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    Group 1 HUMSS PT in Gen Math by Calvin

    Uploaded by

    Calvin Carl D. Delos Reyes
    This document provides information about income tax rates and deductions in the Philippines. It analyzes the tax implications for three salary levels of a pediatrician: 98,500 PHP/month, 45,300 PHP/month, and 157,000 PHP/month. For each salary, it calculates the annual salary, deductions, taxable income, and monthly tax deduction. The tax rates are based on a piecewise function of the annual income with thresholds of 250,000, 400,000, 800,000, 2,000,000, and 8,000,000 PHP. Relevant websites for deduction rates are also provided.

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    Download as DOCX, PDF, TXT or read online from Scribd

    Group 1 HUMSS PT in Gen Math by Calvin

    Uploaded by

    Calvin Carl D. Delos Reyes
    83 views6 pages
    This document provides information about income tax rates and deductions in the Philippines. It analyzes the tax implications for three salary levels of a pediatrician: 98,500 PHP/month, 45,300 PHP/month, and 157,000 PHP/month. For each salary, it calculates the annual salary, deductions, taxable income, and monthly tax deduction. The tax rates are based on a piecewise function of the annual income with thresholds of 250,000, 400,000, 800,000, 2,000,000, and 8,000,000 PHP. Relevant websites for deduction rates are also provided.

    Original Description:

    Tax deduction example by using piecewise function.

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    © © All Rights Reserved

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    This document provides information about income tax rates and deductions in the Philippines. It analyzes the tax implications for three salary levels of a pediatrician: 98,500 PHP/month, 45,300 PHP/month, and 157,000 PHP/month. For each salary, it calculates the annual salary, deductions, taxable income, and monthly tax deduction. The tax rates are based on a piecewise function of the annual income with thresholds of 250,000, 400,000, 800,000, 2,000,000, and 8,000,000 PHP. Relevant websites for deduction rates are also provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    83 views6 pages

    Group 1 HUMSS PT in Gen Math by Calvin

    Uploaded by

    Calvin Carl D. Delos Reyes
    This document provides information about income tax rates and deductions in the Philippines. It analyzes the tax implications for three salary levels of a pediatrician: 98,500 PHP/month, 45,300 PHP/month, and 157,000 PHP/month. For each salary, it calculates the annual salary, deductions, taxable income, and monthly tax deduction. The tax rates are based on a piecewise function of the annual income with thresholds of 250,000, 400,000, 800,000, 2,000,000, and 8,000,000 PHP. Relevant websites for deduction rates are also provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Performance Task #1 in Gen Math

    11
    By: Group 1 HUMSS Score:
    Section: 11 HUMSS – St. Teresa of Avila Teacher: Sir Scott
    Members:
    - Calvin Carl D. Delos Reyes
    - Pauline Einjel Aguilar
    - Glyssa Melmida
    - Ezekiel Lagamon

    I. Amount and Rate Given


    Starting January 1, 2018, compensation income earners, self-employed and
    professional taxpayers (SEPs) whose annual taxable incomes are P250,000 or
    less are exempt from the personal income tax (PIT). The 13th-month pay and
    other benefits amounting to P90,000 are likewise tax-exempt.

    Amount Rates
    Not Over ₱250, 000 0%
    Over ₱250,000 but not over ₱400,000 15% of the Excess Over ₱250,000
    Over ₱400,000 but not over ₱800,000 ₱22, 500+20% of the Excess over
    ₱400,000
    Over ₱800,000 but not over ₱102,500 +25% of the Excess over
    ₱2,000,000 ₱800,000
    Over P2,000,000 but not over P402,500 + 30% of the Excess over
    P8,000,000 P2,000,000
    over P8,000,000 P2,202,500 +35% of the Excess over
    P8,000,000

    II. Piecewise Function Equation


    Performance Task #1 in Gen Math
    11
    F(x) = Annual Salary, if x ≤ 250,000
    F(x) = Annual Salary – (0.15 x 250,000), if x > 250,000 ≤ 400,000
    F(x) = Annual Salary – [22,500 + (0.20 x 400,000)], if x > 400,000 ≤ 800,000
    F(x) = Annual Salary – [102,500 + (0.25 x 800,000)], if x > 800,000 ≤
    2,000,000
    F(x) = Annual Salary – [402,500 + (0.30 x 2,000,000)], if x > 2,000,000 ≤
    8,000,000
    F(x) = Annual Salary – [2,202,500 + (0.35 x 8,000,000)], if x > 8,000,000

    F(x) = Annual Salary – [ a + (b x c)] = Net Taxable Income


    F(x) Annual Salary – [ a + (b x c)] = Tax Deduction

    III. Chosen Job


    We chose Pediatrician
    A person working as a Pediatrician in the Philippines typically earns around
    98,500.00 PHP per month. Salaries range from 45,300.00 PHP (lowest) to
    157,000.00 PHP (highest) with a mandatory deduction of 302,500.00 PHP with
    other contributions of 84,945.00 PHP that if we break down consists of
    PhilHealth, SSS, Pag-Ibig contributions. Mandatory deduction and other
    contribution range from 157,121.60 PHP (lowest) to 420,790.00 PHP (highest).

    A.) 98, 500 PHP per month


    A. Annual Salary basic salary of P1,182,000.00
    P1,182,000.00
    B. 13 Month Pay and Other P98, 500.00
    Benefits
    C. 1.) Mandatory Contribution 1.) P302,500.00
    2.) Phil health 2.) P32,505.60
    Performance Task #1 in Gen Math
    11
    3.) SSS 3.) P28,800.00
    4.) Pag-Ibig 4.) P23,640.00

    Total = Tax Deduction Total = P387,445.60


    D. Annual Gross Income (A + B) P1,280,500.00
    E. Deductions and Exemption (B P485,945.60
    + C)
    Net Taxable Income P794,554.40

    Income Tax Rate:


    Amount and Rate: Over 800,000 but not over 2,000,000 = P102,500.00 + 25%
    of P800,000.00
    Piecewise Function: F(x) = Annual Salary (P1,182,000.00) – [ P102,500.00 +
    (25% of 800,000)], if x > P800,000.00 ≤ P2,000,000.00
    Tax Due: P102, 500.00 + 25% of P800,000.00 = P302,500.00
    Other Contributions: = P84,945.60
    Total = P387,445.60 (Annual Tax
    Deduction)
    Monthly Deduction:
    Annual Tax Deduction / 12 =
    P387,445.00 / 12 = P32,287.10 (Monthly Tax
    Deduction)

    B.) 45,300 PHP (lowest) per month


    A. Annual Basic Salary of P543,600.00
    P543,600.00
    Performance Task #1 in Gen Math
    11
    B. 13th Month Pay and Other P45,300.00
    Benefits
    C. 1.) Mandatory Deduction 1.) P102,500.00
    2.) PhilHealth 2.) P14,949.60
    3.) SSS 3.) P28,800.00
    4.) Pag-Ibig 4.) P10,872.00

    Total = Tax Deduction Total = P157,121.60


    D. Annual Gross Income (A + B) P588,900.00
    E. Deductions and Exemption (B P202,421.60
    + C)
    Net Taxable Income P386,478.40

    Income Tax Rate:


    Amount and Rate: Over P400,000.00 but not over P800,000.00 = P22,500.00
    + 20% of P400,000.00
    Piecewise Function: F(x) = Annual Salary (P543,600.00) – [P22,500.00 + (20%
    of P400,000.00)], if x > P400,000.00 ≤ P800,000.00
    Tax Due: P22,500.00 + 20% of P400,000.00 = P102,500.00
    Other contribution: = P54,621.60
    Total = P157,121.60 (Annual Tax
    Deduction)
    Monthly Deduction:
    Annual Tax Deduction / 12 =
    P157,121.60 / 12 = P13,093.47 (Monthly Tax
    Deduction)

    C.) 157,000 PHP (highest)


    Performance Task #1 in Gen Math
    11
    A. Annual Basic Salary of P1,884,000.00
    P1,884,000.00
    B. 13th Month Pay and Other P157,000.00
    Benefits
    C. 1.) Mandatory Deduction 1.) P302,500.00
    2.) PhilHealth 2.) P51,810.00
    3.) SSS 3.) P28,800.00
    4.) Pag-Ibig 4.) P37,680.00

    Total = Tax Deduction Total = P420,790.00


    D. Annual Gross Income (A + B) P2,041,000.00
    E. Deductions and Exemption (B P577,790.00
    + C)
    Net Taxable Income P1,463,210.00

    Income Tax Rate:


    Amount and Rate: Over 800,000 but not over 2,000,000 = P102,500.00 + 25%
    of P800,000.00
    Piecewise Function: F(x) = Annual Salary (P1,884,000.00) – [ P102,500.00 +
    (25% of 800,000)], if x > P800,000.00 ≤ P2,000,000.00
    Tax Due: 102, 500 + 25% of 800,000 = P302,500
    Other Contributions: = P118,290.00
    Total = P420,790.00 (Annual Tax Deduction)
    Monthly Deduction:
    Annual Tax Deduction / 12 =
    P420,790.00 / 12 = P35,065.83 (Monthly Tax Deduction)
    Performance Task #1 in Gen Math
    11
    IV. Sites and Legend

    PhilHealth Benefit Deduction:


    https://www.philhealth.gov.ph/advisories/2018/adv2018-0003.pdf
    Monthly Basic Salary x 2.75% = Monthly Deduction x 12 = Annual Deduction

    SSS Benefit Deduction:


    https://www.sss.gov.ph/sss/DownloadContent?
    fileName=SSS_and_You_Booklet_August2019.pdf
    Pag-Ibig Benefit Deduction:
    https://www.pagibigfund.gov.ph/document/pdf/circulars/provident/HDMF
    Circular No. 274 - Revised Guidelines on Pag-IBIG Fund Membership.pdf
    Monthly Basic Salary x 2% = Monthly Deduction x 12 = Annual Deduction

    Legend
    F(x) = x = Annual Salary
    A. Annual Basic Salary = Monthly Salary x 12
    B. 13th Month Pay = Monthly Salary
    C. Tax Deduction = The [ a + (b x d)] in the piecewise function.
    D. Annual Gross Income (A + B) = ABS + 13thMP
    E. Deductions and Exemption (B + C) = 13thMP + Tax Deduction
    F. Net Taxable Income (D – E) = AGI – D&E

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