RMC No. 104-2017: Circularizes the copy of RA No. 10963 (Tax Reform for Acceleration and Inclusion [TRAIN] Act) and President Duterte’s VETO message to the TRAIN Act

Summary

RMC No. 104-2017 circularizes Republic Act No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Act), signed on December 19, 2017, together with the President’s veto message to the TRAIN Act.

Key points

1. What the Act amends. RA No. 10963 amends many sections of the National Internal Revenue Code of 1997 (RA No. 8424), as amended. It creates new Sections 51-A, 148-A, 150-A, 150-B, 237-A, 264-A, 264-B and 265-A, and repeals Sections 35, 62 and 89.
2. Vetoed line items. The vetoed items are the reduced income tax rate of employees of Regional Headquarters, Regional Operating Headquarters, Offshore Banking Units and Petroleum Service Contractors and Subcontractors. Also vetoed are zero-rating of sales to a separate customs territory and tourism enterprise zones, and exemption from Percentage Tax of gross sales or receipts not exceeding Five Hundred Thousand Pesos (P500,000.00).
3. More vetoed items. The veto also covers exemption of various petroleum products from Excise Tax when used as input, feedstock or raw material in making petrochemical products, in refining petroleum products, or as replacement fuel for natural gas fired combined cycle power plants. The earmarking of incremental tobacco taxes was vetoed as well.

Deadlines and effectivity

• RA No. 10963 signed on December 19, 2017

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.