DoubleTaxationTaxes on salary: Philippines preliminary data
How much income tax and social contributions are paid on a salary in Philippines, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | ₱4,134,466 ≈ €60,000 |
|---|---|
| Income tax | ₱1,026,820 ≈ €14,901 |
| Employee contributions | ₱53,400 ≈ €775 |
| Take-home pay | ₱3,054,246 ≈ €44,324 |
| Employer contributions and payroll taxes | ₱74,400 ≈ €1,080 |
| Employer's labour cost | ₱4,208,866 ≈ €61,080 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 ₱2,067,233 | €60,000 ₱4,134,466 | €120,000 ₱8,268,931 |
|---|---|---|---|
| Sole proprietor | ₱490,627 26.4 % | ₱1,041,806 28.0 % | ₱2,158,111 29.0 % |
| Company | ₱520,943 28.0 % | ₱1,041,885 28.0 % | ₱2,418,662 32.5 % |
| Sole proprietor · 8% optional income tax (in lieu of graduated rates and percentage tax) | ₱145,379 7.8 % | above the regime's limit | above the regime's limit |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Philippines yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 68.907759 PHP (IMF — representative exchange rate for the Philippine peso, 2 Jan 2026, 02/01/2026) ↗
Sources
- BIR — Digest of Revenue Regulations No. 8-2018 (TRAIN income tax rates, 8% option, dividend final tax)
- BIR — Annex E RR 11-2018, revised withholding tax table effective 1 Jan 2023
- BIR — Revenue Regulations No. 5-2021 (CREATE corporate income tax rates)
- SSS — SSS clarifies 1% contribution rate hike; bares plans for 2025
- PhilHealth — Advisory 2025-0002, premium contribution for direct contributors CY 2025
- IMF — Representative exchange rates for selected currencies, January 2026
- Department of Finance — RA 10963 (TRAIN Law) and veto message of the President
- BIR — Digest of Revenue Regulations No. 11-2018 (withholding on employees of RHQ/ROHQ/OBU/PSC at regular rates)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.