US based small business consulting in the Philippines tax help

How much tax does a consultant pay?

Consultant trades off less tax for more paperwork. The highest tax charged for a consultant is 11.33% which includes the educational cess whereas an employee can get charged 33.99% as the highest tax. Consultant’s whose annual income does not exceed Rs. 20,000 will not be taxed.

How are professionals taxed in the Philippines?

Professional fees to individuals: 5% if current year gross income does not exceed P3M, otherwise, 10%, if exceeding. Professional fees to juridical entities: 10% if current year gross income does not exceed P720K, otherwise, 15%, if exceeding P720K.

Do consulting fees get taxed?

Any income you make must be reported on your tax return. If you do consulting work for three or four companies, they will all report your earnings to the IRS. As such, you need to do your part. Also, if you lose your 1099 form, you’ll still need to report your taxes.