STARTING this month, over six million or 86 percent of compensation earners with taxable income of
P685 per day or P20,833 per month and below will be exempted from paying the personal income tax
(PIT) as provided for under the Tax Reform for Acceleration and Inclusion Act (TRAIN) that was
recently signed into law by President Rodrigo Duterte.
The TRAIN, the first package under the Duterte administration’s Comprehensive Tax Reform
Program (CTRP), exempts compensation earners and self-employed individuals with annual taxable income
of P250,000 and below from paying the PIT. The 13th month pay and other bonuses not exceeding a
total of P90,000 are also non-taxable under the TRAIN.
Finance Secretary Carlos Dominguez III said these TRAIN provisions will benefit clerks, call
center agents earning P21,000 and below, and public school teachers with the rank of Teacher I with a
basic salary of P20,179 and up to Teacher III with basic pay of P22,149 starting this year.
For those employed in the government sector, a Laboratory Technician II with a monthly pay of
P16,282, a Midwife I getting P17,473 a month, and a Volunteer Service worker I receiving P18,718 per
month under the third tranche this year of the Salary Standardization Law will be exempted from
paying the PIT.
In the private sector, a concierge in a hotel earning P18,000 a month and a food server paid
P15,000 monthly are among the millions of employees who will benefit from the TRAIN’s zero PIT
The Bureau of Internal Revenue (BIR) issued on Dec. 28, 2017 an updated withholding tax table
reflecting the new PIT provisions under TRAIN.
BIR Commissioner Caesar Dulay directed all internal revenue officers to ensure that beginning
January 1, “everyone making compensation payments to their respective employees shall deduct and
withhold from such compensation a tax determined in accordance with the revised withholding tax