New Tax for Cars Signed into Law

+1
+1
+1
+1
+1
+1

tax rates cars philippines • New Tax for Cars Signed into Law

The new tax reform bill has been signed by President Duterte today. The TRAIN, as it is commonly referred to, has adjusted taxes on several categories including a tax exemption on all personal income tax below Php250,000 (annually).

Likewise, automobiles will have a new or simpler tax structure. For cars, the new tax scheme is as follows:

Net Manufacturer’s / Importer’s Price
Up to P600,000 == 4%
P600,000 to 1,000,000 == 10%
P1,000,000 to 4,000,000 == 20%
Above P4,000,000 == 50%

See also  LOOK: LTFRB's design of TNVs' stickers

Take note that these are based on Net Manufacturer’s Price or Importers Price.

Here’s a comparison table between the old and the new tax scheme.

car tax rates • New Tax for Cars Signed into Law

Let’s do some examples.

Importer’s Price: Php600,000
Base Price (Old Tax): Php612,000
Base Price (New Tax): Php624,000

Importer’s Price: Php800,000
Base Price (Old Tax): Php852,000
Base Price (New Tax): Php880,000

Importer’s Price: Php1,00,000
Base Price (Old Tax): Php1,092,000
Base Price (New Tax): Php1,100,000

Importer’s Price: Php1,500,000
Base Price (Old Tax): Php1,772,000
Base Price (New Tax): Php1,800,000

See also  Grab Philippines denies Micab's 'Phantom Booking' claims

Importer’s Price: Php2,500,000
Base Price (Old Tax): Php3,252,000
Base Price (New Tax): Php3,000,000

Importer’s Price: Php3,000,000
Base Price (Old Tax): Php4,052,000
Base Price (New Tax): Php3,600,000

Importer’s Price: Php4,000,000
Base Price (Old Tax): Php5,652,000
Base Price (New Tax): Php4,800,000

Importer’s Price: Php5,000,000
Base Price (Old Tax): Php7,252,000
Base Price (New Tax): Php6,000,000

With the Base Price, the dealers will still have to add their gross profit margins as well before we end up with the final selling price.

yuga
4.9 1 vote
Article Rating
Subscribe
Notify of
guest
4 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
4
0
Would love your thoughts, please comment.x
()
x
YugaAuto: Automotive News & Reviews in the Philippines
Logo