New Tax for Cars Signed into Law
The new tax reform bill has been signed by President Duterte today. The TRAIN, as it is commonly referred to, has adjusted taxes on several categories including a tax exemption on all personal income tax below Php250,000 (annually).
Likewise, automobiles will have a new or simpler tax structure. For cars, the new tax scheme is as follows:
Net Manufacturer's / Importer's Price
Up to P600,000 == 4%
P600,000 to 1,000,000 == 10%
P1,000,000 to 4,000,000 == 20%
Above P4,000,000 == 50%
Take note that these are based on Net Manufacturer's Price or Importers Price.
Here's a comparison table between the old and the new tax scheme.
Let's do some examples.
Importer's Price: Php600,000
Selling Price (Old Tax): Php612,000
Selling Price (New Tax): Php624,000
Importer's Price: Php800,000
Selling Price (Old Tax): Php852,000
Selling Price (New Tax): Php880,000
Importer's Price: Php1,00,000
Selling Price (Old Tax): Php1,092,000
Selling Price (New Tax): Php1,100,000
Importer's Price: Php1,500,000
Selling Price (Old Tax): Php1,772,000
Selling Price (New Tax): Php1,800,000
Importer's Price: Php2,500,000
Selling Price (Old Tax): Php3,252,000
Selling Price (New Tax): Php3,000,000
Importer's Price: Php3,000,000
Selling Price (Old Tax): Php4,052,000
Selling Price (New Tax): Php3,600,000
Importer's Price: Php4,000,000
Selling Price (Old Tax): Php5,652,000
Selling Price (New Tax): Php4,800,000
Importer's Price: Php5,000,000
Selling Price (Old Tax): Php7,252,000
Selling Price (New Tax): Php6,000,000
The new tax reform bill has been signed by President Duterte today. The TRAIN, as it is commonly referred to, has adjusted taxes on several categories including a tax exemption on all personal income tax below Php250,000 (annually).
Likewise, automobiles will have a new or simpler tax structure. For cars, the new tax scheme is as follows:
Net Manufacturer's / Importer's Price
Up to P600,000 == 4%
P600,000 to 1,000,000 == 10%
P1,000,000 to 4,000,000 == 20%
Above P4,000,000 == 50%
Take note that these are based on Net Manufacturer's Price or Importers Price.
Here's a comparison table between the old and the new tax scheme.
Let's do some examples.
Importer's Price: Php600,000
Selling Price (Old Tax): Php612,000
Selling Price (New Tax): Php624,000
Importer's Price: Php800,000
Selling Price (Old Tax): Php852,000
Selling Price (New Tax): Php880,000
Importer's Price: Php1,00,000
Selling Price (Old Tax): Php1,092,000
Selling Price (New Tax): Php1,100,000
Importer's Price: Php1,500,000
Selling Price (Old Tax): Php1,772,000
Selling Price (New Tax): Php1,800,000
Importer's Price: Php2,500,000
Selling Price (Old Tax): Php3,252,000
Selling Price (New Tax): Php3,000,000
Importer's Price: Php3,000,000
Selling Price (Old Tax): Php4,052,000
Selling Price (New Tax): Php3,600,000
Importer's Price: Php4,000,000
Selling Price (Old Tax): Php5,652,000
Selling Price (New Tax): Php4,800,000
Importer's Price: Php5,000,000
Selling Price (Old Tax): Php7,252,000
Selling Price (New Tax): Php6,000,000