Effective January 2023, the new and updated Income Tax Table in the Philippines (BIR Tax Table 2023) will follow the revised rates following the new BIR TRAIN – Tax Reform for Acceleration and Inclusion Act implementing the Income Tax Provisions of the Republic Act 10963.
So if you want to compute your income taxes for the year 2023, you must now use and apply this new tax table in the Philippines.
The Tax Reform for Acceleration and Inclusion was introduced couple of years ago while the implementation starts at 2018. Its objectives include reduction of tax rates, simplified tax system, expansion of VAT base, excise tax on sugary, automobiles, and petroleum products.
The Department of Finance also propose tax reforms for estate tax amnesty, general tax amnesty, amendments to bank secrecy law, lower estate and donor’s tax rates, lower rates on transaction taxes on land, limit on VAT zero-rating to direct exporters, rationalization of fiscal incentives, VAT refund in cash, harmonization of capital income tax rates on deposits, investments, dividends, equities and other passive income to 10% and increase on stock transaction tax from 0.5% to 1%.
BIR TRAIN timeline has started and the Bureau is still conducting seminars and training to properly assists people, companies and corporation for the implementation and execution of this new tax law. Package 1 has started in 2018 while Package 2 which tackles introduction and implementation of Corporate Income Tax has a timeline from 2018 to 2019. Packages 3 and 4 which tackle Capital Income Tax and other tax measures eventually follows.
Updated Income Tax Table in 2023 (BIR Income Tax Table 2023)
Annual Income Tax Table (for the Year 2023)
If you want to compute your income tax for the year 2023 and onwards, the following tax rate shall apply for annual income tax for individual taxpayers defined under R.A. 10963. We simplified the table to guide taxpayers easily.
What has changed in the new BIR Tax Table 2023 vs. 2022?
Compared to the previous year, the revised 2023 BIR tax rates will favor taxpayers since the reduction of rates will now apply. This will benefit us all amidst inflation and global economic slowdown.
TRAIN Tax Calculator Sample
From the new Tax Table 2023 above, we got a sample following income computations.
If taxable income for the year for example resulted to 1,000,000, tax due will be 152,500.
1,000,000 falls under the 800,000 lower limit bracket. Basic amount will be 102,500. The excess 200,000 should be multiplied by 25%. You’ll get 50,000. Therefore,
102,500 + 50,000 = 152,500 tax due
Individuals Earning Purely Compensation Income shall be taxed on the income tax rates prescribed above.
There is an increased threshold for non-taxable 13th month pay and other benefits, from 82,000, the exemption is now 90,000.
Taxable income for compensation earners is the gross compensation income less non taxable income/benefits such as but no limited to the 13th month pay and other benefits de minimis benefits and employee’s share in the SSS, GSIS, PHIC, Pagibig contributions and union dues.
Husband and wife shall compute their individual income tax separately based on their own taxable income; if any income cannot be attributed to or identified as income exclusively earned by either of the spouses, the same shall be divided equally between the spouses.
Minimum wage earners shall be exempt from the payment of income tax based on their statutory minimum wage rates. Holiday pay, overtime pay, night shift differential pay and hazard pay received by minimum wage earners are likewise exempt.
To further read the complete TRAIN law, please visit the BIR website.
BIR Income Tax Table for 2023
Here’s the non-summarized table from the BIR. Effective January 1, 2023 and onwards.
I have a small business earning less than 250K a year, does this mean I am exempted from paying taxes? It is registered in BIR and been paying non-VAT tax for a year now. Hope you can shed light on this. Thanks!
Will the HMO be taxable this 2019 against the 90,000? Or will the initial ruling that it is already scrap continue? Thank you!
I just want to point out that DOF has not yet used the latest contribution table for SSS for their online tax calculator, correct me if I’m wrong but as of today (August 29) it’s still using the old contribution table computation which makes the ” Income Tax” calculation a bit inconsistent/wrong.
I want to reach out to them but I chose to create an updated income tax calculator myself so we get the most updated computation.
Hi, how much is the tax for Self Employed? Hope to hear from you soon. Thanks
How much is the tax for the rice. I want to start business.
hi. just wanted to know how much is the. tax for sales commission. companies used to deduct 30%. has this changed under TRAIN Law? thanks
hi, are allowances included in the amount to compute for the annual pay to know if you’re over 250000 annual salary? and what is the taxable allowance? thanks in advance
If you will get an incentive for lets say $100K how much will be the tax for that?
what form should i use?? form 1701 vs 2018 or 1701A (VERSION7.4.1 OFFLINE MODE)
ALSO kapag po ba below 250K tax rate..wala na pong babayaran? pde po ba mgfile sa BPI or pupunta pa mismo sa BIR para isubmit un ITR?
thank you po sa magrereply
I don’t understand why do we have to file Taxes.
The BIR doesn’t care if your taxes or collected, let me share my story…
I wasn’t given a 2316 by my former employer, so I filed a complaint to the Local RDU…
They told me:
“Go ask your employer, we can’t issue that for you”
I left a letter addressed to the District Officer
I never got a reply …
So frustrated, I went to the Regional Investigation Office, showed him my papers,
He said, “There’s no taxes deducted, I can’t help you”
Next, I went to the BIR Main Office, expressed my complaint..
They said, “Go to the RDU where your company is at”
I still haven’t got my 2316 for 2019.
very hard 1701 not automatic computation…
Yes, 1701 form from the eBIRForm software is currently experiencing error. I hope the BIR will solve the issue and release an update for a new version
Good day mam Fehl…I have some questions regarding the filing of annual ITR for eFPS users:
1. when is the deadline for filing of Annual ITR 2019 for eFPS user?,
i would have like to pay or file my annual ITR for 2018, but i see that the 2018 in the selection is not yet available..
what should i do now?
Thanks in advance! God bless..
Hi, April 15 is still the deadline in filing ITR. eFPS is not yet fully updated for TRAIN. This memo might be helpful https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/RMC%20Full%20Text%202019/RMC%20No%2037-2019.pdf Cheers!
Do you have the revised 2019 tax table for self employed individuals?
what is the new 1701 form?
BIR Form 1701 is now updated
I filed and submitted my 1701A. When and how will i know if it is already validated by bir?
Thanks
I am a government employee. During my free time I am doing a consultancy services. At present I am working with a project due this April. My professional fee will be 70,000 equivalent to 19 days of work. How much tax will I pay?
how to find my tin number..
What items are exempt from sales in the Philippines
How to find my TIN # please help meme I need it…
how to find mu TIN number
If I earn below 250k, that means my tax would be at 0%. Do I still need to “file” it or not? I’m new to the workforce and haven’t paid tax ever, don’t even have a TIN card yet. Not even SSS, Philhealth, etc… Do I just not do anything or filling even at 0% is still needed?
you dont have to pay for tax but still you have to apply on BIR for tax exemption.
Depends. If you are professional, freelance individual, sole proprietor, YES. You still need to file your ITR even your income fall at 0% or no tax due to pay. Only employed individual who does not need to file because of the substituting filing.
How to find my TIN NUMBER PLS HELP I NEED IT BADLY .THANK YOU SO MUCh. GODBLESS
I think you need to go to your nearest BIR offices then inform the frontliner about your lost TIN number. They will just generate it to their system and ask you to get an affidavit of lost to replace your TIN