(Eagle News)–The Bureau of Internal Revenue on Friday, December 23, said individual taxpayers will be charged lower income taxes starting next year.
According to the BIR, because of the lower income tax rate pursuant to Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, individuals earning purely compensation income, including non-business/non-profession related income and sole proprietors, “can look forward to a higher take-home pay in 2023.”
It said starting January 1, 2023, while those with annual taxable income below P250,000.00 are still exempt from paying personal income tax, the rest of the taxpayers, except those with taxable income of more than P8 million, will have lower tax rates ranging from 15% to 30% by 2023.
Those earning more than P8 million annually face a 35% tax rate, an increase from the 32% imposed previously.
Under TRAIN, which took effect in 2018, personal income taxes would be reduced while taxes on cars, sugar-sweetened beverages, fuel and tobacco would increase.
