{
  "$comment": "Machine-readable companion to https://valem.run/calculators/philippines/self-employed. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/philippines/self-employed",
  "dataUrl": "https://valem.run/calculators/philippines/self-employed.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "Philippines 8% option model by Valem (https://valem.run/calculators/philippines/self-employed), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/philippines/self-employed/verify",
  "country": "philippines",
  "countryName": "Philippines",
  "formula": "self-employed",
  "formulaName": "8% option",
  "title": "8% Tax Option — Philippines Freelancer",
  "answer": "Under the Philippine 8% option you pay eight percent of gross receipts above the first 250,000 pesos, and that single charge replaces both the graduated income tax and the 3% percentage tax.",
  "lang": "en",
  "currency": "PHP",
  "taxYear": "2026",
  "verification": {
    "claim": "shape-only",
    "statement": "The rates in this model are illustrative. Its 3 self-test cases confirm the engine reproduces the shape of the charge, but the schedule is not the official one, so the amount will not match a real bill. The cited sources name the document that would replace it.",
    "selfTestCases": 3,
    "ratesAreIllustrative": true,
    "sourcesCheckedOn": "2026-08-22"
  },
  "sources": [
    {
      "label": "Bureau of Internal Revenue — income tax for self-employed individuals and professionals",
      "url": "https://www.bir.gov.ph/index.php/tax-information/income-tax.html",
      "checked": "2026-08-22"
    },
    {
      "label": "The 8% tax for freelancers and the self-employed (2026 rules)",
      "url": "https://sweldoph.com/guides/freelancer-tax-8-percent",
      "checked": "2026-08-22"
    }
  ],
  "terminalOutput": "netIncome",
  "inputs": [
    {
      "name": "grossReceipts",
      "type": "number",
      "label": "Annual gross receipts (PHP)",
      "minimum": 0
    }
  ],
  "outputs": [
    {
      "name": "taxableReceipts",
      "type": "number",
      "label": "Receipts above 250,000",
      "format": "number",
      "formula": "$round($max([0, grossReceipts - $const.exemptAmount]), 2)"
    },
    {
      "name": "incomeTax",
      "type": "number",
      "label": "Income tax (8%)",
      "format": "number",
      "formula": "$round(taxableReceipts * $const.rate, 2)"
    },
    {
      "name": "netIncome",
      "type": "number",
      "label": "Net income / year",
      "format": "number",
      "formula": "$round($max([0, grossReceipts - incomeTax]), 2)"
    }
  ],
  "testCases": [
    {
      "description": "1,200,000 PHP gross receipts — a typical full-time freelancer",
      "given": {
        "grossReceipts": 1200000
      },
      "expect": {
        "taxableReceipts": 950000,
        "incomeTax": 76000,
        "netIncome": 1124000
      }
    },
    {
      "description": "400,000 PHP — most of it inside the 250,000 relief",
      "given": {
        "grossReceipts": 400000
      },
      "expect": {
        "taxableReceipts": 150000,
        "incomeTax": 12000,
        "netIncome": 388000
      }
    },
    {
      "description": "2,900,000 PHP — just under the VAT threshold",
      "given": {
        "grossReceipts": 2900000
      },
      "expect": {
        "taxableReceipts": 2650000,
        "incomeTax": 212000,
        "netIncome": 2688000
      }
    }
  ],
  "spec": {
    "id": "self-employed-philippines",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "grossReceipts": {
          "type": "number",
          "minimum": 0
        },
        "taxableReceipts": {
          "type": "number",
          "readOnly": true
        },
        "incomeTax": {
          "type": "number",
          "readOnly": true
        },
        "netIncome": {
          "type": "number",
          "readOnly": true
        }
      },
      "required": [
        "grossReceipts"
      ]
    },
    "constants": {
      "exemptAmount": 250000,
      "rate": 0.08,
      "vatThreshold": 3000000
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{ \"grossReceipts\": 1200000 }"
      }
    ],
    "derivations": [
      {
        "path": "$.taxableReceipts",
        "expr": "$round($max([0, grossReceipts - $const.exemptAmount]), 2)"
      },
      {
        "path": "$.incomeTax",
        "expr": "$round(taxableReceipts * $const.rate, 2)"
      },
      {
        "path": "$.netIncome",
        "expr": "$round($max([0, grossReceipts - incomeTax]), 2)"
      }
    ],
    "constraints": [],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "Self-employed net income",
          "layout": "vertical",
          "components": [
            {
              "id": "illustrativeNotice",
              "type": "alert",
              "variant": "warning",
              "label": "What this model leaves out",
              "text": "'The 8% option replaces TWO taxes at once — the graduated income tax and the 3% percentage tax — with a single rate on gross receipts, and the first 250,000 pesos are free. Nothing is deducted for expenses, which is what makes it worth choosing for low-cost service work and a poor choice otherwise; the graduated alternative allows either itemised deductions or the 40% optional standard deduction. The 250,000 relief is NOT available to a mixed-income earner who also draws a salary. The option must be elected in the first quarterly return and is lost above the 3,000,000 peso VAT threshold. SSS, PhilHealth and Pag-IBIG contributions are separate. Not tax advice.'"
            },
            {
              "id": "inputField",
              "type": "numericField",
              "label": "Annual gross receipts (PHP)",
              "bind": "$.grossReceipts",
              "placeholder": "1200000"
            },
            {
              "id": "tiles",
              "type": "group",
              "layout": "horizontal",
              "components": [
                {
                  "id": "netIncomeTile",
                  "type": "statTile",
                  "label": "Net income / year",
                  "bind": "$.netIncome",
                  "format": "number"
                },
                {
                  "id": "taxableReceiptsTile",
                  "type": "statTile",
                  "label": "Receipts above 250,000",
                  "bind": "$.taxableReceipts",
                  "format": "number"
                },
                {
                  "id": "incomeTaxTile",
                  "type": "statTile",
                  "label": "Income tax (8%)",
                  "bind": "$.incomeTax",
                  "format": "number"
                }
              ]
            },
            {
              "id": "sources",
              "type": "sourceList",
              "label": "Sources",
              "items": [
                {
                  "label": "Bureau of Internal Revenue — income tax for self-employed individuals and professionals",
                  "url": "https://www.bir.gov.ph/index.php/tax-information/income-tax.html",
                  "date": "2026-08-22"
                },
                {
                  "label": "The 8% tax for freelancers and the self-employed (2026 rules)",
                  "url": "https://sweldoph.com/guides/freelancer-tax-8-percent",
                  "date": "2026-08-22"
                }
              ]
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "1,200,000 PHP gross receipts — a typical full-time freelancer",
        "given": {
          "$.grossReceipts": 1200000
        },
        "expect": {
          "$.taxableReceipts": 950000,
          "$.incomeTax": 76000,
          "$.netIncome": 1124000
        }
      },
      {
        "description": "400,000 PHP — most of it inside the 250,000 relief",
        "given": {
          "$.grossReceipts": 400000
        },
        "expect": {
          "$.taxableReceipts": 150000,
          "$.incomeTax": 12000,
          "$.netIncome": 388000
        }
      },
      {
        "description": "2,900,000 PHP — just under the VAT threshold",
        "given": {
          "$.grossReceipts": 2900000
        },
        "expect": {
          "$.taxableReceipts": 2650000,
          "$.incomeTax": 212000,
          "$.netIncome": 2688000
        }
      }
    ]
  }
}