Professional Documents
Culture Documents
INCOME TAX
Computation of Income Tax
In order to understand the concept described above, let us
use the hypothetical data:
SSS= P700.00/Monthly
Pag-IBIG= P200.00
PhilHealth= P200.00
Union Due= P100.00
Given:
Total allowance reductions
: P1, 200.00/month x 12 = P14, 400.00/year
Gross income
: P85, 000.00/month x 12 = P1, 020, 000.00/year
Tax income
: P85, 000.00(month income) P1,200.00(allowance deductions)
= P83, 800.00
A. Single
Gross income
: P1, 020, 000.00 - P14, 400.00(allowance
deductions) = P1, 005, 600.00
Gross income
: P1, 020, 000.00 - P14, 400.00(allowance
deductions) = P1, 005, 600.00