#MemberIssueNo_159: How to compute the income tax of government employees?
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hello po. mag ask lng ako anong formula in computing withholding tax on compensation of government employee.? nalilito po kasi ako esp. sa dedcution kung government share or personal share ang i-dideduct to get the taxable compensation income. (sic)
#IncomeTaxGovernmentEmployees
#WithholdingTax
#GABOTAF
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Good evening.. tanong ko lang po how to compute withholding tax of JOB ORDER personnel pero professional po sila.. ano po basis ng 5% withholding tax? (They opted the 8% sa sworn of dec)
Here we give you the step-by-step guide on how to compute your income tax:
https://gabotaf.com/2018/07/23/explainer-step-by-step-guide-on-how-to-compute-your-income-tax-under-the-train-law/
Annual Salary
Add: excess over P90k (bonus exempt)
Deduct: gov’t premiums
Personal share, and in case of pag-ibig, maximum of 100/mo only.
Basic Formula is:
Gross Compensation Income
Less: Allowable Deductions (Employee’s share in SSS/GSIS, Philhealth, Pag-IBIG, and Union Dues)
Equal: Taxable Compensation Income (TCI)
The TCI shall be subject to the tax rates prescribed under the TRAIN Law. Please take note that net compensation income of P250,000 and below is tax exempt/not taxable.
Please refer to BIR RMC No. 501-2018 on this.
Personal/employee share ang deducted.