INCOME TAXATION

Chapter 5: Individuals: Tax Rates, Income Tax Due and Taxable Income

Summarized Rules on Individual Income Taxation

Classes of
Tax Base Tax Source Tax Rate
Individual
Resident Citizen
(a) Basic IT Taxable Net Income World 5% to 32%
(b) Final IT Special Income Philippines Various Rates
RA, NRC, NRAEBP
(a) Basic IT Taxable Net Income Philippines 5% to 32%
(b) Final IT Special Income Philippines Various Rates
NRANEBP
(c) Basic IT Gross Income Philippines 25%
(d) Final IT Special Income Philippines Various Rates
SAFE
(e) Basic IT Gross Comp. Income Philippines 15%
(f) Final IT Special Income Philippines Various Rates
Min. Wage Earner
(g) Basic IT Gross Comp. Income Philippines Exempt
(h) Final IT Special Income Philippines Various Rates

Unified Graduated/Progressive Income Tax Rates

If taxable net income is:

Over Not Over Tax Due is Plus Of excess over

P 0.00 P 10 000.00 P 0.00 5% P 0.00
10 000.00 30 000.00 500.00 10 % 10 000.00
30 000.00 70 000.00 2 500.00 15 % 30 000.00
70 000.00 140 000.00 8 500.00 20 % 70 000.00
140 000.00 250 000.00 22 500.00 25 % 140 000.00
250 000.00 500 000.00 50 000.00 30 % 250 000.00
500 000.00 without limit 125 000.00 32 % 500 000.00