x x x An income tax is hereby imposed:
6 a. XXX
7 b.xxx
8 c.XXX

9 (2) Rates of Tax on Taxable Income of Individuals. - The tax shall be computed

10 in accordance with and at the rates established in the following schedule: *

* AS amended by RA 10963, otherwise known as the TRAIN Law, 19 December 2017.


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24

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(a) Tax Et

Not over P250,000.00

Over 250,000.00 but not over
400,000.00

Over 400,000.00 but not over

800,000.00
Over ?800,000.00 but not over

2,000,000.00
Over P2,000,000.00 but not over

P8,000,000.00

Over P8,000,000.00

ive January 1, 2018 until December 31, 2022:

0%

20% of the excess over
250,000.00

P30,000.00 + 25% of the

excess over P400,000.00
P130,000.00 + 30% of the

excess over P800,000.00
490,000.00 + 32% of the
excess over P2,000,000.00
P2,410,000.00 + 35% of the

excess over °8,000,000.00

(Tax Schedule Effective January 1, 2023 UNTIL DECEMBER 31, 2025)

Not over ®250,000.00

Over 250,000.00 but not over

400,000.00

Over 400,000.00 but not over

800,000.00

Over 800,000.00 but not over

2,000,000.00

Over P2,000,000.00 but not over

8,000,000.00
Over P8,000,000.00

0%

15% of the excess over
250,000.00

22,500.00 + 20% of the
excess over P400,000.00
P102,500.00 + 25% of the
excess over 800,000.00
P402,500.00 + 30% of the
excess over P2,000,000.00
P2,202,500.00 + 35% of the

Excess over P8,000,000.00

Tax Schedule Effective January 1, 2026 and onwards:


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Not over P300,000.00 0%

Over P300,000.00 but not over 15% of the excess over
400,000.00 300,000.00

Over P400,000.00 but not over P15,000.00 + 20% of the
800,000.00 excess over P400,000.00
Over P800,000.00 but not over 95,000.00 + 25% of the
2,000,000.00 excess over P800,000.00

Over P2,000,000.00 but not over 395,000.00 + 30% of the

P8,000,000.00 excess over P2,000,000.00
Over P8,000,000.00 P2,195,000.00 + 35% of the
excess over P8,000,000.00

SEC. 2. Implementing Rules and Regulations. -The Department of Finance
shall issue the rules and regulations necessary for the implementation of this Act
within thirty (30) days from the effectivity hereof.

SEC. 3. Repealing Clause. -All other laws, acts, presidential decrees, executive
orders, presidential proclamations, issuances, rules and regulations, or parts
thereof which are contrary to or inconsistent with any of the provisions of this Act
are hereby repealed, amended, or modified accordingly.

SEC. 4. Separability Clause. - If any portion or provision of this Act is
subsequently declared invalid or unconstitutional, other provisions hereof which
are not affected thereby shall remain in full force and effect.

SEC. 5. Effectivity. -This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

APPROVED.