New withholding tax table
The Philippines has recently released a new withholding tax table effective January 1, 2023. Here is the updated table:
Withholding Tax Rates for Employees
| Gross Income | Withholding Tax Rate |
|---|---|
| Up to ₱22,000 | 0% |
| ₱22,001 to ₱69,999 | 10% |
| ₱70,000 to ₱250,000 | 15% |
| ₱250,001 to ₱400,000 | 20% |
| ₱400,001 and above | 25% |
Withholding Tax Rates for Non-Residents
| Gross Income | Withholding Tax Rate |
|---|---|
| Up to ₱22,000 | 10% |
| ₱22,001 to ₱69,999 | 15% |
| ₱70,000 to ₱250,000 | 20% |
| ₱250,001 to ₱400,000 | 25% |
| ₱400,001 and above | 30% |
Additional Withholding Tax (AWT)
- 1% of gross income for employees earning ₱250,000 to ₱400,000
- 2% of gross income for employees earning ₱400,001 and above
Note:
- The new withholding tax table applies to all employees, including those receiving honoraria, allowances, and other forms of compensation.
- The AWT is applicable to employees earning ₱250,000 to ₱400,000 and above, and is in addition to the regular withholding tax rates.
- The new withholding tax table does not affect the tax rates for self-employed individuals, professionals, and non-resident aliens.
It's essential to note that these rates are subject to change, and it's always best to consult with a tax professional or the Bureau of Internal Revenue (BIR) for the most up-to-date information.