How to Compute Income Taxes in the Philippines (using old BIR Tax Rates)



Year after year, April 15 is a date millions of Filipinos dread. It is because this date is the annual deadline to file income tax returns.

If you’re able to make your own Income Tax Return (ITR) because you fully understand taxation laws, then good for you. But for the majority of us who still rely on accountants or our companies to prepare our ITRs, here’s a simple and concise explanation of the income tax law in the Philippines.


(UPDATE): The income tax rates below have been replaced by the new tax rates under the approved TRAIN Tax Reform of 2018.


Who are required to file Income Tax Returns (ITR)?

According to the Bureau of Internal Revenue (BIR), the following people are required to submit Income Tax Returns:

  • Filipino citizens residing in the Philippines receiving income from sources within or outside the Philippines
  • Filipino citizens not residing in the Philippines receiving income from sources within the Philippines
  • Resident or non-resident aliens receiving income from sources within the Philippines
  • Domestic corporations receiving income from sources within and outside the Philippines
  • Foreign corporations receiving income from sources within the Philippines
  • Taxable partnerships
  • Estates and trusts engaged in trade or business

As you can see, almost everyone who makes money is required to file and pay income tax.

What is Taxable Income?

Taxable income is the amount of gross income received by the taxpayer minus any deductions and/or personal and additional exemptions, as authorized by the Tax Code or other special laws.

Gross income means all income derived from whatever source. It includes, but is not limited to, Compensation for services, in whatever form paid; Gross income derived from the conduct of trade or business or the exercise of profession; Gains derived from dealings in propert; Interest; Rents; Royalties; Dividends; Annuities; Prizes and winnings; Pensions; and Partner’s distributive share from the net income of the general professional partnerships.

Exclusions from Gross Income include Life insurance; Amount received by insured as return of premiu; Gifts, bequests and devise; Compensation for injuries or sickness; Income exempt under treaty; Retirement benefits, pensions, gratuities, etc; Miscellaneous item; income derived by foreign government; income derived by the government or its political subdivision; prizes and awards in sport competition; prizes and awards which met the conditions set in the Tax Code; 13th month pay and other benefits; GSIS, SSS, Medicare and other contributions; gain from the sale of bonds, debentures or other certificate of indebtedness; and gain from redemption of shares in mutual fund.

What are allowable deductions from gross income?

Except for taxpayers earning compensation income arising from personal services rendered under an employer-employee relationships, a taxpayer may opt to avail either of the following allowable deductions from gross income:

  • Optional Standard Deduction – an amount not exceeding 40% of the net sales for individuals and gross income for corporations; or
  • Itemized Deductions – which include the following:  Expenses; Interest; Taxes; Losses; Bad Debts; Depreciation; Depletion of Oil and Gas Wells and Mines; Charitable Contributions and Other Contributions; Research and Development; and Pension Trusts

A maximum of P2,400 premium payments on health and/or hospitalization insurance may also be claimed as deduction, provided the annual family gross income is not be more than P250,000 and for married individuals, the spouse claiming this deduction is the one claiming additional exemptions for the qualified dependents.

What are allowable personal and additional exemptions?

Individuals who are earning compensation income, engaged in business or deriving income from the practice of profession are entitled to the following Personal Exemptions:

  • For single individual or married individual judicially decreed as legally separated with no qualified dependents – P50,000
  • For head of family – P50,000
  • For each married individual – P50,000 (to be claimed only by the spouse deriving gross income)

Taxpayers may also claim an Additional Exemption of P25,000 for each qualified dependents, up to four (4) dependents.

How is income tax payable computed?

The formula to compute the income tax payable is:

  • Gross Income
  • Less: Allowable Deductions (Itemized or Optional)
  • Net Income
  • Less: Personal & Additional Exemptions
  • Net Taxable Income
  • Applicable Tax Rate (see Tax Rate Table below)
  • Income Tax Due
  • Less: Tax Withheld
  • Income Tax Payable

What are the Income Tax Rates in the Philippines?

For individuals earning purely compensation income and those engaged in business and practice of profession, the applicable income tax table is as follows:

[TABLE=79]

For domestic corporations, the corporate tax rate is 30% of the Net taxable income from all sources starting January 1, 2009.

For proprietary educational institutions and non-stock, non-profit hospitals, the tax rate is 10% of the Net taxable income, provided that the gross income from unrelated trade, business or other activity does not exceed 50% of the total gross income.

For GOCCs, agencies & instrumentalities, the tax rate is 32% of the Net taxable income from all sources.

For all taxable partnerships, the tax rate is also 32% of the Net taxable income from all sources.

International Carriers are taxed 2.5% on their Gross Philippine Billings.

For Regional Operating Headquarters (ROHQ), the tax rate is 10% of Taxable Income.

UPDATE: The income tax rates below have been replaced by the new tax rates under the approved TRAIN Tax Reform of 2018. See the revised tax rates here: New BIR Income Tax Rates and Income Tax Tables under TRAIN

133 thoughts on “How to Compute Income Taxes in the Philippines (using old BIR Tax Rates)”

      1. As a freelancer myself, I stumbled upon this issue.

        thefreelancepinoy.com/freelancing-tips/5-good-reasons-why-pinoy-freelancers-should-pay-taxes

        1. Freelancers are required to pay taxes kahit wala silang benefits na tulad ng sa mga regular worker tulad ng 13th month pay at damages kapag nawalan na ng trabaho na ifre-freelance. Sobrang unfair, hindi ba? Bayad ka ng bayad ng tax pero hindi ka naman kasama sa benefits at ANYTIME ay pwede ka mawalan ng trabaho. Sobrang anytime, pwede bukas o sa makalawa.

    1. Hi Chris,

      You should look at this:
      thefreelancepinoy.com/freelancing-tips/taxes-for-pinoy-freelancers-bir-requirements-and-registration
      Then this:
      thefreelancepinoy.com/getting-paid/freelancers-how-to-file-taxes-bir

      It’s a good guide for freelancers looking to do the right thing regarding paying taxes.

  1. is this the latest rule in exemptions? i am a single parent with one qualified dependent but our company put me in the head of the family category with no dependent. can i have a retro??

  2. 30 %  – private hospitals , stock corp
    10%   – not for profit hospitals, stock corp
    0%     – not for profit hospitals, non- stock corp
    are these correct?

  3. Ask lang po wala po ba kayong pwedeng pagkunan ng income. Kasi sa bago nyong tax scheme pati yung mga dating non taxable benefits ay gusto pa ninyong kunin.

    Talaga bang hindi makatao si kim henares o nagpapasikat lang kay PNoy.
    Binabalewala ninyo ang hanay ng manggagawa. Eh ito ang nagbibigay buhay sa bansa.
    Gumising naman Kayo!!!!

  4. ano ba yan kung magkakaincrease ka this year for example from 29000 pesos to
    31000 parang lugi ka pa sa tax!! pambihira buti sana kung nakikita lahat ng binabayaran mo!

    1. No, hindi ka gaano lugi sa tax kasi hindi siya straight up 10% to 15%. Assuming that 29000 and 31000 is the the taxable income (nabawas na yung sss, philhealth, etc), your tax would be:
      29000: 2400 (500 + ((29000 – 10000) * 0.10))
      31000: 2650 (2500 + ((31000 – 30000) * 0.15))

  5. Hi, I was wondering if benefits that are given to parents (like medical, dental etc) in the form of reimbursements are taxable? I can’t seem to find anything related to that. Thanks in advance.

  6. Dear Fellow Countrymen,

    I NEED YOUR KIND HELP!

    I am a Filipino student from National Cheng Kung University in Taiwan and I am currently looking for current users of the eFPS or the online tax filing system of BIR. If you are a user of eFPS, I would like to ask for your precious time to be my respondent by answering my survey questionnaire. This would help a lot for my study to be robust, for BIR to improve the system and for me to graduate on time. 🙂

    If you’re not a user, I know you are kind enough also to help me forward this to users of the eFPS

    Here’s the link to the survey:
    https://docs.google.com/spreadsheet/viewform?formkey=dHhqQmI0WFFyQnVaVUZWS0tSbTJkaVE6MQ#gid=0 

    I know I’m asking too much for a favor but I really highly appreciate your sincere participation. If you have questions don’t hesitate to email me on birtaxpayer2012@gmail.com

  7. grabe kung resident citizen ka ng pilipinas and negosyante ka mag babayad ka ng tax plus kapag may negosyo kapa sa ibang bansa kasali yun sa ita tax ng bir sa mga negosyante considered nila yan na income mo sa ibang bansa na kasali sa income mo d2 sa Pilipinas kaya tawag dyan double taxation

    1. you’re wrong sir…having your income within and without the Philippines
      does not result to double taxation when you are a resident citizen..read your book first^^,

    2. hahahaha try reading conceptual books about double taxation…there’s a lot to be considered para matawag n “double taxation”

  8. ask ko lang po kung paano isasama sa gross income yung income partly from abroad and partly in philippines i mean san po sya isasama sa philippines or abroad?

  9. mary grace cosmo

    ask q lang poh kung talaga po bang may tax ang RIZAL PROVINCE kahit private sector???? kase kinaltasan poh kmi ng TAX monthly….

  10. Sir tanong ko po kasi kinakaltasan po ako ng witholding tax every end of the month amounted to PHP500. Ang daily rate ko po ay 353.86 at may dependent pa po ako. Sir di po ba ang annual income ko ay below sa bracket ng taxable income ng BIR.

  11. pano po un, ung kasama ko s trabaho ay minimum ang sweldo, wala sys tax,, ako mataas lng ng 3 pesos ay may tax pati OT ko, samantalang ung OT nya wala kaya mas malaki p sweldo nya kaysa sakem.

  12. pano kung ung income for 2011 eh 2012 ko na na receive, included po ba un sa taxable income ng 2012, delayed po kasi ang sweldo pag new employee sa govt agency.

  13. Ang liit naman ng 50,000 na tax deduction per dependent. Hindi lang naman 50,000 ang gastos sa pagkain at paaral sa mga dependents sa isang taon. Sa mahal ba naman ng tuition ngayon. At isa pa, kahit doon sa pagkain na binibili nagbabayad din naman tayo ng 12% Value Added Tax. Sana taasan naman kahit paano ang deduction. Masyadong masakit. Masyadong mahirap mabuhay sa Pilipinas. Tapos makikita mo yun mga politiko kaliwa’t kanan ang mistress at mansyon. Wag naman sana ganyan. Sobrang sampal naman saming mga middle-income business owners.

  14. Sir, ask ko lng po kasi kinakaltasan po ko ng witholding tax every end of the month. ang daily rate ko is Php 340, di po ba ang annual income ay below s bracket ng taxable income ng BIR . no work no pay….

    1. Tax exempt ang minimum wage earners (mwe). Alamin mo sa DOLE kung magkano ang minimum wage sa place of work mo. Kung nasa minimum ka dapat wala kang tax. Nalito lang ako sa no work no pay sa sinabi mo. Regular kb? O nasa job order o contractual status?

  15. Sir, my husband is an OFW, so he is exempt from taxes. Can I claim the additional tax exemptions for our children? How do we execute the waiver when he’s not here to sign it and does he need his overseas employer to acknowledge said waiver? Hope you could enlighten us. Thank you very much!

    1. Hello. I suggest na update mo ang status mo (submit form 2305) to claim for additonal exemption. Attach the soppurting document “CERTIFICATE OF EMPLOYMENT OF YOUR HUSBAND THAT HE IS WORKING ABROAD”. 🙂

      1. I didn’t tell you all the details, I apologize. I already have Form 2305 but our Accounting Dept wants my husband to execute a waiver. Is that still required of OFWs?

        1. As a general rule, the husband claims the additional exemptions for dependent children. In case the wife will claim for the additional exemption, an execution of waiver of the husband will be required. The purpose of the waiver is to prevent both sides to claim for the additional exemption. The fact that your husband is working abroad, this is
          valid enough and will automatically give the wife the privilege to claim for the additional exemption. CERTIFICATE OF EMPLOYMENT of your husband is the applicable attachment or supporting document for your application (Revenue Regulation No. 10-2008 Sec. 4.A.6.c). For your ease, better contact the BIR office (be reminded that even bir office/employees sometimes conflict w/ their interpretations).

  16. James Bryan Soliman

    Hi, I am a monthly employee, so my withholding tax is based on the monthly bracket. My question is this, does the 13th month pay (above the 30,000 limit) form part of the TOTAL GROSS TAXABLE INCOME to compute my REGULAR PAYROLL? Note that when I received my 13th month, prior the regular payroll, it was already taxed. However, our HR added my 13th month Taxable income to my base salary as Taxable gross to compute my regular payroll.

    1. Pagdating sa year end computation kasama na yung above 30k limit sa taxable income for the year. So kahit na tinaxan na yung 13th month pay mo kung pagdating naman sa year end computation kulang ang total tax withheld ihahabol nila yun sa payroll mo. So ang adjustment ay sa payroll mo. Maliban na lang kung may mga benefits ka pa na irerelease sa year end na sakop ng 30k ceiling na kung saan pwede nila don iadjust yung tax defecit.

      1. James Bryan Soliman

        Hi Rekcor, thanks for your response. Well, nagtry na ako magcompute for my annualized tax since di naman bayad OT ko, wala naman na kameng matatanggap pa na other bonuses by December. Ayun, over-taxed ako by 10k+. Sana lang pagdating ng December balik nila yun kundi aawayin ko HR namin. pero kasi ang gulo din ng computation nila for our 13th month and other bonuses eh. Tiga-BIR ka ba Reckor or are you practicing PH tax? Ako kasi US Tax ang work ko. Thanks.

        1. Pagdating ng year end hingi ka ng annual computation sa tax mo o hingi ka ng 2316 (may bagong BIR-RR na kasama na rin ngayon ang 2316 sa mga ipapasa nila sa bir along w/ the alphalist). Kung may
          refund ka, dapat mabayaran o maibalik nila sayo yun bago sila magpasa
          ng alphalist sa bir every first month of the year (January). Dahil kung
          hindi abluloy mo na sa bir yun. Pero pwede ka magreklamo sa BIR sa di
          pagbalik ng employer mo ng tax refund mo. Ganon din naman kung may
          defecit ka pa. Kelangan mo bayaran o ikaltas nila sayo yung kakulangan.
          Kung may iba ka pang source of income maliban sa compensation pwede mo
          na bayaran yung kakulangan kapag magfile ka ng annual ITR w/c is ang
          deadline ay sa buwan naman ng April.

    1. The
      allowable personal exemption of each individual taxpayer is P50,000 regardless
      of the status of the taxpayer. Nagkakatalo na lng yan sa additional exemption from P0-100,000. Pero ang basehan ng computation sa net taxable income regardless of your status ay pareho at iisang tax table lang.

  17. Good morning I just graduated last 2012 and I am working as a freelance teacher. I want to pay my obligations as a Filipino citizen. I am married but my husband is unemployed and I have one dependent. How much tax do i need to pay? My salary is 15,000 a month. Thank You. Before I was a self employed my sss is 312.00 and my phil health deduction is 600.00 quarterly.

    1. I think you will pay P1,291.73/month..Here’s my computation

      =P708.33 + 20% (P15000-P12083)

      =P708.33 + 20% ( P2917)

      =P708.33 + P583.40
      =P1,291.73

  18. Hello po tanong lang sana..

    Scenario:
    OCW (Overseas Contract Worker) currently working abroad and Purely earning wages abroad.
    with Fulltime Wife and 2 Kids Dependent on Philippines.
    with Registered Apartment Business in Philippines.

    Question :
    1.Since ang mga OCW ay hinde required to file their income abroad .
    Ang kailangan lang i-file ng OCW ay ang income nila sa Philippines.
    Pag nag file po ba ng “Annual Tax Return every Year” puede po ba mag claim ng exemption being married with 2 valid dependent ? medyo nalilito lang po kasi excempted na for being OCW.

    Base po kasi sa ating BIR Tax Code I can file an exemption
    32,000 being Married + 16,000 for having 2 dependent ?
    2. Assuming hinde po ako OFW .more than 10 years ago yong last filing ko ng Annual Income Tax Return.. Hangang ilan taon po ba tinitingan ng BIR ang Annual Income Tax Record kung nakpag bayad or hinde?

  19. I have a question regarding tax exemption due to “direct dependent”
    My child is still at 21 yrs today and will be 22 on Sept this year. Can I still claim exemption for her for Y2014?

  20. hi po asked ko lang if magkano mababawas na tax sa akin..my salary is 18549..ang binabawas po sa akin maliban sa tax is philhealth, gsis and pag-ibig..how can i compute my tax??salamat po

    🙂

  21. hello po, i just want to know how much is the total tax deduction of an employee earning 45,000 a month and she is single mother with one dependant…thanks po

  22. Hi, I teach self-defense on the side. a company recently asked for my Tin #. I gave my personal tin (im also employed) but my self-defense services are not registered as a business since it’s really small and just a sideline.

    Do I file this? why did they ask for my tin#? What do I do?

    Thank you!

  23. hi. i am a retired employee but without pension. i do jobs as per request only like wiring of a house, fixing electrical fixtures, etc. i do earn a little but not exceeding 50,000 pesos. do i still have to file ITR?

  24. hello, great article and thanks for the information.

    I was wondering if there was some form of wealth tax(gross wealth) in the Philippines. I am planning to immigrate there and i was wondering if i would be taxes for assets i have outside the country? For example, what if someone has a stock portfolio managed outside philippines earning dividends that are automatically re-invested(i will not receive cash dividends on them they are reinvested automatically). do need to declare these?

    1. Hi. No. Your assets are not taxed unless you die, in that case, your estate is subject to estate taxes. If you can acquire citizenship, (taxable within and without the philippines) yes, your dividends will be taxed regardless if it is reinvested or encashed since it is considered an income. But in case, you cant acquire citizenship, you will only be taxed on your income within the philippines.

      1. Hi, Question: Diba nagkakaroon ng tax refund kung hindi ka nakakompleto ng buong taon sa current employer? Nagkaroon ako ng 7K n tax refund dun sa first work ko from July-Dec 2013 na tax deduction sakin. What if nagresign ako ng Jan. 2015 tapos magkakawork ako ng March 2015, so ibig sabihin wala akong hulog ng Feb. 2015. Ibig sabihin ba makukuha ko tax deduction sakin ng March 2015 – Dec. 2015 since di ko nakumpleto ang buong taon?

        1. Income, kita mo. Kapag employee ka, yung salary. Kung meron kang business, yung profit mo. Ang gross income ay lahat ng income mo na subject sa tax. Ang taxable income nman ay yung gross income minus allowable deductions (kapag meron lang business) o personal exemptions.

        2. Hello! Question: Diba nagkakaroon ng tax refund kung hindi ka nakakompleto ng buong taon sa current employer? Nagkaroon ako ng 7K n tax refund dun sa first work ko from July-Dec 2013 na tax deduction sakin. What if nagresign ako ng Jan. 2015 tapos magkakawork ako ng March 2015, so ibig sabihin wala akong hulog ng Feb. 2015. Ibig sabihin ba makukuha ko tax deduction sakin ng March 2015 – Dec. 2015 since di ko nakumpleto ang buong taon?

  25. question: may friend ako na nakakareceived ng compensation and income from her foreign employer at gross. and she didnt file any ITR and now need nya ng ITR for 2013. any possible solution and suggestions on how she can settle related issues about ITR. Thanks! response are highly appreciated.

    1. Hello, actually, the employer has the main responsibility of withholding the taxes from your friend’s salary. But if tax was not withheld or was not correctly withheld, the employee must take the initiative to file the correct income tax return. The annual income tax return for 2013 should have been filed on or before April 15, 2013. So that means that your friend will be penalized by surcharges and interest.

      1. Hello! Question: Diba nagkakaroon ng tax refund kung hindi ka nakakompleto ng buong taon sa current employer? Nagkaroon ako ng 7K n tax refund dun sa first work ko from July-Dec 2013 na tax deduction sakin. What if nagresign ako ng Jan. 2015 tapos magkakawork ako ng March 2015, so ibig sabihin wala akong hulog ng Feb. 2015. Ibig sabihin ba makukuha ko tax deduction sakin ng March 2015 – Dec. 2015 since di ko nakumpleto ang buong taon? Thanks.

  26. Hi! Question. Is trading Forex and the like taxable here in the Philippines?
    US/UK Based trading companies and was wondering if it is. If so, what’s the tax rate?

  27. hello! Question: Noong nagstart kami ng tax deduction nung Feb this year, yung status ko ay single, kasi hindi ko nadeclare yung isa kong anak i think nakalimutan ko isulat..tapos after a month (March 2014) nagpachange status ako (single with 1 child) pero until now Oct hindi pa na reflect sa payslip ko yung decrease ng tax deduction ko..same parin. Makakareceive ba ako ng tax return nito after a year.? please answer po.

    1. yes mkakareceive k p as long as my docs n nag papatunay n dineclare m cla.. pag nakuha m ITR m try to compute kung tama b ung tax refund m pag ndi pwede m ifile ng dispute s HR un or pag ndi gnwa ng HR drecho m s nearest office ng BIR pro for sure ggwan yan ng paraan ng HR nyu

      1. Hi, Question: Diba nagkakaroon ng tax refund kung hindi ka nakakompleto ng buong taon sa current employer? Nagkaroon ako ng 7K n tax refund dun sa first work ko from July-Dec 2013 na tax deduction sakin. What if nagresign ako ng Jan. 2015 tapos magkakawork ako ng March 2015, so ibig sabihin wala akong hulog ng Feb. 2015. Ibig sabihin ba makukuha ko tax deduction sakin ng March 2015 – Dec. 2015 since di ko nakumpleto ang buong taon? Thanks.

  28. Diba nagkakaroon ng tax refund kung hindi ka nakakompleto ng buong taon sa current employer? Nagkaroon ako ng 7K n tax refund dun sa first work ko from July-Dec 2013 na tax deduction sakin. What if nagresign ako ng Jan. 2015 tapos magkakawork ako ng March 2015, so ibig sabihin wala akong hulog ng Feb. 2015. Ibig sabihin ba makukuha ko tax deduction sakin ng March 2015 – Dec. 2015 since di ko nakumpleto ang buong taon?

  29. Hello po! ask ko lang po if 20k po montly ang salary ko po then deduction ko po sa sss is 581.30+ philihealth 250 and Pagibig 100..magkano po dapat ang monthly Witholding tax deduction ko po? salamat

    1. It depends on your status and number of dependents. I assume you are single with no dependent. P2683. Also, there are tax calculators online. They compute withholding taxes, sss, philhealth premiums.

  30. Hi. Just want to ask.. I have 2316 from my previous employer 2014 (Jan-August) and 2307 from April to Dec 2014 as part time employee from another company. I decided to go full time this year. Just want to know what form should I use to consolidate 2316 and 2307 forms that I have? Should these forms be included in the filing for ITR? Your response would be very much appreciated. Thank you.

  31. karen rose quiambao

    Hello po. My question po is right now my husband is unemployed. we are separated, but we did not file annulment, in short we’re not legally separated. But he is not supporting me or my baby, kc nga po wala cya trabaho. So I am the one who is working right now. My question po is paano ko po mapapababa ang tax ko? And sa BIR form 2305, ano po ang ilalagay ko dito; Claims for Additional Exemptions / Premium Deductions for husband and wife whose aggregate family income does not exceed P250,000.00 per annum..

  32. Can you pls give me example of items or articles na taxable, high taxable and duty fee. In percentage form po

  33. Hi! I am engaged in real estate. My partner and I closed a deal and received a commission. He accommodates me in the issuance of the official receipt using his receipt since I do not have one. I want to know how much do I need to pay him if he will file his income tax? Is there a percentage to be based on? By the way, we equally split the commission. Your reply would be highly appreciated. Thanks in advance!

  34. Hi, If my company charged a copy right fee to an oversea company for the right of use of our creative concept of a advertising commerical, do we apply Vat?

  35. Kim Jeremae Fuerte

    Hi,
    ano pa ba ung requirements to change status sa BIR taxation. Mine is S though meron akong dependent. single mom pa ako, how can I change my status?
    thanks,

  36. hello,
    hope you can help me, almost 3 years po ako nagtrabaho sa work ko then nagresign po ako oct. 3. ang alam ko po may makukuha pa ako , pero sabi po ng accntg. namin wala na daw po ako makukuha dahil nakapagcompute na daw po sila. tama po ba yun? hindi ko na po ba pwede ipaglaban yun? may right po ba ako?
    it will be very much appreciated if you can help me with this. thanks

    1. Anong nacompute nila? Ano ang makukuha mo? Medyo malabo ang tanong. Kung ang sinasabi mo na matatanggap mo ay last salary mo, siyempre dapat mo talaga kunin un. If tax refund tinutukoy mo na matatanggap mo, depende un sa salary na natanggap mo from january to oct. 3. kasi kapag nasa minimum wage ka lang at binawasan ka ng tax, dapat irefund un sayo ng employer mo dahil wala ka dapat bayarang tax. If above minimum salary mo, taxes mo ay dapat iwithheld ng employer mo. Hindi mo na yun makukuha except kung me sobra sa ibinawas na tax mo which, more often, sinasama/idinagdag na doon sa last salary na natanggap mo.

  37. Hi, meron po akong tanong regarding sa 2316 ko, nanganak po ako last April 2015 meron nman pong nabaaws sa tax ko sa monthly payroll pero ang tanong ko po kase nung magkapirmahan ng ng 2316 50,000.00 pa rin ung exemption n nkalagay sa form di po ba dapat 75,000.00 na dahil may dependent na po ako? kailangan ko po bang magreklamo sa employer ko regardin dun? kaya lng o napirmahan ko na ung 2316 form ko.. ano po maganda kong gawin please advise po. thanks

    1. Nagwowork po ba ang asawa mo? Kung oo, tingnan mo sa 2316 niya baka nagclaim din siya ng additional exemption. If hindi, ang sunod na tanong, nagpasa ka ba sa employer mo ng waiver of claim ng asawa mo? if not, hindi ka talaga babawasan kasi hindi automatic sa isang babae ang additional exemption. If nagpasa ka ng waiver ng asawa mo, ask mo employer mo why and file necessary tax refund within two years.

  38. good evening. mayroon po ba akong pweding pagkuhanan ng industrial, or business taxes of region3, NCR and ARMM? dably neede that for our requirement in school. I can’t find any from my research. any help will be appreciated much. tnx in advance.

  39. I am a freelancer po I make 18-25 a month, my salary po is galing pa sa ibang bansa using paypal at skrill gusto ko po sana magbayad ng tax para makakuha rin sana ako ng mga loans tanong ko lang po kung makakasuhan ba ako kasi I have been freelancing for one year na. Nabasa ko rin po sa forum na as freelancer mapupunta ako sa category ng business I have live in partner pero single kasi hindi pa kami kasal. Magbabayad po ba ako ng tax monthly? or quarter and annualy? mga magkano po kaya babayaran kung tax?

    1. Mag register ka sa BIR as self-employed professional. After that kelangan mo magbayad monthly ng percentage tax na 3% gross income. Kelangan mo din magbayad ng quarterly income tax (check mo yung tax table sa taas) and then annual income tax. Yung quarterly at annual income tax, pede mo bawas ng deductions bago i-compute. Ang standard deductions is 40%.

      1. hi sir, ask ko lang po ofw po ako at for good na ditto sa pinas.balak po naming mag register sa grab car at need ng ITR. what form po ang dapat ko I fill up?at since wala pa income ang grab car ano pong bracket ng amount ang ilalagay ko?thanks

        1. I believe pede ka naman magfile ng ITR na zero tax. Punta ka or tawag ka muna sa Revenue District Office (RDO) mo.

          Kung di mo alam RDO mo, hanapin mo TIN mo (I assume nagwork ka before dito bago mag-OFW so may TIN ka na). Tawag ka sa 981-8888 para i-inquire RDO mo. Hihingin nila TIN mo when you call.

  40. Hey, nice to be here! I need your precious help. Please tell me if my computation is correct. I am a single teacher, earned 81,020 in 2015, total tax withheld per bir2307 was 8,094. Less 50,000 exemption?, Income tax due 2,650?, Do I get a 5,444 refund? Thanks a lot for your help, I truly truly appreciate it. More power to your site! Kudos!!

  41. Good day.. Tanong ko po..i am a dealer ng isang direct selling company and I am earning commission po from.the sales of my dealers. I am earning p15000-p25000 a month.. Pano.po mg bayad ng tax? Thank.you

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  43. Floraida Balanao Peñaflor

    Tanong ko lang, hindi po ba nagbabayad na ako ng monthly percentage? Kailangan pa din ba akong magbayad ng quarterly? At magkano naman ang babayadan ko 77500.00 php ang kita ko sa tatlong buwan.Patulong naman po sa pagcompute.salamat.

  44. paano po malalaman kung binabayaran sa bir ung tax na kinakaltas sakin? kasi minimum wage earner po ako pero ang laki ng tax q monthly…tnx po

  45. Hi,Question lang. if this January mguupdate ako nang TAX status from s1 to s2 may tax refund pa ba ko na matatanggap on End of DEC 2017?

  46. Hi may tanong po ako. Ano po ba ibig sabihin ng nakalagay sa payslip ko na.tax excemption 50,000. Im single pwd work as full time professor

    1. Eiyk Generalao Tandog

      that’s basic personal
      exemption of 50,000 per individual, whether single, married or divorced. 25,000 additional exemption for every legitimate child under 21 years old, dependent to the parents.

      1. Hello sir yung total ko po last year is less than 50k, 47k to be precise tapos yung lumalabas na income tax due is 0. Ibig sabihin wala akong babayaran?

        1. Eiyk Generalao Tandog

          If nag zero out yung tax due and tax withheld mo for the annual return, yes, wala ka babayaran 🙂

  47. Thomas Alibadbad

    my husband and I have a separate business…Mine was classified as marginal taxpayer..that is why BIR required us to file ITR separately………for ITR computation..
    are we allowed each of 50,000. personal exemption?

    1. yes you are allowed to have 50k personal exemption individually but if you have children your husband can also claim the additional exemption of 25k per child up to 4 dependents.

  48. Ganu po katagal ang process kapag nagpa-update ng Status ng TAX from S to S2? At magkano kaya mababawas sa Tax ko nun? Dati kase lageng nasa 900 per cut off. Magkano nalang kaya kapag naka S2 na status ng Tax ko? Sana may makapansin. Salamat po!!!

    1. para po mag update ng tax info..kelangan po magsubmit sa bir ng BIR form 2305. Or if nagpaprocess ung employer mu ng ganito s BIR..sa HR nyo po ng company nyo ibigay ung BIR form 2305 nyo para mapareceive nila sa BIR office,,and after nun pede magiging updated na ung tax info nyo..baba na po ung tax nyo,,Ung amount po ng pagbaba is depende sa taxable income nyo..:)

  49. Question lang po, freelancer po ako gusto ko mga 4 years na. Balak ko po mag autoloan sa bank and isa sa mga requirements po nila is ITR. Net income ko po per month is 50k, single and walang dependent. Balak ko po mag loan mga October this year (2017) pwede pa po ba ako mag bayad ng tax and mga nasa magkano po kaya ang babayaran ko. Pls help po, salamat ng marami.

    1. kung freelancer ka po 4 yrs na.. tapos di ka po nag sasubmit ng ITR sa BIR..my penalty na po kayo. filing and payment of ITR for year 2016 was on April 15, 2017..kung blak nyo po mag auto loan on October 2017.Im sure ung hihingin ng bank na ITR is for year 2016.

    2. the amount will be your total tax due + interest + compromise penalty + surcharge..total amount po is depende sa computation ng BIR officer. My computation table po ang lahat ng yan.

  50. ilang percent po ng tax ang binabayaran sa bir and municipal for local business.
    ang alam ko po kasi sa bir ay 12% of your gross profit. municipal tax 12 percent po rin ba?

  51. Tanong ko lng po, paano po malalaman if tama ung kinakaltas na tax ng company ni hubby sa kanya? CC agent po cia inbound & ang sahod lng po nia ay basic 26k nagtataka po kc kami kng paano computation ng tax dahil every cut off po 3k pinaka mababa na naka lagay sa payslip nia na tax pwera papo ung ss,phlhlt pagibig,etc. Minsan po kng kelan pa mababa ang sahod nia saka po umaabot ng 4k ang tax.. Pls enlighten us po.. Slamat..

  52. Tanong ko lang po magkano po tax na ang salary nasa 45k.. may tatlo po kaming anak ang laki po kasi ng kinakaltas sa asawa ko..

  53. my tanong po ako paano po kng late kna mg pass ng annual income tax sa bussiness kc bgo lng po un 2016 sept. plng aq ng start mg bussiness pero hnd ko po alam n mgbabayad n pla ko nun ng income tax tpos pti quarterly ang income ko nun ay nsa nsa 70,000 gross sales

  54. pa tulong po pls.. madami po akong tanong,.. water station po ung business nmin, nagstart lang dis year. last april nakapag paregister kmi sa bir, naintindihan ko po ung 1601e and 2551m, pero ung 1701q po ung nakakalito.. pano po ba pag compute ng quarterly income tax?bukod sa cost of sale and operating expenses, kasama po ba na binabawas ung personal exemption sa gross sale? e panu po kung nag negative ung result, ibig sabihin po ba nun wala na akong babayaran? maliit lang po kasi ang kita sa water station dahil nag hahanap pa kmi ng mga suki, kya tingin ko mag nnegtive… sana po mag sumagot pls pls pls….thank u,,

  55. hello po.. may tanong po ako.. yung prizes and winnings exceeding 10000, kasali po ba sa gross income subject to schedular tax rate? or subject to final tax?

  56. hi mam/sir, ask ko lang kung magkano ang tax ng married w/3 dependents, may regular earning for 15 days is P7,000.00
    Thank you.

  57. magtatanong lng po… ako po ay minimum wage mula January to june 2017, tapos tinaa-san po ang sahod ko ng july 2017 kaya po nagka tax na ako… after December 2017 nagcompute ang acctng. naming kulang pa daw ang tax nakuha nila sa akin, kaya may utang pa daw ako… kasi January to December 2017 na kinita ko ang kinuhanan nila ng tax, tama po ba ung? sana may makasagot sa tanong ko… salamat…

    1. tama po…taxable income during the taxable year po ang laging basis sa pagcompute ng income tax…ang taxable year po ay from January – December 2017..

  58. mam paki compute nmn po ng tax refund ko ks parang niloloko kmi ng head office nmin, ang salary to date ko is 214,765.50 (april-dec 2017)
    tax to date is 33,635.95 magkano po baang bblik sakin “6,500.00 lang nakuha komula sa kanila”

  59. Sir tanong ko lang , sa tulad ko pong distributor ng isang MLM company, It’s my only source of income. Do I need to file an annual income tax return (ITR)? Or it’s my company’s responsibility to file it for me? May nakuha naman akong BIR form 2307 copy sa kanila para sa 2016 and 2017 pero paano ko malalaman na nai-file nila ang tax ko? Please I need your response. Salamat po!

  60. Hello po. Ask ko lang po kung may babayaran paakong tax kung self employed po ako at ang monthly salary ko lang ay 3,300.00 ? Naghuhulog po ksi ako ngayon sa Pag ibig fund ko at balak kumuha ng housing loan after mabuo ko ang 24 ms sa pag ibig fund. Required po ksi ng latest itr kung maghohousing loan sa pag ibig. Paano po ang gagawin ko? Wala pa po akong experience to file an itr. Ang binabayaran ko lang po ay Professional Tax or Occupational Tax dahil Licensed Massage Therapist po ako. Sana po may mkatulong po sa tanong ko. Thank you po.

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