TRAIN Law

TRAIN stands for

(a)  

On ___________, President Duterte signed into law Package 1 of the Comprehensive Tax Reform Program (CTRP) also known as the Tax Reform for Acceleration and Inclusion (TRAIN).

• December 17, 2019

• December 19, 2017

• December 17, 2018

• December 19, 2019

TRAIN Law took effect on _____________.

• January 1, 2018

• January 7, 2019

• January 1, 2019

• January 7, 2018

The objectives of TRAIN Law are_______: Select all that apply.

• To make the Philippine tax system simpler, fairer, and more efficient to promote investments, create jobs and reduce poverty.

• To raise revenues that will fund the president’s build, build, build project that will sustain high and inclusive growth of the country.

• To promote the general welfare of the people.

• To take private property for public use by paying just compensation.

• Finance investments in our people through enhanced education, health and social services.

Republic Act No. (a)   shall be known as the Tax Reform for Acceleration and Inclusion.

(a)   refers to gross income less deductions.

Compensation income earners are

• Individual whose source of income is purely derived from employer-employee relationship.

• Individual earned income from self employment – job order, practice of profession and not under employer-employee relationship.

• Combination of minimum wage earner and self-employed.

• Paid with equal or not more than the statutory minimum wage rates.

Mr. Juan dela Cruz, a minimum wage earner, earning P150,000 a year. Is Mr, Crux exempt from income tax? Choose the best answer.

• No, because he earned an income of P150,000.

• Yes, because he is considered minimum wage earner.

• No, because he is required to file income tax return.

• Yes, because his income is below P250,000.

Which of the following individual most likely will pay high income tax?

• Taxable income of P1,850,000 by Mrs. Cabasag, a solo parent with one daughter.

• Taxable income of P2,000,000 by Mrs. Ondoy, a married individual, with four children.

• Taxable income of 1,950,000 by Ms. Amelo, single.

• Taxable income of P1,900,000 by Mr. Mechael, married with six children.

Which of the following is not required to file income tax return?

• Individual deriving compensation from two or more employers.

• Individual whose taxable income does not exceed P250,000.

• Employees deriving compensation income, regardless of amount, whether from single or several employers, the income tax has not been withheld correctly.

• Individuals receiving purely compensation income from single employer, although the income tax has been correctly withheld, but whose spouse is required to file income tax return.