Our Philippines-based payroll outsourcing provides a personable and reassuring service
to your local business, from auditing past payroll, through onboarding and parallel runs
to computation and reporting of month and year end.
Our services in Philippines include:
Are you looking for someone to apply for your employee work permits? Take a look at our Work Permit Management services.
Social Security Scheme
The Social Security System (SSS) is a social insurance program, protecting employees in the event of death, disability, sickness, maternity and old age. Additionally, all SSS-registered employers and their employees are compulsorily covered under the Employees’ Compensation (EC) Program. The SSS requires contribution from both the employer and employee, where the employee’s portion will be deducted from the employee’s salary. Only the employer is required to contribute monthly to the EC on behalf of the employees. In addition, there is a Government Service Insurance System (GSIS). The contributions are made from the government and members, where members’ contributions are deducted from their salary.
The Bureau of Internal Revenue (BIR) is the main authority for collecting taxes in the Philippines.
Corporate Income Tax
For domestic companies, the income derived from sources within and outside the Philippines is taxable. Resident and non-resident foreign corporations’ receiving income from sources within the Philippines is taxable. The corporate income tax rate is 30%, based on net taxable income.
Individual Income Tax
Income from sources within or outside the Philippines received by the resident citizens is taxable. Additionally, non-resident citizens receiving income from sources within the Philippines are taxed. Aliens, whether resident or not are taxed in the same manner as resident citizens on income derived from sources within the Philippines.
Individual Income Tax Rates
|Net Taxable Income||Rate (%)|
|Over||But Not Over|
|P10,000||P30,000||P500 + 10% of the Excess over P10,000|
|P30,000||P70,000||P2,500 + 15% of the Excess over P30,000|
|P70,000||P140,000||P8,500 + 20% of the Excess over P70,000|
|P140,000||P250,000||P22,500 + 25% of the Excess over P140,000|
|P250,000||P500,000||P50,000 + 30% of the Excess over P250,000|
|P500,000||P125,000 + 32% of the Excess over P500,000 in 2000 and onward|