How to Compute Philippine BIR Taxes?

The following are the needed information for you to compute your income tax.

– Status

– Do you have any dependents and how many?

– How much is your SSS/Philhealth and PagIbig contributions

– Allowances and other benefits if any

– Copy of the BIR Tax table

 

Here’s an easy way on how to compute employee taxes for the month

Basic Salary: Php 15,000.00

Status: Single without dependent

Overtime Pay: Php 2,500.00

Late deduction: Php 500.00

SSS Contribution: Php 500.00

Philhealth Contribution: Php 250.00

Pag-Ibig Contribution: Php 100.00

 

Taxable income = Monthly Basic Pay + Overtime Pay + Holiday Pay + Night Differential – Tardiness- Absences – SSS/Philhealth/PagIbig deductions

Php 16,150.00 = 15,000 + 2,500 -500-500-250-100

 

Your tax for the month is Php 1,954.25  by simply checking on this BIR Tax Table: ftp://ftp.bir.gov.ph/webadmin1/pdf/42126AnnexC.pdf

Under S/ME look of the nearest figures with your taxable income and the nearest amount is 15,833 and the tax is Php 1,875.00 + 25% in excess of 15,833

So your tax is

15,833.00 = 1,875.00

Excess (16,150-15,833) =  317 X 25% = 79.25

Tax is ( 1,875.00 + 79.25)= Php 1954.25
ftp___ftp.bir.gov.ph_webadmin1_pdf_42126AnnexC.pdf