Tax compliance
Efficient handling of a growing workload.
Good news arrives for Filipino employees, as the Tax Reform for Acceleration and Inclusion (TRAIN) Law has implemented an increased take-home pay for 2023, along with a reduction to the worker’s personal income taxes. The revisions to the TRAIN Law now decree that employees earning solely from compensation income and have a total taxable earning of less than 8 million yearly will receive lower taxes ranging from
15% to 30% beginning January 1, 2023.
Additionally, those who have a taxable income higher than 8 million will get a
3% increase in their tax rate, going from 32% to 35%.
The new Income Tax Table applicable from 2023 onwards can be seen below:
Annual Income | Tax Rate |
PHP 250,000 and below | None (0%) |
Above PHP 250,000 to PHP 400,000 | 15% of the excess over PHP 250,000 |
Above PHP 400,000 to PHP 800,000 | PHP 22,500 + 20% of the excess over PHP 400,000 |
Above PHP 800,000 to PHP 2,000,000 | PHP 102,500 +25% of the excess over PHP 800,000 |
Above PHP 2,000,000 to PHP 8,000,000 | PHP 402,500 +30% of the excess over PHP 2,000,000 |
Above PHP 8,000,000 | PHP 2,202,500 +35% of excess over PHP 8,000,000 |
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