January 9, 2023

Withholding Tax, SSS,

HDMF (or Pag-ibig),
PHIC
Computation
for BIR
Withholding
Tax
Withholding Tax, SSS, HDMF (or Pag-
IBIG), PHIC
 • Withholding Taxes is a
corporate tax obligation paid
by taxpayers engaged in trade
What is or business activities in the
Philippines. Employers
Withholding withhold from the salary of
their employees every month
Tax? and each amount withheld
serves as an advanced payment
for the employer's Income
Taxes during the business year.
 It is considered as an effective tool in the
collection of taxes for the following reasons:
Importance • It encourages voluntary compliance;
of the • It reduces cost of collection effort;
• It prevents delinquencies and revenue loss;
Withholding and
Tax System • It prevents dry spell in the fiscal conditions
of the government by providing revenues
throughout the taxable year.
 • Individuals engaged in business or
Persons practiced of profession
Required to • Non-individuals (corporations,
Withhold associations, partnerships, cooperatives)
whether engaged in business or not
Withholding • Government agencies and its
Taxes instrumentalities (National Government
Agencies (NGAs), Government-owned or
Controlled Corporations (GOCCs), Local
Government Units including Baranggays
(LGUs).
Classification of Withholding Taxes
• Creditable withholding tax
1. Compensation - is the tax withheld from income payments to individuals arising from an
employer-employee relationship.
2. Expanded - is a kind of withholding tax which is prescribed on certain income payments and is
creditable against the income tax due of the payee for the taxable quarter/year in which the
particular income was earned.
3. Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax withheld by National
Government Agencies (NGAs) and instrumentalities, including government-owned and controlled
corporations (GOCCs) and local government units (LGUs), before making any payments to VAT
registered taxpayers/suppliers/payees on account of their purchases of goods and services.
4. Withholding Tax on Government Money Payments (GMP) - Percentage Taxes - is the tax
withheld by National Government Agencies (NGAs) and instrumentalities, including government-
owned and controlled corporations (GOCCs) and local government units (LGUs), before making
any payments to non-VAT registered taxpayers/suppliers/payees.
Classification of Withholding Taxes
• Final Withholding Tax is a kind of withholding tax which is prescribed
on certain income payments and is not creditable against the income
tax due of the payee on other income subject to regular rates of tax
for the taxable year. Income Tax withheld constitutes the full and final
payment of the Income Tax due from the payee on the particular
income subjected to final withholding tax.
Responsibilities of the Employer
• Submit the duly accomplished BIR Form Nos. 1902 and/or
1905 to the RDO within thirty (30) days from receipt;
• Withhold the tax due from the employees following the
prescribed manner;
• Remit the amount of tax withheld from the employee within
the prescribed due dates;
• Do the year-end adjustment;
• Submit Annual Information return (BIR Form 1604-C, 1604-F
and 1604-E), including the required alphabetical list of
employees/payees on or before January 31 following the close
of the calendar year;
• Issue the Certificate of Compensation Payment/Tax Withheld
(BIR Form No. 2316) to the employees; and
• Refund excess tax withheld.
Withholding
Tax
Information
Annualized
Withholding
Tax Formula
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
BIR Withholding Tax Calculator
Computation
for SSS
Contribution
Withholding Tax, SSS, HDMF
(or Pag-IBIG), PHIC
 Computation for
HDMF (or Pag-
IBIG) Contribution
Withholding Tax, SSS, HDMF (or Pag-
IBIG), PHIC
 • Members of Pag-IBIG (Pagtutulungan sa
Kinabukasan: Ikaw, Bangko, Industria at
Pag-IBIG Gobyerno)who are actively paying for monthly
Contribution contributions should be updated with the Pag-
IBIG Contribution Table. It is a simple table
Table 2021 arrangement of data that contains the monthly
compensation bracket of members and
corresponding amount of contribution. The Pag-
IBIG Contribution Table is important for
Employed, Self-Employed, Voluntary as well as
Overseas Filipino workers to keep track with the
latest contribution amounts and avail its
benefits.
 • The Home Development
Mutual Fund (HDMF) or more
commonly recognized as Pag-
IBIG Fund in the Philippines is a
state-owned corporation that
primarily offers savings and
Pag-IBIG housing loan programs to its
members. It is mandatory for
Contribution employees to pay for Pag-IBIG
Fund Contribution monthly and
Table 2021 all Filipino citizens are
encouraged to be a member to
enjoy its membership benefits.
To be updated with how much
is your monthly Pag-IBIG
contribution, check the table
below.
 • For instance, an employee member has a
₱15,000 monthly salary. The monthly
contribution is NOT the 2% of ₱15,000 as
most guides online says. The Pag-IBIG
monthly contribution will be 2% of ₱5,000
set maximum limit which the amount
Example: should be ₱100 (calculated as ₱5,000 x
0.02). In cases when your monthly salary
exceeds ₱5,000, your monthly
contribution remains at ₱100 and
employer's counterpart (2%) also remains
at ₱100. A total of ₱200 monthly
contribution.
 Computation for Withholding Tax, SSS,
HDMF (or Pag-IBIG),
PHIC
PHIC Contribution
What is Philhealth Contribution?
• Philhealth contribution is the monthly premium paid by the
members of Philippine Health Insurance Corporation for their
medical insurance coverage. Employer and employee both pay half
the monthly premium while senior citizens are automatically free for
lifetime health insurance coverage.
• It is very important for all members, their dependents and
beneficiaries to know the latest and updated premiums because it is
also important to have complete premium payments. Complete
premium payments ensure all membership eligibility for benefits.
 • Philhealth members will follow the
premium rate of 4.5% in accordance
Philhealth with the Universal Health Care law
and Philhealth Circular on premium
Contribution contribution schedule.
• PhilHealth will now collect premiums
Table in from direct contributors using the
4.50% instead of the old 4%
2023 contributions rate; and will follow the
P90,000 instead of the P80,000
ceiling in the previous year.
Philhealth
Monthly
Premium Rates
from 2023,
2024, and 2025