Just recently, the Department of Finance released a series of infographics on their official Facebook page that aims to explain how the proposed tax system works.
According to the department, through simplifying the income tax brackets by decreasing it into six brackets, the tax shouldered by the 99% of the payers will decrease. They also mentioned that “the simplified tax system will increase the take-home pay of most individuals” as the tax rates will be based on a person’s capacity to pay based on his/her income.
Check out the infographics below.
Here are the six (6) income brackets the taxpayers can belong to depending on their annual income and bonuses.
Below are the examples of the computations from minimum wage earners up to those who earn over P 50,000 monthly. The infographics also show the difference in calculation between the proposed tax system and the current tax system.
Are you in favor of the proposed tax system? Share your thoughts below.
