THE NEW BRACKET TABLE OF WITHHOLDING OF INCOME TAX ON COMPENSATION

The new bracket table of withholding of Income Tax on compensation in the Philippines is now available online @ Bureau of Internal Revenue website. It is pursuant to Secs. 244 and 245 of the National Internal Revenue Code of 1997, as amended, in relation to the implementation of Republic Act. No. 9504, amending Secs. 22, 24, 34, 35, 51 and 79 of Republic Act No. 8424, as amended, these Regulations are hereby promulgated to amend Sections 2.78.1(A), 2.78.1(B). 2.79 (A), (B), (F), (I), 2.79.1 and 2.79.2, 2.80, and 2.83 of Revenue Regulations No. 2-98 (RR 2-98), as amended, with respect to the withholding tax on compensation income, increase of personal and additional exemptions, compensation received by minimum wage earners (MWEs) and other concerns.

I have to study the 37 pages of Revenue Regulations No. 10-2008. It would be a brain storming.

MONTHLY		1	2	3	4	5	6	7	8
Exemption		0.00	0.00	41.67	208.33	708.33	1,875.00	4,166.67	10,416.67
Status		+0%over	5%over	+10%over	+15%over	+20%over	+25%over	30%over	+32%over
A. Table for employees without qualified dependents
1. Z	0.0	1	0	833	2,500	5,833	11,667	20,833	41,667
2. S/ME	50.0	1	4,167	5,000	6,667	10,000	15,833	25,000	45,833
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1	75.0	1	6,250	7,083	8,750	12,083	17,917	27,083	47,917
2. ME2 / S2	100.0	1	8,333	9,167	10,833	14,167	20,000	29,167	50,000
3. ME3 / S3	125.0	1	10,417	11,250	12,917	16,250	22,083	31,250	52,083
4. ME4 / S4	150.0	1	12,500	13,333	15,000	18,333	24,167	33,333	54,167
Legend: Z - Zero exemption S - Single ME - Married Employee 1;2;3;4 - Number of qualified dependent children

Note: The table is up to 8 columns but it can't fit here. It is advisable to check the table on the Bureau of Internal Revenue website.

USE TABLE A FOR SING/MARRIED EMPLOYEES WITH NO QUALIFIED DEPENDENT

1. Married Employee (Husband or Wife) whose spouse is unemployed.
2. Married Employee (Husband or Wife) whose spouse is a non-resident citizen receiving income from foreign sources.
3. Married Employee (Husband or Wife) whose spouse is engaged in business.
4. Single with dependent father/mother/brother/sister/senior citizen.
5. Single.
6. Zero Exemption for Employee with multiple employers fro their 2nd, 3rd... employers (main employer claims personal & additional exemption)
7. Zero Exemption for those who failed to file Application for Registration.

USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH QUALIFIED DEPENDENT CHILDREN:

1. Employed husband and husband claims exemptions of children.
2. Employed wife whose husband is also employed or engaged in business; husband waived claim for dependent children in favor of the employed wife.
3. Single with qualified dependent children.

UPDATE YOUR APPLICATION OF REGISTRATION FORM 1901 OR 1902 NOW TO NOW.