Individual - Significant developments

Last reviewed - 02 July 2023

Social taxes

Social taxes in the Philippines consist of contributions to the following government agencies:

  • Social Security System (SSS)
  • Philippine Health Insurance Corporation (PhilHealth), and
  • Home Development Mutual Fund (HDMF) or Pag-IBIG Fund

Philippine Health Insurance Corporation (PHIC) or PhilHealth

PhilHealth has published its official statement on 6 January 2023 affirming the agency's compliance to the directive issued by the Office of the President of the Philippines to suspend the increase of premium rates from 4.0% to 4.5%, and the increase of income ceiling from 80,000 to 90,000 Philippine pesos (PHP), which were scheduled to take effect this year. Hence, the premium rate for the year 2023 remains at 4.0% with an income ceiling of PHP 80,000.

Business tax

Pursuant to Republic Act (RA) 11534, also known as the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), any person whose sales or receipts are exempt from the payment of value-added tax (VAT) and who is a non-VAT registered person shall pay a percentage tax equivalent to 1% of one's gross sales or receipts (previously 3%) for the period beginning 1 July 2020 until 30 June 2023. Starting 1 July 2023, the rate shall revert to 3%.