STEP 01 REFERENCES

Know the formula for finding your taxable income.

How to compute Income Taxes in the Philippines. Retrieved
Net Taxable Income = Gross Income – Total Deductions from https://www.pinoymoneytalk.com/income-tax-
rates-exemptions/
STEP 02 Income Tax. Retrieved from https://www.bir.gov.ph
Apply the amount. Philhealth Contribution Table 2017. Retrieved from
Basic Pay ₱15,000 https://www.philhealth.gov.ph/partners/employers/contr
Taxable Allowances 0.00 i_tbl.html
Non-taxable Allowances 0.00 SSS Contribution Table 2017. Retrieved from
Overtime Pay 0.00 https://www.sss.gov.ph/sss/appmanager/pages.jsp?page
Holiday Pay 0.00 =scheduleofcontribution
Night Differential 0.00
Gross Income ₱15,000 –oOo–
DEFINITIONS SSS contribution 545 Solve the problem, and fill
PhilHealth contribution 187.5 in the blanks with your
Income Tax is your annually tax which you have to file to Pag-Ibig contribution ₱100 answers provided below.
avoid penalties. HMO 0.00 Use the table/s at the
Withholding tax is an income tax deducted by your employer Tardiness 0.00 back for reference.
from your salary within a period depending on what you have Absences 0.00
agreed on. It is simply the partial payment of your income tax. Undertime 0.00 Juan is a single parent with 2 children and working as an I.T.
Total Deductions ₱832.5 His basic monthly salary is ₱25,000. His Daily rate is ₱1250,
Gross Income means all income derived from whatever
Net Pay / Taxable Income ₱14,167.5 and has a total of 6 hours of overtime on a regular days of this
source.
month. Deducting all required contributions to the government,
Taxable income is the amount of gross income received STEP 03 what will be his total income tax? (20 working days/month)
by the taxpayer minus any deductions and/or personal and Understand the BIR Tax Table.
additional exemptions, as authorized by the Tax Code or Basic Pay ₱25,000
other special laws.  BIR tax table is the reference used by the company’s HR or Taxable Allowance 0.00
accountant. Non-taxable Allowance 0.00
REQUIREMENTS  Based on your civil status, dependents and income Overtime Pay ₱_____________
1. Employment type & Civil Status frequency find the amount that will not exceed your taxable Holiday Pay 0.00
2. Do you have any dependents and how many? income. Night Differential 0.00
3. How much is your SSS, Philhealth and PagIbig Employment type ⦿ Employed Gross Pay ₱_____________
contributions? ⦾ Self-employed SSS contribution ₱_____________
4. Allowances and other benefits, if any. ⦾ Voluntary member PhilHealth contribution 312.5
⦾ OFW
5. Income Frequency ⦿ Single Pag-Ibig contribution ₱_____________
Status
5. Copy of the BIR Tax Table. ⦾ Married HMO 0.00
Number of Dependents none Tardiness 0.00
Income Frequency ⦾ Daily Absences 0.00
⦾ Weekly
⦾ Semi–monthly Undertime 0.00
⦿ Monthly / Annually Total Deductions ₱_____________
Withholding Tax Net Pay / Taxable Income ₱_____________
SAMPLE PROBLEM: = Exemption Amt. + [(Taxable Income - Tax Base) x Tax Rate]
Withholding Tax = ₱___________________
= ₱708.33 + [(₱14,167.50 – ₱10,000)(20%)]
Fanny is an independent daughter and working as a teacher. = ₱708.33 + [(₱4,167.50)(0.20)]
His basic monthly salary is ₱15,000. Deducting all required = ₱708.33 + 833.4
contributions to the government, what will be her total income Withholding Tax = ₱1,541.83
tax?
–oOo–
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CATHERINE SHAINA O. PASION

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