National Internal Revenue Code (Tax Code)

## National Internal Revenue Code (R.A. No. 8424, as amended by TRAIN & CREATE)

### Income tax - **Sec. 24.** Individuals: graduated rates up to 35%; **Sec. 24(A)(2).** Compensation income under TRAIN (R.A. 10963): 0%–35% bracket, e.g. annual taxable income over P8M taxed at 35%. - **Sec. 27(A).** Domestic corporations: 25% regular corporate income tax; **CREATE Act (R.A. 11534, 2021)**: 20% for domestic corporations with net taxable income not exceeding P5M and total assets (excluding land) not exceeding P100M; 25% otherwise. - **Sec. 22(S).** Gross income defined.

### Value-added tax - **Sec. 105.** VAT on sale of goods/properties and services at **12%** on gross selling price/receipts; threshold for mandatory registration: gross sales/receipts exceeding **P3,000,000** per year (Sec. 109).

### Withholding tax - **Sec. 78–82.** Withholding on compensation and creditable withholding tax system.

### Admin & remedies - **Sec. 228.** A taxpayer may protest a BIR assessment within **30 days** from receipt of the assessment notice (administrative protest), and appeal to the **Court of Tax Appeals** within **30 days** from receipt of the BIR's decision or from lapse of the 180-day period (Sec. 229).

### Enforcement The Bureau of Internal Revenue (BIR) administers the NIRC under the Department of Finance.