Comparative Assessment of Proposals to Amend Personal Income Tax - - PowerPoint PPT Presentation

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Comparative Assessment of Proposals to Amend Personal Income Tax Law

Philippine Institute for Development Studies

Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Prepared for the Senate Centennial Lecture Series 16 February 2016

Rosario G. Manasan, Senior Research Fellow

SLIDE 2

Overview of presentation

Rationale of proposals to reform personal income tax legislation

• Bracket creep
• High tax burden in Philippines relative to ASEAN

Alternative proposals Impact of proposals

• Progressivity
• Government revenues

Conclusion/ recommendations

2

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Bracket creep

 Bracket results from the non-indexation to inflation of personal income tax brackets since 1997

• 2014 CPI (139.5) more than double 1998 CPI (67.8)

 purchasing power of peso less than half what it was in 1998

3

SLIDE 4

• Because of bracket creep, individual income taxpayer’ have to pay at least

twice as much taxes in 2014 even if their purchasing power has not change

• Bracket creep is regressive - taxpayers in lower income tax brackets hurt

more than their better-off counterparts

4

In 2014 current prices Equivalent in 1998 prices Under existing rate schedule If taxable income were adjusted to reflect purchasing power in 1998 In pesos Effective tax rate In pesos Effective tax rate Effective tax rates Tax liability in nominal pesos col 1 col 2 col 3 col 4 col 5 col 6 col 7 col 8 col 9 col 10 9,000 4,500 First First 450 5.0% 225 5.0% 1.00 2.00 18,000 9,000 Second First 1,300 7.2% 450 5.0% 1.44 2.89 40,000 20,000 Third Second 4,000 10.0% 1,500 7.5% 1.33 2.67 95,000 47,500 Fourth Third 13,500 14.2% 5,125 10.8% 1.32 2.63 210,000 105,000 Fifth Fourth 40,000 19.0% 15,500 14.8% 1.29 2.58 390,000 195,000 Sixth Fifth 92,000 23.6% 36,250 18.6% 1.27 2.54 525,000 262,500 Top Sixth 133,000 25.3% 53,750 20.5% 1.24 2.47 1,500,000 750,000 Top Top 445,000 29.7% 205,000 27.3% 1.09 2.17 3,000,000 1,500,000 Top Top 925,000 30.8% 445,000 29.7% 1.04 2.08 6,000,000 3,000,000 Top Top 1,885,000 31.4% 925,000 30.8% 1.02 2.04 12,000,000 6,000,000 Top Top 3,805,000 31.7% 1,885,000 31.4% 1.01 2.02 Counterfactual tax liability if 2014 taxable income is adjusted to reflect its purchasing power in 1998 Tax liability based on existing rate schedule Alternative taxable income levels Ratio of actual to counterfactual tax liability in terms of … Applicable tax bracket

SLIDE 5

Personal income tax burden higher in Philippine than in other ASEAN countries

• Top marginal tax rate (tax rate applicable to highest tax bracket) lower

than those of Thailand and Vietnam

• But, top marginal tax rates tell only half the story – tax rate schedule

and personal tax exemptions just as important

5

Top marginal rate Number of tiers Brunei Darussalam a/ a/ 20% n/a Cambodia 20% 5 20% 10% Indonesia 30% 4 25% 10% Lao PDR 24% 7 24% 10% Malaysia 26% 7 25% 6% Myanmar 25% 6 25% b/ Philippines 32% 7 30% 12% Singapore 20% 9 17% 7% Thailand 35% 8 20% 7% Vietnam 35% 7 22% 10%

Source: Ernst and Young 2014; KPMG 2014 a/ no personal income tax in Brunei

Personal Income Tax Corporate Income Tax VAT/GST

b/ turnover tax ; no standard rate

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• PIT tax liability in Phl highest in ASEAN for broad range of gross personal income

tax levels, except ….

• For gross income levels below the equivalent of PhP 390,000 in Lao PDR
• For gross income levels between above the equivalent of PhP 6 million in

Vietnam Tax brackets & allowable deductions converted ussing PPP exchange rate

6

Selected gross income levels Philippines Cambodia Lao PDR Indonesia Malaysia Myanmar Singapore Thailand Vietnam Tax liability( in pesos) 9,000

• 107
• 18,000
• 557
• 40,000
• 2,629
• 95,000
• 9,588
• 210,000

16,500 6,505 49,474 2,687

• 390,000

62,000 24,505 69,743 11,237 1,691 9,371

• 525,000

102,500 38,005 102,143 28,955 5,539 28,358

• 6,250

3,242 1,500,000 413,000 141,425 336,143 187,400 172,798 159,659 12,866 138,516 252,267 3,000,000 893,000 414,907 696,143 583,704 562,510 485,751 202,192 505,552 865,629 6,000,000 1,853,000 1,014,907 1,416,143 1,483,704 1,342,510 1,235,751 715,065 1,398,513 1,915,629 12,000,000 3,773,000 2,214,907 2,856,143 3,283,704 2,902,510 2,735,751 1,894,852 3,493,323 4,015,629

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• ASEAN countries are at different level of economic development …..
• Effective tax rate applicable to per capita GNI highest in Lao PDR (9%), followed

by Philippines (4%)

• Phl ranks second in ASEAN in terms of marginal tax rate applicable to per capita

GNI

7

Selected gross income levels Philippines Cambodia Lao PDR Indonesia Malaysia Myanmar Singapore Thailand Vietnam Effective tax rates 9,000

• 1%
• 18,000
• 3%
• 40,000
• 7%
• 95,000
• 0%

10%

• 0%

0%

• 210,000

8% 3% 24% 1% 0% 0%

• 390,000

16% 6% 18% 3% 0% 2%

• 0%
• 525,000

20% 7% 19% 6% 1% 5%

• 1%

1% 1,500,000 28% 9% 22% 12% 12% 11% 1% 9% 17% 3,000,000 30% 14% 23% 19% 19% 16% 7% 17% 29% 6,000,000 31% 17% 24% 25% 22% 21% 12% 23% 32% 12,000,000 31% 18% 24% 27% 24% 23% 16% 29% 33% Per capita GNI 4%

• 9%

2% 1% 3%

• marginal tax

rate applicable to per capita GNI 15% 0% 12% 5% 6% 7% 0% 0%

SLIDE 8

Overview of presentation

Rationale of proposals to reform personal income tax legislation

• Bracket creep
• High tax burden in Philippines relative to ASEAN

Alternative proposals Impact of proposals

• Progressivity
• Government revenues

Conclusion/ recommendations

8

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Alternative proposals

 Senate Bill 716 (Recto)  Senate Bill 1942 (Aquino)  Senate Bill 2149 (Angara)  House Bill 4829 (Quimbo)  House Bill 5401 (Colmenares and Zarate)  TMAP proposal

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• 7 tiers
• Marginal tax rates – 5% to 32%
• No exemption of income below a given threshold but minimum wage earners are

exempt from PIT

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Appendix Table 1. Existing personal income tax rate schedule For taxable income Tax due Not over PhP 10,000 5% Over PhP 10,000 but not over PhP 30,000 PhP 500 + 10% of the excess over PhP 10,000 Over PhP 30,000 but not over PhP 70,000 PhP 2,500 + 15% of the excess over PhP 30,000 Over PhP 70,000 but not over PhP 140,000 PhP 8,500 + 20% of the excess over PhP 70,000 Over PhP 140,000 but not over PhP 250,000 PhP 22,500 + 25% of the excess over PhP 140,000 Over PhP 250,000 but not over PhP 500,000 PhP 50,000 + 30% of the excess over PhP 250,000 Over PhP 500,000 PhP 125,000 + 32% of the excess over PhP 500,000

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• Simply adjusts tax brackets for change in CPI between 1998-2014
• 7 tiers
• Marginal tax rates – 5% to 32%
• No exemption of income below a given threshold but minimum wage earners are

exempt from PIT

• Top bracket income threshold – PhP 1 million

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Appendix Table 2. Proposed personal income tax rate schedule under Senate Bill 716 and House Bill 4829 a/

For taxable income Tax due Not over PhP 20,000 5% Over PhP 20,000 but not over PhP 60,000 PhP 1,000 + 10% of the excess over PhP 20,000 Over PhP 60,000 but not over PhP 140,000 PhP 5,000 + 15% of the excess over PhP 60,000 Over PhP 140,000 but not over PhP 280,000 PhP 17,000 + 20% of the excess over PhP 140,000 Over PhP 280,000 but not over PhP 500,000 PhP 45,000 + 25% of the excess over PhP 280,000 Over PhP 500,000 but not over PhP 1,000,000 PhP 100,000 + 30% of the excess over PhP 500,000 Over PhP 1,000,000 PhP 250,000 + 32% of the excess over PhP 1,000,000

a/ Under HB 4829, the schedule shown above applies only to wage income; non-wage earners subject to flat rate of 25%

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• Adjusts tax brackets
• 7 tiers
• Marginal tax rates – 0% to 35%
• Exempts taxable income below PhP 60,000
• Top bracket income threshold – PhP 12 million

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Appendix Table 3. Proposed personal income tax rate schedule under Senate Bill 1942 For taxable income Tax due Not over PhP 60,000 Exempt Over PhP 60,000 but not over PhP 140,000 PhP 5,000 + 15% of the excess over PhP 60,000 Over PhP 140,000 but not over PhP 280,000 PhP 17,000 + 20% of the excess over PhP 140,000 Over PhP 280,000 but not over PhP 500,000 PhP 45,000 + 25% of the excess over PhP 280,000 Over PhP 500,000 but not over PhP 1,000,000 PhP 100,000 + 30% of the excess over PhP 500,000 Over PhP 1,000,000 but not over PhP 12,000,000 PhP 250,000 + 32% of the excess over PhP 1,000,000 Over PhP 12,000,000 PhP 4,000,000 + 35% of the excess over PhP 12,000,000

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• Phased implementation –bottom marginal tax rate to go down from 15% to 10%;

top marginal tax rate to go down from 32% to 25% over three years

• 6 tiers
• Exempts taxable income below PhP 20,000
• Top bracket income threshold – PhP 1 million

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Appendix Table 4. Proposed personal income tax rate schedule under Senate Bill 2149 For taxable income Tax due (Year 1 of implementation) Tax due (Year 2 of implementation) Tax due (Year 3 of implementation) PhP 20,000 but not over PhP 70,000 15% 13% 10% Over PhP 70,000 but not over PhP 200,000 PhP 10,500 + 20% of the excess over PhP 70,000 PhP 9,100 + 18% of the excess over PhP 70,000 PhP 7,000 + 15% of the excess over PhP 70,000 Over PhP 200,000 but not over PhP 500,000 PhP 36,500 + 25% of the excess over PhP 200,000 PhP 32,500 + 23% of the excess over PhP 200,000 PhP 26,500 + 20% of the excess over PhP 200,000 Over PhP 500,000 but not over PhP 1,000,000 PhP 111,500 + 30% of the excess over PhP 500,000 PhP 101,500 + 25% of the excess over PhP 500,000 PhP 86,500 + 22% of the excess over PhP 500,000 Over PhP 1,000,000 but not over PhP 1,000,000 PhP 261,500 + 32% of the excess over PhP 1,000,000 PhP 226,500 + 28% of the excess over PhP 1,000,000 PhP 196,500 + 25% of the excess over PhP 1,000,000

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• Adjusts tax brackets
• 6 tiers
• Marginal tax rates – 0% to 30%
• Exempts taxable income below PhP 396,000
• Top bracket income threshold – PhP 2.7 million

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Appendix Table 5. Proposed personal income tax rate schedule under House Bill 5401 For taxable income Tax due Not over PhP 396,000 Exempt Over PhP 396,000 but not over PhP 640,000 10% of the excess over PhP 396,000 Over PhP 640,000 but not over PhP 1,000,000 PhP 24,000 + 15% of the excess over PhP 640,000 Over PhP 1,000,000 but not over PhP 1,650,000 PhP 78,400 + 20% of the excess over PhP 1,000,000 Over PhP 1,650,000 but not over PhP 2,700,000 PhP 208,400 + 25% of the excess over PhP 1,650,000 Over PhP 2,700,000 PhP 470,900 + 30% of the excess over PhP 2,700,000

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• Adjusts tax brackets
• 5 tiers
• Marginal tax rates – 0% to 30%
• Exempts taxable income below PhP 300,000
• Top bracket income threshold – PhP 2.5 million

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Appendix Table 6. Proposed personal income tax rate schedule under the TMAP proposal For taxable income Tax due Not over PhP 300,000 Exempt Over PhP 300,000 but not over PhP 500,000 10% of the excess over PhP 300,000 Over PhP 500,000 but not over PhP 1,000,000 PhP 20,000 + 20% of the excess over PhP 500,000 Over PhP 1,000,000 but not over PhP 2,500,000 PhP 120,000 + 25% of the excess over PhP 1,000,000 Over PhP 2,500,000 PhP 495,000 + 30% of the excess over PhP 2,500,000

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Overview of presentation

Rationale of proposals to reform personal income tax legislation

• Bracket creep
• High tax burden in Philippines relative to ASEAN

Alternative proposals Impact of proposals

• Progressivity
• Government revenues

Conclusion/ recommendations

16

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• PIT tax liability in Phl highest in ASEAN for broad range of gross personal income

tax levels, except ….

• For gross income levels below PhP 95,000 in Lao PDR
• For gross income between PhP 95,000-PhP 210,000 in Cambodia
• For gross income levels between above PhP 6 million in Thailand and Vietnam

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9,000 5% 5%

• 25%

12%

• 18,000

7% 5%

• 25%

12%

• 40,000

10% 8%

• 8%

7% 5% 25% 13%

• 70,000

12% 9% 9% 15% 13% 10% 25% 14%

• 95,000

14% 11% 11% 16% 14% 11% 25% 14%

• 100,000

15% 11% 11% 17% 15% 12% 25% 15%

• 150,000

17% 13% 13% 18% 16% 13% 25% 16%

• 180,000

18% 14% 14% 18% 16% 13% 25% 16%

• 210,000

19% 15% 15% 19% 17% 14% 25% 17%

• 250,000

20% 16% 16% 20% 18% 15% 25% 17%

• 300,000

22% 17% 17% 21% 19% 16% 25% 18%

• 350,000

23% 18% 18% 21% 19% 16% 25% 19%

• 1%

390,000 24% 19% 19% 22% 20% 17% 25% 19%

• 2%

400,000 24% 19% 19% 22% 20% 17% 25% 19% 0% 3% 500,000 25% 20% 20% 22% 20% 17% 25% 20% 2% 4% 550,000 26% 21% 21% 23% 21% 18% 25% 20% 3% 5% 600,000 26% 22% 22% 24% 21% 18% 25% 21% 3% 7% 700,000 27% 23% 23% 25% 22% 19% 25% 21% 5% 9% 800,000 28% 24% 24% 25% 22% 19% 25% 22% 6% 10% 900,000 28% 24% 24% 26% 22% 19% 25% 23% 7% 11% 1,000,000 29% 25% 25% 26% 23% 20% 25% 23% 8% 12% 1,100,000 29% 26% 26% 27% 23% 20% 25% 24% 9% 13% 1,300,000 29% 27% 27% 28% 24% 21% 25% 24% 11% 15% 1,400,000 30% 27% 27% 28% 24% 21% 25% 25% 11% 16% 1,500,000 30% 27% 27% 28% 24% 21% 25% 25% 12% 16% 1,600,000 30% 28% 28% 28% 25% 22% 25% 25% 12% 17% 3,000,000 31% 30% 30% 30% 26% 23% 25% 27% 18% 22% 6,000,000 31% 31% 31% 31% 27% 24% 25% 28% 24% 26% 12,000,000 32% 31% 33% 32% 28% 25% 25% 29% 27% 28% Suits Index 0.486 0.503 0.547 0.461 0.463 0.472 0.448 0.448 0.654 0.653

a/ Assumes representative individual income taxpayer is one who receives 100% of his income from wages. b/ Assumes representative individual income taxpayer is a mixed income earner, 63.6% of whose income comes from wages and 36.4% from entrepreneurial and/ or profe Author's estimates

Selected taxable income levels Existing schedule SB 716 SB 1942 SB 2149 Year 1 SB 2149 Year 2 SB 2149 Year 3 HB 4829 a/ HB 4829 b/ HB 5401 TMAP

Effective tax rates – all proposals are progressive

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• PIT tax liability in Phl highest in ASEAN for broad range of gross personal income

tax levels, except ….

• For gross income levels below PhP 95,000 in Lao PDR
• For gross income between PhP 95,000-PhP 210,000 in Cambodia
• For gross income levels between above PhP 6 million in Thailand and Vietnam

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Ratio of Effective tax rates (proposal vs existing) – SB 2149 and HB 4829 less progressive than existing tax rate schedule

Selected taxable Ratio of ETRS of alternative proposals to ETRs of existing tax regime income levels SB 716 SB 1942 SB 2149 SB 2149 SB 2149 HB 4829 a/ HB 4829 b/ HB 5401 TMAP Year 1 Year 2 Year 3 Tax liability (in pesos) 9,000 1.00

• 5.00

2.46

• 18,000

0.69

• 3.46

1.70

• 40,000

0.75

• 0.75

0.65 0.50 2.50 1.30

• 70,000

0.76 0.76 1.24 1.07 0.82 2.06 1.16

• 95,000

0.76 0.76 1.15 1.01 0.80 1.76 1.02

• 100,000

0.76 0.76 1.14 1.00 0.79 1.72 1.01

• 150,000

0.76 0.76 1.06 0.94 0.76 1.50 0.96

• 180,000

0.77 0.77 1.00 0.89 0.72 1.38 0.91

• 210,000

0.78 0.78 0.98 0.87 0.71 1.31 0.88

• 250,000

0.78 0.78 0.98 0.88 0.73 1.25 0.87

• 300,000

0.77 0.77 0.95 0.85 0.72 1.15 0.84

• 350,000

0.78 0.78 0.93 0.84 0.71 1.09 0.82

• 0.06

390,000 0.79 0.79 0.91 0.83 0.70 1.06 0.81

• 0.10

400,000 0.79 0.79 0.91 0.83 0.70 1.05 0.80 0.00 0.11 500,000 0.80 0.80 0.89 0.81 0.69 1.00 0.80 0.08 0.16 550,000 0.82 0.82 0.90 0.81 0.69 0.98 0.80 0.11 0.21 600,000 0.83 0.83 0.90 0.81 0.69 0.96 0.80 0.13 0.25 700,000 0.85 0.85 0.91 0.80 0.69 0.93 0.79 0.18 0.32 800,000 0.86 0.86 0.91 0.80 0.69 0.90 0.79 0.22 0.36 900,000 0.87 0.87 0.92 0.80 0.69 0.89 0.80 0.25 0.40 1,000,000 0.88 0.88 0.92 0.79 0.69 0.88 0.81 0.28 0.42 1,100,000 0.89 0.89 0.93 0.80 0.70 0.87 0.82 0.31 0.46 1,300,000 0.91 0.91 0.94 0.81 0.71 0.85 0.83 0.36 0.51 1,400,000 0.92 0.92 0.94 0.82 0.72 0.85 0.83 0.38 0.53 1,500,000 0.92 0.92 0.95 0.82 0.72 0.84 0.84 0.40 0.55 1,600,000 0.93 0.93 0.95 0.83 0.73 0.84 0.84 0.42 0.57 3,000,000 0.96 0.96 0.97 0.85 0.75 0.81 0.88 0.59 0.70 6,000,000 0.98 0.98 0.99 0.86 0.77 0.80 0.90 0.78 0.82 12,000,000 0.99 1.05 0.99 0.87 0.77 0.79 0.91 0.86 0.88 Suits Index 0.503 0.547 0.461 0.463 0.472 0.448 0.448 0.654 0.653 a/ Assumes representative individual income taxpayer is o ne who receives 100% of his income from wages. b/ Assumes representative individual taxpayer is a mized income earner, 63.6% of whose income comes from wages and 36.4% from entrepreneuria Author's estimates

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• SB 716 – lowest revenue loss (PhP 52 billion or 0.4% of GDP)
• HB 5401 – highest revenue loss (PhP 232 billion or 1.8% of GDP);

revenue loss equal to 86% of actual PIT revenues in 2014

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SB 716 SB 1942 SB 2149 Year 1 SB 2149 Year 2 SB 2149 Year 3 HB 4829 HB 5401 TMAP 2012 (in million pesos) (43,884) (60,098) 8,810 (16,661) (51,974) (110,025) (196,235) (188,318) % of GDP (0.42) (0.57) 0.08 (0.16) (0.49) (1.04) (1.86) (1.78) 2014 (in million pesos) (51,909) (71,089) 10,425 (19,703) (61,473) (130,047) (232,116) (222,755) % of GDP (0.41) (0.56) 0.08 (0.16) (0.49) (1.03) (1.836) (1.762)

Author's estimates

Estimated revenue loss due to various proposals

SLIDE 20

Overview of presentation

Rationale of proposals to reform personal income tax legislation

• Bracket creep
• High tax burden in Philippines relative to ASEAN

Alternative proposals Impact of proposals

• Progressivity
• Government revenues

Conclusion/ recommendations

20

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Fiscal responsibility principle

 To help ensure fiscal sustainability – every new revenue or new expenditure measure should neutral implications on overall fiscal position of government  Projected revenue loss from various proposals best seen in context of government’s overall revenue/ tax effort and unmet needs in terms of basic social services and basic infrastructure

21

SLIDE 22

• 1.4 percentage points improvement in NG tax-to-GDP ratio between

2009 and 2014, but ….

• 2014 level (13.6% of GDP) still well below peak level in 1997 (15.3% of

GDP)

22

Total NG revenues and total NG tax revenues as % of GDP

17.1 17.1 17.5 15.7 14.7 14.4 14.6 13.8 14.1 13.8 14.4 15.6 16.5 15.6 14.0 13.4 14.0 14.5 14.9 15.1 14.7 15.3 15.3 14.1 13.3 12.8 12.7 12.1 12.1 11.8 12.4 13.7 13.5 13.6 12.2 12.1 12.4 12.9 13.3 13.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 % to GDP Total revenues Tax revenues

SLIDE 23

• 0.5 percentage point improvement in personal income tax revenue-to-

GDP ratio between 2009 and 2014, but ….

• 2014 level (2.1% of GDP) still well below peak level in 2006 (2.7% of

GDP)

• About 75% of improvement in PIT revenue-to-GDP ratio due to

improvement in collection efficiency

23

Personal income tax revenues as % of GDP

2.1 2.2 2.2 2.3 2.5 2.7 2.7 1.9 1.6 1.8 1.9 2.0 2.0 2.1 1.8 1.9 1.9 2.0 2.1 2.2 2.4 1.6 1.4 1.5 1.6 1.7 1.7 1.8 0.3 0.3 0.3 0.3 0.4 0.4 0.3 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.0 0.5 1.0 1.5 2.0 2.5 3.0 % of GDP Personal income tax wage non-wage

SLIDE 24

Need for compensatory revenue measures

 One can argue that estimate revenue loss from SB 716 should not be perceived as “revenue loss” and there is need no compensatory measure because these are revenues that should not have been collected anyway  Definitely need compensatory measures to recover revenue loss due to other proposals

24

SLIDE 25

Alternative compensatory revenue measures

 VAT – 1 percentage point in VAT rate equivalent to PhP 26.25 billion in revenue given current collection efficiency  Excise tax on sugar-sweetened beverages – estimated PhP 30 billion revenue gain from current proposals already filed in Congress  Additional variable excise tax on petroleum products  Increase in MVUC  Repeal of bank secrecy law

25

SLIDE 26

Alternative compensatory revenue measures

 VAT – 1 percentage point in VAT rate equivalent to PhP 26.25 billion in revenue given current collection efficiency  Excise tax on sugar-sweetened beverages – estimated PhP 30 billion revenue gain from current proposals already filed in Congress  Additional variable excise tax on petroleum products  Increase in MVUC  Repeal of bank secrecy law

26

SLIDE 27

Alternative compensatory revenue measures

 There is a concern that applying SB 716 and increasing VAT rate by 2 percentage points will hurt the poor

27

SLIDE 28

• Impact of

simultaneously applying SB 716 & increasing VAT rate by 2% on combined tax liability – positive for taxable income levels below PhP 30,000 and above PhP 3 million

• If one reduces

bottom PIT rate from 5% to 2.5%, combined tax liability of taxpayers with taxable income levels below PhP 30,000 will be reduced as well

28

Existing SB 716 orig SB 716 adj SB 716 orig SB 716 adj incl of 12% VAT incl of 14% VAT incl of 14% VAT Less Existing incl of VAT Less Existing incl of VAT col 1 col 2 col 3 col 4 col 5 col 4 - col 3 col 5 - col 3 Tax liability( in pesos) 9,000 450 450 1,476 1,647 1,454 171

• 22

12,000 700 600 2,056 2,196 1,938 140

• 118

15,000 1,000 750 2,680 2,745 2,423 65

• 258

16,000 1,100 800 2,888 2,928 2,584 40

• 304

17,000 1,200 850 3,096 3,111 2,746 15

• 351

18,000 1,300 900 3,304 3,294 2,907

• 10
• 397

20,000 1,500 1,000 3,720 3,660 3,230

• 60
• 490

25,000 2,000 1,500 4,760 4,790 4,360 30

• 400

30,000 2,500 2,000 5,800 5,920 5,490 120

• 310

35,000 3,250 2,500 7,060 7,050 6,620

• 10
• 440

40,000 4,000 3,000 8,320 8,180 7,750

• 140
• 570

70,000 8,500 6,500 15,880 15,390 14,960

• 490
• 920

95,000 13,500 10,250 23,280 22,115 21,685

• 1,165
• 1,595

100,000 14,500 11,000 24,760 23,460 23,030

• 1,300
• 1,730

150,000 25,000 19,000 40,000 37,340 36,910

• 2,660
• 3,090

180,000 32,500 25,000 50,200 46,700 46,270

• 3,500
• 3,930

210,000 40,000 31,000 60,400 56,060 55,630

• 4,340
• 4,770

250,000 50,000 39,000 74,000 68,540 68,110

• 5,460
• 5,890

300,000 65,000 50,000 93,200 85,000 84,570

• 8,200
• 8,630

350,000 80,000 62,500 112,400 102,750 102,320

• 9,650
• 10,080

390,000 92,000 72,500 127,760 116,950 116,520

• 10,810
• 11,240

400,000 95,000 75,000 131,600 120,500 120,070

• 11,100
• 11,530

525,000 141,000 115,000 187,080 172,400 171,970

• 14,680
• 15,110

600,000 157,000 130,000 210,160 195,800 195,370

• 14,360
• 14,790

700,000 189,000 160,000 250,320 235,600 235,170

• 14,720
• 15,150

800,000 221,000 190,000 290,480 275,400 274,970

• 15,080
• 15,510

900,000 253,000 220,000 330,640 315,200 314,770

• 15,440
• 15,870

1,000,000 285,000 250,000 370,800 355,000 354,570

• 15,800
• 16,230

1,100,000 317,000 282,000 410,960 396,520 396,090

• 14,440
• 14,870

1,300,000 381,000 346,000 491,280 479,560 479,130

• 11,720
• 12,150

1,400,000 413,000 378,000 531,440 521,080 520,650

• 10,360
• 10,790

1,500,000 445,000 410,000 571,600 562,600 562,170

• 9,000
• 9,430

1,600,000 477,000 442,000 611,760 604,120 603,690

• 7,640
• 8,070

3,000,000 925,000 890,000 1,174,000 1,185,400 1,184,970 11,400 10,970 6,000,000 1,885,000 1,850,000 2,378,800 2,431,000 2,430,570 52,200 51,770 12,000,000 3,805,000 3,770,000 4,788,400 4,922,200 4,921,770 133,800 133,370

Author's estimates

Selected taxable income levels Existing schedule SB 716 orig

SLIDE 29

Philippi ppine I ne Institut ute f for Devel velopmen pment S t Studi udies

Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas

Service through policy research

29

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