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    Date: 2022-08-24 04:38:49.740882

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    Date: 2022-08-25 15:06:33.364051

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Train Law

Requested from BIR by R. Guballa at 04:38 AM on Aug 24, 2022.
Purpose: Personal
Date of Coverage: 08/23/2022 - 08/24/2022
Tracking no: #BIR-357571434310

Guballa 04:38 AM, Aug 24, 2022 

Moreover,  if gross sales/receipts and other non-operating income from business or practice of profession do not exceed the VAT, the individual has the option to be taxed at:
a.	Graduated income tax rates (page 4 of BIR Form 1701) (Illustration 7.b)
b.	Eight percent (8%) income tax rate based on gross sales/receipts and other non-operating income in lieu of the graduated income tax rates and percentage tax. (Illustration 7.a)
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Does this apply both for my full time job and part time? Thank you

Du 03:06 PM, Aug 25, 2022 

August 25, 2022

Dear Ralph Marlon Guballa:

Greetings!

Thank you for your request dated Aug 24, 2022 04:38:49 AM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.

Your Request

You asked for Train Law, if gross sales/receipts and other non-operating income from business or practice of profession do not exceed the VAT.

Response to Request

In reply, if your income is from self-employment, whether full-time or part-time, and such income do not exceed the VAT threshold of 3M, you have the option to be taxed at the graduated rates or the 8% income tax rate based on gross sales/receipts as indicated in Section 3(D) of Revenue Regulations 8-2018.
However, if you are a mixed income earner with income both from compensation as employee and from business/practice of profession as self-employed, income from compensation shall be taxed at the graduated rates (page 2 of BIR Form 1700). Please refer to BIR Form 1701 for the computation of tax due for income from compensation and income from self-employment.

Thank you.

Respectfully,

Sherry Ann Cuyos
FOI Receiving Officer

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