TRAIN IRR out by March — BIR

MANILA, Philippines — The Bureau of Internal Revenue (BIR) hopes to complete by March the implementing rules and regulations (IRR) of the newly enacted tax reform law, a top BIR official said yesterday.

Marissa Cabreros, deputy commissioner for the BIR’s Legal and Inspection Group, said yesterday the BIR may issue the five remaining revenue regulations (RR) containing the IRR of the Tax Reform for Acceleration and Inclusion (TRAIN) Act within the first quarter.

“I think we can do it,” Cabreros told reporters on the sidelines of the Tax Management Association of the Philippines’ general membership meeting.

According to Cabreros, there are still five remaining revenue regulations being drafted by the BIR in coordination with the Department of Finance (DOF).

These issuances involve the adjustments in estate and donors taxes, value-added tax, excise tax on cosmetic procedures and excise tax on sugar-sweetened beverages.

Cabreros said the revenue regulation on the estate and donors taxes has been submitted to the DOF for review and approval, while the other three are still being finalized by the BIR.

“The VAT, cosmetic and beverage tax are still with the BIR because they’re still being firmed up, Cabreros said.

The last revenue regulation, Cabreros said, would replace Revenue Regulation 2-98 and provide new guidelines on withholding taxes.

“We have a revenue regulation on withholding taxes, that’s RR 2-98, that is era 1998 and has been amended several times. We will drop that 2-98 and we’ll have a new reference, a new consolidated withholding tax RR as a consequence of this TRAIN,” she said.

Despite the delay in the release of revenue regulations, Cabreros said there is no reason for employers and businesses not to comply with the provisions of the TRAIN law.

“The RRs are meant to organize or properly guide the taxpayers on how to properly implement them. However, even without the RR, we already issued RMCs (revenue memorandum circulars) and advisories,” she said.

Just yesterday, the BIR released Revenue Regulation 8-2018, providing the guidelines on the income tax provisions of the tax reform law.

Cabreros said the new issuance seeks to give the proper guidelines and illustrations on how to implement the adjustments in the personal income taxes of employees.

“The model that was adopted by the team who created the RR is to give illustrations, scenario-based so people can relate easily or fit in to the illustrations,” Cabreros said.

Republic Act 10963 or the TRAIN Act, which contains Package 1A of the administration’s Comprehensive Tax Reform Program (CTRP), aims to simplify the country’s tax system by lowering personal income tax rates.

It also seeks to adjust excise taxes of fuel, automobile, coal and sugar-sweetened beverages, and expand the tax base by removing value-added tax exemptions.

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