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I get a lot of queries on how to compute Philippine Withholding Tax on Compensation. I have been intending to make a post about it, but taking screenshots of the withholding tax table, while explaining the computation at the same time may be difficult for the readers to comprehend. Finally, you can now compute your withholding tax by using the BIR’s Withholding Tax Calculator.
Restrictions/Limitations on the use of BIR’s Withholding Tax Calculator
- The application is not downloadable.
- The application is simply an automated computation of the withholding tax due based only on the information entered into by the user in the applicable boxes. Accordingly, the withholding tax due computed by the calculator cannot be used as basis of complaints of employees against their employers.
- No validation process is being performed on the following information:
- Basic Salary/Statutory Minimum Wage Earner (whether or not the basic salary is more than or less than the statutory minimum wage in the National Capital Region or in other regions)
- De Minimis Benefits (whether or not the total de minimis benefits received by the employee is more than or less than the total threshold)
- The Cumulative Average Method in computing withholding taxes (where the total supplementary compensation is equal or greater than the total regular compensation) cannot be accommodated in the calculator.
Related: What are Personal and Additional Exemptions? Income Tax Return Filing for Employees and Individuals Earning Non-Business/Non-Profession Income Tax Exemption of Minimum Wage Earners What is BIR Form 2316? To access Withholding Tax Calculator click here.