The SAP ERP Financials, country version for Philippines, is part of the SAP ERP standard country version.
News and New developments for Philippines
- Tax Reform for Acceleration and Inclusion (TRAIN) has been published on 29 December 2017. Under Republic Act 10963, non-taxable individual income is P250,000 and the maximum rate of 35% is applicable on income over P8,000,000. Tax exemption of 13th month pay and other bonuses increased the cap to P90,000. Deduction of P2,400 per year or P200 per month worth of premium payments on health and/or hospitalization of an individual taxpayer will be removed from January 1, 2018.
Personal and additional exemptions are also removed from January 1, 2018. The changes on Revised Withholding Tax table takes effect on January 1, 2018.
Business Background/Impact
This change is effective on 1 January 2018. We recommend you to apply SAP notes (2581184, 2584539, and 2585672) or corresponding support package to include these changes before payroll processing.
Reference
SENATE S.B. No. 1592, Republic Act 10963: Revised Withholding Tax Table
Solution
Under Republic Act 10963, non-taxable individual income is P250,000 and the maximum rate of 35% is applicable on income over P8,000,000. Tax exemption of 13th month pay and other bonuses increased the cap to P90,000. Deduction of P2,400 per year or P200 per month worth of premium payments on health and/or hospitalization of an individual taxpayer will be removed from January 1, 2018. Personal and additional exemptions are also removed from January 1, 2018. The changes on Revised Withholding Tax table takes effect on January 1, 2018. To meet these changes, a new tax status 'TRN' (Tax status for tax reform 2018) has been delivered. All previous tax status (HF, HF1, HF2..etc.) will be deemed to be tax status 'TRN' from Jan. 1st 2018.
For more details, please refer to SAP Notes 2581184, 2584539, and 2585672.
Highlights of the country version for Philippines
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