What is TRAIN?

Tax Reform for Acceleration and Inclusion

The goal of the first package of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to create a simpler, fair, and more efficient system, as per the constitution, where the rich will have a bigger contribution and the poor will benefit more from the government’s programs and services.

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

– 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 30,000.00

Overtime Pay: Php 2,500.00

Late deduction: Php 500.00

SSS Contribution: Php 581.30

Philhealth Contribution: Php 412.50

Pag-Ibig Contribution: Php 100.00

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

Php 30,906.2 = 30,000 + 2,500 -500-581.30-412.50-100

Your tax for the month is Php 2,014.57  by simply checking on this BIR Tax Table: 

= ((((30906.2*12)-250000)*(100*20)/12

So 30,906.2 x 12
Less 250,000
Multiply by 20%
Divide it by 12 pay periods

= 2014.57333333333333 or 2014.57