TRAIN Law

TRAIN stands for

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. ________ shall be known as the Tax Reform for Acceleration and Inclusion.

_________ 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.