How the Philippines 8% option calculator is verified
Inputs
| Input | Field | Type |
|---|---|---|
| Annual gross receipts (PHP) | grossReceipts | number |
The formula
Each derived value below is computed by the Valem engine from the expression shown, in this order. Nothing else runs — there is no hidden code path.
| Derived value | Field | Formula (JSONata) |
|---|---|---|
| Receipts above 250,000 | taxableReceipts | $round($max([0, grossReceipts - $const.exemptAmount]), 2) |
| Income tax (8%) | incomeTax | $round(taxableReceipts * $const.rate, 2) |
| Net income / year | netIncome | $round($max([0, grossReceipts - incomeTax]), 2) |
Rates and thresholds
The expressions above read these as $const. They are the figures the annual refresh replaces, so they live as data rather than being written into the formulas — which is what makes a year-on-year change a one-line diff instead of an edit to arithmetic.
| Constant | Value |
|---|---|
exemptAmount | 250000 |
rate | 0.08 |
vatThreshold | 3000000 |
Test vectors (3)
Every case is executed against this model on each build, by the Java engine and independently by a JavaScript one. A mismatch of a single cent fails the build, so the page cannot ship advertising a figure the model no longer produces.
Case 1 — 1,200,000 PHP gross receipts — a typical full-time freelancer
given grossReceipts | 1200000 |
|---|---|
expect taxableReceipts | 950000 |
expect incomeTax | 76000 |
expect netIncome | 1124000 |
Case 2 — 400,000 PHP — most of it inside the 250,000 relief
given grossReceipts | 400000 |
|---|---|
expect taxableReceipts | 150000 |
expect incomeTax | 12000 |
expect netIncome | 388000 |
Case 3 — 2,900,000 PHP — just under the VAT threshold
given grossReceipts | 2900000 |
|---|---|
expect taxableReceipts | 2650000 |
expect incomeTax | 212000 |
expect netIncome | 2688000 |
Sources
- Bureau of Internal Revenue — income tax for self-employed individuals and professionals · checked 2026-08-22
- The 8% tax for freelancers and the self-employed (2026 rules) · checked 2026-08-22
Check it yourself — and reuse it
The whole model as JSON — inputs, outputs, formulas, vectors and sources in one re-runnable document.
This model is published under CC BY 4.0: use it, adapt it, build on it, with attribution. The licence covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds are law, and nobody licenses those; the sources above are where they come from.
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