On this video clip, Finance Secretary Carlos “Sonny” Dominguez III explains the effect of reformed tax system under the administration of President Rodrigo Duterte.
Secretary Dominguez explained the long and overdue corrections in our tax laws and the new reformed tax system will address it where the rich and the poor countrymen will be a contributing factor to the new system that benefits our people.
According to this new system, Sec. Dominguez explained the advantages of the new reformed tax law. He said that the first P250,000 annual earners will receive tax exemption and the tax exemption cap on 13th month pay was also raised to P90,000 from previous figure of P82,000.
Previous tax rate fixed at 32% but the new tax reform law, those earners with P250,000 but not exceeding P400,000 will only pay 20% of the excess over P250,000.
Earnings over P400,000 but not over P800,000 will pay P30,000 plus 25% of the excess of P400,000. Earnings over P800,000 but not exceeding P2 million will pay P130,000 plus 30% of the excess over P800,000.
Those who earn over P2 million but not exceeding P8 million will pay P490,000 plus 32% of the excess over P2 million. Those who earn over P8 million will pay P2.41 million plus 35 percent of the excess over P8 million.
Watch video here:
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