Duterte’s tax reforms not only increase revenues, but make tax payments less complicated – Recto
The Senate version of the TRAIN (Tax Reform Acceleration and Inclusion) bill does not only cut income taxes but also the “red tape” in their settlement, Senator Ralph Recto said on Monday.
The Senate action was contained in several amendments to the National Internal Revenue Code (NIRC) which, once implemented, would relieve taxpayers of the “cumbersome and complicated” procedures in paying taxes.
“Simplified taxpaying is an important component of tax reform,” the Senate President Pro-Tempore said.
“Cutting the rates must go hand in hand with cutting the number of requirements,” said Recto, who authored the amendments.
Under the Senate version of the TRAIN, the 12-page Income Tax Return (ITR) for individuals and the 8-page ITR for corporations will be slashed to two pages.
Information to be supplied in the two-page ITR shall be limited to: Personal profile and information; Gross sales, receipts or income from compensation for services rendered, conduct of trade or business or the exercise of a profession, except income subject to final tax as provided under this code; Allowable deductions under this code; and Taxable income as defined in Section 31 of the NIRC.
The Senate, also upon the motion of Recto, voted to reduce the frequency of tax filings, with the Percentage Tax and VAT to be filed quarterly from the current monthly.