Tax
Withholding tax
Often called tax
Income tax your employer takes from each payday, using BIR's withholding table for your pay period, and pays to the BIR for you.
Most useful for: Fresh grad, Career shifter, Government
- In real life
- On ₱30,000 a month paid twice a month, ₱503.70 is withheld each payday. The year's tax is ₱12,090, and December squares the difference.
- Why it matters to you
- If the right amount is withheld all year, you usually don't file a return yourself.
An explanation to help you read your pay, not a ruling on your case. Your employer, the agency or DOLE has the final word.