Last January 1, 2018, the TRAIN (Tax Reform for Acceleration and Inclusion) Law was effective. Under said Republic Act (RA) No. 10963, some changes were implemented—one of which affected our withholding tax rates!

How, you might ask? If you want to know, you can head directly to the main source in the BIR portal, feel free to do so by clicking here.

Alternatively, as part of Taxumo's mission to make your experience with taxes easier, here's a simplified and digestible version of it:

Annual Income

Tax Rate

₱250,000 and below

None (0%)

₱250,000 to ₱400,000

20% of excess over ₱250,000

₱400,000 to ₱800,000

₱30,000+ 25% of excess over ₱400,000

₱800,000 to ₱2,000,000

₱130,000+ 30% of excess over ₱800,000

₱2,000,000 to ₱8,000,000

₱490,000+ 32% of excess over ₱2,000,000

Above ₱8,000,000

₱2.41 million + 35% of excess over ₱8,000,000

On top of this summary, if you're already a subscriber to our services, these rates are computed automatically!

We hope this helped you out! In case you want to read up on the TRAIN Law itself, you can access and download the pdf here.

In case you have any more questions, feel free to message customer service at our website:

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