Income Tax Rates for Individuals

This is a subject that many are familiar with, but I decided to put this in writing for the benefit of those who do not know.

If the annual taxable income is:

1.) Php10,000 or less = 5%

2.) > Php10,000 but < Php30,000 = Php500 + 10% of the excess over Php10,000

3.) > Php30,000 but < Php70,000 = Php2,500 + 15% of the excess over Php30,000

4.) > Php70,000 but < Php140,000 = Php8,500 + 20% of the excess over Php70,000

5.) > Php140,000 but < Php250,000 = Php22,500 + 25% of the excess over Php140,000

6.) > Php250,000 but < Php500,000 = Php50,000 + 30% of the excess over Php250,000

7.) > Php500,000 = Php125,000 + 32% of the excess over Php500,000

Regarding taxable income, resident citizens are liable to pay taxes from their sources of income located both inside and outside the Philippines. Nonresident citizens, resident aliens and nonresident aliens doing business in the Philippines are liable to pay taxes from income located in the Philippines only. Nonresident aliens not doing business in the Philippines can still be taxed if they earn money in the Philippines (they're subject to a flat 25% final withholding tax rate on gross income.) A nonresident alien is considered to be doing business in the Philippines if he stays for more than 180 days in any calendar year. If he stays for a total of 180 days or less, he is considered as not doing business in the Philippines. This 180-day period doesn't have to be counted straight; an alien may leave at any time and come back. What matters is the total time he stayed in the Philippines. Also, the 180-day period must not be converted into months. It must be strictly followed (remember how tax exemptions, reductions and deductions are interpreted?)