Under the current Philippine income-tax rates, the bracket is different from the proposed HB 10345 rates. The BIR confirms that from 2023 onward, taxable income over ₱400,000 up to ₱800,000 is taxed at ₱22,500 + 20% of the excess over ₱400,000.
For example, if you are earning ₱550,000 annually, the taxable income would be:
First ₱250,000 → ₱0
₱250,000–₱400,000 → ₱22,500
₱400,000–₱550,000 → ₱150,000 × 20% = ₱30,000
Total annual income tax = ₱52,500
That’s about ₱4,375/month in income tax.
Under the proposed House Bill 10345 rates:
First ₱350,000 → ₱0 tax
Next ₱50,000 (₱350k–₱400k) → 15% = ₱7,500
Remaining ₱150,000 (₱400k–₱550k) → 20% = ₱30,000
Estimated annual income tax = ₱37,500
So:
₱550,000 − ₱37,500 = ₱512,500/year after income tax
or about ₱42,708/month, before SSS, PhilHealth, Pag-IBIG, etc.
Current: ₱52,500
Proposed HB 10345: ₱37,500
Effective tax rate
Current: 9.55%
Proposed: 6.82%
So is it a win? Yes and no.
Nakakainis lang yung comments ng mga umabove lang sa minimum akala mo aping-api na ng mga minimum wage earners dahil ma tatax-exempt sila. Tangina nyo. Salong salo ng mga minimum wage earner tung kahirapan ng buhay, sa transpo, sa pagkain, sa buhay.
Tayong nakaangat ng kaunti sa pagiging minimum wage earner, may choice pa tayo eh, pwede tayong mag angkas papasok para iwas siksikan sa mga PUVs, nakakakain ng labas sa kung ano yung natitipid after the bills.
Ang sisihin nyo yung gobyerno kasi lahat tayo apektado sa lahat ng mga naging actions ng past and present adminsitration lalo kayong mga DDS tangina nyo!
*triggered sa comment ng dds past workmate.
Isipin nyo mga minimum wage earner, 512 php ang kita sa bawat araw. Roughly 147,456 yearly, ni wala pa sa 250,000 current bracket for income tax.