1. What is the Old vs New Slab Calculator?

This calculator compares the cost difference between old and new tax slab rates in the Philippines. It helps taxpayers understand how changes in tax rates affect their financial obligations.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• New Slab Cost — Cost under the new tax rate structure (PHP)
• Old Slab Cost — Cost under the previous tax rate structure (PHP)

Explanation: A positive result means the new slab costs more, while a negative result means savings under the new system.

3. Importance of Tax Slab Comparison

Details: Comparing tax slabs helps individuals and businesses understand the financial impact of tax reforms and plan their finances accordingly.

4. Using the Calculator

Tips: Enter the cost under both old and new slab systems in Philippine Pesos (PHP). The calculator will show the difference between the two amounts.

5. Frequently Asked Questions (FAQ)

Q1: Why compare old and new tax slabs?
A: Comparison helps taxpayers understand whether they will pay more or less under the new system and plan their budgets accordingly.

Q2: What does a positive cost difference mean?
A: A positive value means the new tax slab costs more than the old one (increase in tax burden).

Q3: What does a negative cost difference mean?
A: A negative value means savings under the new tax slab system.

Q4: Are there other factors to consider?
A: Yes, consider deductions, exemptions, and other tax provisions that might affect your actual tax liability.

Q5: Where can I get official tax slab information?
A: Refer to the Bureau of Internal Revenue (BIR) website or consult a tax professional for official rates.