To encourage payment of correct taxes, the Senate version of the first tax reform package has made available to self-employed individuals and professionals a flat tax scheme that is simpler and easier to comply, said Senate Sonny Angara.
Angara, chairman of the ways and means committee, siad that under Senate Bill 1592 or the Tax Reform for Acceleration and Inclusion (TRAIN), self-employed individuals and professionals can choose between an 8 percent flat tax on gross sales or receipts to be filed only once a year or the scheduled personal income tax rate with allowable deduction.
He said the 8% tax will be in lieu of the personal income tax, which is currently filed quarterly, and the percentage tax, filed monthly. “The Congress is making a distinction between the tax treatment of compensation income earners and self-employed individuals and professionals because we recognize the need to really simplify the process and make it easier for them to comply and pay correct taxes,” he said.