Philippine taxation is already one of the most discussed topics on this blog. I have observed that many Filipinos are still confused when it comes to knowing and understanding their tax obligations to the government. I can’t blame them because taxation, especially income tax computation, is not an easy knowledge to learn. One might require hiring an accountant or a tax consultant to analyze, compute and prepare their tax returns with the BIR. But for small taxpayers, who can’t afford to get the service of an accountant or a tax preparer, they resort to preparing their tax return on their own.
Employees, who have been withheld with tax on compensation, may also ask how their employers compute their withholding tax. Thus, they also look for information that may answer their tax questions. The Bureau of Internal Revenue (BIR) is the government agency that is supposed to assist taxpayers in all their queries about national taxes. But some of the taxpayers that visited our blog said that they are not accommodated by the BIR. I’m not sure if it’s true, perhaps, they are not just comfortable talking face to face with a revenue officer who may interview them about the details of their income and related accounts. Maybe they are also telling the truth.
According to our Tax Code, income tax is a tax on a person’s income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws. As the name “income tax” suggests, it is a tax imposed on income. Thus, if you are earning income from your business, practice of profession, employment, or any other activities that will result to taxable income, you may become liable to income tax in the Philippines.
Many of our blog’s visitors are coming here in search for answers to their questions about income tax. These people consist of business owners, practicing professionals, and employees who have queries on how to compute their income tax. If you are one of the people who search the Internet to learn such information, you can visit and read the following articles to learn more about income taxation in the Philippines.
How to Compute Income Tax for Self-employed Individual
This is an article that will guide self-employed individual taxpayers in computing and preparing their annual income tax returns (BIR Form 1701). These individual taxpayers include owners of single proprietorship business and individuals who practice their profession.
How to Compute Quarterly Income Tax for Self-employed Individual
This is an additional post to the article above. This is a guide for computing and preparing quarterly income tax return (BIR Form 1701Q) for self-employed individuals. It also discusses the taxpayers required to file, the deadlines for filing, and the procedures for filing and paying the tax payable with the BIR or its authorized agents.
How to Compute Income Tax for Corporations and Partnerships
If you are filing annual income tax for corporations and partnerships this article shall guide you. Domestic corporations receiving income from sources within and outside the Philippines, foreign corporations receiving income from sources within the Philippines, and taxable partnerships are taxed and required to file annual income tax using BIR Form 1702 (BIR Form 1702Q for quarterly income tax).
How to Compute Withholding Tax on Compensation
If you’re an employee whose compensation income is deducted with withholding tax by you employer, you might be wondering how your employer’s accountant is computing the withholding tax. This article will guide and give you an idea about the computation of withholding tax on compensation in the Philippines. It discusses some of the methods stated in the BIR’s Revised Withholding Tax table.
You can also check out our other tax articles found in our tax guide post. Our blog will continue to publish useful articles about taxation in the Philippines, not only on income taxation, but also on other tax discussions that may help our readers and visitors. Hence, always visit us to learn new things everyday. Thank you for always visiting us.