Income Tax

Finance

A tax on the income of individuals and businesses collected by the BIR. For employees, it is usually withheld automatically from salary by the employer and remitted to the government. The Philippines uses a graduated rate system where lower income brackets pay less and some low earners are exempt, following the TRAIN law schedule. Self-employed and professionals may choose between graduated rates or a fixed percentage option under set thresholds. Annual returns reconcile taxes due versus withheld. Brackets, exemptions, and rates are subject to the latest rules/guidelines.

Income Tax

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