GRADUATED TAX RATE TABLE (TRAIN LAW)
Taxable Year 2018-2022
2023 Onwards
Amount of Income
Tax
Tax
Not Over P250,000
Exempt
Exempt
Over P250,000 but
not over P400,000
20% of excess over
P250,000
15% of excess over
P250,000
Over P400,000 but
not over P800,000
P30,000 + 25% in excess P22,500 + 20% in excess
of P400,000
of P400,000
Taxpayer
Tax Base
Tax Rate
Taxable Source
Resident Citizen
Net Income
Graduated
Within and Without
the PH
Non-Resident
Citizen
Resident Alien
Net Income
Graduated
Within only
Net Income
Graduated
Within only
Non-Resident
Alien – ETB
Net Income
Graduated
Within only
Non-Resident
Alien – NETB
Gross Income
Final Tax (25%)
Within only
Special Employees
-
PASSIVE INCOME
Over P800,000 but P130,000 + 30% in excess
not over P2,000,000
of P800,000
Over P2,000,000
but not over
P8,000,000
P490,000 + 32% in excess
of P2,000,000
P102,500 + 25% in
excess of P800,000
Interest
Yields
Royalties
Prizes
Winnings
Dividends
Share in Net Income
P402,500 + 30% in
excess of P2,000,000

Over 8,000,000
P2,410,000 + 35% in
excess of P8,000,000
P2,202,500 + 35% in
excess of P8,000,000
Partnership (General)
 Association
 Joint Account
 Joint Venture
-
RC/RA/NRC
-
NRA-ETB
NRA-NETB
20%
25%**
20%
10%
PURE SELF-EMPLOYED & PROFESSIONALS
Gross Sales and/or Gross Receipts
Income Tax
Business Tax
Graduated Tax Rate
1% Percentage Tax (3%, Jul 2023)
OR
Not more than Php 3,000,000.00
More than Php 3,000,000.00
At the option of SEP
8% of Gross Sales/Receipts and Other Non-Operating Income in Excess of Php 250,000
In LIEU of the graduated tax rate
12% VAT
Unless engaged in VAT-Exempt Sales and
Transactions
Graduated Tax Rate
MIXED INCOME EARNERS
Gross Sales and/or Gross Receipts
Income Tax
Business Tax
Graduated Tax Rate on compensation income AND income from
self-employment
1% Percentage Tax (3%, Jul 2023) on income
derived from self-employment ONLY
OR
Not more than Php 3,000,000.00
(Exclude Compensation Income)
More than Php 3,000,000.00
(Exclude Compensation Income)
At the option of SEP
 Compensation Income – Graduated Tax Rate;
 From self-employment – 8% of Gross Sales/Receipts and Other Non-Operating Income
(without deducting Php 250,000.00)
In LIEU of the graduated tax rate
Graduated Tax Rate on compensation income AND income from
self-employment
12% VAT
Unless engaged in VAT-Exempt Sales and
Transactions