How to Compute Your Philippine BIR Withholding Tax Monthly Using the Latest BIR

WITHHOLDING TAX TABLE?

Posted on Tuesday, March 25, 2014

To be able to compute your BIR Withholding Tax for the month, the following information are need. You
may want to check out your payslips for the other information. Let's Start:

Your BIR Tax Status (Single/Married)

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 latest BIR Withholding Tax table

Once you got all the information, start writing! List down everything below. For the purpose of our
example, let's assume some values:
Basic Salary: P15,000.00
SSS Contribution: P 500.00
Status: Single (no dependents)
Philhealth Contribution: P 250.00
Overtime Pay: P 2,500.00
Pag-Ibig Contribution: P 100.00
Late/Under time deduction: P 500.00

To get your Taxable Income, Add the following: Basic Salary and Overtime Pay then deduct the
Late/Undertime deduction, SSS, Philhealth and Pag Ibig Contributions
Your Taxable Income for the Month is P16,150
That would be the result of P15,000 + P2,500 - P500 - P500 - P250 - P100 Your tax will be computed
based on your Taxable Income. The tax can be computed with the help of the BIR Withholding Tax Table
Using the BIR Withholding Tax Table, look for the nearest amount to your Taxable Income which is
P16,150. You should look at under the MONTHLY category.

In this case, the nearest value is the P15,833. Take note of the tax rates above and also the amount
above it. Now we got three important factors in computing your BIR Withholding Tax Table, P15,833,
P1,87 and lastly the +25% over. The tax computation would be: P 16,150 (Taxable Income) -P15,833.00

(Tax Base) = P317 P317 x 25% = 79.25 P79.25 + P1,875.00 = YOUR BIR WITHHOLDING TAX FOR
THE MONTH
Your Computed BIR Withholding Tax for the Month is P,1954.25