Name of the Organization : BIR
Type of Facility : Know Your Taxes Payment Procedure
Country : Philippines
Website : http://www.bir.gov.ph/
Related : BIR Know Your Taxes Registration Procedure Philippines : www.statusin.org/2893.html
Payment Procedure :
Income Tax Rate :
5% – 32% depending on your net taxable income
Annual Registration Fee Rate : PHP 500
Allowable Deductions :
A) Optional Standard Deduction :
** Self-employed professionals may elect a standard deduction in an amount not exceeding 40% of gross sales/receipts/revenues/fees.
** No need to submit the Account Information Form (AIF) or Financial Statements.
B) Itemized Deduction :
** Includes all the ordinary and necessary expenses paid or incurred during the taxable year related to the operation of your business or practice of your profession.
** Keep a file of your Official Receipts (OR), Cash/Sales Invoice, Payroll, Vouchers, Bank Statements, Debit/Credit Memo
Note :
*See list of itemized deductions.
C) Personal Exemptions :
PHP 50,000 whether you’re single, married, legally separated or head of a family
D) Additional Exemptions :
PHP 25,000 additional exemption for every qualified dependent child,
Expanded Withholding Tax (EWT) Rate :
** 15% if total professional fees exceed PHP 720,000.00 for the current year; or 10% if total professional fees total PHP 720,000.00 and below for the current year.
** This is deducted by the withholding agent/client from the income/fees of the professional as partial and advance payment of the income tax due from him or her.
3abusiness Tax Rates :
Value Added Tax (VAT) :
Rate :
12% if gross professional fees exceed PHP 1,919,500.00 for a 12-month period
Vat Receipt :
The amount of tax shall be shown as a separate item in the invoice or receipts
3bbusiness Tax Rates :
Percentage Tax (PT) :
Rate :
3% if gross professional fees isPHP 1,919,500.00 or below for a 12-month period
Annual Registration Fee :
Form :
0605 Payment Form
When :
On or before the last day of January every year after the initial registration.
For More Details: http://knowyourtaxes.ph/pay