BIR INCOME TAX RATES: List Of Tax Rates Based On Income

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List of BIR Income Tax Rates Depending on Source of Living / Employment Status

BIR INCOME TAX RATES – Here is a list of the Bureau of Internal Revenue’s income tax rates.

In the Philippines, the government agency tasked to collect taxes from working Filipinos and those who have put up their own businesses is the Bureau of Internal Revenue or more commonly called BIR.

If you are a member of the BIR, you have to pay your monthly taxes. For working individuals, it is often deducted from their monthly salary and remitted by their companies to the government agency.

BIR Income Tax Rates

The BIR Income Tax Rates implemented by the government agency is based on income or employment status. The agency observes the Tax Code of 1997.

BIR Graduated Income Tax Rates List
Screengrabbed from BIR’s Official Website

Based on the official website of the Bureau of Internal Revenue, here is a list of the BIR Income Tax Rates based on income or employment status of a Philippine-born member:

For Purely Self-Employed Individuals:

  • Option A – 8% Income Tax on Gross Sales or Gross Receipts in Excess of P250,000 in Lieu of the Graduated Income Tax Rates and the Percentage Tax
  • Option B – Income Tax Based on the Graduated Income Tax Rates

For Professionals Whose Gross Sales/Receipts and Other Non-Operating Income Do Not Exceed the VAT Threshold of P3,000,000:

  • Option A – 8% Income Tax on Gross Sales or Gross Receipts in Excess of P250,000 in Lieu of the Graduated Income Tax Rates and the Percentage Tax
  • Option B – Income Tax Based on the Graduated Income Tax Rates

For Individuals Earning Both Compensation Income and Income from Business and/or Practice of Profession:

For Income from Compensation:

  • Based on Graduated Income Tax Rates

For Income from Business and/or Practice of Profession:

  • If the total Gross Sales/Receipts Do Not Exceed VAT Threshold of P3,000,000, the Individual Taxpayer May Opt to Avail:
    • Option A – 8% Income Tax on Gross Sales/Receipts and Other Non-Operating Income in Lieu of the Graduated Income Tax Rates and the Percentage Tax
    • Option B – Income Tax Based on Graduated Income Tax Rates
  • If the total Gross Sales/Receipts Exceed VAT Threshold of P3,000,000
    • Income Tax Based on Graduated Income Tax Rates

For Domestic Corporations:

BIR Income Tax Rates for Domestic Corporations
Screengrabbed from BIR’s Official Website

Thank you for visiting our website. We hope we have helped you with regards to your inquiry on the BIR Income Tax Rates. You may keep coming back for more informative guides.

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