Taxpayers Who Are Not Qualified Of The 8% Income Tax Rate

Do you consider to avail of the 8% Income Tax rate? If not, taxpayers may consider of the following individuals who are not qualified to avail of the 8% Income Tax Rate as follows:

1. Purely compensation income earners;

2. VAT-registered taxpayers, regardless of the amount of gross sales/receipts and other non-operating income;

3. Non-VAT taxpayers whose gross sales/receipts and other non-operating income exceeded the P3,000,000.00 VAT threshold;

4. Taxpayers who are subject to Other Percentage Taxes under Title V of the Tax Code, as amended, except those under Section 116 of the same title;

5. Partners of  a General Professional Partnership (GPP) since their distributive share from the GPP is already net of costs and expenses; and

6. Individuals enjoying income tax exemption such as those registered under the Barangay Micro Business Enterprises (BMBEs), etc., since taxpayers are not allowed to avail of double or multiple tax exemptions under different laws, unless specifically provided by law.

The above mentioned is stated in Revenue Memorandum Circular (RMC) No. 50-2018 that clarifies certain provisions of Revenue Regulations (RR) Nos. 8-2018 and 11-2018 Implementing the Income Tax Provisions of Republic Act (R. A.) No. 10963, Otherwise Known as the "Tax Reform for Acceleration and Inclusion (TRAIN)" Act.