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Bill or law · Philippines

House Bill No. 8860: An Act establishing a more progressive and targeted tax system by increasing income tax exemptions and imposing solidarity wealth tax and windfall profits tax (PATAS Act)

Pending

A tax-reform package that raises the income tax exemption to PHP 600,000, adds a windfall profits tax on oil, gas and electricity companies, and imposes an annual Solidarity Wealth Tax of 1% to 3% on net worth of PHP 1 billion and above.

Overview

The PATAS Act (Patas na Ambag sa Tax para sa Angat-Sahod) was filed on 14 April 2026 by Representative Raymond Mendoza of the TUCP party-list. It was referred to the Committee on Ways and Means on 4 May 2026, where the House's tracking page still shows it. The bill has three parts, and only one is a wealth tax; the register lists it for that part.

The wealth tax is a new Section 27 of the tax code, the Solidarity Wealth Tax, an annual tax on every individual whose net worth is at least PHP 1 billion. Net worth is the fair market value of all real or personal, tangible or intangible assets wherever situated, owned directly or indirectly, less liabilities, at 31 December. Assets held through companies, partnerships, trusts or similar arrangements are attributed to the beneficial owner. The schedule is 1% on net worth from PHP 1 billion up to PHP 2 billion, 2% over PHP 2 billion up to PHP 3 billion and 3% over PHP 3 billion; the text does not say whether each rate applies only to the slice within its band. The return is due on 15 April of the following year. The Secretary of Finance, on the Commissioner of Internal Revenue's recommendation, sets uniform valuation standards, audit procedures and anti-avoidance rules. The bill does not earmark the revenue.

The other two parts are an income tax cut and a windfall tax. The income tax exemption rises to PHP 600,000 a year, with new brackets at 15% from PHP 600,000, 20% from PHP 850,000, 25% from PHP 1.5 million, 30% from PHP 3.4 million and 35% above PHP 13 million; the tax-exempt ceiling on 13th-month pay and other benefits rises from PHP 90,000 to PHP 250,000; and holiday, overtime, night-shift and hazard pay and service charges are exempt. The windfall profits tax covers oil, gas and petroleum companies and electric power generation, transmission and distribution, and taxes profit above the lower of the three-year average taxable income and a 12% rate of return, at 15% on profit up to 20% above that threshold, 25% from 20% to 50% above, and 35% beyond.

The explanatory note says the wealth tax offsets the income tax revenue loss. It cites 15 Filipino billionaires on the Forbes 2026 list with combined net worth of USD 44.5 billion, about PHP 2.49 trillion, the IBON Foundation's estimate that a wealth tax on 3,000 billionaires could raise at least PHP 500 billion a year, and a study by the UP Center for Integrative and Development Studies that calls a wealth tax feasible and not double taxation.

Written from the records and links on this page.

On the record 1

Statements, votes and sponsorships in the register whose source is this bill or one of its documents: 1 sponsorship.

Official documents 1

From the records tracker for Philippines: the bill, its debates, votes and committee reports, and whether each has been read in full.

People in the register 1

Sponsors and signatories who are on a register, each with the statement they rest on.