1. What is the Salary and Commission Tax Calculator?

This calculator helps determine the tax amount on combined salary and commission income in the Philippines. It's useful for employees who receive both fixed salaries and variable commissions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Salary \) — Fixed monthly or annual salary in Philippine Pesos
• \( Commission \) — Variable commission earnings in Philippine Pesos
• \( Tax\ Rate \) — Applicable tax rate percentage

Explanation: The calculator sums the salary and commission, then applies the tax rate to determine the tax amount. The net income is calculated by subtracting the tax from the total income.

3. Importance of Tax Calculation

Details: Accurate tax calculation ensures compliance with Philippine tax laws, helps in financial planning, and prevents underpayment or overpayment of taxes.

4. Using the Calculator

Tips: Enter salary and commission amounts in PHP, and the applicable tax rate as a percentage. All values must be non-negative, with tax rate between 0-100%.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Philippine tax laws?
A: Yes, this calculator follows the Philippine tax computation for combined salary and commission income.

Q2: How do I know my applicable tax rate?
A: Tax rates in the Philippines are progressive. Check the latest BIR tax tables or consult with a tax professional.

Q3: Are there deductions not accounted for in this calculator?
A: Yes, this is a basic calculator. Actual tax computations may include other deductions like SSS, PhilHealth, and Pag-IBIG contributions.

Q4: Can I use this for annual tax computation?
A: This calculator shows tax for the entered amounts. For annual computation, you would need to sum all your salary and commission for the year.

Q5: Is commission taxed differently from salary?
A: In the Philippines, both are generally treated as compensation income and taxed at the same progressive rates when combined.