24 Nov P250,000 annual income tax exemption effective starting January 2018
The Senate proudly announces that starting January 2018, Filipinos earning less than P250,000 a year will have a privilege to be exempted from paying personal income taxes.
In a statement released by the Senate Ways and Means Committee Chair Juan Edgardo Angara, the P250,000 tax exemption will cover all workers, including employees and self-employed.
Meanwhile, tax exemptions for individuals earning more than P250,000 will vary.
Approved Income Tax Scheme:
| Annual Salary | Tax |
| NOT OVER 250,000 | 0% |
| OVER P250,000 BUT LESS THAN P400,000 | 20% OF EXCESS OVER P250,000 |
| OVER P400,000 BUT LESS THAN P800,000 | P30,000 + 25% OF EXCESS OVER P400,000 |
| OVER P800,000 BUT LESS THAN P2 MILLION | P130,000 + 30% OF EXCESS OVER P800,000 |
| OVER 2 MILLION BUT LESS THAN MILLION | P490,000 + 32% OF EXCESS OVER P 2 MILLION |
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