Frequently Asked Questions

This free tool is designed to assist solopreneurs, professionals, and virtual assistants in determining the most tax-efficient option for their income.

Simply indicate whether you are a Mixed Income Earner or not, then input your Annual Net Sales, Annual Costs/Expenses, and Compensation Income (if applicable).

Our tool utilizes the current tax rates for individual taxpayers as of January 2024, with potential changes. For the latest information, refer to the BIR website.

If you earn income from both employment and business or profession simultaneously within the same taxable year, then you are a Mixed Income Earner (MIE).

Annual Net Sales or Receipts represent the estimated sales amount (net of returns, allowances, and discounts), including Other Non-Operating Income of your business or professional practice in a taxable year.

Annual Costs/Expenses encompass estimated expenses incurred by your business or professional practice in a taxable year, including taxes and licenses (e.g percentage tax, business permits.), if applicable.

Enter the taxable income received from employment, which can be found on Form 2316 issued employers to their employees. You can also use this calculator from the BIR to find out your Net Taxable Compensation Income.

If your Gross Sales/Receipts exceed the 3 million threshold, you are considered a VAT taxpayer. Consequently, the Graduated Rates apply automatically, rendering the 8% Rate inapplicable. For further clarification on the 8% Rate, refer to RMO No. 23-2018.