1. Deadline for filing of annual Income Tax Return (ITR)
Before: April 15
Now: May 15
2. Personal and additional exemptions have been removed
Before: personal exemption of P50,000 and additional exemption of P25,000 per qualified dependent
Now: None
3. Tax on lotto winnings and PCSO prizes
Before: Lotto winnings and all PCSO prizes are tax-exempt
Now: all PCSO and lotto prizes are taxed 20% if the amount of the prize or winnings is above ten thousand pesos (P10,000).
4. Tax on stock transactions
Sale of stocks not traded in the Philippine Stock Exchange (PSE)
Before: Tax Rate is 5-10%.
Now: Tax Rate is 15%.
Sale of stocks that are traded in the PSE
Before: Tax Rate is 0.5% of the gross trade amount
Now: Tax Rate is 0.6% of the gross trade amount
5. Documentary Stamps (Doc Stamps) Tax
Before: DST is from ₱0.75 to ₱1.50
Now: DST is doubled at ₱1.50 to ₱3.00
6. Donor’s Tax
Before: The donor’s tax was 2% to 15% if the donor and donee are related, and 30% if the donation was to a stranger.
Now: The donor’s tax was revised to a flat rate of 6% regardless of the relationship between the donor and the donee.
Donations or gifts below P250,000 are tax-exempt. Donations with value of at least P250,000 are taxed using the new rate of 6% on the amount in excess of P250,000.
7. Estate Tax
Before: Under current tax laws, only family homes worth P1 million are tax-exempt.
Now: The estate tax is now a flat 6% rate on the amount in excess of P5 million. Estates with a net value of P5 million and below will be tax-exempt. Family homes that are valued at no more than P10 million will also be exempted.
8. Tax Exempt on 13th Month Pay and Other Benefits
Before: ₱82,000
Now: ₱90,000
For your guidance.
Before: personal exemption of P50,000 and additional exemption of P25,000 per qualified dependent
Now: None
3. Tax on lotto winnings and PCSO prizes
Before: Lotto winnings and all PCSO prizes are tax-exempt
Now: all PCSO and lotto prizes are taxed 20% if the amount of the prize or winnings is above ten thousand pesos (P10,000).
4. Tax on stock transactions
Sale of stocks not traded in the Philippine Stock Exchange (PSE)
Before: Tax Rate is 5-10%.
Now: Tax Rate is 15%.
Sale of stocks that are traded in the PSE
Before: Tax Rate is 0.5% of the gross trade amount
Now: Tax Rate is 0.6% of the gross trade amount
5. Documentary Stamps (Doc Stamps) Tax
Before: DST is from ₱0.75 to ₱1.50
Now: DST is doubled at ₱1.50 to ₱3.00
6. Donor’s Tax
Before: The donor’s tax was 2% to 15% if the donor and donee are related, and 30% if the donation was to a stranger.
Now: The donor’s tax was revised to a flat rate of 6% regardless of the relationship between the donor and the donee.
Donations or gifts below P250,000 are tax-exempt. Donations with value of at least P250,000 are taxed using the new rate of 6% on the amount in excess of P250,000.
7. Estate Tax
Before: Under current tax laws, only family homes worth P1 million are tax-exempt.
Now: The estate tax is now a flat 6% rate on the amount in excess of P5 million. Estates with a net value of P5 million and below will be tax-exempt. Family homes that are valued at no more than P10 million will also be exempted.
8. Tax Exempt on 13th Month Pay and Other Benefits
Before: ₱82,000
Now: ₱90,000
For your guidance.
