How to Compute Philippine BIR taxes

The following is required information for you to compute your income tax.


Here’s an easy way on how to compute employee taxes for the month


Taxable income = Monthly Basic Pay + Overtime Pay + Holiday Pay + Night
Differential - Tardiness- Absences - SSS/Philhealth/PagIbig deductions
Php 16,150.00 = 15,000 + 2,500 -500-500-250-100


Your tax for the month is Php 1,954.25 by simply checking on this BIR Tax Table:
ftp://ftp.bir.gov.ph/webadmin1/pdf/42126AnnexC.pdf

Under S/ME look of the nearest figures with your taxable income and the nearest amount is 15,833 and the tax is Php 1,875.00 + 25% in excess of 15,833

So your tax is 15,833.00 = 1,875.00
Excess (16,150-15,833) = 317 X 25% = 79.25
Tax is ( 1,875.00 + 79.25)= Php 1954.25