Mr. Pol Is A Resident Citizen With An Income Of Php50,000 Per Month. He Has No Dependents And Is Still Single And Available. His Total Sss, Paag-Ibig,

Mr. Pol is a resident citizen with an income of Php50,000 per month. He has no dependents and is still single and available. His total SSS, Paag-IBIG, PhilHealth and other contributions is Php1,000. What is the income tax withheld?

 

Answer:

Tax withheld = Php 6,416.75

Step-by-step explanation:

Monthly income: Php 50,000

Contributions, monthly:  Php 1,000

Compute the net taxable income, monthly:

Net taxable income = 50,000 - 1,000

Net taxable income = 49,000

For monthly taxable income for bracket  Php 33,333 to Php 66,000, compute the monthly withholding tax as follows:

Tax Withheld = 2,500 + 25% (x - 33,333)

Where:

x = taxable income above 33,000

x = Php 49,000

Compute the income tax withheld for the month:

Tax withheld = 2,500 + 0.25 (49,000 - 33,333)

Tax withheld = 2,500 + 0.25 (15,667)

Tax withheld = 2,500 + 3,916.75

Tax withheld = Php 6,416.75

Please see attached actual BIR tax schedule beginning 2018.