2018 Revised Tax Table based on TRAIN

A good beginning for 2018 that will have more benefit on all employees earning P20,000 and less is the revised withholding tax table based on the TRAIN which Digong signed before 2017 ended. I said "more" because they will not have anymore taxes, but still it benefits ALL employees. Tax rates and prescribed minimum withholding tax were lowered while the compensation level were increased.

As I was recomputing our employees' 2018 annual compensation withholding taxes, I see a significant increase in their salaries. The range was like P3000-P8000 increase in their take home pay. For some it could cover already their electricity bill, water bill and even groceries.

I want to thank whoever authored this bill, but sad to say there is a consequence on this reform. We may have increased net pay but the government will just have to divert taxes from compensation to consumer taxes like excise taxes. This would mean higher costs of items in the groceries, higher gas price which could lead to an increase in transportation fare.

But hey, I am still thankful for the increased net pay. I will just have to find a way to lessen our overhead expenses at home so that I could fully enjoy the benefits of TRAIN. For your reference please be guided by the 2018 revised tax table below: