Income Tax in the Philippines

Find out all you need to know about employee’s income tax in the Philippines here.

How to calculate income tax

In the Philippines, income tax can be calculated in different ways depending on the frequency of the taxpayer’s income. These methods include:

  • Daily
  • Weekly
  • Semi-Monthly
  • Monthly

Refer to this Bureau of Internal Revenue guide for more information on how to calculate income tax for each method.

Is there a difference between calculating income tax for local and foreign employees?

No, both local and foreign employees are subject to the same income tax laws and regulations.

Who is responsible of submitting employee’s income tax to the tax authority?

By default, the employer is responsible for deducting the appropriate amount of income tax from the employee’s salary and submitting their monthly tax filing to the Bureau of Internal Revenue (BIR).