Monday, August 17, 2015

BIR Income Tax Allowable Deductions - Optional Standard Deductions

Optional Standard Deduction is an automatic 40% deduction from your Income. By selecting this option instead of Itemized Deduction, a taxpayer is no longer required to keep supporting evidence and is relieved from book keeping of expenses.

Under Itemized Deduction you can only deduct expenses that are related to your business and are properly supported.

TIP: Optional Standard Deduction should be used by taxpayers with total expenses that is less than or equal to 40% of Gross Income. 

No comments:

Post a Comment