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    WTax Table

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    Eleazar P. Sanchez

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    ‘A Business (tos: sire paphsdmit-cor HOME (HHTTPSY/BUSINESSTIPS.PH/) BUSINESS (HTTPS//BUSINESSTIPS.PH/CATEGORY/BUSINESS/) [MANAGEMENT (HTTPS:/QUSINESSTIPSPH/CATEGORW/MANAGEMENT) MARKETING (HTTPS//BUSINESSTIPS.PH/CATEGORY/MARKETINGY} BUSINESS CATEGORY (HTTPS¥//BUSINESSTIPS.PHIBUSINESS-CATEGORY) ABOUT (HTTPSU/BUSINESSTIPS.PH/ABOUTH eres Search thiswebste Professional Auto Detailing Ex Porat Carpet cleaning Spot, xtactor Mi How to Compute Withholding Tax on — Compensation (BIR Philippines) G raunvatvan.2011. vic cirtesyrausmssrespiualTuonvicn ¥__ Howto compute withholding tax on compensation and wages in the Phi LIKEUSON FACEBOOK happy). You will nothave an idea on the computation ofthe tax withheld on compensation (eusineesTes gh for each of those employees. In this article, we will tackle how a withholding taxis computed cue foreachof them. Sole’sproceed Requirement of Withholding oo According to Section 79 ofthe National Internal Revenue Code (Republic Act No.8424), as further amended by RA 9504, “except in the case of a minimum wage earner as defined in ‘Sec. 22(HH) of this code, every employer making payment of wages shall deduct and withhoidupon such wages a tax determined in accordance with the rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner” This means that employees and workers who earn minimum wages are nt subject to withholding tax Thesummary ofthe current regional minimum wage rates can be viewed atthe Department of Labor and Employment (DOLE) official website (htt. wwe swpc dole gou.ph/pags/tatistics/tat.current-regional htm Enter Your Email Address supmir ‘Methods of computing tax withheld on compensation 1. Use of withholding tax table. In general, every employer making payment of ‘compensation shall deduct and withhold from such compensation a tax determined in accordance with the prescribed Revised Withholding Tax Tables (Annex C) which shall be used starting January 1, 2009. Below are the four withholding tax tables prescribed in these regulations: ‘a. Monthly tax table - to be used by employers using the monthly payroll period; 'b, _Semi-monthly tax table - to be used by employers using the semi-monthly payroll period; (httpsi//businesstips.ph/a- Weekly tax table - to be used by employers using the weekly payroll period: ‘comprehensive-tuide-to- A Comprehensive Guide to Philippine Law Cases (https:/businesstips.ph/a- comprehensive-guide-to- philippine-law-cases/) (httpsy//businesstips.ph/evalu ating-greer-initiatives-the- key-to-sustainable-business- success/) Evaluating Green Initiatives: The Key to Sustainable Business Success (https://businesstips.ph/ev aluating-green-initiatives- the -key-to-sustainable- business-success/) Legend: Z-Zero exemption S-Single ‘ME-Married Employee 41,2;3;4- Number of qualified dependent children ‘S/ME = P50,000 Each Working employee Qualified Dependent Child = 25,000 each but not exceeding four (4) children Discover related topics Employee Payroll Tax for Employees Withholding Tax Calculator How to Calculate Withholding Tax Caleulate Withholding Tax USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED DEPENDENT 1. Married Employee (Husband or Wife) whose spouse is unemployed. (httpsi//businesstips.ph/openi ng-and-orchestrating- ‘multiple-business-locations/) Opening and Orchestrating Multiple Business Locations (https://businesstips.ph/op ening-and-orchestrating- multiple-business- locations) (httpsi//businesstips.ph/profe ssionally-nurtured-the- S.Single &.Zero Exemption for Employees with multiple employers for the 2™,3...emy (main employer claims personal & additional exemption) 7. Zero Exemption for those who failed to file Application for Registration ployer USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH QUALIFIED DEPENDENT CHILDREN 1. Employed husband and husband claims exemptions of children 2. Employed wife whose husband is also employed or engaged in business; husband waived claim for dependent children in favor of the employed wife. 3. Single with qualified dependent children. If the compensation is paid other than daily, weekly, sem-monthly or monthly, the tax to be withheld shall be computed as follows. a, Annually - use the annualized computation (seeno. 3 below). b. Quarterly and semi-annually - divide the compensation by three (3) or six (6) respectively, to determine the average monthly compensation. Use the monthly withholding, tax table to compute the tax, and the tax so computed shall be multiplied by three (@)accordingly. 2. Cumulative average method. This method is used if (a) in respect ofa particular (S)orsix [ ‘employee, the regular compensation is exempt from withholding tax because the amount thereof is below the compensation level, but supplementary compensation is paid during the calendar year or the supplementary compensation is equal to or more than the regular, ‘compensation to be paid; or (b) the employee was newly hired and had a previous temployer/s within the calendar year, other than the present employer doing t! ‘umulative Professionally Nurtured: ‘The Unseen Benefits of Hiring Qualified Childminders (https://businesstips.ph/pr ofessionally-nurtured-the- unseen-benefits-of-hiring- qualified-childminders/) (httpsi//businesstips.ph/sustai nnable-and-budget-friendly- practices-for-startups/) Sustainable and Budget- Friendly Practices for Startups (https:/businesstips ph/su stainable-and-budget- friendly-practices-for- startups/) ‘3, Annualized withholding tax method, This method is used (a) when the employer- How to Register Business ‘employee relationship is terminated before the end ofthe calendar year;and (o)when - Name with DTT ‘computing for the year-end adjustment (the employer shall determine the amount to be Philippines ting forthe year-end adjustment the employer shall determine th tobe (attps://businesstips.ph/h withheld from the compensation on the last month of employmentorin December of the Gw-to-register business- current calendar year) name-with-dti- ‘Steps in computing amount of tax to be withheld philippines/) Stept. Determine the total monetary and non-monetary compensation paid to an employee for the payroll period, segregating gross benefits which include 13th month pay, productivity incentives, Christmas bonus, other benefits, received by the employee perpayrollperiod, bravin'eee seth the BIR. and employees’ contribution (employees' contribution only and not the employers Philippines contribution) to $S5, GSIS, HDMF, PHIC, and union dues. ross benefits which are received — (https:/businesstips.ph/h by officials and employees of both public and private entities in the amount of P30,0000r _ow-to-register-your- less shall be exempted from income and withholding taxes. business-with-the-bir- philippines/) How to Register Your You may read our article about How to compute 13th Month Pay inthe Philippines. (httpsi//businesstips,phvhow-to-compute-13th-month-pay-phlippines:labor-code/) ‘Step2. Segregate the taxable from the non-taxable compensation income paid to the How to Close a Business in ‘employee for the payroll period. The taxable income refers to all remuneration paidtoan _the Philippines ‘employee not otherwise exempted by law from income tax and consequently from (https;//businesstips.ph/h ow-to-close-a-business-in- withinolding tax. The nor-taxable income ae those which are specifically exemptedfrom fH te crons- i income tax by the Code or by other special laws as listed in Sec2.78.1(8) hereof (e.g, benefits not exceeding P30,000, non-taxable retirement benefits and separation pay). You may read our article titled "How to Compute Separation Pay in the Philippines’ How to Register Your {httpsi//businesstips.phvhow-to-compute-separation-pay-philippines-labor-code/) Home-based Business in. ‘ther allowances paid to an employee per payroll period. Supplementary compensation includes payments to an employee in addition to the regular compensation such as commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefit, with or without regard to a payroll period. You may read our article on "How to Compute Overtime Pay in the Philippines” {https:/ousinesstips.ph/how-to-compute-overtime-pay-in-the-philippines/) Representation and Transportation Allowance (RATA) granted to public officers and ‘employees under the General Appropriations Act and the Personnel Economic Relief Allowance (PERA) which essentially constitute reimbursement for expenses incurred in the performance of government personnel's official duties shal not be subject to income tax and consequently to withholding tax. ‘Step 4. Use the appropriate tables mentioned under Section 2.79 (B)(1) for the payroll period: monthly, semi-monthly, weekly or daily as the case may be. Step 5. Fix the compensation level as follows: (2). Determine the line (horizontal) corresponding tothe status and number of qualified dependent children using the appropriate symbol for the taxpayer's status. (b) Determine the column to be used by taking into account only the total amount of taxable regular compensation income. The compensation level s the amount indicated in the line and column to which the regular compensation income is equal o or in excess, but nat to ‘exceed the amount. the next column of the same lin. ‘Step 6. Compute the withholding tax due by adding the tax predetermined in the ‘compensation level indicated at the top of the column, to the tax on the excess of the total ow-to-register-your- home-based-business-in- the-philippines/) Legal Requirements for Starting a Business in the Philippines (https:/businesstips.ph/le gal-requirements starting-business- philippines/) ‘The Most Powerful SEO Technique in the Universe (https;//businesstips.ph/th e-most-powerful-seo: technique-in-the- universe/) 36 Ways to Rock Your ‘Small Business Online The following are sample computations of Withholding tax on compensation using the What's the Best SEO withholding tax tables: Technique for Websites and Blogs? Example 1: Single with no dependent receiving monthly compensation (https://businesstips.ph/w hat-is-the-best-seo- Juan Santos, single with no dependent, receives P18,000 (net of SSS/GSISPHICHOMF une tor websites: ‘employee share only) as monthly regular compensation and P 7,000 as supplementary and-bloge/) ‘compensation for January 2011 or a total of P25,000. How much isthe withholding tax for January 2011 for Juan? Computation: Integrating Search . Marketing and My By using the monthly withholding tax table, the withholding tax for January 2011 is Eaperlonee at MORCOn computed by referring to Table Aline 2S (single) of column 6 (fix compensation level taking 3943 into account ony the regular compensation income of P18,000 which shows ataxofP1,875 _(https://businesstips:ph/in (on P15,833 plus 25% of the excess of P 2,167 (P18,000-15,833} plus P7,000 supplementary tegrating-search compensation, marketing-and-my- experience-at-morcon- 2013/) What is the Essence of SEO? (https://businesstips.ph/w hat-is-the-essence-of-seo/) Regular compensation: P_ 18,000 Less: compensation level Taxon P15,833, P 187500 ‘Taxon excess (P9,167 x 25%) 2291.75 Withholding taxfor January 2011 P 4,166.75 Example 2: Married with qualified dependent children recei ‘compensation semi-monthly Jose Cruz, married with three (4) qualified dependent children receives P14,000 (net of 'SSS/GSIS.PHIC, HOMF employee share only) as regular semi-monthly compensation. His wife is also employed but he did not waive his right in favor of the wife to claim for the additional exemptions. ‘Computation: Using the semi-monthly withholding tax tables, the withholding tax due is computed by referring to Table B line 4 ME4 of column 6 which shows a tax of P937.5.0n P12,083 plus 25% of the excess (P 14,000 - 12,083 = P1.917). Total taxable compensation 14,000 Less: compensation level (line B-4 Column 6) 12,083 Excess P1917 avn BIDAR eR7 sn For more samples of computations, such as computations using the cumulative average method, and annualized withholding tax method for computing year-end adjustments and when the employer-employee relationship is terminated before the end of the calendar year, please read the BIR issued Revenue Regulations No. 10-2008, which you can download the full text at the following links: Revenue Regulations No, 10-2008 PDF file from BIR Website or (ps ftp.birgovph/webadmint /pdt/42126rr%20n0.%2010-2008 pdf) Revenue Regulations No. 10-2008 PDF file from our website (httpsi//businesstips.ph/wp- ccontent/uploads/201 1/02/RRno.2010-2008 pai, in case the BIR link won't work You can also view/download the following: Revised Withholding Tax tables (https://businesstips.ph/wp: content/uploads/2011/02/Revised-withholding-tax-tables.pdf) BIR form 1601-C (https://businesstips.ph/wo-content/uploads/2011/02/81R-form-1601- 1.pdf) -Monthly Remittance Return of Income Taxes Withheld on Compensation BIR Form 1604C (https:/businesstips.ph/wp-content/uploads/201 1/02/BIR-Form-1604- (CFfinal.paf) Annual Information Return of Income Tax Withheld on Compensation and Final Withholding Taxes ‘Summary of current regional daily minimum wag rates {http://www.nwpe.dole govph/pages/statisties/stat_current_regional htm!) (Department of Labor and Employment) Disclaimer: New and subsequent BIR rulings, issuances and or laws may render the whole or part of the article obsolete or inaccurate. For more information, please inquire or consult with the BIR. Victorino Q Abragarisa marketing strategist ad business consultant from Taloban City, Philipines Vic hasbeen nthe aline:marktingindustry for more than 7 years practicing problogang web ceveloprent. content rarketng SEO, socal media marketing and [Bt LAW & GOVERNMENT (HTTPS://OUSINESSTIPS PH/CATEGORY/LAW-GOVERNMENT/, TAXATION (ir 1f6USINESSTIPSPH/CATEGORY/LAW. COVERNMENT/TAKATION/) (@ i (uTTS:/BUSINESSTIPS.PH/TAG/GIR!), EMPLOYEES (HTTPS:/BUSINESSTIPS.PH/TAGIEMPLOVEES/ PriPpINes (HTTPS.//BUSINESSTIPS PH/TAG/PHILIPPINES), TAX (HTEPS://BUSINESSTIPS.PH/TAGITAXD, (HTTPS.MBUSINESSTIPSPH/TAGIWITHHOLDING-TAR) COMMENTS Ricel says June 21,2011 at 8:13 am (https:/-businesstips ph/how-to-compute-withholding-tax- ‘on-compensation-bir-pilippines/tcomment-444) HiVic, ‘Are parents ages 60 and up are qualified 2s a additional dependent? ranks. Viezays An individual, whether single or married, shall be allowed an additional ‘exemption of P25,000.00 for each qualified dependent child, not exceeding four (4). The additional exemption for dependents shall be claimed by the husband, Who is deemed the proper claimant unless he explicitly waives his rightin favor of his wie. "Dependent Child” means a legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect. Gea] 279 tetctecenterttptnacigcenercom/ says June 22,2011 at 2:27 pm (ttps/businesstps.ah/how-to-compute-withholding-tax ‘on-compensation-bir-philipines/tcomment-448) Just wish to add another point. Some authorities are advocating in favor of Senior Citizens as additional dependents by virtue of the amendments of the Senior Citizens Act but this is a minority view so that the common treatment is they are not entitled. Dependent child is what Vic quoted above and since senior citizens can never be a child ofthe taxpayer caring them, though sometimes they get back to beinga child, they are not entitled the P25k a year additional personal exemptions. June 22,2011 2t 5:07 pm (https://ousinesstins phyhowto-compute-withhalding-taxom- ‘compensation-birphilippines/#comment-449) Hi Ghar, please put your real name or nick name in the name field. Its one of ‘our commenting policy which aims to recognize truly our commentators. ‘Thanks for the additional point. Ghar of TaxAcctgCenter (hitps/taxacctgcenter.com/ says Sune 23,2011 at 12:51 am {htips://businesstips phvhaw-to-compute-withholding taxcon-compensation-bir-philiopines/#comment-451) Noted with thanks Vic. You do have a healthy forum here. Ghar of TaxAcctgCenter (hetpuitaxacctacenter.comv) says June 29,2011 at 1:27 am (httpsffousinesstips ph/how-to-compute-withholding-tax- ‘on-compensation-bir-pilipines/#comment-477) ‘To develop your thorough understanding of Compensation - tax computation and ‘exemptions, Ihave created a seminar that where you may participate in order to understand how it works, what are the related BIR forms to file, and how BIR makes assessment on compensation. Please Visit link on my name for details, inquiries, and Son says July 92011 at 6:54 pm thttps:/Pousinesstips ph/how-to-compute-withholding-tax ‘on-compensation-bir-philigpines/tcomment-564) Ifa foreign company in Europe hired you on a fixed-term contract as a consultant to do! job but put your contract in their local sales company which is not doing IT at all so paperwork is faster, how would you be taxed considering that 100% of your time you travel abroad and directly reports to your counterparts in Europe? Will you be taxed 10% or maybe 15% or the regular 29-32%? More so, if you are getting an amount set in your job offer every 6 months directly from the office in Denmark asa reward for your efforts, how will that be taxed? If your salary is invoiced by the local sales company to the head office in Europe as an expense, are you to be taxed full? Aren't you an employee then of the foreign ‘company though your contract was put locally for convenience? If for the past 2 years, the former finance manager has been imposing a 10% taxon you and suddenly on the end of the 2 year period, a new finance manager arrives and taxes you 29% instead, wll that be correct? If the amount you usually get from headoffice as a form of goodwill or reward is given to you in full for the past 2 years, isit reasonable to tax in full 29% due to the arrival ofthe new finance manager? Please kindly assist. Thank you. HiSon, ‘Seems you are have along list of clarifications. Please find my views to your concerns beside your question. Ifa foreign company in Europe hired you on a fixed-term contract as a consultant to do job but put your contract in their local sales company which is not doing IT at all so paperwork is faster, how would you be taxed considering that 100% of your time you travel abroad and directly reports to your counterparts in Europe? ‘Ans. The tax would depend on where you do the IT work, how long have you been ‘out ofthe Philippines to do the work, and if the local company shoulders said expenses. Ifthe works done abroad and you stayed there more than 183 days, then the sameis not taxable inthe Philippines because you shall be considered a non- resident citizen taxable only on income within the Philippines and said income is an income outside of the Philippines for being the work being done abroad. Ifthe local ‘company shoulders said expenses, then, there has to be a tax Treaty relief with the BIR ITAD, or a ruling from BIR-Law Division, otherwise, the BIR will look at it as taxable, On the contrary, you are taxable in the country based on tax table with rates 5% to 32% depending on your tax bracket. No VAT shall be imposed on, services performed abroad. Will you be taxed 10% or maybe 15% or the regular 29-32%? Ans, 5-32% tax table applies because you are not an employee of an RHQ. More so, if you are getting an amount setin your job offer every 6 months directly from the office in Denmark as a reward for your efforts, how will that be taxed? Ans. ‘Same taxable implications as said above, the manner and frequency of payment is It your salary is invoiced by the local sales company to the head office in Europe as ‘an expense, are you to be taxed full? Aren't you an employee then of the foreign ‘company though your contract was put locally for convenience? Ans. Same tax. implications as above, who shoulders you fee is not material If for the past 2 years, the former finance manager has been imposing a 10% taxon you and suddenly on the end of the 2 year period, a new finance manager arrives and taxes you 29% instead, will that be correct? ‘Ans. The new Finance Manager maybe correct at one point or maybe wrong at another point. think, the 10%is only a creditable withholding tax that is withheld by the old Finance Manager which means that you should have been filing TR based (on 5-32% tax tableif you are taxable. f you are not subject to income tax in the Philippines as discussed above, then, both of them are incorrect: If the amount you usually get from headoffice as a form of goodwill or reward is siven to you in full for the past 2 years, is it reasonable to tax in full 29% due to the arrival of the new finance manager? ‘Ans. Itdoes nat matter also because such amounts are treated as compensation for, Hope the above clarifies your concerns. Alvinsays July 21.2011 at 1:07 am fntn/fhusinesstins ahvhaw-to-comouteswithnaldine-raK- Hi dont know how to compute my taxes but my salary is 20,000 a month less SSS,PHMD a total of 812.50 and my taxis 3,502.97 a month, is this correct, computation? appreciate your help, thanks anne says July 28, 2011 at 5:49 am thttpsi/businesstips phvhow-to-compute-withnolding- taxcon-compensation-birphilippines/#comment-709) Hialvin, are you single, married and with dependenti/s?? Jordieza says ‘August 5,2011 at 9:07 pm (httos://businesstips.ph/how-to-compute~ withholding-tax-on-compensation-bir-pilippines/#eomment-778), If gross salary is 20,000.00, the following benefit salary: should be deducted to your 500 Note: the withholding tax will change if you're married with dependents as well asi you have Overtime or Night Diff. Czelsays ‘August 8, 2014 a 7:24 am {htipsi/businesstips phvhow-to-compute- withholding-tax-on-compensation-bi-pilippines/#comment-799), ‘can you please show me the computation? thanks vyeng says October 28, 2011 at 6:28 am (hitps://businesstips ph/how-to-compute withnolding-tax-on-compensation-bi-philippines/tcomment-1320) @jordieza, can iask how to compute the 2704.25? the detailed one pls. flerieosum says July 23,2011 at 6:51 am (nttps:/businesstips phhow.-to-compute-nithholding-tax- Jordieza says ‘August 5, 2011 at 8:52 pm (httas/businesstips ph/how-to-compute- withholding-tax-on-compensation-bi-pilippines/#eomment-777) Hiflerie Is this a gross salary or net salary? What I mean to says that, is this a salary with benefits deductions or no benefits deductions yet. | need your response, for me to compute for your withholding tax. Dan CarloM Arquero says July 26, 2011 at 7:45 am (nttps/businesstinsphvhow-to-compute-nithholding-tax- ‘on-compensation-bir-phillines/#comment-679) | just want to ask what if deployment incentive is taxable or not? thanks, do you haven e-mail address? Ghar thttp:/Raxacctgcenter com/seminar-schedtles/ says July 26,2011 at 1:51 pm thttos/ousinesstios ph/how-to-compute-withholeing-tax- HiDon! Yes, its taxable. As a rule, all Income earned in the Phils. is taxable regardless of source and the designation. You can send me mail at taxacctg.tutorials@gmail com (mailto:taxacetg.tutorials@gmail.com) mike says July 26, 2011 at 2:50 pm thttps/ousinesstips ptv/how-to-compute-withholding-tax ‘on-compensation-bir-philipines/#comment-688) hi vie,can you help me to compute may withholding tax? my basic salary now is 10, 800 with sss deduction of 366.70, phic 366.70, hdmf 216, last school year my basic salary was 7000 pesos but my employer withheld us 200. is this correct? Jordieza says ‘August 5, 2044 a 8:48 pm (httas/businesstipsphvhow-to-compute- withholding-tax-on-compensation-bir-pilippines/#eomment-776) HiMike, Based on your basic salary, your PHIC monthly deduction should be 125 while the rest were correct. Please see the ff. withholding tax deduction per month based on your status: 726.19 1 Single/Married w/0 dependent child — | hope this answers your query. Jordieza says ‘August 5, 2011 at 9:13 pm (hitps:/businesstips.ph/how-to-compute- withholding-tax-on-compensation-bir-philippines/#eomment-779), With regards to your second question if they deduct the right withholding. tax, my answer is yes ifand only if you're single / married with no dependent child. Withholding Tax should be 199.59 ~ 200 if you have a ‘ross salary of 7,000. Alvin says July 27, 2011 at 4:28 am (ttpsd/businesstis ph/how-to-compute-withholding-tax- ‘on-compensation-bir-philiines/tcomment-695) Hi, Ghar can you help me in computing my tax may salary is 20,000 w/ total deduction of 812.50 a month, appreciate your help.thanks 5S Ghar httpuaxactgcenterconseminar schedules says Any breakdown on the 812.50 deduction? ‘Tistan says uly 27, 2011 at 5:29 am (nttpsi/businesstins phow-to-compute-withholding-tax- ‘on-compensation-bir-philigoines/#comment-696) HiGhar, | sent you a mall, I don't know it you have received it. Ghar thttp/taxacctgcentercom/seminar-schedtules/ says uly 29,2011 at 3:59 pm thttps/businesstips tvhow-to-compute-withholding: taxcon-compensation-birphilippines/#comment-728) Hi guys! It seems more are interested in learning how to compute their respective withholding taxes on compensation. You might be willing to invest in knowing more about withholding taxes, we have a seminar this coming August 4,201. To see details, please click on my name and click on the program to View Program. Thanks. July 31,2014 at 11:25 pm (nttps:/businesstins phvhow-to-compute-withholding-taxcon- ‘ompensation-birphilippines/#comment-74) Ghar; ‘Thank you for your very useful answer. My question now is that you mention that if ‘an employee has worked for 183 days abroad, he should not be taxed, is this 183 days need to be consecutive or justa total of series of foreign trips? | have been in Europe for 3 months straight and every other week afterwards, | have been going from one country to another spending a week or sometimes 2-3 weeks onsite implementing projects. After each rollout, | go back to Manila fora short 1-2 weeks break. As such, | may say that Ihave stayed abroad for more than 183 days if Lwere to compute for the total of work days | have been rendering services abroad. Will that be the right translation or it has to be 183 consecutive days? ‘One more thing, the signatories in my contract were my boss in Europe, the Regional Director in Malaysia and the Country Manager in Manila. Since! am hired by the HQin Europe but put on contract in Manila and signed by RHQ am! not an RHQemployee? ‘Thank you so much! Ervinsays ‘August 3,2011 at 1:49 pm thltps/fousinesstips ph/how-to-compute-withbolding | would Ike to know i for example; have been employed for the current year for 4 months from my 1st employer and i got terminated{ regardless of offense ). Then | got employed by a 2nd employer on the same year. Am| still entitled for the 2316 form from my 1st employer?2? Viesays ‘August 7, 2011 at 9:18 am (ttps/businesstips ph/how-to-compute -withholding-tax-on-compensation-bir-pilipines/#tcomment-791) @Ervin, BIR Form 2316is acertificate of withholding tax on your compensation. Thus, if your 1st employer has withheld tax on your compensation, whether it’s only for ‘Lmonth or 4 months, you have the right to get 2316 from them. buds says ‘August 7, 2011 a 6:08 am fhtps://businesstips phvhow-to-compute-withhalding- taxcon-compensation-birphiliopines/tcomment-787) | work 3 times a week as a cook and paid P479 a day. |am married, Is my wage subject to withholding tax? @buds, Where are you working at? Your location and type of employer? prace19B5 says ‘August 8, 2011 a 9:97 am (htps://businesstips ph/how-to-compute-withhelding- taxcon-compensation-birphillopines/4comment-800) | am receiving pure salary only P12,000.00 less only philhealth P150.00 cani get, 17R 23167 Gad ctor hp: naracetgcentercm/2011/06/ompensatin comautation- exemptions) says ‘August 14,2011 at 10:03 am (https/businesstios phvhow-to-compute- withholding-tax-on-compensation-bir-pilippines/#eomment-864), I you were withheld taxes on compensation, then, you can secure 2316 from your employer yearly every after January annualization or within 30 days after resignation. hi.just want to ask f the daily allowances are subject to tax? | have 10,000 regular salary and 5000 allowance for transportation,meal etc.will the 15,000 amount subject to tax?btw, I don't have any dependents. Ghar thitp:/Raxacctgcentercom/2011/06/compensation-computation- exemptions) says ‘August 14, 2011 at 10:04 am (https//businesstips ph/how-to-compute -withholding-tax-on-compensation-bir-philippines/#fcomment-865) Yes, they will be subjected, Allowances are taxable, asa rule, (Omar (hitpifousinesstis) says August 11,2011 at 1:19 am (https://businesstips ph/howto-compute-withholding- tax-on-compensation-bir-philippines/#comment-831) hisircan you pls explain to me what's the meaning of the 25000 per dependent, willrelay to you my situation. lam married with a son and my wife is not working since then. i have 25000 salary per month gross, and ijust started workingiin this new company last july.2011 can you give me my net salary and what''s the meaning ‘of 25000 pesos per dependent plus if iam married another 25000 what is the ‘50000 all about to do with my tax and my salary? thank you very much and hoping, stella says ‘August 12,2011 at 2:45 pm httos/fousinesstps.ph/haw-to-comaute-withhalgng: taxcon-compensation-birphilippines/4comment-843) hisirvic, mAy i knOw who are allowed to haVe witholding taX compensation? is ‘Hat trUe that thOse wh0 are aLlowed tO haVe witholding tAx cOmpensatlon aRe those mOnthLy salary is Bove P8,500? ‘omar {htips/businesstps) says ‘August 13,2011 at 3:31 am (https/Pbusinesstips ph/how-to-compute-withholding- taxcon-compensation-birphiliopines/#comment-857) Hisir just want to add something, ijust got my pay last week its my first pay in this new company but inotice they didnt deduct tax on me, can you explain tome why, and heard @ rumor that they will take it all n nov or dec this year, mean from july ‘oct 2011 taxes of mine they will deduct it only in nov. is that possible sir ES cer tees noractacentercom202U0sieompersatin comoutton- exemptions) says August 14, 201 at 10:13 am (ttps//businesstps phvhow-to-compute vithholding-tax-on-compensation-bir-pilippines/#comment-866), income figure, you can now compute using the withholding tax table above under the bracket appropriate for you ~ Monthly, ME1. P25,000 is the additional personal exemption of every qualified dependent child and up to four (4) children. Withholding tax on compensation applies every payday and could not be ‘cumulative. | will not ike iti lam the employee because Iwill receive more on carly paydays but will be surprised to receive a very minimal amount because all withholding taxes for several months. zacky says ‘August 15,2011 at 9:37 am (nttpsi/businesstins phvhow-to-compute-withnolding- taxcon-compensation-birphilippines/#comment-869) hi, can you compute my tax pls? my basic salary is 27149 - 500 sss, 100 pagibig, 375 philheatth. sometimes incentive of 1500 or 2000 monthly, night differential of 1200 or 1500, £800 rice and laundry allowance,pertect attendance(depends) 660...married w/ 1 dependent and my husband provided me already the waiver and submited to HR.as well as BIR and | have itas release.so how much would it cost for a monthly tax? thanks in advance ‘August 16,2011 at 4:41 am (https /businesstips ph/how-to-compute-withholding-taxcon- ‘ompensation-birphilippines/#comment-876) sir gar you said in your reply 25000 is the additional personal exemption, soi have a son. How does it affect my taxes? what does the 25000 have to do with my salary and taxes, jam sorry if ma litte slow on this but what does the 25,000 do with my salary? Does it mean that 'm not gonna be taxed for 1 month because i have 25,000 salary sodoes it mean i will not have taxes for 1 month ir? could you please clarity thank you very much sir gar Ghar thttotaxacctgcentercom/20111/08/value-added-tax-in-and-outl says ‘August 16,2011 at 6:08 am (https//businessips ph/how-to-compute-withholding- taxcon-compensation-bir-phillopines/#comment-882) Hi Omar! P25 is applied on an annual basis and s already considered in the withholding tax table on compensation. Gag] Stir ttaactgcntercon/2011/08halue-adiedtarinand-ou says ‘August 16,2011 at 6:09 am (nttps:/Pbusinessips ph/how-to-compute-withnolding- tax-on-compensation-birphilippines/#comment-883) Hi Omar! P25000 is applied on an annual basis and is already considered in the withholding tav tahle an enmnencatian rolie says ‘August 17,2011 at 1:41 am (https:/Pbusinesstps ph/how-to-compute-withholding- taxcon-compensation-birphilippines/&comment-884) hello good day toll can anyone can help me with this... my uncle's monthly income is 90,000.00 and his company is deducting 1,000.00 per 15

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