Finance Secretary Benjamin Diokno said Wednesday the lower personal income tax starting January 2023 will enable taxpayers to give their share to national development.
Majority of taxpayers will receive further personal income tax cuts beginning Jan. 1 pursuant to Republic Act 10963 or the Tax Reform for Acceleration and Inclusion law which adjusted personal income tax rates, to make the tax system simpler, fairer and more efficient.
“The TRAIN law adjusted personal income taxes and fixed the inequity of our tax system. We want our taxpayers to reap the fruits of their labor while enabling them to contribute their fair share to national development,” Diokno said in a statement.
Individuals with an annual taxable income below P250,000 are still exempted from paying personal income taxes under the adjusted tax rates. The revised tax schedule reduces personal income taxes for those earning P8,000,000 and below, compared to the initial tax cuts for Jan. 1, 2018 to December 31, 2022.
Meanwhile, to maintain the progressivity of the tax system, the tax rate for individuals earning P8,000,000 and above annually will be maintained at 35 percent.