#AskTheTaxWhiz: What are the new alphanumeric tax codes under TRAIN?

Mon Abrea
#AskTheTaxWhiz: What are the new alphanumeric tax codes under TRAIN?
The Philippine Tax Whiz consolidates all the new alphanumeric tax codes (ATCs) under the Tax Reform for Acceleration and Inclusion law

What are alphanumeric tax codes? Is there an alphanumeric tax code for all types of taxes?

Alphanumeric tax codes (ATCs) signify the type of tax that you have to pay. ATCs are indicated in tax returns, representing the actual rate and type of tax to be paid.

But they are not just limited to the different types of taxes. They may also differ based on who’s paying the taxes, when it’s being paid, and even how much the taxpayer is earning.

For expanded withholding tax alone, there are over 40 ATCs that taxpayers have to choose from.

All tax payments have ATCs, and that means changes to tax policies and regulations could affect existing ATCs.

A notable example is the Tax Reform for Acceleration and Inclusion (TRAIN) law, which has imposed new taxes and amended several existing rates. With this reform comes more ATCs for taxpayers to keep in mind.

What are the ATCs for the new taxes implemented by TRAIN law? Where can I find them?

Just like the regulations for the implementation of TRAIN, the new ATCs have been issued piecemeal throughout the year. For easy reference, here is a summary of all the new ATCs issued to date:

For simple changes in rates, the ATCs remain the same (for instance, documentary stamp tax and graduated income tax).

Of course, taxpayers need only remember the types of taxes relevant to them. With regular usage, longtime taxpayers eventually remember the ATCs they need. However, for startups and aspiring entrepreneurs, this may prove to be a daunting task.

Keeping this checklist around should prove an easy reference for inexperienced taxpayers. Attending tax seminars should also help taxpayers learn about these regulations. However, these seminars often resemble one-way lectures than two-way discussions. For taxpayers who want to have their questions answered, more exclusive tax coaching would be better suited.

The Asian Consulting Group (ACG) provides guidance to taxpayers, from simple compliance to complex preparations for the Bureau of Internal Revenue (BIR) audit. As the Philippines’ first Tax Hub, ACG conducts regular tax seminars, tax briefings, and tax consultations. To learn more about how ACG can help you, you may reach us here or via (02) 622-7720. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) as well as the Center for Strategic Reforms of the Philippines (CSR Philippines). You may email him at consult@acg.ph or visit www.acg.ph for tax-related concerns.

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