Tax
Optional standard deduction (OSD)
Often called OSD
For the self-employed: deduct a flat 40% of gross receipts as expenses, without receipts, then apply graduated rates.
Most useful for: Career shifter
- In real life
- ₱360,000 of receipts less 40% leaves ₱216,000 taxable.
- Why it matters to you
- It's the simple alternative to the 8% rate if you don't keep expense records.
An explanation to help you read your pay, not a ruling on your case. Your employer, the agency or DOLE has the final word.