1. What is Philippines Income Tax?

The Philippines Income Tax is a tax imposed on the income of individuals and corporations in the Philippines. The 2025 tax rates may vary depending on income brackets and taxpayer classification.

2. How Does the Calculator Work?

The calculator uses the basic Philippines income tax formula:

Where:

• \( income \) — Gross income in PHP
• \( ph\_rate\_2025 \) — Applicable tax rate (decimal)
• \( deductions \) — Allowed deductions in PHP
• \( tax_{ph} \) — Calculated income tax in PHP

Explanation: The equation calculates tax by applying the rate to income and then subtracting any allowable deductions.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps individuals and businesses comply with tax laws, plan finances, and avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter income in PHP, the applicable 2025 tax rate as a decimal (e.g., 0.20 for 20%), and any deductions in PHP. All values must be valid (non-negative numbers).

5. Frequently Asked Questions (FAQ)

Q1: What are the standard tax rates for 2025?
A: The exact 2025 rates will be determined by BIR, but typically range from 0% to 35% for individuals and 20% to 30% for corporations.

Q2: What deductions are typically allowed?
A: Common deductions include SSS/PhilHealth/Pag-IBIG contributions, personal exemptions, and certain business expenses.

Q3: When is income tax due?
A: For individuals, typically April 15 of the following year. Corporations have different filing deadlines.

Q4: Are there special tax rates for certain incomes?
A: Yes, capital gains, passive incomes, and special cases may have different tax treatments.

Q5: Should I consult a tax professional?
A: For complex tax situations or large amounts, professional advice is recommended as this calculator provides basic estimates only.