If this new tax exemption is implemented, what are the parameter in the computations ...?

Question

If this new tax exemption is implemented, what are the parameter in the computations ...?

Answer 1

Answer:

First, basic exemption will be P50,000 for single, head of the family and married individual.

Second, additional exemption of P25,000 for each dependent child.

Third, if you are a minimum wage earner (minimum wage depends on the area you are working), you are exempt from income tax.

Fourth, you still have to use the previous income tax table for individual for income tax computation.

Answer 2

in addition;

Employer making payment of compensation from January 1 to July 5, 2008 shall deduct and withhold from such compensation a tax determined in accordance with the prescribed Revised Withholding Tax Tables effective

January 1, 2006 (old table) showing existing exemptions for the period (e.g. married P32,000);

Employer making payment of compensation from July 6, 2008 to December 31, 2008 shall deduct and withhold from such compensation a tax determined in accordance with the prescribed Revised Transitional Withholding Tax Tables

using exemptions per RA 9504 (e.g. married P50,000) apportioned over a period of six (6) months only.