Withholding tax on compensation is how the Philippines collects income tax on salaries in advance. This guide covers the current TRAIN Law brackets, who is exempt, how employers should compute it each payroll period, and the most common errors that lead to under- or over-withholding.
BIR Form 2316 is the annual Certificate of Compensation Payment/Tax Withheld every Philippine employer must issue — by January 31 for continuing employees, or on the day of last pay for anyone who separates mid-year. Learn what it must contain, how it enables substituted filing, and what to do if your employer refuses to issue it.
Learn how to use a net pay calculator in the Philippines to estimate take-home salary after SSS, PhilHealth, Pag-IBIG and withholding tax deductions.