Let's Get on the TRAIN

 

The Bureau of Internal Revenue (BIR) issued a tax advisory dated 31 January 2018, in connection with the amendment of Sections 25(B), 25(C), 25(D), and 25(E) of the National Internal Revenue Code by Republic Act No. 10963 (TRAIN Act.)

The BIR said that all employees of Regional Headquarters (RHQ) and Regional Operating Headquarters (ROHQ) of multinational companies, Offshore Banking Units, and Petroleum Service Contractors and subcontractors, who are enjoying preferential tax treatment prior to 2018, are now subject to regular income tax rates. Thus, the withholding taxes on compensation of these employees shall be enforced based on the withholding tax table per Revenue Memorandum Circular No. 01-2018 dated 04 January 2018.

 

Attached is the copy of the tax advisory for your reference.

Tax Advisory on ROHQ Employees

 

DISCLAIMER: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although R.G. Manabat & Co. endeavors to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

For any queries, you may contact any member of the InTAX Editorial Board or send your questions to ph-inquiry@kpmg.com.