Income Tax Computation in the Philippines

This post is a summary of all our published articles related to income tax computation in the Philippines. The deadline for filing and paying your annual income tax return, which is on April 15, is only a few days ahead. That is why I decided to share all of our available tax tips to guide everyone in their way to accomplishing their income tax returns this tax season. The following is a list of articles, guidelines and resources which aim to help you prepare, compute, file and pay your income tax due and payable with the Bureau of Internal Revenue (BIR).

For self-employed individual, those who are engaged in single proprietorship business or those who practice their profession (including freelancers, such as bloggers, website designers, website developers, internet marketers and other online entrepreneurs), this article will guide you on computing your income tax due and payable.

How to Compute Income Tax in the Philippines (Single Proprietorship)

For corporations and taxable partnerships, this article discusses the tax rates, forms and procedures on the computation of corporate income tax.

How to Prepare Income Tax Return (Corporations and Partnerships)

For computing and determining you allowable expenses and deductions against your taxable income, including the limits and ceilings you should consider in claiming deductions, such as in interest expense, representation expense, bad debts and other expenses, the following articles will guide you.

a. Deductible Expenses and Allowable Deductions in the Philippines
b. What are Deductions and Exemptions to Income Tax?

For the processes, steps, procedures and BIR forms to be used in filing your income tax return with the BIR and other authorized collecting agents, this article should be read.

How to File Income Tax Return in the Philippines

For the list of deadlines or due dates in filing income taxes, including quarterly income taxes payable, the following article is a must read.

BIR Tax Filing and Payment Deadlines for Income Taxes

For tips and ways to prevent penalties and avoid a future BIR tax audit, the following article should be learned.

a. How to Avoid BIR Tax Audit?
b. 20 Tips to Avoid BIR Tax Penalties

If you want to file and pay your income tax but you are not registered yet with the Bureau of Internal Revenue (BIR), this article will guide you to your BIR registration.

How to Register Your Business with the BIR Philippines

I hope that those articles will guide and help you in the preparation and filing of your income tax returns this season. Always remember to pay your taxes earlier and file your declarations with adequate supporting evidences.

Victorino Abrugar is a retired CPA practitioner, a blogger, speaker, and an entrepreneur. He's the President of Optixor, Inc., a digital marketing company based in the Philippines. Follow him on Twitter at @viclogic.


  1. milan says

    Hi. I have a situation with my company. They deduct monthly taxes from us but now they are saying that we need to pay a certain amount because the tax due for monthly computation is different from the annual one. They are asking for about 3000-10000 per employee. They are also saying that this is due to us changing our status (like from single with dependents to single without dependents). Does something like this really happen? Is this actually fair? Thanks for your time.

    • says

      You are talking about Withholding Tax on Compensation, right? Actually this happens when a company is not deducting the right amount of taxes, if they deduct less than what should be for sure you have to pay it by the end of the year, now if they deduct more it will be refunded back to you. Yes in other cases the change of status also has a great effect on your taxes, a change of status also changes your tax bracket within the tax table. Also lets say within a year, for 7 months you’re just earning minimum so no tax is being deducted, then suddenly you got an increase so your income now is taxable, what do you think will happen? It means, those 7 months is now taxable as well, and you will be paying too much by the end of the year. That’s how it is!

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