Philippine Tax table bracket - Tax Income
October 14, 2009source: http://www.bir.gov.ph/taxinfo/tax_income.htm
How to computer your tax bracket percentage?
TAX LIST
http://www.bir.gov.ph/taxinfo/
TAX BRACKET
For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession
|
Over |
But Not Over |
Rate |
| P10,000 | 5% | |
| P10,000 | P30,000 | P500 + 10% of the Excess over P10,000 |
| P30,000 | P70,000 | P2,500 + 15% of the Excess over P30,000 |
| P70,000 | P140,000 | P8,500 + 20% of the Excess over P70,000 |
| P140,000 | P250,000 | P22,500 + 25% of the Excess over P140,000 |
| P250,000 | P500,000 | P50,000 + 30% of the Excess over P250,000 |
| P500,000 | P125,000 + 34% of the Excess over P500,000 in 1998 |
Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on January 1, 2000.
Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment on or before July 15 of the same year at the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.
|
Tax Rate |
Taxable Base |
|
| 1. Domestic Corporations: | ||
| a. In General | 32% | Taxable income from all sources |
| b. Minimum Corporate Income Tax* | 2% | Gross Income |
| c. Improperly Accumulated Earnings | 10% | Improperly Accumulated Taxable Income |
| 2. Proprietary Educational Institution | 10% | Taxable income from all sources |
| 3. Non-stock, Non-profit Hospitals | 10% | Taxable income from all sources |
| 4. GOCC, Agencies & Instrumentalities | ||
| a. In General | 32% | Taxable income from all sources |
| b. Minimum Corporate Income Tax* | 2% | Gross Income |
| c. Improperly Accumulated Earnings | 10% | Improperly Accumulated Taxable Income |
| 5. National Gov’t. & LGUs | ||
| a. In General | 32% | Taxable income from all sources |
| b. Minimum Corporate Income Tax* | 2% | Gross Income |
| c. Improperly Accumulated Earnings | 10% | Improperly Accumulated Taxable Income |
| 6. Taxable Partnerships | ||
| a. In General | 32% | Taxable income from all sources |
| b. Minimum Corporate Income Tax* | 2% | Gross Income |
| c. Improperly Accumulated Earnings | 10% | Improperly Accumulated Taxable Income |
| 7. Exempt Corporation | ||
| a. On Exempt Activities | 0% | |
| b. On Taxable Activities | 32% | Taxable income from all sources |
| 8. General Professional Partnerships | 0% | |
| 9. Corporation covered by Special Laws | Rate specified under the respective special laws | |
| a. In General | 32% | Taxable income from all sources |
| b. Minimum Corporate Income Tax* | 2% | Gross Income |
| c. Improperly Accumulated Earnings | 10% | Improperly Accumulated Taxable Income |
*Beginning on the 4th year immediately following the year in which such corporation commenced its business operations, when the minimum corporate income tax is greater than the tax computed using the normal income tax.
|
Tax Rate |
Taxable Base |
|
| 10. International Carriers | 2.5% | Gross Philippine Billings |
| 11. Regional Operating Head | 10% | Taxable Income |
| 12. Offshore Banking Units (OBUs) | 10% | Gross Taxable Income On Foreign Currency Transaction |
| 32% | On Taxable Income other than Foreign Currency Transaction | |
| 13. Foreign Currency Deposit Units (FCDU) | 10% | Gross Taxable Income On Foreign Currency Transaction |
| 32% | On Taxable Income other than Foreign Currency Transaction | |
| In General | ||
| Over | But Not Over | |
| P10,000 | 5% | |
| P10,000 | P30,000 | P500 + 10% of the Excess over P10,000 |
| P30,000 | P70,000 | P2,500 + 15% of the Excess over P30,000 |
| P70,000 | P140,000 | P8,500 + 20% of the Excess over P70,000 |
| P140,000 | P250,000 | P22,500 + 25% of the Excess over P140,000 |
| P250,000 | P500,000 | P50,000 + 30% of the Excess over P250,000 |
| P500,000 | P125,000 + 34%* of the Excess over P500,000 in 1998. | |
Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on January 1, 2000.
| Passive Income | ||
| 1. Interest on any peso bank deposit | 20% | |
| 2. Royalties (except on books as well as literary & musical composition - 10%) | 20% | |
| 3. Prizes (except prizes amounting to P10,000 or less -5%) | 20% | |
| 4. Winnings (except from PCSO and lotto) | 20% | |
| 5. Interest Income of Foreign Currency Deposit | 7.5% | |
| 6. Interest from long-term deposit | ||
| Holding Period | ||
| - Four (4) years to less than five (5) years | 5% | |
| - Three (3) years to less than four (4) years | 12% | |
| - Less than three (3) years | 20% | |
| 7. Cash and/or Property Dividends | ||
| Beginning January 1, 1998 | 6% | |
| Beginning January 1, 1999 | 8% | |
| Beginning January 1, 2000 & thereafter | 10% | |
| 8. On capital gains presumed to have been realized from sale, exchange or other disposition of real property (capital asset) | 6% | |
| 9. On capital gains for shares of stock not traded in the stock exchange | ||
| - Not over P100,000 | 5% | |
| - Any amount in excess of P100,000 | 10% | |
B. For Non-Resident Aliens Engaged in Trade or Business
| 1. On Certain Passive Income* | 20% |
| 2. Interest Income from long time deposits | |
|
Holding Period |
|
| -Four (4) years to less than five (5) years | 5% |
| -Three (3) years to less than four (4) years | 12% |
| -Less than three (3) years | 20% |
| 3. On capital gains presumed to have been realized from the sale, exchange or other disposition of real property | 6% |
| 4. On capital gains for shares of stock not traded in the Stock Exchange | |
| - Not over P100,000 | 5% |
| - Any amount in excess of P100,000 | 10% |
*Cash and/or Property Dividends, Share in the distributable net income of the partnership, Interest on any bank deposits, Royalties (except on books as well as literary works and musical composition), Prizes (except prizes amounting to P10,000 or less), Winnings
|
C) For Non-Resident Aliens Not Engaged in Trade or Business |
|
| 1. On the gross amount of income derived from all sources within the Philippines | 25% |
| 2. On capital gains presumed to have been realized from the exchange or other disposition of real property located in the Phils. | 6% |
| D) Aliens Employed by Regional Headquarters (RHQ), Regional Operating (ROH), Offshore Banking Units (OBU), Petroleum Service Contractors and Subcontractors | 15% |
| E) General Professional Partnerships | 0% |
| F) Domestic Corporations | |
| 1) a. In General | 32% |
| b. Minimum Corporate Income Tax | 2% |
| c. Improperly Accumulated Earnings | 10% |
| 2) Proprietary Educational Institution | 10% |
| 3) Non-stock, Non-profit Hospitals | 10% |
| 4) GOCC, Agencies & Instrumentalities | |
| a. In General | 32% |
| b. Minimum Corporate Income Tax | 2% |
| c. Improperly Accumulated Earnings | 10% |
| 5) National Gov’t & LGUs | |
| a. In General | 32% |
| b. Minimum Corporate Income Tax | 2% |
| c. Improperly Accumulated Earnings | 10% |
| 6) Taxable Partnerships | |
| a. In General | 32% |
| b. Minimum Corporate Income Tax | 2% |
| c. Improperly Accumulated Earnings | 10% |
| 7) Exempt Corporation | |
| a. On Exempt Activities | 0% |
| b. On Taxable Activities | 32% |
| 8) Corporation covered by Special Laws | Rate specified under the respective special laws |
| G) Resident Foreign Corporation | |
| 1)a. In General | 32% |
| b. Minimum Corporate Income Tax | 2% |
| c. Improperly Accumulated Earnings | 10% |
| 2) International Carriers | 25% |
| 3) Regional Operating Headquarters | 10% |
| 4) Corporation Covered by Special Laws | Rate specified under the respective special laws |
| 5) Offshore Banking Units (OBUs) | 10% |
| 6) Foreign Currency Deposit Units (FCDU) | 10% |
11) How is Income Tax computed?
Gross Income
P ___________
Less: Allowable Deductions
___________
Net Income
P ___________
Less: Personal & Additional Exemptions
___________
Taxable Income
P ___________
Multiply by Tax Rate (5 to 32%)
Income Tax Due
P ___________
12) How is Income Tax paid?
- Through withholding
- Generally 10%
- 20% - Fees paid to directors who are not employees
- Pay the balance as you file the tax return, computed as follows:
Income Tax Due
P ___________
Less: 20% or 10% Withholding Tax
___________
Net Income Tax Due
P ___________
Life is like a coffee
The conversation soon turned to complaints about the endless stress of work and life in general…
Offering his guests coffee, the professor went into the kitchen and soon returned with a large pot of coffee and an eclectic assortment of cups: porcelain, plastic, glass, crystal - some plain, some expensive, some quite exquisite.
Quietly he told them to help themselves to some fresh coffee… When each of his former students had a cup of coffee in hand, the old professor quietly cleared his throat and began to patiently address the small gathering…
”You may have noticed that all of the nicer looking cups were taken up first, leaving behind the plainer and cheaper ones. While it is only natural for you to want only the best for yourselves, that is actually the source of much of your stress-related problems.”
He continued…”Be assured that the cup itself adds no quality to the coffee. In fact, the cup merely disguises or dresses up what we drink. What each of you really wanted was coffee, not a cup, but you instinctively went for the best cups… Then you began eyeing each other’s cups….”
”Now consider this: Life is coffee. Jobs, money, and position in society are merely cups. They are just tools to shape and contain Life, and the type of cup we have does not truly define nor change the quality of the Life we live. Often, by concentrating only on the cup, we fail to enjoy the coffee that God has provided us… God brews the coffee, but he does not supply the cups. Enjoy your coffee!”
The happiest people don’t have the best of everything, they just make the best of everything they have… So please remember: Live simply. Love generously. Care Deeply. Speak Kindly. Leave the Rest to God.
And remember - the richest person is not the one who has the most, but the one who needs the least.
Source: http://www.midwestoutreach.org/blogs/
The Crux, Blog of Midwestern Outreach
