Withholding Tax Table for Filipino Taxpayers

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Effective January 1, 2018, employers are required to apply new tax rates on the compensation of their employees.
The Bureau of Internal Revenue has released the Revised Withholding Tax Table, which should be used in computing the tax to be withheld on every payment of compensation to employees. The Table is effective from January 1, 2018, to December 31, 2022.

Compensation LevelPrescribed Minimum Withholding Tax
Below P20,8330
P20,833 to P33,3320 + 20% of amount above P20,833
P33,333 to P66,666P2,500 + 25% of amount above P33,333
P66,667 to P166,666P10,833.33 + 30% of amount above P66,667
P166,667 to P666,666P40,833.33 + 32% of amount above P166,667
P666,667 and aboveP200,833.33 + 35% of amount above P666,667

Source: BIR

New Withholding Tax Rates

New income tax rates under the Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law is reflected in the new withholding tax table.
Under this version of tax table, employees receiving wages not exceeding the following daily, weekly, semi-monthly, or monthly rates are exempt from paying withholding tax:

  • P685 daily wage
  • P4,808 weekly wage
  • P10,417 semi-monthly wage
  • P20,833 monthly wage

However, such employees may still be liable to income tax if they receive additional taxable compensation or bonuses during the current tax year. The tax-exempt threshold for 13th-month pay and gifts is now at P90,000. On the other hand, the tax-exempt bracket in the schedule of income tax rates is P250,000.

People inside an office in the Philippines paying taxes using withholding tax.
BIR office in the Philippines. Withholding tax for taxpayers in the Philippines.

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