OPTION TO BE TAX (Options can be change after 1 calendar year)
8% Income Tax on Annual Gross Sales/Receipts in excess of P250,000. But Gross
Sales/Receipts should not exceed PHP3,0000,0000 annual gross sale/receipts. (Note: this option cannot avail business expense but 8% Income tax is both or VAT and Income tax) Graduated income tax rates Percentage Tax of 3% on Gross Sales/Receipts not exceeding PHP3,000,0000 Tax table on Net Income – (Receipts –Operating Expenses=Net Income*Tax Rates =Tax Payable)
Annual Gross Sales/Receipts exceeding PHP3000,000,000 is automatically subject to Graduated
Income Tax and will be subject to 12% VAT on Gross Sales.
- Sales * 12% =VAT payable
- Sales –Expenses=Net Income *Tax Rates = Income Tax Payable