Reviewer (Tax)

National Internal Revenue Taxes Computation for Mixed Income

Earner who availed 8%
1. Income Tax
2. Estate Tax Gross Sales/Receipts xxx
3. Donor’s Tax Add: Non-operating Income xxx
4. Value Added Tax
5. Other Percentages Taxes Total: Taxable Income xxx
6. Excise Tax Multiply by Rate 8%
7. Documentary Stamp Tax
8. Other taxes which may be Tax Due xxx
imposed and collected Less: Tax Credits xxx
Taxable Income Payable (Overpayment) xxx
- It is the pertinent items of gross Taxation of Individual Taxpayers
income specified in the Tax under Train Law
Code, less the deductions, if any,
authorized for such types of Compensation Income Earner –
income by the Code or other individuals whose source of income is
special laws. purely derived from an employer-
- Gross Sales / receipts and other employee relationship
non-operating income in excess Self-Employed – a sole proprietor or
of the Php 250,000 of Purely Self- independent contractor who reports
Employed taxpayer and of Mixed income earned from self-employment.
Income Earner who availed of the
8% optional income tax.  Contract of Service
 Job Order
Computation for Self-Employed who
 Professionals (Licensed and Non-
availed 8%
licensed)
Gross Sales/Receipts xxx
Mixed – earning both from employment
Add: Non-operating Income xxx and from business (other source aside
Total xxx from employment)
Less: Deduction 250,000 Summary:
Total: Taxable Income xxx
Multiply by Rate 8%
Tax Due xxx
Less: Tax Credits xxx
Payable (Overpayment) xxx
Reviewer (Tax)

Summary:  If no intention was made, deemed

graduated tax rate
Not Available to:

 Purely compensation income

earners
 VAT-registered Taxpayers
 VAT or PT exempt taxpayers
whose gross sales and non-
8% Optional Income Tax operating income exceeded the
Criteria: RMO 23-2018 dated May 21, VAT threshold
2018  Taxpayers subject to Other
Percentage Taxes
 Self-Employed or Mixed Earner  Partners of a GPP
Income  Taxpayers enjoying income tax
 Did not exceed the VAT threshold
exemption e.g BMBE (RMO 23-
of Php 3 Million
2018)
 Taxpayer is registered and:
 Taxpayers who opted for OSD
o Subject to Percentage Tax
 Taxpayers who did not signify
under Section 116 of the
their intent to be taxed at 8%
Tax Code, or
o Exempt from VAT or PTs
 Signified intention to elect 8%
Under RMO 23-2018, Self-Employed is:
a. Required to file Quarterly ITR
unless exempted
b. Required to file Annual ITR (AFS
not Mandatory)
c. Not required to file Quarterly
Percentage Tax Return
d. Required to maintain books of
accounts and issue receipts /
invoices
 In lieu of income tax and percentage
tax
 Basis is actual gross sales / receipts
and other non-operating income
 Irrevocable for the taxable year
Reviewer (Tax)

Graduated Tax Tables Under Train Law

January 01, 2018 to December 31, 2022

Over But Not Over Tax Shall be Plus Of Excess Over

250,000 0 0 -
Php 250,000 400,000 0 20% Php 250,000
400,000 800,000 30,000 25% 400,000
800,000 2,000,000 130,000 30% 800,000
2,000,000 8,000,000 490,000 32% 2,000,000
8,000,000 2,410,000 35% 8,000,000

January 01, 2023 onwards

Over But Not Over Tax Shall be Plus Of Excess Over

250,000 0 0 -
Php 250,000 400,000 0 15% Php 250,000
400,000 800,000 22,500 20% 400,000
800,000 2,000,000 102,500 35% 800,000
2,000,000 8,000,000 402,500 30% 2,000,000
8,000,000 2,202,500 35% 8,000,000

Final Withholding Tax

Income Payments
RC, NRC, RA NRAETB NRANETB
(INDIVIDUAL)
PCSO and LOTTO winnings – Php 10,000
Exempt
or less
PCSO and LOTTO winnings exceeding
20%
Php 10,000
Interest Income – EFCD 15% Exempt Exempt
Cash / Property Dividends 10% 20% 25%
Capital Gains from Sale of Shares of Stock
15% 15% 15%
not traded
35%*
Fringe Benefits given to Managerial
(Includes 35% 25%
Employees
special Aliens)

Final Withholding Tax

Reviewer (Tax)

Income Payments
RC, NRC, RA NRAETB NRANETB
(NON - INDIVIDUAL)
Interest Income – EFCD ? ? Exempt
Capital Gains from Sale of Shares of Stock
15% ? ?
not Traded

Fringe Benefits Tax

RC, NRC, RA, NRAETB,

NRANETB
Special Aliens
Monetary Value of the Fringe
XXX XXX
Benefit
Divide by Rate 65% 75%
Grossed-up Monetary Value of the
XXX XXX
Fringe Benefit
Multiply by Rate 35% 25%
Fringe Benefit Tax XXX XXX
Capital Gains Tax – Unlisted Shares for in acceptable foreign currency
of Stocks or its equivalent in goods or
services, and accounted for in
- Provision of Section 39(B)
accordance with the rules and
notwithstanding, a final tax of
regulations of the Bangko Sentral
fifteen (15%) percent is hereby
ng Pilipinas (BSP)
imposed upon the net capital
2. Sale of Raw Materials or
gains realized during the taxable
packaging materials to a non-
year from the sale, barter,
resident buyer for delivery to a
exchange, or other disposition of
resident local export-oriented
shares of stock in a domestic
enterprise to be used in
corporation, except shares sold,
manufacturing, processing,
or disposed of through the stock
packing, or repacking, and paid
exchange
for in acceptable foreign currency
- Sec. 25 (C), as amended by RA
and accounted with the rules and
10963
regulations of the Bangko Sentral
BUSINESS TAXES ng Pilipinas (BSP)
3. Sale of Raw Materials or
Zero – rated Sale of Goods
Packaging Materials to export-
1. The sale and actual shipment of oriented enterprise whose export
goods from the Philippines to a sales exceed Seventy Percent
Foreign Country, irrespective of (70%) of total annual production
any shipping arrangement, paid 4. Export Sales under EO 226*
Reviewer (Tax)

a. Sale of export producer to or international air transport;

another export producer or provided, that the goods,
to an export trader that supplies, equipment and fuel
subsequently export the have been sold and used for
same. international shipping or air
b. Even without actual transport operation
exportation:
Note: Sale of gold to Bangko Sentral ng
- Sales to bonded
Pilipinas is no longer zero-rated sales
manufacturing
but VAT-Exempt
warehouses of
export-oriented *Shall be subject to VAT upon fulfillment
manufacturers of conditions under train law.
- Sales to export
Zero – rated Sale of Service
processing zones
(BOI-registered 1. Processing, manufacturing, or
manufacturers or repacking goods for other
producers) persons doing business outside
- Sales to registered the Philippines which goods are
export traders subsequently exported, where the
operating bonded services are paid for in
trading warehouses acceptable foreign currency and
supplying raw accounted for in accordance with
materials in the the rules and regulations of the
manufacture of Bangko Sentral ng Pilipinas
export products (BSP)*
- Sales to diplomatic 2. Services other than those
missions and other mentioned in the preceding
agencies and or paragraph, rendered to a person
instrumentalities engaged in business conducted
granted tax outside the Philippines or to a
immunities, of nonresident person not engaged
locally in business who is outside the
manufactured, Philippines when the services
assembled or are performed, the consideration
repacked products for which is paid for in acceptable
whether paid for in foreign currency and accounted
foreign currency or for in accordance with the rules
not and regulations of the BSP.
5. The sale of goods, supplies, 3. Transport of passengers and
equipment and fuel to persons cargo by domestic air or sea
engaged in international shipping
Reviewer (Tax)

vessels from the Philippines to a the VAT refund application

foreign country. with the Bureau.
4. Sale of power or fuel generated - All pending VAT refund
through renewable sourced of claims as of December 31,
energy such as but not limited to 2017 shall be fully paid in
biomass, solar, wind, cash by December 31,
hydropower, geothermal, ocean 2019
energy, and other emerging
VAT Refund Center and Source of
energy sources using
Payment of Refunds
technologies such as fuel cells
and hydrogen fuels. VAT Refund Center
5. Services rendered to persons
- The Department of Finance shall
engaged in international shipping
establish a VAT refund center in
or international air transport
the BIR and in the Bureau of
operations, including leases of
Customs (BOC) that will handle
property for e thereof: provided,
the processing and granting of
that these services shall be
cash refunds of creditable input
exclusively for international
tax.
shipping or air transport
operations. Automatic Appropriation
6. Services performed by
subcontractors and/or contractors - An amount equivalent to 5% of
in processing, converting, or the total VAT collection of the BIR
manufacturing goods for an and the BOC from the
enterprise whose export sales immediately preceding year shall
exceed seventy percent (70%) of be automatically appropriated
total annual production* annually and shall be treated as a
special account in the general
 Shall be subject to 12% VAT and
fund or as trust receipts for the
no longer be considered export
purpose of funding claims for
sales subject to 0% VAT upon
VAT refund: Provided, that any
satisfaction of the following
unused fund, at the end of the
condition:
shall revert to the general fund.
- There is a successful
establishment and Vat – Exempt Transactions
implementation of an
- Importation of professional
enhanced VAT refund
instruments and implements,
system that grants refunds
tools of trade, occupation or
of creditable input tax within
employment, wearing apparel,
90 days from the filing of
domestic animals, and personal
and household effects belonging
Reviewer (Tax)

to persons coming to settle in the

Philippines or Filipinos or their
families and descendants who
are now residents or citizens of
other countries, such parties
hereinafter referred to as
overseas Filipinos, in quantities
and of the class suitable to the
profession, rank or position of the
persons importing said items for
their own use and not for barter
or sale, accompanying such
persons, or arriving within a
reasonable time: Provided, that
the Bureau of Customs may,
upon the production of
satisfactory evidence that such
persons are actually coming to
settle in the Philippines and that
the goods are brought from their
former place of abode, exempt
such goods from payment of
duties and taxes: Provided,
further, that vehicles, vessels,
aircrafts, machineries and other
similar goods for use in
manufacture, shall not fall within
this classification and shall
therefor be subject to duties,
taxes, and other charges.