The Philippines has a progressive personal income tax rate, which ranges from 5% to 35%. The specific rate depends on the individual’s annual taxable income. The current tax schedule for individuals is as follows:
- Taxable income not over Php 250,000: 5%
- Taxable income over Php 250,000 but not over Php 400,000: Php 12,500 + 10% of the excess over Php 250,000
- Taxable income over Php 400,000 but not over Php 800,000: Php 37,500 + 15% of the excess over Php 400,000
- Taxable income over Php 800,000 but not over Php 2,000,000: Php 112,500 + 20% of the excess over Php 800,000
- Taxable income over Php 2,000,000 but not over Php 8,000,000: Php 312,500 + 25% of the excess over Php 2,000,000
- Taxable income over Php 8,000,000: Php 1,187,500 + 30% of the excess over Php 8,000,000
It should be noted that this tax rate may change depending on the tax laws of the Philippines. For better tax planning, please contact a professional tax expert to assist you.
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