Resolving ROHQ Tax Percentage Not Being Applied in Payroll with Pre-Annual Tax Computation

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. 

However, if the Employee is included on a Normal Payroll with a Pre-annual tax table activated, the Pre-annual tax will prevail. Here's what you need to do to follow the 15% fixed tax:

1. Exclude the Employee from the Normal Payroll run. How to Exclude Employee's Salary in Sprout Payroll

2. Create a separate Special Run. The Pre-annualization is not yet supported for the Special run. Hence, the system follows the ROHQ Tax Percentage in the Employee Profile. How to Process Payroll in Sprout Payroll

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