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8% Preferential Tax Rate for Self-Employed in the Philippines

Know more about this type of tax rate. Talk to us to know more about it.


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? 


know more about the 8% preferential tax rate

Reach out to us to schedule an appointment with our Sales Team and let's talk about your business plans in the Philippines.

Here are more useful information to further understand Jumpstarters Manila's accounting services 


Summary of Monthly and Quarterly Tax Compliance Services


Corporate Registration with the Bureau of Internal Revenue


Income Taxation of Corporations in the Philippines


The Deductible Expenses for the Corporations in the Philippines


The Overview of the Business Taxes in the Philippines

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