Synced Accounts: Setting up ROHQ Tax

ROHQ refers to tax incentives and treatment for companies establishing regional headquarters in specific countries or regions, such as preferential rates and exemptions. In the Philippines, the mandated fixed tax rate is 15% of the Employee's taxable income. Here's how to set up ROHQ in Sprout Payroll:

1. In Sprout HR Employee Profile, go to Current Payroll information.

2. Under Employment Details, select Yes from the Regional Operating Headquarters (ROHQ) dropdown.

3. Then save the changes made.

The computation of ROHQ Tax is based on Taxable income x 15% or Taxable Income = Taxable Earnings - Nontaxable Deductions

Taxable Earnings include the following:

Basic Pay + Overtime Pay + Night Differential - Late and Undertime - Absences + Taxable Allowances +/- Salary Adjustments (largely, the Taxable Earnings refer to one's gross salary, except that it doesn't include the deductions)