INCOME TAX

Chapter 2: Income Taxes for Individual

Individual Tax Payers
Are natural persons with income derived from within the
territorial jurisdiction of a taxing authority.

Under the Tax Code, individual taxpayers are classified as:

1. Resident Citizen (RC)
2. Nonresident Citizen (NRC)
3. Resident Aliens (RA)
4. Nonresident Alien (NRA)
 Engaged in trade/business (NRA-ETB)
 Not engaged in trade/business (NRA-NETB)
Citizen of the Philippines
Under Section I, Article III of the Philippine Constitution, a
Filipino citizen is a natural person who is/has:
 Born (by birth) with father and/or mother as Filipino
Citizen;
 Born before January 17, 1973 of Filipino mother who elects
Philippine citizenship upon reaching the age of majority
 Acquired Philippine citizenship after birth (naturalized) in
accordance with Philippine Laws.
Resident Citizen of the Philippines
A Filipino citizen taxpayer not classified as nonresident citizen
is considered a resident citizen for a tax purposes
Nonresident Citizen of the Philippines
He/She is a citizen who:
1. Establishes, to the satisfaction of the Commissioner of Internal
Revenue, the fact of his Physical presence abroad with a
definite intention to reside therein
2. Leaves the Philippines during the taxable year to reside
abroad
▪ As an immigrant; or
▪ For employment on a permanent basis; or
▪ For work and derived income from abroad and whose
employment thereat requires him to be physically abroad most
of the time during the taxable year.
Nonresident Citizen of the Philippines
He/She is a citizen who:
3. A citizen of the Philippines who shall have stayed outside
the Philippines for one hundred eighty-three days (183) or
more by the end of the year.

** A non-resident citizen who arrives in the Philippines at any

time during the taxable year to reside permanently in the
Philippines shall be considered a nonresident citizen for the
taxable year in which he arrives in the Philippines with
respect to income derived from sources abroad until the date
of his arrival in the Philippines.
Source of Income
It is important to know the source of income for tax
purposes.
Taxpayer Tax Base Source of Taxable
Income
RC Net Income Within & Without

NRC, RA, Net Income Within only

NRA-ETB
NRA-NETB Gross Income Within only
Overseas Contract Worker (OCW) /
Overseas Filipino Worker (OFW)
▪ Are Filipino citizens employed in foreign countries, who are
physically present in a foreign country as a consequence of
their employment thereat
▪ Their salaries and wages are paid by the employer abroad
and are borne by entities or persons in the Philippines
▪ OCW/OFW are classified as NRC for tax purposes
Seafarers / Seamen
Are Filipino citizens who receive compensation for services
rendered abroad as a member of the complement of a vessel
engaged exclusively for international trade.
Alien
An alien is a foreign-born person who is not qualified to
acquire Philippine citizenship by birth or after birth.

Classification of Alien
 Resident Alien
 Nonresident Alien engaged in trade / business
 Nonresident Alien not engaged in trade / business
Resident Alien
 Is an individual whose residence is within the Philippines
and who is not a citizen thereof.
 Alien who are actually present in the Philippines and who
are not mere transients or sojourners
 An alien who lives in the Philippines with no definite
intention as to his stay
 An alien who comes to the Philippines for the purpose that
requires extended stay for his accomplishment, so he
makes his home temporarily in the Philippines, regardless
of his intention to return to his residence abroad
Nonresident Alien
 An individual who is not in the Philippines and who is not a
citizen thereof
 They are aliens who come to the Philippines for a definite
purpose, which in its nature may be promptly
accomplished
 They are aliens who are mere transients or nonresidents
Nonresident Alien Engaged in Trade/Business
 An alien who stayed for an aggregate period of more than
180 days during the taxable year and/or aliens who have
business income in the Philippines
 Under Section 22S of the tax code, “trade or business”
include performance of the functions of a public office or
performance of personal services in the Philippines (except
performance of services by the taxpayer as an employee)
Nonresident Alien Not Engaged in Trade/Business
 A NRA-NETB is subject to 25% income tax based on the
gross income from all sources within the Philippines
(except income subject to capital gains tax)
Sample Problem:
Pedro left the Philippines on July 1, 2018 to go abroad and
work there for two years. The following data were provided
for 2018 taxable year (assume 40% of gross income and
business expenses presented below were derived abroad).
Gross Income Bus. Expenses
Jan 1 – Jun 30 600,000 280,000
July 1 – Dec 31 400,000 120,000
Sample Problem:
Assuming Pedro arrived from abroad on July 1, 2018 to
permanently resettle in the Philippines, his taxable income
for 2018 is:
Gross Income Bus. Expenses
Jan 1 – Jun 30 600,000 280,000
July 1 – Dec 31 400,000 120,000

(assume 40% of gross income and business expenses

presented below were derived abroad).
Applicable Taxes and Tax Rates
The applicable taxes for individuals depend on several factors
such as but not limited to:
 Classification of the taxpayer
 Source of Income
 Type of Income
Classification of the Taxpayer
It is important to properly classify individual taxpayers
because resident citizens are taxable on their income derived
from sources “within and without” the Philippines while
other taxpayers are taxable only on their income derived
from the Philippine sources. Moreover, individual taxpayers
classified as nonresident aliens not engaged in trade or
business are taxable based on their “gross income” while
others are taxable based on “net income”
Sample Problem:

An individual Taxpayer provided the ff. information in 2018:

Gross Business Income, Philippines 5,000,000

Gross Business Income, Canada 2,000,000
Gross Business Income, Singapore 1,000,000
Business Expense, Philippines 3,000,000
Business Expense, Canada 1,000,000
Business Expense, Singapore 500,000
Sample Problem:

Determine the taxable income

1. The taxpayer is resident citizen
2. The taxpayer is nonresident citizen
3. The taxpayer is resident alien
4. The taxpayer is a nonresident alien engaged in trade or
business
5. The taxpayer is a nonresident alien not engaged in trade
or business
Sample Problem:
Assume the taxpayer is a resident who left the country in July of
the current year to reside permanently in Canada, how much is
his taxable income

Jan – Jun Philippines Canada

Gross Income 5,000,000 2,000,000
Allowable deduction 2,000,000 1,000,000

Jul – Dec
Gross Income 2,000,000 3,000,000
Allowable deduction 1,000,000 1,200,000
Types of Income
Three Types of Incomes Subject to Income Tax:
 Ordinary of Regular Income
 Passive Income derived from Philippine sources; and
 Capital Gains subject to capital gains tax
Ordinary Income
Refers to income such as:
 Compensation income (salaries or wages)
 Business Income
 Income from practice of profession
 Income from sale and/or dealing of property
Sample Problem:
1. Determine the income tax due assuming the taxable
compensation income for 2018 is 240,000.

2. Determine the income due assuming the taxable

compensation income for 2018 is 300,000

3. Determine the income tax due assuming the net taxable

compensation income for 2018 is 1,850,000
Passive Income
Earnings derived from rental property, limited partnership or
other enterprise which a person is not actually involve

Passive income derived from abroad are subject to basic

income tax therefore, included in the income tax return of a
resident citizen
Passive Income
Passive income are not subject to graduated tax rates as
summarized in table 2-1 but to specific final withholding tax
rates as summarized in table 2-2. The specific passive
incomes derived from Philippines sources subject to final
withholding tax are as follows:
 Interest Income
 Dividend Income
 Royalties
 Prized
 Winnings
Sample Problem:
A resident citizen taxpayer provided by the ff. information for 2018:
Gross Business Income, Philippines 2,000,000
Gross Business Income, Canada 3,000,000
Business Expenses, Philippines 1,400,000
Business Expenses, Canada 2,050,000
Interest Income – BDO Philippines 100,000
Interest Income – BDO in Canada 50,000
Dividend income from a domestic corporation 125,000
Dividend income – resident foreign corporation 75,000
Dividend income – nonresident foreign corporation 102,000
Interest Income received from a depository bank under FCDS, Phil. 50,000
Philippines Lotto Winnings 10,000
Philippine Charity Sweeptakes winnings 500,000
Singapore Sweeptakes winning 200,000
Other Winnings in Philippines 50,000
Raffle draw winnings – Robinson Manila 8,000
Raffle draw winnings – SM Manila 20,000
Raffle draw – SM “Shanghai China 30,000
Capital Gains Tax

 This are tax incur in selling of shares of stocks of a

domestic corporation not traded in the local stock
exchange and selling of capital assets not used in trade or
business
Gain on Sales of Asset not subject to Capital Gain
Tax
 Stock in trade of taxpayer or other property of a kind
which would properly be included in the inventory of the
taxpayer if on hand at the close of taxable year
 Property used in trade or business subject to depreciation
 Real property held by the taxpayer primarily for sale to
customers in the ordinary course of trade or business
 Real property used in trade or business of the taxpayer
CAPITAL GAINS may be:

1. Subject to capital gains tax of its pertain to sale of:

 Capital gains from sale of shares of stocks of a domestic
corporation not traded in the local stock exchange; and
 Capital gains from sale of real property in the Philippines not
used in business nor for sale in the ordinary course of trade or
business

Note:
There is no CGT if selling of stocks results to capital loss
There is a CGT in selling of properties whether it resulted
to capital loss
CAPITAL GAINS may be:

Special cases:
 Sale of Real property to the government
 Sale of Principal Residence
CAPITAL GAINS may be:

2. Other Percentage Tax OPT

 OPT is not an income tax but a business tax
 Sales of shares of stocks LISTED in the local stock exchange
is not subject to CGT but to OPT
 The applicable business tax for this type of transaction is
known as “stock transaction tax” and computed as:

Prior to 2018 = 50% of 1% of Gross Selling Price

Beginning 2018 = 60% of 1% Gross Selling Price
CAPITAL GAINS may be:

3. Subject to Basic Tax

 Sale of shares of foreign corporation
 Sale of real properties located abroad
 Sale of other personal assets such as cars, jewelries and
the like
Sample problem

George sold 2,000 shares of a domestic corporation, in the

local stock exchange at P110 per share on 2018. The shares
were purchased 3 years ago for P100 per share.
What is the amount of CGT?
Sample problem

George sold 2,000 shares of a domestic corporation directly

to a buyer named Clifford at P180 per share. The shares were
acquired six months ago at P105 per share. Compute the
CGT.
Sample problem

George sold 2,000 shares of a domestic corporation directly

to a buyer named Earl at P100 per share. The shares were
acquired two years ago at P105 per share. Compute the CGT.
Sample problem

1. Rachel sell a parcel of land used in her trading business

amounting to 3,000,000. The property was acquired five
years ago at 1,500,000
2. Theon sell his residential property for 5M. The fair market
value of the property was 6M. The property was acquired
three years ago at 4M.
Summary of Income and the Applicable Income Tax

Type of Income Applicable Tax Table

Regular Income Graduated Rate Table 2-1

Passive Income, Final Withholding Table 2-2

Phils Tax
Capital Gains Capital Gain Tax Table 2-3
SELF EMPLOYED & / OR PROFESSIONAL

Self Employed
Define as a sole proprietor or an independent contractor who
reports income earned from self-employment. He/she
controls who he/she works for, how the work is done and
when it is done. It includes professionals whose income is
derived purely from the practice and not under an employer-
employee relationship
SELF EMPLOYED & / OR PROFESSIONAL

Professional
Is a person formally certified by a professional body
belonging to a specific profession by virtue of having
completed a required course of studies or practice, whose
competence can usually be measured against an established
set of standards. It also refers to a person who engages in
some art or sport for money, as means of livelihood, rather
than as a hobby
SELF EMPLOYED & / OR PROFESSIONAL

Beginning 2018 upon the effectivity of TRAIN Law, regular

income of SEP amounting to 250,000 in a taxable year but
with a gross sales / receipts and other operating income not
exceeding to the revised VAT threshold of 3M shall have the
option to avail of 8% tax.
SELF EMPLOYED & / OR PROFESSIONAL
Purely SEP
(with gross sales/receipts)
3M and below: Regular Income Tax or 8% tax on Gross
Sales/receipts and other operating income in excess of
250,000 in lieu of the graduated tax rate

Above 3M: Regular Income Tax

SELF EMPLOYED & / OR PROFESSIONAL
Mixed Income Earner
1. Compensation: Regular Income Tax
2. Business/Professional Income

a. 3M and below: Regular Income Tax or 8% tax on

Gross Sales/receipts and other operating income in lieu of
the graduated tax rate

b. Above 3M: Regular Income Tax

Who can avail the 8%
1. Non-vat registered
2. Not engaged in vat-exempt sales/transactions
3. Not subject to OPT
Sample Problem:
1. Determine the income tax due assuming the gross
sales/receipts and other non-operating income for 2018 is
240,000

2. Using the data below, determine the income tax due for 2018:
Gross Sales 2,800,000
Cost of Sales 1,500,000
Operating Exp. 750,000

3. Assuming the SEP in the preceding number opted to avail the

8% tax under the TRAIN Law.
Sample Problem:
4. Determine the Income Tax due assuming the following data for
2018:
Gross Sales 5,000,000
Cost of Operating Sales 2,250,000
Operating Expenses 1,250,000

5. Using the preceding data how much is the income tax due if
they avail the 8% tax.
FINAL WITHHOLDING TAX
Final Withholding Tax
Is a kind of tax which is prescribed on “certain income” for
instance interest income, dividends, royalties, prizes and
winnings.
FINAL WITHHOLDING TAX
Example:

If a resident citizen taxpayer earned 10,000 interest income

from his bank deposit, the amount to be credited to his bank
account shall only be 8,000 net of the 20% final withholding
tax on interest income from bank deposit. The applicable tax
shall be withheld by the payor (bank) and shall remit the
corresponding taxes to the BIR.
CREDITABLE WITHHOLDING TAX
Income that are not subject to final taxes on passive income and
capital gains tax are subject to creditable withholding taxes.

CWT is a method of collecting income tax “in advance” from the

recipient of income through the payor thereof, which is
constituted by law as the withholding agent of government

Taxes withheld on certain payments are intended to equal or at

least approximate the tax due of the payee on said income
computed using the graduated tax rate
CWT Rates:
Purchase of / Payment for CWT %
Professional Fees
Individual tax Payee ≤3M 5%;10%
Non-Individual Tax Payee ≤720k 10%;15%
Rentals 5%
Goods 1%
Services 2%
Income Payment to beneficiaries of estate 15%
Income Payment to partners of GPPs: ≤720k 10%;15%
Certain income payments made by credit 1%
card companies
Sample Problem
A resident citizen employee provided the following data for
2018 taxable year.
Compensation Income 450,000
Deductions made by the employer
SSS premiums 6,000
Philhealth contributions 8,400
Pag-ibig contributions 2,400
Union Dues 1,200
Income Tax withheld 35,000
How much is the income tax payable?
Quarterly Tax Returns
Income Tax Returns for income derived from business and/or
practice of profession are required to filed on a quarterly basis
(regardless of the result of the operation) as follows:

1st Q May 15 (45 days after end of Q)

2nd Q Aug 15 (45 days after end of Q)
3rd Q Nov 15 (45 days after end of Q)
Final Adjustment/ Apr 15 of the succeeding year
Annual Return
Quarterly Tax Returns
The ff. cumulative balances on income and expenses in 2018 of Juan Dela Cruz
1st Q 2nd Q 3rd Q 4th Q
Gross Sales 1,200,000 2,100,000 3,000,,000 3,700,000
Cost of Sales 700,000 1,200,000 1,800,000 2,200,000
Business Exp. 200,000 325,000 550,000 700,000

Dividend received from

Domestic corp 10,000 10,000 20,000 20,000

Interest Income from

BPI 2,000 4,000 6,000 8,000
UCPB 800 1,200 1,600 1,800
Metrobank 5,000 10,000 15,000 20,000

Capital Gain Sale of Land 80,000 80,000 80,000 80,000

Selling Price: 400,000
Cost: 320,000
Income Tax Due of Married Taxpayers
Under RA 10963, husband and wife, shall compute separately
their individual income tax based on their respective total
taxable income: Provided that if any income cannot be
definitely attributed to or identified as income exclusively
earned or realized by either of the spouses, the same shall
divided equally between the spouses for the purpose of
determining their respective taxable income.
Problem
For the year 2019, Mr. and Mrs. Cruz have a house which
they rent to tenants earning them P1,400,000 a year. Mr.
Cruz is an accountant while Mrs. Cruz is an employed nurse.
Mr. Cruz earned P2,800,000 before 900,000 direct costs and
600,000 expenses. Mrs. Cruz also earned 1,200,000
compensation.
Senior Citizen and Persons with Disabilities (PWDs)
If the aggregate amount of gross income earned by the
Senior Citizen/PWD during the taxable year does not exceed
P250,000 he/she shall be exempt from income tax and shall
not be required to file income tax return. Hence, a senior
citizen can still be liable for other taxes such as:
1. The 20% final withholding tax on interest income from
any currency bank deposits
2. The 15% final withholding tax on interest income from a
depository bank under expanded foreign currency deposit
system
Senior Citizen and Persons with Disabilities (PWDs)
3. Pre-termination of long-term deposit or investment
4 years to less than 5 years 5%
3 years to less than 4 years 12%
Less than three years 20%
4. The 10% final withholding tax on dividends
5. The capital gains tax from sales of shares of stocks not traded
in local stock exchange
6. The 6% final withholding tax on presumed capital gains from
sale of real property, classified as capital asset except capital
gains presumed to have been realized from the sale of
disposition of principal residence
Senior Citizen and Persons with Disabilities (PWDs)
7. Other Taxes like:
a. Value added tax or Percentage Tax
b. Donor’s Tax
c. Estate Tax
d. Excise Tax
e. Documentary Stamp Tax
Benefits of Senior Citizen and PWD’s
They are entitled to the following benefits:
1. 20% discount and exemption from VAT
2. 500 monthly social pension for indigent SC
3. Death benefit assistance
4. 5% discount on utilities
5. Income tax exemption for minimum wage earners
Minimum Wage Earners
The term “statutory minimum wage earner (SMW)” under
RA 9504 shall refer to a worker in the private sector paid the
statutory minimum wage or to an employee in the public
sector with compensation income of not more than the SMW
in the non-agricultural sector where he/she is assigned.

The rate is fixed by the Regional Tripartite Wage and

Productivity Board as defined by the Bureau of Labor and
Employment Statistics (BLES) of the Department of Labor and
Employment (DOLE).
Minimum Wage Earners
MWE’s are exempted from Income Tax on:
1. Minimum Wage
2. Holiday Pay
3. Overtime Pay
4. Night Shift Differential
5. Hazard Pay
Filing on Income Tax Returns (ITR)
 Basic Tax
• For purely compensation income earners On or before April 15
of the succeeding year
• For Business Income including from practice 1stQ - May15
of profession (regardless of the result of the 2ndQ - Aug15
operation) 3rdQ - Nov15
4thQ - Apr15
 Final Withholding Tax Jan-Nov 10th day of the ff
month
Dec – Jan.15
Filing on Income Tax Returns (ITR)
 Capital Gains Tax
a. Shares of Stocks
Ordinary Return – 30 days after each transaction
Final Consolidated Return – on or before April 15 of the ff. year

b. Real Property – 30 days following each sale or other disposition

Manner of Filing
Filing of ITR may be made through:
1. Manual Filing
2. Electronic Filing and Payment System (EFPS)
3. eBIR Forms
Personal Exemptions
These are the amounts allowed by law to be deducted from income to cover the
personal living or family expenses of the taxpayer
Kinds of Exemption
1. Basic Personal Exemption
Individual Taxpayer regardless of the status is entitled to 50,000 personal exemption.

2. Additional Exemption
An additional exemption of 25,000 for each qualified dependent not exceeding four (4).
Qualified dependent are those:
- not more than 21 of age
- chiefly dependent upon and living with the taxpayer
- unmarried
- not gainfully employed
- or if such regardless of age, is incapable of self-support because of mental or
physical defect.
Chief Support
It means principal or main support, regular and continuing. Financial or other material
support extended to the dependent; if such support is withdrawn, the dependent will
live in a destitute life unless similar support or livelihood is provided b the others.
Living With
It does not necessarily mean actual or physical togetherness at all times and under all
circumstances. As long as the other requirements of the law are met, the dependent is
considered living with the taxpayer, hence qualified, even if he is not in actual physical
togetherness with the taxpayer
Foster Child
Refers to a person below 18 years of age or one who is over 18 but is unable to fully take
care of or protect oneself from abuse, neglect, cruelty, exploitation or discrimination
because of a physical or mental disability or condition

Requirement in order for a foster child to qualify as dependent:

1. below 18 years of age or one who is over 18 but is unable to fully take care of or
protect oneself from abuse, neglect, cruelty, exploitation or discrimination because of a
physical or mental disability or condition and;
2. Chiefly dependent upon and living with the foster parent
3. Unmarried
4. Not gainfully employed
Foster Child

Foster Care – refers to the provision of planned temporary substitute parental care to a
child by a foster parent

Foster Child – Refers to a child place under foster care.

Foster Parent – refers to a person, duly licensed by the DSWD, to provide foster care
Additional Exemption
Effective taxable year 2016, a benefactor of a qualified PWD, may claim additional
exemption of 25,000 for each PWD, if such PWD regardless of age, satisfies all of the ff:
1. A Filipino citizen
2. Within fourth 4th civil degree of consanguinity or affinity to the taxpayer / benefactor
3. Not gainfully employed
4. Chiefly dependent upon and living with the taxpayer / benefactor
Persons with Disability (PWD)
PWD are those who have long-term physical, mental, intellectual or sensory impairments
which in interaction with various barriers may hinder their full and effective participation
in society on an equal basis with others. Persons with disability shall be
classified/categorized by the DOH.
Benefactor
It refer to a Filipino citizen or resident alien, caring for, giving chief support, and living
with PWD, who is in fourth (4th) civil degree of consanguinity or affinity claiming such
PWD as dependent.
Proper Claimant of Additional Exemption
As a rule, the additional exemption of 25,000 for each qualified dependent (qualified
dependent child including foster child/children and/or qualified dependent PWD) not
exceeding four (4) dependents are allowed to qualified individual taxpayer, married or
single.

Incase of married taxpayers, only one of the spouses may claim additional exemption. As
a rule, husband is deemed head of the family and proper claimant of additional
exemption. The wife may claim the additional exemption if:
1. Husband explicitly waives his right
2. Husband has no income
3. Husband works abroad and has no taxable income in the Philippines
Proper Claimant of Additional Exemption
For legally separated spouses, claimant is the spouse who has the custody of the
qualified dependent child or children or PWD. Provided, that the total number of
qualified dependents that may be claimed by both shall not exceed four (4).

For foster parent/s, only one can treat the foster child as a dependent for a particular
taxable year. As such, no other parent or foster parent can claim the said child as
dependent for that period.
Personal Exemptions for NRA-ETB
A Nonresident alien may claim personal exemptions provided the ff. requisites:
1. The NRA is engage in trade or business or exercising his profession in the Philippines
2. There is reciprocity
3. The NRA-ETB files a true and accurate return covering all income from all sources
within the Philippines
4. The amount of exemption shall be lower between the amount allowed in his country
or the amount allowed under the tax code (NIRC)
Tax Payers not entitled to personal exemption
1. Nonresident aliens engaged in trade or business when there is no reciprocity
2. NRA-NETB
Sample Problem
Juan, widower, had the following dependents during 2017 had the ff. dependent during
2017:
 3 legitimate minor children
 25 years old recognized natural child with common law wife
 His common law wife
 His physically disabled brother, minor, unemployed
 His parents who are chiefly dependent and living with him

Question:
How much is the total personal exemption of Juan?
Sample Problem
Juan, widower, had the following dependents during 2018 had the ff. dependent during
2017:
 3 legitimate minor children
 25 years old recognized natural child with common law wife
 His common law wife
 His physically disabled brother, minor, unemployed
 His parents who are chiefly dependent and living with him

Question:
How much is the total personal exemption of Juan?
Sample Problem
Jeffrey, married, had the ff: data for 2017:
Gross Income, Philippines 600,000
Gross Income, Abroad 200,000
Expenses, Philippines 250,000
Expenses, Abroad 120,000
Additional data:
Pedro dependents include the ff:
 2 minor children
 1 PWD within fourth consanguinity, 35 years old
 1 foster child
Health and/or Hospitalization Insurance Premium (HHIP)
Premiums paid during the taxable year for health and/or hospitalization insurance shall
be allowed as a deduction from the gross income of resident citizen, non resident
citizens, resident aliens and nonresident aliens engaged in trade or business, provided:
1. The insurance shall be taken out by the individual for himself or for his family
2. The family gross income is not more than 250,000 for the taxable year
3. The amount being claimed shall not exceed 2,400 a year or 200 a month per family

This deduction shall be allowed to qualified taxpayer regardless of the taxpayer’s source
of income. The spouse claiming additional exemption for qualified dependent children
shall be the same spouse to claim the deductions for premium payments.
Sample Problem
A resident citizen employee with one (1) qualified dependent child provided the
following date for 2017:
Gross Compensation Income 250,000
 Deductions made by the employer
SSS premiums contributions 6,000
Philhealth contributions 8,400
Pag-ibig contributions 2,400
Union Dues 1,200
 Premium paid on health and/or hospitalization 6,000
insurance taken out by the employee for himself
and his child at 500 per month
Sample Problem
A resident citizen employee with one (1) qualified dependent child provided the
following date for 2017:
Gross Compensation Income 250,000
 Deductions made by the employer
SSS premiums contributions 6,000
Philhealth contributions 8,400
Pag-ibig contributions 2,400
Union Dues 1,200
 Premium paid on health and/or hospitalization 6,000
insurance taken out by the employer for the
employee