![all[in]](/assets/allin-header-navy.png)
This simulator applies the general rules to the figures you type. It does not know your registration, your tax type, your exemptions, your treaty position, or the transactions you have actually entered into.
Treat every result as an order-of-magnitude estimate for planning, not a computation of tax due. Nothing here is filed with, or accepted by, the BIR.
Enter amounts as plain digits — 1200000, not 1,200,000.
Income tax on compensation
For an employee with compensation income only. Enter annual figures. Your employer normally withholds this tax through payroll.
Rates used on this tab
| Annual taxable income | Income tax due |
|---|---|
| Not over ₱250,000 | 0% |
| Over ₱250,000 but not over ₱400,000 | 15% of the excess over ₱250,000 |
| Over ₱400,000 but not over ₱800,000 | ₱22,500 plus 20% of the excess over ₱400,000 |
| Over ₱800,000 but not over ₱2,000,000 | ₱102,500 plus 25% of the excess over ₱800,000 |
| Over ₱2,000,000 but not over ₱8,000,000 | ₱402,500 plus 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 plus 35% of the excess over ₱8,000,000 |
Graduated rates for individuals, effective from 2023 onward. Compensation income is taxed on these rates whether or not you also run a business.
8% versus graduated rates
For a freelancer, professional, online seller, or sole proprietor. This compares the two routes side by side, because the cheaper one depends almost entirely on how much your business actually spends.
The 8% option also has eligibility conditions this tab does not test — among others, it is not available to a taxpayer subject to percentage taxes other than Section 116, or to a partner in a general professional partnership.
Rates used on this tab
| Annual taxable income | Income tax due |
|---|---|
| Not over ₱250,000 | 0% |
| Over ₱250,000 but not over ₱400,000 | 15% of the excess over ₱250,000 |
| Over ₱400,000 but not over ₱800,000 | ₱22,500 plus 20% of the excess over ₱400,000 |
| Over ₱800,000 but not over ₱2,000,000 | ₱102,500 plus 25% of the excess over ₱800,000 |
| Over ₱2,000,000 but not over ₱8,000,000 | ₱402,500 plus 30% of the excess over ₱2,000,000 |
| Over ₱8,000,000 | ₱2,202,500 plus 35% of the excess over ₱8,000,000 |
Graduated rates for individuals, effective from 2023 onward. This tab also uses the 8% income tax option for qualified individuals, the ₱250,000 reduction where available, the Optional Standard Deduction at 40% of gross, the 3% general percentage tax under Section 116, and the ₱3,000,000 threshold for 8% eligibility.
VAT and percentage tax
Business taxes sit on top of income tax. This works out output VAT and indicative VAT payable, or percentage tax if you are not VAT-registered, and shows what VAT-inclusive pricing does to your revenue.
Rates used on this tab
| Item | Rate or amount |
|---|---|
| Value-added tax on taxable sales | 12% |
| General percentage tax (Section 116) | 3% of gross sales or receipts |
| VAT registration threshold referred to | ₱3,000,000 |
Other industries and transactions are governed by different percentage tax rates, and zero-rated or exempt sales follow their own rules. Neither is computed here.
Corporate income tax
For a domestic corporation on ordinary rates. Enter your income statement and this works out both tax bases for you, checks whether the 20% rate conditions are met, and compares the regular tax against the minimum corporate income tax.
Rates used on this tab
| Item | Rate or condition |
|---|---|
| Regular corporate income tax | 25% of net taxable income |
| Reduced rate for qualifying domestic corporations | 20%, where net taxable income does not exceed ₱5,000,000 and total assets do not exceed ₱100,000,000, excluding the land on which the corporation’s office, plant and equipment are situated |
| Minimum corporate income tax | 2% of gross income, generally from the fourth taxable year immediately following the year operations commenced, when it exceeds the regular corporate income tax |
Corporations are not taxed on the graduated rates that apply to individuals — there is no ₱250,000 zero bracket for a corporation. Registered business enterprises, entities with incentives, and foreign corporations follow different rules again.
An estimate is not a filing position
If a number here changes a decision you are about to make — choosing the 8% option, pricing with VAT, or setting up a company — have it checked against your actual registration and records.
Tell AllIn Solutions Inc. about your situation and we will map the tax types, returns, and deadlines that apply to you, with a scope of work and professional-fee quotation before work begins.
Have your numbers reviewedThis simulator provides general information only and is not tax, accounting, or legal advice. It applies simplified general rules and does not account for exemptions, incentives, special regimes, treaty relief, local taxes, penalties, or your particular facts. Tax treatment depends on the taxpayer's circumstances, supporting documents, current laws, regulations, and BIR issuances. Confirm any figure with a qualified adviser before acting on it.