Tax Exemptions in the Philippines 2022

We’re sharing here the list of tax exemptions in the Philippines taken from the Tax Code and the Philippine Constitution. What should be taxed and what shouldn’t? The list includes exemptions for income tax, donors, tax, and estate tax.

As a bonus, we also gave tips to master and memorize what is included in each category quickly. We think you will find it helpful if you are looking for a reviewer or taking the CPA or BAR exam. This list is for everyone interested to know what and who is exempted from paying taxes.

According to the Philippine Constitution, the following are exempted from taxes:

  • Charitable institutions, churches, convents, mosques, non-profit cemeteries, lands and buildings, and improvements – actually, directly, and exclusively used for religious, charitable, and educational purposes (according to Article VI, Section 28)
  • All income, revenues, and assets of non-stock and non-profit educational institutions used actually, directly, and exclusively for educational purposes, and all grants, endowments, donations, and contributions (subject to conditions prescribed by law) used actually, directly, and exclusively for educational purposes (according to Article XIV Section 4)

Tip: If properties, assets, and revenues are related to religious, educational, and non-profit organizations – they may be exempted from taxes.

tax exemption philippines 2022

Income Tax Exemptions in the Philippines in 2022

The following are exemptions for income taxes in the Philippines. If you don’t need to file an income tax return, it doesn’t mean you are exempted from tax. Income tax and Income Tax returns are two different things. Income derived from the following are exempted:

  • Non-stock and non-profit educational institutions and government educational institutions
  • Non-stock corporations and organizations operated exclusively for religious, charitable, scientific, athletic, or cultural purposes
  • Non-profit civic league or organization
  • Non-profit business league, chamber of commerce, or board of trade
  • Cemetery company-owned and operated exclusively for the benefit of its members
  • Mutual savings banks and cooperative banks without capital stock and shares organized and operated for mutual purposes without profit, and development banks
  • General professional partnerships formed by persons for the sole purpose of exercising their common profession; no part of the income is derived from engaging in any trade or business
  • A minimum wage earner or an individual pursuant to the provisions of the National Internal Revenue Code Section 51 (2)
  • A Non-resident citizen of the Philippines:
    • Who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein
    • Who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis
    • Who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year
    • Who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the year to reside permanently in the Philippines will likewise be treated as a non-resident citizen during the taxable year in which he arrives in the Philippines, with respect to his income derived from sources abroad until the date of his arrival in the Philippines.
  • Income from bonds and securities for sale in the international market
  • Prizes and winnings from a charity horse race sweepstakes from the Philippine Charity Sweepstakes Office
  • SSS and GSIS Benefits
  • Benefits received from the US government through the US Veterans Administration
  • Annual taxable income of Senior Citizens or those at least 60 years old who have an income of not more than PHP60,000 per year, subject to review by NEDA
  • Exemption for a limited period of new and necessary industries (RA No. 901)
  • Exemption of pioneer and registered enterprises under the Investment Incentives Act (RA No. 5186)

Tip: Studying the above list, income and revenues derived from outside the Philippines, derived from non-profit, purely educational, and government institutions, are usually not taxable.

Tax Exemptions for Estate Tax in the Philippines

Estate Tax is simply the tax we pay after a person dies or during the settlement of their estate for the beneficiary or heir of the properties and assets. We may pay estate tax on the transfer of these assets and properties. However, there are exemptions:

  • The merger of the usufruct in the owner of the naked title
  • The transfer or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicommissary
  • The transfer or transmission from the heir, legatee, or done in favor of another beneficiary, in accordance with the desire of the predecessor
  • All bequests to social welfare, cultural and charitable institutions, subject to certain conditions

Estate tax, just like other laws, is broad. If you are an heir or have inherited something, having a trusted lawyer legally transfer all your inheritance to your name can be beneficial and wise.

Donors Tax Exemption in the Philippines

  • Donations to the Philippine government for scientific, engineering, and technological research, invention, and development
  • Donations to the International Rice Research Institute (IRRI)
  • Donations to the social welfare, cultural and charitable institutions
  • Donations to the Ramon Magsaysay Award Foundation
  • Donations to the National Museum, National Library, and the archives of the National Historical Institute
  • Donations to the Southern Philippines Development Administration
  • Donations to the Museum of Philippine Costumes
  • Donations to the Intramuros Administration to restore and administer the development of Intramuros
  • Other donation exemptions stated in the Tax Code Section 34 and PD No. 762
  • Gifts made on account of marriage by a resident of the Philippines parents to each of their legitimate, recognized natural, or adopted children to the extent of the first P10,000
  • Gifts made to or for the use of the national government or any entity created by any of its not-for-profit agencies or to any of its political subdivision
  • Gifts in favor of educational or charitable, religious, cultural or social welfare corporations, accredited non-government organizations, trust or philanthropic or research organizations or institutions

Tip: Donations and gifts related to educational and government research and development projects are usually not taxed. Likewise, with donations to national museums.

Who are exempted from paying income tax in the Philippines?

According to the Bureau of Internal Revenue TRAIN law (Tax Reform for Acceleration and Inclusion), those with annual taxable income below PHP 250,000 are now exempt from paying personal income tax in the Philippines.

Other Tax Guides:

Disclaimer: This article is solely for information purposes and does not constitute expert taxation advice. New laws and tax codes may be implemented at any time. Always practice due diligence before you file and pay your taxes.

Categories Tax
About Fehl Dungo

Fehl is a licensed Career Service Professional. She is the founder of Philpad and a published author of "Toss and Turn," a poetry book at Barnes&Noble. Fehl has a degree in Accountancy and a background in Finance. She likes creative writing and mocha latte.

320 thoughts on “Tax Exemptions in the Philippines 2022”

    • Hi Mia 🙂 Since they are international brokers, tax reporting and tax payments are done per individual. You can compute all the income you earned in a year then declare them as “other income” on your Annual ITR

      Reply
      • Hi, Ms. Fehl!

        Thank you for answering my query. Do I have to show proof of my earnings, like a ledger, when declaring my income from trading?

        Reply
      • Hi PO, HOMEBASED Ticketing PO business ko, Ang income ko lng PO is the mark up sa ticket. Do I have to register in BIR. And if, I will put a buss. Na PO and get all all the permit and licenses, Paanonpo Ang record sa receipt . paano e apply yong 8% na IT rate, kawawa si customer magkano na ang taxes na shoulder nya po.

        Reply
  1. I own a vintage camera museum and a gallery of Philippine antiquarian photographs in an old spanish house in Taal, Batangas. Our income from donated entrance fees from tourists hardly pays for the expenses incurred for the salaries of staff and maintenance of the museum. Yet the local government requires us to pay taxes. Is there any tax exemptions for private museums that promotes tourism?

    Reply
    • Hi po ask ko lng salary ng husband ko is 25k .May 1 child dependent km .Pwede ba yun ifile for tax exemption.?
      Thank you .

      Reply
    • Quick question po, we are a religious org po renting a space on her house, (no business rwgiatration) do we wittheld tax from our total monthly payment? Pls help enlighten me- thank you and more power! Amanda

      Reply
  2. Hi po! ask ko lang talaga po bang hindi na idedeclare sa ITR 2018 yung dependent kong 3 y.o. child? kasi daw tax exempted na ako.

    Reply
      • Yes, you still need to apply for your exemption. Remember, you are not the Educational Institution. Both of you have different personalities. Your income is different form the Institution’s income.

        Reply
  3. Want to ask.. if a non stock non profit institution have rooms for rent.. and has income from rental fee.. is it taxable ? And need to apply mayor’s permit that has tax?
    Thank you!

    Reply
    • If the income from rental fees
      of the your non-stock, non-profit institution is used actually, directly and exclusively for its purpose, No.

      Reply
  4. According to SEC our company is a non stock corp, an educ. institution…does our company is automatically exempted from tax? if not ,how can we apply for tax exemptions? what are the requirements for this? If I’m not mistaken before our school paid only 10% tax rate, but this year 2017 we paid the 30% tax rate…why this happen?
    Thanks for your response and God bless you.

    Reply
    • No, your company is automatically exempted. I suggest that you visit the BIR- Revenue District Office that has jurisdiction over your institution, and ask the Officer of the Day regarding this. Even if youre registered in the BIR you still have to apply for such exemption.

      Reply
      • No, your company is NOT automatically exempted. I suggest that you visit the BIR- Revenue District Office that has jurisdiction over your institution, and ask the Officer of the Day regarding this. Even if youre registered in the BIR you still have to apply for such exemption

        Reply
  5. hello po, i would like to ask if a project based employee who has a monthly wage of 20,000 less is exempted to the new train law??? Thank you, your answer is much appreciated.

    Reply
  6. Hi. I would like to ask if a PWD employee is exempted to withhding taxes. If ever, can you please provide the provision for reference? Appreciate a response. Thanks

    Jane

    Reply
  7. Hi, I am an ofw from Saudi Arabia, paano po ba kumuha ng tax exemption form, gagamitn ko for tourist visa in Japan. Thanks

    Reply
  8. Hi PO, HOMEBASED Ticketing PO business ko, Ang income ko lng PO is the mark up sa ticket. Do I have to register in BIR. And if, I will put a buss. Na PO and get all all the permit and licenses, Paanonpo Ang record sa receipt .

    Reply
  9. Good day po. Please paki-explain nman po ano ang gagawin self employed small sari-sari store below 100,000 annually. Pinapabayad pa din po kami, monthly (3%), quarterly at annually maski tax exempt nakalagay, minimum 200 ang payment…. Plagi po nababasa na tax exempt na po kami, pero an0 po ba talaga ang dapat gawin… automatic na ba na hindi na kami magbabayad o mag file pa rin pero walang babayaran… Please paki-explain po….TIA

    Reply
  10. hello po. Nag file po ako ng BIR Id for freelance po. Nakapag pagawa po ako ng official receipts at authenticated(not so sure if it was the term) na po sa BIR and may dalawang ledger na rin po ako. Unfortunately hindi na po ako natuloy sa pagiging freelancer kasi po may company na kumuha sa akin. Paano po yung gagawin ko? considered business po ba ang pagiging freelance and magkakaroon po ba ito ng kaso sa BIR? Thanks po!

    Reply
    • I-cancel mo Duwani Yung registration mo sa BIR Kung Hindi natuloy Yung business mo. Hanggat Hindi mo pa nare-retire Yung registration mo sa BIR, required Kang magfile NG mga BIR forms. Kung makalimutan mong magfile say isang buwan, minimum p1,000 siguradong penalty mo Duwani.

      Reply
      • Hello po Sir Jaypee, Kung ipapacancel ko po ba ang registration ko ibabalik ko po ba lahat ng documents na galing BIR? or magkakaroon pa ng mga additional files na ibibigay?

        Regarding naman po sa filing sa BIR never pa po akong nakapag file since nabigyan ako ng registration. Itatanong ko na rin po kung anong form po ang kailangan kong i-file since hindi natuloy ang business ko at wala ring naging income ang pagiging freelance ko. Wala rin pong bawas ang mga receipts na napagawa ko. Aaminin ko po na dala na rin ng ignorance kaya hindi ko po alam na kailangan palang mag file kahit walang kinikita kaya pasensya na po sa abala at thanks po.

        Reply
        • Yes duwani. Please (1) look at the status of your registration with the BIR as soon as possible and (2) ask them Kung may mga hindi ka naipasang forms. Ngayun Kung may KAILANGAN Kang ipasa pero Hindi mo naipasa sa kanila, lilitaw Yun sa Open Case nila. That is a bir system na nakikita nila yung mga Hindi mo naipapasang mga forms. Para ngayun palang maayos mo na Yung Hindi natuloy na business registration mo. Kung Hindi na natuloy Ang business dapat pina-alis mo na Ang registration mo sa BIR na may business ka.

          Reply
  11. Hi,
    A filipino Citizen and a beneficiary sa isang investment fund registered in TOD (Transfer on Death account sa US po) do we need to get Inheritance Tax Waiver?

    Thanks in advance.

    Reply
  12. Hi, I just want to know how to compute for SC discount and PWD Discount in one account?
    Shall one ID per transaction or shall two IDs apply with a total of 20% discount?
    I am talking about food and accommodation po.

    Thank you.

    Reply
  13. I am a contractor and my salary is less than 15K. I know I am exempted from paying tax but what document can I present for my visa application? Thank you.

    Reply
  14. hi my mom is a senior citizen and also a pwd. her sister, my aunt, is also a senior and pwd. they both live with me and i support them. can i still get an additional tax exemption? Would it be for both of them or just one of them? what do i file, for pwd or for senior citizen? Thanks!

    Reply
    • hello,

      today, there is no difference whether your on the Status of Z or S. Z is for exempt, while S is for single.

      Reply
  15. Good day po. I am a solo parent and I’ve been working in my company for 1 year and 5 months already. Ngayon ko lang po nalaman na pang single pala yung tax deduction ko imbes na pang solo parent with 1 dependent. Nakampante po kasi ako na tama yung dinededuct nila sa akin dahil before pa ako mag start mag work dito ay nakapag declare na ako na solo parent ako at kumpleto ako sa documents. Hindi ko po kasi alam na ang ibig sabihin ng “S” sa payslip namin ay single. Dapat pala “S1” sakin. Maibabalik pa po ba yung mga sobrang nakaltas sakin mula July2016? Ngayong December 2017 ko lang po nalaman na mali pala ang deduction sa akin. Salamat po ng marami

    Nina Pagkaliwagan

    Reply
    • hi nina,

      actually may fault yung accounting nyo but also, ikaw din. malabo na pong mabalik yung excess na nabayad mong tax from S1 to S.

      Reply
  16. Hi paano po ba kumuha ng tax exemption certificate. Need po kasi un para makaavail ako ng free tuition at scholarship program. Ano pongkailangan kong ipasa or kailangan ipasa ng mama ko. Single parent po si mama at wala po syang trabaho. Sana po masagot po ninyo. Salamat po.

    Reply
  17. Magtatanong lang po.. meron akong 4 kids (9,7,6 and 4 of ages) pero hindi ko pa na update. 1 lang ang nakalagay s mga dependents ko.. kung i-uupdate ko ba sila, exempted na tax ko?

    Reply
  18. Good day! I would like to clarify regarding “qualified dependents not more than 21 years old.” My child just turned 21 y.o last July 10, 2017. Is she still considered a qualified dependent for the taxable year 2018?

    Your response will be highly appreciated.

    Reply
  19. Hi,

    I just got married this year 2017. Both me and my husband do have different jobs in different companies. We have no kids yet, can I enroll my mother as my dependent who is a senior citizen and have no other source of income?

    Reply
  20. Hi good day!

    Is it possible for my mother to become as my dependent for tax exemption since she doesn’t have any source of income? She is just 53 years old.

    I would appreciate your immediate response.

    Thank you!

    Reply
  21. Hi good day!

    My parents both died last year, I am the eldest and I still have four (4) minor siblings. I am standing as the legal guardian of the kids. Can they be my dependents? Am I entitled for exemption if this is the case? Thanks!

    Reply
  22. Hi,

    Me and wife have 3 children, we are both working… pwede ba namin hatiin ung anak namin for our dependent sa tax exemption?

    Example: 1 child sakin then the other 2 will be under my wife.

    Reply
  23. Hi, question po meron ako kapatid na PWD, ang magulang po namin ay parehas na patay, kasama po ba ako dun sa exemption ng tax? naka-single po kc ang declation ko as of now. Malaking tulong po sa akin at sa mga kapatid ko kung mabawasan ang tax ko.

    Reply
    • hi shery,

      To claim the PWD as dependent, the following documents shall be submitted by the employees to their employers, for the first year of claiming the exemption and three years thereafter or upon renewal of the PWD ID whichever comes first:

      Duly accomplished BIR form No. 2305;
      Photocopy of PWD Identification Card issued by the PDAO or the C/MSWDO of the place where the PWD resides or the NCDA;
      Sworn Declaration/ Identification of Qualified Dependent PWD, Support and Relationship;
      Birth Certificate of PWD;
      Medical Certificate attesting to disability issued in accordance with the IRR of RA 10754; and
      Brgy. Certificate attesting to the fact that the PWD is living with the benefactor.
      Employers shall ascertain if the claimed PWD qualifies as an additional dependent by satisfying the following conditions, regardless of age:

      Filipino citizen;
      Within 4th civil degree of consanguinity or affinity to the taxpayer/benefactor;
      Not gainfully employed; and
      Chiefly dependent upon and living with the taxpayer/benefactor.
      The maximum number of qualified dependents remains at four (4).

      Reply
      • Hi Jaypee,

        By any chance, would you know if step son/step daughter can claim as dependent for additional tax exemption?

        Your prompt response is highly appreciated.

        Reply
  24. Good day!

    I would like to ask a question. My domestic partner and I have a daughter. We are both single. Our daughter was declared by my partner as dependent for his tax exemption. Can I also declare our daughter as my dependent for tax exemption?

    Thanks in advance.

    Reply
    • hi myles,

      you cannot declare your daugther as dependent since your partner already declared your daughter as his dependent.

      Reply
  25. Hi. I’m a single mom and my son is 6 years old and also a PWD. He is already enrolled as my dependent. Question is, should I update my dependent as a PWD and will I get additional tax exemption? Thank you in advance for your response. Parents from my son’s SPED school are urging me to apply for the exemption but my HR is unaware of the new rule that’s why I am very confused.. Thank you again.

    Reply
    • hi jophen,

      PWD is additional dependent. you can update your BIR records but since your son is already your dependent, you will not get additional tax exemption.

      Reply
  26. Hi isa po ako ofw at uuwi po mg tourist ng japan eh ang req.po is exemption of itr paano po kukuha nito?wla po akong business sa pinas.

    Reply
  27. good day! i find your site very informative
    my husband is an ofw so i claim our children as dependent on my tax exemption..
    my eldest son just celbrated his 21st nitong Sept 2017 , because of that our finance office requires me to file an update of exemption (form 2305) to remove my eldest son from the list of dependent para daw hindi na ako mkapenalty by the time mag file na ako itr this coming january 2018.. is she correct?
    para sa akin mali sya pero it is really very hard to deal with our finance officers esp kun wla ako masyado documents to support..
    masakit kasi bilang prof. public teacher tapos basta lang pagalitan ng staff sa office kaya bago ako babalik sa finance office namin gusto ko sana meron na akong mlawak na kaalaman tungkol dito.. hope you undrstand me..
    many thanks and God bless.
    sincerly,
    Glory

    Reply
    • hi glory,

      Please see RA 8424 section 35 paragraph C stating:

      “(C) Change of Status. – If the taxpayer marries or should have additional dependent(s) as defined above during the taxable year, the taxpayer may claim the corresponding additional exemption, as the case may be, in full for such year.

      If the taxpayer dies during the taxable year, his estate may still claim the personal and additional exemptions for himself and his dependent(s) as if he died at the close of such year.

      If the spouse or any of the dependents dies or if any of such dependents marries, becomes twenty-one (21) years old or becomes gainfully employed during the taxable year, the taxpayer may still claim the same exemptions as if the spouse or any of the dependents died, or as if such dependents married, became twenty-one (21) years old or became gainfully employed at the close of such year.”

      Reply
  28. Ask ko lang po kailangan ko po kasi ang form 2316 sa pag apply ko sa visa ko. But my salary is lower than minimum wages, so how can i get the form 2316 if i am exempted in taxes? Salamat po

    Reply
    • The government allows entities to have below minimum wage employees under certain criteria, such as:

      Employees of Barangay Micro Business Enterprises (BMBE); Workers in any duly registered cooperative when so recommended by the Bureau of Cooperative Development and upon approval of the DOLE Secretary, provided such recommendation is given only for the purpose of making the cooperative viable and upon finding and certification of said Bureau, supported by adequate proof, that the cooperative cannot resort to other remedial measures without serious loss or prejudice to its operation except though its exemption from the requirements of this Rule; Employees of retail/service establishments regularly employing not more than 10 workers may be exempted upon application with and as determined by the appropriate Regional Board in accordance with the applicable rules and regulations by the NLRC ,etc.

      Reply
    • Hi Lina, dapat bigyan ka parin ng employer mo ng 2316 certificate regardless kung may tax o tax exempted ka as proof ng income mo during that taxable year/ stay sa employer mo for that year.

      Reply
  29. Hi, I am the youngest of ten siblings (most are married, only 2 are still single plus me and our half-brother, thus, 4 in all), 24yo and has a half-brother 7yo, has a deceased mother and an unemployed father depending on me. Is it possible to declare myself as head of household? Would there have any additional tax exemptions? Thanks!

    Reply
    • hi jed, there are two things for additional exemptions: 1. Child/children, 2. PWD up to 4th consanguinity/affinity. Kapatid ay hindi po kasama.

      Reply
  30. sir, PWD po ako (motor disability). I am a government employee ang tax rate ko po ay 30%. i just like to ask if there is a provision for tax exemption for PWD who are gainfully employed. this is in relation to RA 10754, which gives an additional tax exemption of P25,000 to the benefactor of PWD. Paano naman yung kagaya ko na despite of my disability nagta-trabaho ako para di naman burden sa mga magulang ko.

    Reply
    • hi alma, I haven’t seen income tax exemption for PWD. 12% vat exemption and 20% discounts are available to PWD, but not income tax exemption.

      Reply
  31. Sir, may Church po akong hnahawakan, nag rerent po kame ng Building. we pay monthly rental + 12% value added tax. Ano ano po ang coverage ng Tax exemption, kasali po ba dun ang 12% value added tax

    Reply
    • hi rev. nathaniel, ang 12% VAT na ipinapataw ng inyong lessor sa upa sa inyong organization ay dapat nyo pong bayaran sa Lessor. hindi po ito kasama sa exemption ng isang non-stock non profit organization.

      Reply
  32. Hi po ofw po ako dito sa qatar pag uwe ko gusto ko mag tourist sa korea ..need po nila is ITR anong form po ang ibigay ko amg alam ko po exempeted po kami as ofw …anong form po ang kukunin ko as proof na exempted ako

    Reply
    • hi teresa, kung meron kang kinikita dito sa Pilipinas, katulad kung may business ka, ay kailangan mong mag-file ng ITR dito. hindi mo na isasama yung sahod mo sa ibang bansa sa pag-compute ng income tax mo. yung mga income mo lang dito sa Pinas.

      Reply
  33. hi, tanong ko lang kung magkano ang magiging tax ko, single parent po ako with one child, and my daily wage is 411.54 cebu base.

    thank you.

    Reply
  34. Mam/Sir: I’ve been an instructor in a University since 2000 and is regularly deducted tax for my compensation income. Since then, I was declaring my mother (68 yrs old) and living with me, as my dependent but the Accounting office disapprove my claim.
    I knew of some single tax payer with elderly parents as qualified dependent, so I opted to search for laws regarding tax exemption. I also went to BIR and as per advice given by their personnel, I just have to accomplish and submit to the HR the Certificate of Update of Exemption of Employees Information together with the excerpt of the updated law and the necessary requirements. Can you provide me with the exact BIR Memo Circular # for elderly as dependent? I would appreciate it very much since I am now considered as PWD being a survivor of brain aneurysm.
    Thank you!

    Reply
    • hi margie, PWD up to 4th degree of consanguinity or affinity (among other factors) ang pwede mo pong gawing additional dependent.

      Reply
  35. Hi po. pwede po magtanong. bagong kasal lang po ako last year december. at meron na po kaming 6 month old baby. Alam na po ng HR namin na married na ako and may isang baby na dahil nagrequest ako ng paternity leave. Kaso po di ko alam sa hr namin kung inaasikaso nila automatically sa bir ang pag change ng status ng employee nila sa bir para sa dependent and exemption namin sa tax. wala pa trabaho asawa ko. Ang basic income ko po as of now for cut off is 12,500.00 then may tax po ako madalas around 1,900,00 per cut off. Tanong ko lang po ano po ba mga benefits ko sa status ko sa tax after change at san po ako magsisimula para asikasuhin yun kung sakali di pa inaasikaso ng hr namin yung pag change ng status ko. Di ko po kasi sure kung HR ba talaga ang umaasikaso ng bagay na yun or kami po dapat dumiretso sa bir for change status. THANKS po in advance sa mga sasagot 🙂

    Reply
  36. Hi,
    I’m working full time for a non profit organization here in the Philippines and I’m also a Filipino. Just want to ask if I need to pay a tax or am I exempted? If yes, how much do I need to pay? My current salary is P26,000. If no, can I request to have a tax exempt certificate?
    Thanks!

    Reply
    • Good day…ask ko lang po…kung ang anak ko pinanganak ng December 06, 1995…siya ba exempted pa rin po ba itong year 2017? Dahil 21 yrs. old pa lang at sa December 06, 2017 pa na naman po sya mag 22…pls. reply…tnx

      Reply
    • hi anthea, your organization, as a non-profit organization, is exempted in paying income taxes, BUT, you as its employee is not exempted to pay income tax.

      Reply
  37. Hi po,
    may tanong lang po ako.
    kasi po yung asawa ko nagtatrabaho sa victorias milling corporation sa negros,pero under po sila ng agency na assistco.
    ang tanong ko po is yung sahod po nila every saturday binibigay pero kamakailan lang po,nagtataka kami kasi ang laki ng tax na binawas sa sahod nila,so imbes na makasahod siya ng 3000+ every week,nababawasn po yun ng tax na 1300..tanong lang po,tama po ba yung tax na kinukuha nila at tama po ba na every week kinukuha yun,maliit lang naman yung daily nila 300+ lang.
    pakisagot po.salamat

    Reply
  38. Hi, i am an employer. My bookeeper says i am not required to provide 2316 since i am employing MWEs. But as per RR 11-2013, employers of MWEs are required to provide 2316. Alin po ang tama?

    Reply
    • hi fiona, tama po kayo na ang 2316 ay para sa MWE at above MWE, required po ito. o kaya naman probationary lang sya, may 2316 pa rin dapat. kahit 2 months lang syang nagtrabaho, dapat may 2316 pa rin. nag-resign sa company mo, may 2316 pa rin. Except kung hindi ito saklaw ng Employer-employee relationship katulad ng mga Professional fees ng Attorney, etc. basta empleyado mo dapat may 2316 po.

      Reply
  39. Hello po. Napakainformative po ng site niyo pero pede po ba magtanong?
    Magaapply po kasi ako for scholarships kaya nagrequest po yung papa ko ng Documents sa agency nila. para po sa scholarship, kailangan ng 2016 ITR pero yung binigay lang po kay papa ay yung for compensation Payment with or without tax, ayun na po ba yung ipapasa ko instead of ITR? tsaka ok lang po ba kahit blanko yung summary niya tsaka po may erasures?

    Reply
    • hi kenneth, good to hear you are applying for a scholarship. yung ITR kapag nagtratrabaho ang papa mo ay Form 2316, iyan ang dapat nyang hingi sa Employer nya. isang pirasong papel lang yan na naglalaman ng sinahod ng tatay mo ng nakaraang taon. makikita dun kung may overtime sya, or other benefits, etc, sa ilalim ng Form 2316 ay dapat nakapirma ang Employer at yung tatay mo kenneth. dun din sinusukat kung talagang qualified ka sa scholarship kasi dapat hindi rich kids ang nag-a-apply nyan. sorry i am not familiar dito sa “compensation Payment with or without tax” pero kung yan din ay yung Form 2316 ay ipasa nya po yan.

      Reply
  40. Hello good day,ask lng po ang sahod ko sa 1 buwan eh 9,360,dpat po b kong bwasan pa ng tax?kung below 10k ang sinasahod ko monthly?tnx po

    Reply
  41. hello, kapag po ba dalawa na ang anak..ilan % po ang magging tax exemption ng isang employee sa basic salary nya? salamat

    Reply
    • hi james, this depends on how much is your salary. the tax on compensation is not purely a percentage times your salary. there is also an additional tax base. here is the tax table on a website

      Reply
  42. Good day ma’am/sir,
    I am filing for the exemption of tax here in la trinidad benguet and i am very much confused regarding NIRC SEC.30;RMO 20-2013 letter “e” and letter “h”,a reply ma’am/sir is highly appreciated.God bless!

    Reply
    • Section 30 of NIRC is true. Non-profit ang company makes it not liable to pay income tax. PERO kung ang activities mo ay MERONG FOR PROFIT, may tax na yun.

      “Notwithstanding the provisions in the preceding paragraphs, the income of whatever kind and
      character of the foregoing organizations from any of their properties, real or personal, or from
      any of their activities conducted FOR PROFIT regardless of the disposition made of such income,
      shall be subject to tax imposed under this Code. “

      Reply
  43. Good Day!! New earner po ako.. Gusto ko lang po malaman kung ang 10K na sahod minus the benefits (SSS,PAG-IBIG,Philheath at tax)is minimum n? dapat po ba walana tong tax?? breadwinner din po pala ako walang work ang parents ko..

    Thanks sa advance na sagot 🙂

    Reply
    • How many days yung sahod nyo po na P10k? Ang minimum wage earner ay may sahod kada araw na P481 + P10 COLA = P491.

      Wala pong kinalaman ang pagiging breadwinner or kung walang trabaho ang parents mo sa pag-compute ng income tax. KUNG MAY ANAK ka, yun, dun magkakaiba ang po computation.

      Reply
      • Tama po yung P491 per day yun nga po yung sinasahod ko..

        About po breadwinner dahil po ako lang kumikita sa family namen counted po ba yun sa tax exemption ??

        Thank po ulit sa advance na sagot..

        Reply
    • Hi , my youngest daughter turned 20 last Nov. 22. Pero when she reached 18 years old 2 years ago, that was 2015, hindi na sya isinali sa tax exemption ko. My employer insisted na below 18 years lang ang pwede maging dependent. Pwede ba ako makareunf?

      Reply
  44. Good Day Ma’am/Sir,

    I am married & has 1 child during my Pre-Employment in 2013. . I am aware that my records in BIR was still tagged as Single for I haven’t update yet my Marital Status when I got married in year 2011. Having a new employer I think I submitted all necessary documents including 2305 which I tagged myself as Married . Months later, I noticed that my Tax Status code falls under Single, I called the attention of my HR/Employer to kindly help me with the Updates . UNfortunately as of to date Year 2017, my status code still falls as Single.
    Please advise me to clear/update this out and can I appeal to my employer for a Tax Refund since my tax deductions is much higher than a Married Tax payer suppose to deduct from compensation salary.
    Thank You in Advance.

    Reply
    • hi ms jayne,

      Good day!

      It is your HR’s responsibility to ensure na yung mga employees nila ay nabibigyan ng sapat na benepisyo sa BIR/SSS/etc. On your part, you need to be pro-active para matulungan sila kung kinakailangan. Tutal, kapag naayos nila ang records mo, ikaw rin ang makikinabang.

      ONCE maayos ng HR ang records mo, pwede nang i-adjust ng Accounting yung computations mo sa income tax until the end of the year 2017 lang.

      HINDI NA maayos pa ang mga previous year kasi tapos na po yun.

      Let’s also admit the fact na may pagkukulang din tayo sa pagpapa-alala sa HR/Accounting nyo na dapat nilang i-update ang mga status nyo para sa inyo rin po iyon.

      Reply
    • My answer is it depends kung ano ba ang ibinigay sa iyo, kung sahod iyun, dapat walang tax. pero kung may commission ka, which means tumaas ang sahod mo dahil sa commission eh, ma-ta-tax-an ka.

      Reply
  45. good day, i just want to ask, illegitimate ang son ko pero acknowledge ng father. pano ko mcclaim ung additional exemption sa anak ko? need padin po ba ng waiver? ang waiver po ksi ay for married tax payers po diba ? thankyou in advance sa sasagot.

    Reply
      • another question po, i’m working here at DSWD as COS, sabi po kasi dito, 13% ng net income nmin ang need namin bayadan quarterly, that’s why i want to claim my addtional exemption since may anak ako.
        but unfortunately, i talked to our HR, sabi po nila khit daw po may anak, married or single, hindi po mababago ung computation ng tax na babayan namin dhil kmi ay COS/JO lang po kmi?
        is it true po ba na pag COS/JO lang di pdeng magclaim ng additional exemption ?

        Reply
  46. Good day,
    Inquire Lang po. I’m an ofw/ seaman, and my wife is a public school teacher. We would like to ask if it’s possible to declare our 3 children under her declaration and ask for some deductions?
    Many thanks in advance

    Reply
      • hi, i am a pwd working now as the village administrator of a subdivision here at sto tomas, batangas…i am a regular employee getting 12k per month, question is, being a pwd, am i exempted from paying tax…if not how much should i pay…what should i do then…

        i like your column because of the learning i get from it.

        kudos!

        Reply
        • hello po!

          1. Kung ang P12k ay minimum sa Batangas, then dapat po wala kayong Income Tax na binabayaran. Kung above minimum naman ang P12k, kailangan po kayong kaltasan ng Income Tax. Ang computation po ng income tax ay base sa nakukuha nyong sahod. Ibinabawas ang mga personal exemptions at kung may anak po kayo, ay may katumbas na amount na ibinabawas sa Annual Income nyo para ma-compute ang income tax.
          2. Ang PWD ay hindi exempted sa Income Tax, maliban na lang kung kayo po ay nasa Minimum Wage bracket tulad ng nasa #1.
          3. May 20% discount po ang PWD sa mga binibili nila.

          Reply
  47. Hi,
    Good Day!
    I am a single parent mother of 4 kids (15, 13, 8, 5).
    I already filed a Solo Parent. I am a regular employee of A BPO company and we worked for our commision aside from the basic pay every 15th and 30th of the Month, Am I entitled for a tax exemption? Even I filed a S4 code my tax is still high.Kindly help me to understand what can I do I can minimize my tax payments?

    Reply
    • I think CEZ, you need to ask your Accounting Dept. for the computation of your taxes, mas maipapaliwanag nila yan sa iyo ng mabuti.

      Reply
  48. I am 44 years old S4. All dependents below 18. Not receiving any child support. But my taxes are always ranging from 2k and above. My basic pay is 17.5k. BPO based, Don’t I qualify for any type of exception? There was even a time my tax for 1 pay period (fortnightly) was at 16k. My taxes are more than enough to feed my kids for a month.

    Reply
  49. hi.. im 24 years old and applying for a scholarship program and one of the requirement is the combined family income tax return (ITR of both parents) but my parents are farmer and housewife. i went to BIR and asked for the certificate of tax exemption but they told me they cant give the certificate bcoz im already 24 and they only cater 21 and below? is there any legal basis for these? i just wanna know. thank you.

    Reply
    • What the BIR is mentioning is the exemptions in income tax which are dependents of 21 years of age. Kahit wala pang trabaho ang isang anak, pero more than 21 years old na sya, hindi na sya kasama sa income tax exemptions ng nanay or tatay nya.

      Reply
  50. good day po!

    I’ll just ask lang kasi pwd po ako and I’m also working and have an income. is there a possibilty that i am exempted from income tax and if i do, how can i avail of it? salamat lang po.

    Reply
    • hinde ka exempted from paying income tax just from reading old replies from JP. You have though the 20% discount sa mga bibilhin mo.

      Reply
  51. I have an 8 yr. old son and since 2013 I wasn’t able to claim the additional 25k tax exemption. I would like to ask if I can claim for a refund for the year 2013-216?

    Reply
    • HI good day po! I somewhat have the same issue, breadwinner din po ako, and we no longer have a father, he passed away since 2013, I have 2 siblings and my mom. Is there anything that I can do to at least lower my income tax? Thank you and God Speed! ♥

      Reply
    • To Ms Lorife: You can only claim an additional tax exemption of P25k if you update your registration with the BIR of having a dependent child.

      To Sir Jay: Being single will not give you any tax benefits even though meron kang dalawang kapatid and a mother na ikaw po ang nagtataguyod. It will not lessen your income tax.

      Reply
  52. Hello Fehl,
    Need your help please.
    My company is giving me chance to work in manila and want to know if non citizen are taxable? and what is the calculation ..is there any income bracket based calculation ?
    Also how can i get the tax exemption?

    Reply
  53. Wanted to check this, my husband was an OFW but he is now working here in PH. is is true that he is legible for no tax deductions for 3months? Thanks.

    Reply
  54. Hi,

    I just recently got married and has a son from the prior relationship, meaning, my spouse is not the biological father at all. My tax status is already an S1. upon employment. Since I will be updating my Tax Status from S1, what are the possibilities / process that my dependent will still be carried over or have my status become M1 even if my spouse is not the biological father of my son?

    Reply
  55. hi just want to ask. may partner ako and we are not yet married. we have 3 kids. we are both working. pwede ba kami dalawa mag claim ng tax exemption?

    Reply
  56. Hi good day! Does your basic salary matters when computing your exemption for M1 status. Can you make your senior parents w/o a job as dependents? Thanks.

    Reply
    • Does your basic salary matters when computing your exemption for M1 status. – no, your basic salary will not, in anyway, affect your exemption as M1. M1 is dependent on your marital status and children dependends and your basic salary will be as it is no matter if your M, M1 or M3. BUT, both of them (basic salary & M1) is considered in computing your TAXABLE INCOME.

      Can you make your senior parents w/o a job as dependents? – no.

      Reply
  57. ma’am ask ko po kung pwede po ma tax exemption sa retirement pay po sa tulad Kong pwd , 17years na po sa company , w/ pwd id, 43 years old , polio left leg , as cook ang work
    dumating na kasi time na kailangan na along mag crutches , kaya nahihirapan na akong magwork as cook
    sana po natulungan nyo po ako , almost 30% dn kc mababawas sa makukuha ko sa retirement pay

    Reply
  58. I am a father of 3 children, all under 18 yrs old and my youngest one who is 7 yrs old is pwd. Im working in the government while my wife is just taking care of them. Can I be exempted in tax?

    Reply
    • sir RJ being an M3 is a classification of being a Married person with 3 qualified dependents, which gives that person a P125,000 deduction in his/her income in Computing his/her INCOME TAX, which is good kasi mababawasan ang income tax na babayaran mo. well, kung wala kang babayaran na Income Tax kung ibabawas ang P125k sa income mo, parang Exempted ka sa Income Tax. pero legally, subject to provisions ng NIRC may mga exempt from income tax like Senior Citizens or Minimum wage earners but being an M3 does not qualify you to be.

      Reply
  59. most of the organizations under union are exempt from tax. But, this union group bir form 2303 is subject to ewt. Im just confused if it is really taxable or not for the remittance for employees.

    Reply
  60. Nag-aapply po ako sa BIR as Marginal Income Earner, meron po akong sari-sari store sa bahay namin. Sabi po doon na kailangan ko daw pong magbayad ng Registration Fee na 500php (para sa mga first time na nag-aapply lang daw po yun, next year ay wala na daw pong bayad). Nabasa ko po na exempted ang mga MIE’s sa ARF. Kaya naconfuse po ako. Kailangan ko po ba talaga magbayad ng registration fee? Thanks po!

    Reply
  61. Ask lang po gusto po sana naming magapply ng Tax Exemption from BIR Homeowners Association po kami kaso hinahanapan po kami ng Rulling Letter for Exemption ano po un at kung sakali po pwede po bang makahingi ng sample or draft para mapaggayahan.

    Salamat po

    Reply
  62. Good day. Inquiry lang. po. I’m married but is separated fr my ex. My ex signed a waiver that I could claim for the tax exemptions of our children.

    My son now is 23 but still studying (on and off from schooling). I am the one paying for all my kids’ tuition fees (w/ no assistance fr my ex). Can I still claim for a tax exempt for my 23 year old son who is still studying now (he never work yet -even on a part-time basis).?

    I would appreciate your kind advise so I would know my tax exemptions.

    Kind regards,

    Mabel

    Reply
  63. Father ng child ko is a tricycle driver so meaning hindi sya tax payer . pwede ko bang ilagay as my qualified dependent ang anak ko kahit without waiver from the husband since hindi naman sya employ in industry.

    Reply
  64. Isa po akong PWD at mayroon akong maliit na computer shop. Buwan-buwan nagbabayad ako sa BIR ng 3% sa kinikita ko. Matanong ko lang kung pwede ba ako mag-file ng ITR or Tax exemption? Ano kaya ang maaari kong gawin? Salamat po.

    Reply
    • Wala pong tax excemption for PWDs engaged in business po. Puwede niyo lang pong gawin is deduct from gross income iyong mga allowable deductions po. ito po itong mga necessary expenses na binabayaran niyo po pag maintain or upkeep ng business (i.e. power bills, internet at etc.), May less din po sa income tax pag may dependents po kayo, (nakalimutan ko na rate per dependent) up to 3 dependents yata maximum. Meron din deduction from health or life insurance.

      Reply
  65. Good Morning!

    I’m a filipino religious friar/brother belonging to Franciscan order here in England. I’m going back to the philippines in 2 weeks time. I’m just wondering if I’m exempted from paying the Travel Tax when I get to the airport as I come back for UK?

    Thanks a lot for your response. God bless!

    Friar John

    Reply
  66. Hi good day. my question is. I am working on a company and my monthly income is 37, 500 per month and sobrang laki ng tax ko na di na katanggap tanggap para sa akin at napakaunfair sa akin para sa isang gobyernong ganito ang kalakaran. may way po ba na mabawasan ang tax ko? may form or way ba na legal at maaapply sa isang empleyadong nagttrabaho sa isang company? maraming salamat po

    Reply
    • magkanu nito mo James? sana bago matapos ang taon mapatupad na ang bagong tax reform 500K per annum tax nya 20k per annum fixed.

      Reply
  67. Hi ask ko lang po kung pano computations married and got 2 dependents ang isa po sa kanila ay may autism(with PWD ID) ? may additional exemption po ba?

    Reply
  68. Good morning po. ung friend ko po kasi nagwork sya sa company nya july 8, 2016 tapos po ang rate nya 481. Nung nagsweldo po sya nitong august 15, 2016 ang natanggap lng po nya ay 11k+ kasama n po dun ung ecola nya. Pede po b ireklamo sa company ung kulang nyang sahod? Ang nkalagay po kasi na basic salary nya is 12,500 tapos less lng po ay 150 para sa philhealth. Maraming salamat po.

    Reply
  69. BLESSED MORNING!

    ask ko lng po, kng pnu po ung tax ko, I will change status this October to married, my tax code before is single with four qualified dependents, anu po mangyayari sa tax ko and how will I process this queries sa company nmen, im employed ten years now.

    thanks,

    AN

    Reply
    • You need to update your status from single to married and file BIR form 2305 to list your dependent. You are allowed 25,000 per dependent not exceeding 4 dependent

      Reply
  70. good day, ask ko lang kung 550 a day may tax deduction ba? nature ng work ko is sales. bigay sakin ng boss ko per day is 550 pero may tax kaya yung take home ko is mababa na. thank you..

    Reply
  71. Hello Mam,

    Just wanted to ask if a church build a new church for the purpose of expanding the place of worship, is it exempted from Vat on materials purchase and Service fee.
    Thanks and god bless po

    Reply
    • Anu po b gawin kapag kinakaltasan ka ng tax my basic salary 17k ang kinaltas sakin ay 1k san po b pwd. Mag tanung tungkol dito.

      Reply
  72. Hello ma’am commissioner Po ang partner ko sa isang auto supplies company. May Com. Po siya every end of the month… depending sa payment ng naging regular client ng partner ko. at may deduction Tax ang commission…po ng partner ko valid po ba yun? Or exempted po sia? every month usually nasa 22k po.commission nakukuha nia.

    Reply
  73. Good day, Ma’am/Sir.

    I have a question po with regards paying tax. I work as an online teacher (home-based). Our company doesn’t deduct tax from our salary which is given every other Tuesday). Will I have a problem po ba if ever in the future I want to travel abroad for leisure?

    I’m really worried about this. I hope you can help me. Thank you for your time. God bless.

    Reply
  74. hello! I would like to ask. what if at the middle of the year ako nagstart ng work July 1, 2016. may tax parin po ba ako? or wala then if ever na wala. kinaltsan ako ng employer ko ng tax may tax refund po ba ako? at the end of the year? thank you…

    Reply
  75. Good day Maam Fehl! I am a regular employee of a company 3 years now with 1 child as my dependent. I just married last month and was required to update my civil status. My husband is a seaman and i understand he is tax-exempted. Will i expect some changes in my tax status as well?

    I will very much appreciate your help. God bless you.

    Reply
  76. Hi,

    Ask ko lng po, if im a single parent (will also apply for solo parent ID), and i have a PWD child (ASD, will aslo apply for PWD ID), is there an additional tax exemption for the child?

    Reply
  77. hi po, follow up lang po sa question ko.
    ung daughter ko po is PWD and i’m already claiming tax exemption for her as my dependent.
    dahil po PWD sya, may additional tax exemption pa po ba on top sa nakeclaim ko na?

    Reply
    • hello ma’am..it doesn’t mean na PWD xa ay may additional yun..ang gamit na term is child..of course..kung below 18 xa..at nasa 1st four child xa..automatic na for exemption xa..pag.xa aie ng.19 na..hindi na xa covered as being dependent..however..since PWD xa..pwede mo pa rin ma.avail Yung exemption kahit na 35 years old na xa or 50 years old..kasi PWD Xa at ang assumption aie dependent mu pa rin xa..

      Reply
  78. Ask ko lang po, hindi kasi kami kasal ng father ng baby ko..
    Employed ako. Pwedi po bang maging dependent ko ang baby ko? My deduction po ba sa tax na binabayaran ko at Tax Refund? 9months na si baby.
    Thanks po

    Reply
    • if both po kayo may work, either of you two can claim. however, if you can’t decide who will shoulder the claim. kung sino po ang mas mataas ang income dun po mapupunta ang exemption.

      if, ikaw lang po ang may work, according to the law as the head of the family, you have the right for the claims 🙂

      Reply
  79. Hi. Thanks for all the info you shared. I just want to ask about tax refund. Is it really possible to get a tax refund from BIR? Paano pag nag accumulate na yung overpayments, sayang naman kung puro carry over lang sa next year. Money earned ko din naman yun so sayang talaga. Do you know the process of claiming a tax refund?

    Reply
  80. Hi! I’m a regular employee at the Church since August 2014.

    I was applying for my visa application as a Tourist to go abroad (specifically at Japan) which requires me to present an ITR.

    However, I don’t have any Income Tax Return to show. My salary there is at minimum wage (probably lower). Am I exempted to pay taxes?

    Is there a way on how to explain to the embassy about having no ITR since the my employer is from a religious org?

    Reply
  81. You said that “Income from bonds and securities for sale in the international market”.

    Are earnings from buying and selling shares from US exempted from tax?

    Reply
  82. Hi mam fehl
    -housewife po ako me tin number ako pero wala po akong trabaho me babayaran po ba ako?
    -isa pa po yung asawa ko isang stock trader dito sa pinas may babayaran pa po ba xa sa BIR or naibawas na po yung tax sa tuwing bibili at magbebenta po xa ng stocks? salamat po…

    Reply
      • Hello! Can you help me with my research? If your business is located in a disputed territory like spratlys, will you be exempted from paying taxes or if not who has the jurisdiction to impose taxes over you?

        Reply
  83. Hi po Ask Ko Lng po May Sarili po akong Tindhan At PWD po ako Tanong ko lang po If Exempted ba ako Sa Pag Babayad ng Tax Monthly? Or ilang percent lng po ang ma babayarn ko na montly Tax?? Salamat po ☺

    Reply
  84. maam,
    am single n breadwinner of the family. Only child. Parents are both old and mother is pwd. What exemption is applicable to me?what will i say or submit to hr para maavail ko un?thank you

    Reply
    • “jay d.

      unfortunately you cannot declare your parents as dependents anymore. BIR only allows children as dependents and not parents. RR 10 2008

      Reply
      • Hi Good Afternoon po,

        Parehas po kami ng concern..single and breadwinner din po ako sa family, ako lang ang may regular job at may pinag-aaral na 1 kapatid sa college at kumuha po ako ng housing loan na ngayon ang tinitirahan na ng family ko at binabayaran ko parin ito monthly. Bale po 7 kami magkakapatid plus yun parents pa po..Gusto ko po malaman kung may applicable exemption for me? since sabi niyo po nde na allow ang parents yun mga kapatid ko po ba allow?

        Thanks,
        Chary

        Reply
          • I have a 9 months old child. My partner and I are not yet married. Can I declare my child as my dependent? Is there tax deduction for me and tax refund since Im currently employed? thanks

  85. hi, would like to inquire on how to treat the tax exemption of one of our employees. He got married recently and had a child but his wife has children from previous relationship. The wife declares her children as her additional exemption. Can our employee declare his child and his wife continue to declare her own children?

    Reply
    • If the wife declares all the children as an exemption. the father cannot do so. A dependent/child can only be declared as a dependemy by either of the parent but not both.

      Reply
  86. Hello Ms Fehl, Thank you for posting this blog. It is very helpful. I just got married with my Japanese husband this month, he’s been working in the Phil for 2 years now. 30% of tax every month is deducted from his monthly salary. I will deliver the first baby this year, if ever he will declare our first child as dependent, will there be deduction from his monthly tax? I hope to hear from you soon.

    Reply
  87. Hi. I have submitted the requirements for my change of status September but the actual change of status happened December. I started in the company February. January 25 has passed and no tax refund has been given. Who should I go to, to file a complaint?

    Reply
  88. Hi,

    It seem you know a lot about tax in Philippines!

    I am going to do charity Work in Cebu for 4 month for a charity organization.
    I am bringing a 20 feet container from Denmark with children’s clothes and toys for the street kids of Cebu donated by private persons and Companies in Denmark.

    Is there anyway I can avoid paying custom tax for the goods in the container? based on your point
    “•Donations to the social welfare, cultural and charitable institutions”.

    Looking forward to your reply!

    PS: Container (40 feet) is currently in Bangkok, where half of it is unloaded.

    Reply
  89. Good afternoon po. ask ko lang po i am newly married po this year po mag kaka baby na po ako and may parents will become senior citizen? pwede po ba sila maging dependent ko. i am earning 18k monthly magkano po yung magi2ng deduction ko if qualified parents and child ko.. ilang beses na po kasi ako tumatawag email sa bir. wala nman po ako nakukuha sagot. hay. thank you po

    Reply
    • Unfortunately you cannot claim your parents as dependents. Your child however can be, once he/she is born. There is a need for a birth certificate before you register your child as dependent. It is an additional of annualized 25K exemption. Please take note that this is an annual exemption and not a refund or tax deduction.

      Reply
  90. Hello po,,hope you can help me. I was married on 1/8/14 and gave birth on 10/9/2014. I dont have job that time. My tax status is single when i joined my current company on 1/21/15.

    Question ko po is: makakakuha po ba ako ng refund kung nagdeclare ako ng dependent last month 12/2105? Sabi kc ng HR, next cut off plang daw magrereflect kc ngain lng daw ako nagdeclare.

    Please enlighten me po. Kc ang alam ko once a year lng cla nagreremit and umaboy naman ing pagdeclare ko sa pagremit nila.

    Reply
    • Hi, Miss Anne!
      first of all, you must submit a waiver, signed by your husband and his employee if there’s any.
      you can still have refund if you have submitted all necessary docs before your company compute your last payroll, if in case, you failed to submit within the specified time, then you won’t get any tax refund.

      Reply
  91. Hello,

    I have a question regarding submitting of waiver for BIR? I was the one who declared my 3 kids and for 8 years now my status is M3. And now that I am on a new company, our finance manager is requesting for a waiver. My previous company didn’t asked for a waiver how come this new company is asking for one when there has been no changes on my number of exemptions. I am the wife and what I know that if my husband decided to declare the kids as his exemptions, that is the time that I will submit another waiver.

    Thank you

    Reply
  92. Hi.

    Ask ko lang regarding dun sa mga dependents, single kasi ako, di na nagwowork parents ko and ako nagsusupport sa family, I have 2 brother below 18yrsold and my dad is already a senior citizen. Pwede ko ba sila iclaim as dependents?

    Reply
  93. Hi,

    Just submitted my requirements for the tax exemption (married, one dependent). Question is I’ve been married for six years and my Daughter is also six years old, I’ve been taxed “single, no dependents” for those six years. Am I entitled to a tax refund once my tax status gets changed?

    Reply
  94. Hi Ms Fehl,
    Please enlighten me with MWE tax exemption. I am currently working in a telecom services as admin officer. Natransfer ang aming office this yea (January) dito sa Ortigas, so nagbago ang aming rate per day, naging manila rate which is P481/day. Pero my employer still deduct income taxes from us(wala naman akong o.t or whatsoever). Diba minimum wage earner should be exempted sa tax? I work Mondays-Fridays only. Basically 22 days ang aming number of work days per month. Sabi ng Accountant namin, baka marefund naman daw sa ITR. Pero we just wanted to make sure if mababalik ba yon or hindi since every payroll kami may deduction ng tax.Please help thank you in advance.

    Reply
  95. hello madam. I just would like to ask of your opinion regarding tax exemption for a benefactor with pwd child. I have 3 children, one is a pwd child. How much tax exemption shall I get based on the new law R.A. 9442.
    Thanks.

    Sincerely,

    Erwin

    Reply
    • YOU WILL GET 75,000.00 FOR YOUR 3 CHILDREN IF ALL ARE 21 YRS. OLD AND BELOW. YOUR CHILD WHO IS A PWD IS EXEMPT FROM THE AGE LIMIT, YOU WILL CONTINUOUSLY AVAIL THE 25,000 UNTIL EXEMPTION AMOUNT IS INCREASED.

      Reply
      • Good day!
        I am a working mom but I am also a PWD (with ID from government). I am also single parent (with solo parent ID issued by the government). I have 23 years old daughter, 18 years old son and 13 years old son. Am I entitled to that tax exemption?

        Please advise.

        Reply
  96. On Estate taxes…

    What if you transfer your real estate properties to your children’s names before you die, will this exempt your loved ones from all these taxes after your death?

    Reply
  97. Hi.. hope u can help me with this.. I’m a mother, working at a call center. I got all the requirements pra ma-update tax status q as I’m still tagged as Single by our comp. I’m trying to submit all the requirements today as I was told by one of our HR personnel that Oct. 16 is the last day of submission of docs.. Oct. 13, i went at the office asking for the form but was told na ubos ng ung copy ng my signature ng authorized person. Now that I’m for the form and passing my requirements, I was told na d na dw aabot sa ITR for 2015 khit i-pass q requirements q today. 70k+ na po total tax na nabawas sa total salary q since Jan. including tax sa incentives … totoo po bang d na ncconsider na my 3 depents aq pag nkuha q ITR q for this yr khit ipass q requirements q this week? Sayang nman po kc ung innexpect qng refund .. pls help.. tnx and God bless

    Reply
    • Pwd nyo pong gamitin yong 3 dependents nyo for tax exemption. at wala pong deadline yong pag submit ng requirements. Reklamo mo yang HR nyo.

      Reply
  98. Hi..Pastor po ang aking asawa at may allowance lang na 8000..ako po ay walang pinapasukang trabaho but I have a home business..is my husband required to pay taxes? How about me? Do i need to pay also even if i dont have a job but only a small time business earning 7k a month..

    Reply
    • You need to fill-up BIR Form 2305 and attach the birth certificates of your dependent children to avail of additional tax exemption.

      Reply
  99. Hi, Fehl. One of my best friends back in high school is Edrick Dungo, I wonder if you’re related. Anyway, our teachers earn below minimum but enjoy other benefits like free lodgings and free tuition for their kids. Since the dole requires that they earn minimum wage, they advised us to include those benefits as part of their basic salaries instead. If we do that then their basic salaries will now be above minimum thus taxable. Is there anyway to keep this from happening and still satisfy the dole? Thanks

    Reply
  100. hello ms. Fehl. do you file for an income tax with your online business? it just like posting your ads with a subscription fee. do i need to apply for a business permit? i do not have an office. i just do it in my home.

    Reply
  101. Hi po! magandang araw,Bread winner po ako, parents ko senior na po then ako lang may trabaho at tumutulong sa amin, cuz all my siblings are have their own family na, may tax exemption po yung mga ganitong cases? Medyo mahirap po kasi ang laki ng binabawas sa akin monthly almost isang kensenas na sahod ng minimum wage halos lahat. Thanks.

    Reply
  102. madam, I’m currently working po and may isang anak po..yung asawa ko po eh nag aaral, exempted na po ba ako sa tax, may narinig po kasi ako na ganun

    Reply
  103. Good evening po maam…allowed po vah ang security agency na magdeduct sa kanilang security guard ng taxes???at aqo po maam may tatlong anak exempted po vah ako s taxes???isa po akong security guard…slmat po god bles u

    Reply
  104. Hi ma’am. I really need your help po.
    Since february po binabawasan na po ako for bir.
    Minimum lang po ako, 8 hrs.plus 1hr.po ang pasok ko, bali 9hrs po working hour ko. 58.25 per hour.
    Required po ba ako magbayad ng tax?
    Then nung april po tumaas ang minimum wage, pero di pa din po tumataas samin. Meaning, since april po under minimum na ko. Help me po. 🙁

    Reply
  105. gud day.. my company juz nformed me dat my bir status will b changed from S1 to S since a senior citizen can no longer b a dpendent.. i am d hed of d family & its only my mother & i.. i am supporting her.. ur help & insight on this wud b greatly appreciated.. not sure f i bliv our HR personnel.. thanks!

    Reply
    • The business is tax exempt.
      Income derived is to be distributed to partners and the partners are taxable in their individual capacity as taxpayer.

      Reply
  106. Hi ask ko lng po.nandito po aq sa ibang bansa wala po ako trabaho nasa bahay lng po.uuwi po aq ng pinas.magbabayad pa po ba ako ng tax kht nakalagay sa passport ko not permited to work?

    Reply
  107. Good evening.. Maam what if the employer of my husband doesn’t want to sign the waiver? as far as i know all of may hus

    Reply
  108. hi,mam i just want to know if tax exemption for religious organization have no expiration or is it renewable? once given a copy from BIR that they are exempted do we need to update it or no? if there is an expiration how many years or when to update it? thank you so much.

    Reply
  109. Hi Ms. Fehl,

    I read this section on BIR website:

    9) Who are exempt from Income Tax?

    •Non-resident citizen who is:

    b) A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis

    I just want to ask what is the process on filing Income Tax exemption for this situation and what are the required documents or forms need to be filed to BIR? I’ll be leaving the country
    permanently by July 2015.

    Thank you very much!

    Adam

    Reply
  110. Hi. im a government employee with salary grade 6. i have 1 dependent and she is disabled. how will i be exempted from tax? Thank you

    Reply
  111. Hi Ms Fehl,

    Thank you very much for your good website, I learned a lot from your site.
    I would like to see an advice. I have an apartment business and I am a regular
    Tax payer. I am planning to start a new business which is sari sari store on
    the same apartment location.

    I already register my sari sari store in city hall and received my Business Permit.
    The person in charge in city hall mentioned that I am not required to register this to
    BIR since this is only a sari sari store.

    I dont want to break any rule, is it required still to register my Sari Sari Store in BIR?
    I am only learning all by myself and no idea how I can file my Sari Sari Store tax if any
    case.

    Please do me an advice.

    Kind regards
    Tina

    Reply
    • Sari sari stores are usually for minimum earners and it’s not usually required by BIR. If you feel your regular income from your store meets the taxable gross income by BIR, then register it. Maybe it would fall under VAT exempt but Percentage Tax (3%) instead. Approach BIR, they would gladly tell you what kind of category you’d be. Tell them your monthly and yearly income

      Reply
  112. Greetings!

    I worked a NGO, a sponsorship operating agency that support disadvantaged children and youth with programs in health, education and youth development. I am assign to pick up some packages sent by their respective sponsors from local and abroad
    through post office. Can you please share to me the process on how to be tax exempted? Where should I go first? What are the requirements needed?

    For your guidance please.

    Thank you in advance and God bless!

    -foldtupe

    Reply
  113. i just work at home, homebase job, the company charged 10% for tax on my earnings, they said it’s fix but they do not consider tax exemption for dependents, is that accordging to the law?

    Reply
  114. I need some information about the steps in availing tax exemption.
    As I picked up the packages through post office, our office pay the taxes. Packages are for the sponsored children. How can I avail tax exemptions? What are the steps? Thank you!

    -foldtupe

    Reply
  115. can you please help me about the steps in availing tax exemption. I worked at NGO a non-profit org with sponsorship program. Our sponsors from different countries sent a package to our beneficiaries through Post Office. Each boxes contains different items depending on the sponsors preference to send. I am responsible for processing the package (picking up to the post office and encode the content and giving to the beneficiaries). How can I apply for Tax Exemption? What are the steps? Where should I go? I’m very confident that you can give me the right answer to my questions. It is not only for my work to be easy but to help the children in need.
    Thank you so much!

    -foldtupe

    Reply
  116. hello! my husband is an OFW and is automatically exempted to tax, do i have to file waiver in order to claim my son as my dependent?

    Reply
  117. hello! for taxpayers as freelance technical theatre practitioner, what are the other exemption aside from the usual personal exemption?

    thank you

    Reply
  118. Ma’am,
    Im a local gov’t employee whose earned 472.77 per day has a withholding tax of 594.27 per month, now that the minimum wage has reach 481 per day and i am now consider as a minimum wage earner, should I be exempted in withholding tax? Thank you…

    Reply
  119. can you please help me about the steps in availing tax exemption. I worked at NGO a non-profit org with sponsorship program. Our sponsors from different countries sent a package to our beneficiaries through Post Office. Each boxes contains different items depending on the sponsors preference to send. I am responsible for processing the package (picking up to the post office and encode the content and giving to the beneficiaries). How can I apply for Tax Exemption? What are the steps? Where should I go? I’m very confident that you can give me the right answer to my questions. It is not only for my work to be easy but to help the children in need.
    Thank you so much!

    -foldtupe

    Reply
  120. 1. Is it true that if your earnings was already taxed abroad, it should not be taxed in the Philippines?
    If so, why are they taxing Manny Pacquiao’s earnings?

    2. If you write and sell electronic books in cyberspace, through Amazon or Barnes and Noble, will your earnings be taxable in the Philippines?

    Reply
    • 1. According to BIR, any income derived within and outside the Philippines will be taxed unless the taxpayer is an OFW. In the case of Manny, he is still a resident here thus all his income here and outside the Phils. must be taxed per BIR rule
      2. I’m not sure about Q#2 but I think it’s about royalties not sure if there is an exemption or minimum earnings to be exempted for that

      Reply
  121. ma’am im a registered professional since 2013 in my certificate or registration in BIR
    im actually in doubt of my stand in my tax dues cause im not earning cause im not employed since registration and i haven’t got my books of account…
    What can i do to assess my problem regarding tax and do i need to pay any penalty or should i pay my tax?

    Reply
      • Hello, it seems u have a vast knowledge about bir rules and regulation. It sounds ur willing to help as well. I want to know something pls advice, i have applied to canada , and they are asking proof of tax exemption, as i mentioned to them i am working but im not getting paid in the hospital as i have agreed to get some experience for 2 years. Basically they forgive me to be staff nurse but wihout paid they only giving me allowance. In short it was a voluntary job. My question would i be able to get certificate of exemption in the bir? Pls reply

        Reply
        • I’m not sure with your case because you’re a volunteer worker and you’re not getting salary from an employer. I suggest go to BIR, they would gladly assist you with the certificate if you can get it. At least you’ll know 🙂

          Reply
  122. Hi Ma’am Fehl,

    Query po, hiwalay na po kami ng ex-husband ko but not legally separated, he is an OFW, ever since nagwork ako, I was the one claiming the exemptions of our kids even he has worked here before and submitted already with the BIR. Now, my present employer if asking for a waiver, do we have a ruling to show that automatically I will be the one to claim the additional exemptions?

    Thank you so much,

    Estela Torres
    Makati City

    Reply
  123. Hi! I gave birth for my 3rd child last Nov27, 2014. One of the requirement for the additional dependent is NSO authenticated (available after 6mos) or cert. true copy from Civil registry of Birth Certificate which is available after 30 working days upon filing but due to Holidays and work cancellations due to typhoon, it took me about 60days to get the cert. true copy and too late for me to have the exemption effect for taxable year 2014. Can I still claim this exemption since it’s not my fault? Thanks and regards

    Reply
  124. I applied 2 years ago that I will claim the exceptions. My husband was able to fill up the sworn declaration and waiver of right to claim exceptions of qualified dependent children. For this year 2015 I would like to change it that my husband will be the one who will claim the exceptions. What will I do to change it?.. Hoping for your help. Thank YOu!

    Reply
    • File a Sworn Declaration and waiver of right and attached it to BIR Form No. 2305 or BIR Form No. 1902. Both you and your husband must sign it and provide each of your employer acknowledgment before it will take effect on the payroll

      Reply
  125. hi maam.. Is there an age limit for tax exemption? he is currently working and he is more than 50 years old. he’s salary is above minimum wzge.

    thank you..

    Reply
  126. Hi Good Day..
    Tanong lang Po..
    My husband is only 1peso higher to minimum wage is he required to be deducted for withholding tax? di na po ba yun kasama sa exemption?

    Reply
  127. Hi, I have two companies last year. I have a 50k personal exemption from my 1st company (Jan-May) and my personal exemption for my current company is also 50k (Nov-Dec). Does this mean it will add up to 100k for my personal exemption when I file for ITR using form 1700? Thanks!

    Reply
  128. hi, I am the breadwinner of my family, my father is senior citizen and he is already retired, my mother is housewife, am I exempted in tax?? thanks…

    Reply
  129. ma’am Fehl, about the additional exemption for qualified dependent of PHP25,000, I heard that the parent can enjoyed the PHP25,000 (additional exemption). What does it mean? Do they actually get the PHP25,000 from BIR? Then, if they got it from BIR, how they do that? And how about the basic personal exemption? Hope you could answer & enlighten me.

    Reply
  130. Hi, I resigned from previous company last Oct 2014 and start in my current company Nov 2014, got annualized deducted with taxes for 2014. But as I checked my current 2316, my tax exemption was 50,000 and status is Married w/o dependent. I have compared it on my 2316 from previous employer and my declared tax exemption was 75,000 and status is Married w/ no dependent declared. I am actually Married with 1 dependent since 2011. Does my current 2316 overrides my previous one from my old employer? Hope u could enlighten me. TIA

    Reply
    • Hi, I’m not an expert with taxes but if you declared 1 dependent and married status, 75K is correct for the allowed exemption and it would override the old record in my opinion

      Reply
  131. Hi,

    I am a School Public Teacher. I am single but I have 2 children but the family name they are using is the family name of there FATHER and the father has NO JOB. Do I have my tax exemption? I hope you can answer my question ASAP.

    Thank you and God Bless!

    Reply
    • Hi, in your case this will be the usual computation of your tax payable:

      Gross compensation income
      – Premium Payments for Health and hospitalization (2,400)
      – Basic Personal Exemption (50,000)
      – Additional Exemption: Child 1 (25,000)
      Child 2:(25,000)
      = Taxable income

      Multiply that taxable income following the Rates of Individual Income Tax to arrive at your NET TAX PAYABLE or Tax Due

      Reply
  132. I was not able to update my claim exemptions for my 2 kids last year, my husband resigned from work March 2014. Will be passing a form for update this week. Shall I get a refund?

    Reply
  133. I consider all your information very useful to anyone in relation to their individual needs.
    I am in the process of organizing a producer’s cooperative.
    Are Coops registered under RA 9520 exempted from paying taxes?
    Thank you for whatever information you can give me.

    Reply
    • Hi. I don’t know so much about Cooperatives but it has been mentioned about tax exemption in RA 9520

      “ART. 60. Tax Treatment of Cooperative. – Duly registered cooperatives under this Code which do not transact any business with non-members or the general public shall not be subject to any taxes and fees imposed under the internal revenue laws and other tax laws. Cooperatives not falling under this article shall be governed by the succeeding section.

      “ART.61. Tax and Other Exemptions. Cooperatives transacting business with both members and non-members shall not be subjected to tax on their transactions with members. In relation to this, the transactions of members with the cooperative shall not be subject to any taxes and fees, including not limited to final taxes on members’ deposits and documentary tax. Notwithstanding the provisions of any law or regulation to the contrary, such cooperatives dealing with nonmembers shall enjoy the following tax exemptions:

      Reply
  134. I belong to a religious congregation and a 6000 sq meter lot was donated to us. Since we are registered as a non profit corporation with the SEC you info is very much appreciated. Can you list the necessary steps and documents for transfer of title?

    Reply
  135. good day, I am a registered PWD or a Person with disablity. I would like to know if there is a tax discount or exemption (possibly) that can be applied for me. I am currently a BPO or a call center agent for 2 and 1/2 years already. Thanks for the response.

    Reply
  136. We are in the process of starting an Christian orphanage ministry. We have registered with SEC and the BIR and filed with the BIR for tax exempt status. Upon following up on our request for tax exemption several weeks after filing (the BIR told us it may take a few months for the approval) we spoke with a gentleman from the BIR department in which handles the tax exemptions and he told us that upon looking at our paperwork we would have to operate for 3 years without a tax exempt status before the exemption could be granted. This sounds ridiculous but that’s what he told us. Can you please verify if that is true? Thank you for your help.

    Reply
    • Hi Phil! I suggest you hire a Tax lawyer. I don’t know if a religious institution really has to operate 3 years without tax exempt before it can be exempted. I just know reading the tax book and the law articles on it that religious institutions are exempted. I didn’t see a part stating the institution needs 3 years as you mentioned here. God bless!

      Reply
  137. good day!
    ask ko lang po.dun po ba sa 1601C na form pano po ba mag fill up nung total amount of compensation?
    at dun po sa tax required to be witheld?
    please help po
    tnx po

    Reply
  138. Are incomes earned during selling shares of stock through any online stock brokers such as colfinancial/bpitrade and the likes need be declared on the ITR?

    Reply
    • Nope, they don’t need to be in the ITR because your broker already deducted you taxes from the sale of stocks. Your broker already reports these taxes to the BIR. That is why everything you receive or pay are already on NET value. It’s the reason too why brokers require our TIN when we open our account

      Reply
  139. Im a minimum wage earner here in iloilo city I have a husband & a son, am I exempted in Tax? Another question if your single and has a minimum wage do you also exempt i tax?

    Reply
  140. 1. i have resigned since nov 2013 and has no job until now. does it make any difference to my husband’s tax if i become his dependent? if so, would it be on his 2013 or 2014 income tax?

    2. if our two kids (12, 7 yrs old) are his dependents, and i start working again, would it make any difference if i make the kids my dependents if my salary is higher than his?

    3. how does taxable income affect one’s retirement pay? i think some companies increase benefits as non-taxable income in order to lessen the withholding tax. however, others say this would also decrease the amount of retirement pay in the future.

    thank you very much!

    Reply
    • All your income from January 2013 to November 2013 shall be taxable, both husband and wife shall file either separately or combined their income tax return, thus, qualified dependents may be divided by the husband and wife, thus, entitled to Married Individual Exemption, if legal wife or husband.

      Reply
  141. thank for your information, what are the exemptions of regular worker earning a minimum wage. are they taxable? are they exempted, what are those exemptions if ever. Thank You!

    Reply
  142. if non-profit religious organization like churches are exempt from tax, why does the tax type in the certificate of registration from BIR include income tax?

    Reply
  143. my spouse is filing for an update of marital status and wants to add me as his dependent. will his tax be deducted? Im unemployed but we don’t have any children yet. will wait for your response! thanks!

    Reply
    • There are personal deductions and optional deductions in computing tax due for every individual. The forms will help you what to list 🙂

      Reply
  144. Is it true that doctors and lawyers are somehow exempted in paying tax? Are there any professionals exempted also? Thank you.

    Reply
  145. I’m working as OFW.. and my wife is working in philippines is it possible that her tax maybe deducted or removed??

    Reply
    • Nope, unless she doesn’t work anymore. She will not be taxed if she’s under the “minimum wage earners”

      Reply
  146. Hi,

    I have 2 children (4 y/o and 1 y/o), i also declared my spouse as my dependent. My spouse has no job so I was the sole provider of my family. Do I need to pay tax or can I be exempted in paying them? Thanks.

    Reply
    • Your spouse is the one exempted coz she is not earning or has no job. You need to pay tax if you’re earning income or you have a job and you are earning more than P60,000 per annum. You can deduct basic exemptions and personal exemptions to your allowable deductions to derive your tax payable

      Reply
  147. I have 3 children (4y/o, 3y/o and 9months old boys) and i declared my wife as my dependents, do i need to pay tax or i will be exempted in paying witholding taxes? thanks

    Reply
    • Both you and your wife need to pay taxes if you’re not under the minimum wage earners. Take note of your allowable deductions and personal basic exemptions (50,000) each spouse in computing for your income tax payable

      Reply
  148. If a non-stock, non-profit organization, not a foundation, held a fundraising activities were the organization would sell products then all of its profit would be used for charitable work, will the profit from sold products be taxable or not?

    How about when it does advertising and uses the money/income for employees salary? Will the income from the advertising be taxable?

    Reply
  149. Im a permanent employee of a company in phil. But my job are always abroad, im working abroad more than six mons in a year. Do Im entitled for tax exempt? And additionally I have a Overseas Employment Certificate everytime I go abroad.

    Thanks

    Reply
  150. What excellent high quality information there is here, thanks for explaining the taxes. My wife is Filipino and we already benefitted from your information. I will recommend this to friends of mine.

    Oberon Tan Tai.

    Reply

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