2019 Train Tax Tables and Bir Income Tax Rates
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Aljohn Sebuc2019 Train Tax Tables and Bir Income Tax Rates
Uploaded by
Aljohn Sebuc2019 TRAIN TAX TABLES AND BIR INCOME TAX RATES
Lower income tax rates, with exemption for those earning P250,000 and below
In the approved tax reform bill under the Tax Reform for Acceleration and Inclusion
(TRAIN) program: Those earning an annual salary of P250,000 or below will no longer
pay any income tax.
Those earning between P250,000 and P400,000 per year will be charged an income
tax rate of 20% on the excess over P250,000.
Those earning annual incomes between P400,000 and P800,000 will pay a fixed
amount of P30,000 plus 25% of the excess over P400,000.
Those with yearly salaries between P800,000 and P2 million will be charged a fixed
amount of P130,000 plus 30% on the excess over P800,000.
High-income earners receiving salaries between P2 million and P8 million
annually will pay a fixed amount of P490,000 plus 32% of the excess over P2 million.
Finally, the highest income tier receiving salaries of at least P8 million per year will
have withholding taxes of P2.41 million plus 35% of the excess over P8 million.
All these will be implemented from 2018 until 2022, but beginning 2023, the rates will
further fall.
2019 TRAIN TAX TABLES AND BIR INCOME TAX RATES
BIR Income Tax Rates – From Year 2023 onwards
TAXABLE INCOME PER
BRACKET TAX RATE
YEAR
1 P250,000 and below 0%
2 Above P250,000 to P400,000 15% of the excess over P250,000
3 Above P400,000 to P800,000 P22,500 + 20% of the excess over P400,000
4 Above P800,000 to P2,000,000 P102,500 + 25% of the excess over P800,000
5 Above P2,000,000 to P8,000,000 P402,500 + 30% of the excess over
P2,000,000
6 Above P8,000,000 P2,202,500 + 35% of the excess over
P5,000,000
Source: [Link]
Personal Income Tax rates to be lowered further starting year 2023
From year 2023 onwards, the income tax rates will be further adjusted, as follows:
Those earning an annual salary of P250,000 or below will continue to be exempted
from paying income tax.
Those earning between P250,000 and P400,000 per year will be charged
a lower income tax rate of 15% on the excess over P250,000.
Those with annual salaries from P400,000 to P800,000 will have withholding taxes
of P22,500 plus 20% of the excess over P400,000.
Salaried employees with annual incomes between P800,000 and P2 million will be
charged a fixed amount of P102,500 plus 25% on the excess over P800,000.
Those receiving salaries between P2 million and P8 million per year will be
charged P402,500 plus 30% of the excess over P2 million.
Finally, the highest income segment of employees with annual salaries of at least P8
million will pay P2.2025 million plus 35% of the excess over P8 million.
