What is the 8% preferential tax rate?
Under Revenue Memorandum Order No. 23-2018, the Bureau of Internal Revenue prescribes and issues the guidelines and procedures in the availment of the eight-percent (8%) Income Tax Rate option for individuals earning from self-employment and/or practice of professions.
is it applicable for everyone?
The 8% tax is only applicable to self-employed individuals which are composed of sole proprietors and professionals whose gross sales or receipts and other non-operating income for the year do not exceed the Three Million Pesos (Php 3,000,000) Value-Added Tax (VAT) threshold.
The 8% tax due is already equivalent to the Percentage Tax and Income Tax so there is no need for you to file and pay for both taxes. But is it really more beneficial for you to use it?