A Philippine legal-practice article on the past rules, the current regime, and the practical issues that still matter.

1) Executive summary (what the law currently allows)

Under current Philippine income tax law (as amended by the TRAIN Law), individual taxpayers no longer claim income tax deductions/exemptions based on the number of qualified dependents—whether one, three, or four. The former additional personal exemptions for dependents (e.g., ₱25,000 per dependent, up to four dependents) were removed effective January 1, 2018.

So, if the question is: “Can I claim an income tax deduction/exemption for having three dependents?” Answer (today): No. The number of dependents does not reduce your taxable income or income tax due under the current system.

That said, “dependents” still matter in practice for other tax-adjacent purposes (HR payroll administration, benefits, withholding computations in legacy contexts, and certain documentary questions), and the historical rules are still relevant when dealing with prior-year audits, amended returns for pre-2018 years, tax assessments, or disputes.

2) Legal framework: where “dependent exemptions” used to live—and what changed

A. The old rule (pre-2018): Personal and additional exemptions

Before 2018, the National Internal Revenue Code (NIRC) recognized two key concepts for individual taxpayers:

Personal exemption (basic exemption depending on status), and
Additional exemption for each qualified dependent child.

For additional exemptions, the law generally allowed:

₱25,000 per qualified dependent child, and
Up to four (4) dependents.

Therefore, three dependents could previously yield ₱75,000 in additional exemptions (₱25,000 × 3), subject to the qualification rules and allocation rules for spouses/parents.

B. The TRAIN regime (effective January 1, 2018): Dependency exemptions removed

The TRAIN Law amended the NIRC and removed personal exemptions and additional exemptions for dependents for most individual taxpayers starting January 1, 2018.

In exchange, the law introduced (among others):

A ₱250,000 annual income threshold that is generally not subject to income tax for many individual taxpayers under the graduated rates, and
Modified tax rates and withholding structures,
Simplified deduction options for certain self-employed and professionals (e.g., OSD and other regimes depending on classification).

Key point: The modern regime does not ask how many children you have for income tax computation. The system is no longer “status- and dependent-based” in that way.

3) What “three dependents” meant under the old law (pre-2018)

If you are dealing with a pre-2018 taxable year (e.g., a BIR assessment for 2017 or earlier), the old dependent rules may still be critical.

A. Who counted as a “qualified dependent” (classic requirements)

The old framework typically required that the dependent be:

A qualified dependent child (legitimate, illegitimate, legally adopted, or certain foster situations recognized by law and regulations),
Dependent upon and living with the taxpayer (subject to recognized exceptions, e.g., schooling or circumstances),
Not more than 21 years old, unmarried, and not gainfully employed, OR regardless of age, incapable of self-support because of mental or physical defect.

B. The “three dependents = ₱75,000 additional exemption” computation (pre-2018)

Under the old rule:

1 dependent: ₱25,000
2 dependents: ₱50,000
3 dependents: ₱75,000
4 dependents: ₱100,000 (maximum under the four-dependent cap)

C. Allocation rules: married taxpayers, separated parents, and double-claiming

Common allocation principles in the old system included:

Spouses generally could not both fully claim the same child for additional exemptions.
Typically, the husband was the default claimant under older concepts unless the wife was the sole breadwinner or depending on applicable rules at the time; however, later practice and regulations recognized different scenarios (including where only one spouse has income).
In cases of legal separation or custody arrangements, the parent with custody and support typically had the better claim, but documentation mattered greatly.

If you’re dealing with a pre-2018 audit, double-claiming the same dependent across two taxpayers was (and remains) a classic BIR issue.

D. Documentation (pre-2018)

Taxpayers were commonly expected to support dependent claims with:

Birth certificates, adoption papers, or other proof of relationship,
Proof of disability where applicable,
Proof of dependency/support, and
In some cases, a sworn declaration where required by then-existing BIR rules.

4) The current law (2018 onward): what you can and cannot do

A. No “dependent deductions/exemptions” in computing income tax

For taxable years 2018 to present, you generally do not deduct any amount from taxable income simply because you have children or dependents. The tax computation is driven by:

Gross income / compensation,
Applicable graduated rates or other applicable regime, and
Allowable deductions (where relevant), but not dependent-based exemptions.

B. Practical consequence for employees purely earning compensation

If you are a purely compensation income earner:

Your tax is typically computed through payroll withholding and annualization rules.
The HR/payroll process no longer uses dependents to determine “exemption status” the way it once did.
Your BIR Form 2316 will reflect compensation, withholding, and the employer’s year-end annualization—but not a dependent exemption.

C. Practical consequence for self-employed and professionals

If you are self-employed or a professional:

Your computation focuses on your chosen/allowed deduction method (e.g., itemized deductions or optional standard deduction, when applicable), and compliance requirements (registration, invoices/receipts, books, percentage tax/VAT if applicable, etc.).
Dependents do not change the allowable deduction amount.

5) Transitional and dispute scenarios: when “three dependents” still matters

Even though dependents no longer reduce income tax post-2017, the concept remains relevant in these common situations:

A. BIR audit or assessment for a pre-2018 taxable year

If the BIR assesses a taxpayer for 2017 or earlier, the taxpayer may need to prove entitlement to the additional exemptions for dependents.

Typical issues raised by examiners:

Dependent over 21 and not proven incapacitated,
Dependent married or employed,
Same dependent claimed by two taxpayers,
Lack of birth certificate/adoption proof,
Discrepancy between employer records and the income tax return.

B. Amended returns for pre-2018 years (where still legally/administratively possible)

A taxpayer might try to correct dependent information on a prior-year filing. Whether this is beneficial or even feasible depends on:

Prescription periods (statute of limitations),
Whether an assessment is ongoing,
Whether refunds/credits are still allowed under procedural rules.

C. Employer payroll disputes and legacy payroll data

Some employers maintained legacy fields for dependents due to historical HR systems. Those fields may persist for benefits purposes, but they should not be used to reduce withholding tax under the post-2017 regime.

6) Common “three dependents” fact patterns—and how they are treated now

Scenario 1: Married employee with three children

Pre-2018: Potential additional exemption up to ₱75,000 (subject to qualifications and allocation rules).
2018 onward: No tax reduction due to dependents.

Scenario 2: Single parent supporting three children

Pre-2018: Could claim additional exemptions if children qualified and taxpayer had the better claim.
2018 onward: No dependent-based reduction in income tax.
Note: Single Parent benefits under other laws may exist, but they do not generally function as an income tax “dependent exemption” in the way the old NIRC did.

Scenario 3: Taxpayer supports siblings/parents/relatives (not “qualified dependent children”)

Pre-2018: Additional exemptions generally focused on qualified dependent children, not any supported relative.
2018 onward: Still no dependent exemption, regardless of who you support.

Scenario 4: Child over 21 with disability

Pre-2018: May still qualify if proven incapable of self-support due to defect/disability.
2018 onward: No dependent exemption in income tax computation, though other laws may provide non-income-tax benefits in other contexts.

7) Related tax concepts people often confuse with “dependent deductions”

A. Dependents vs. allowable deductions

A dependent exemption (old system) reduced taxable income by a fixed amount per child. An allowable deduction (current system for business/self-employed, and limited items in certain cases) reduces taxable income based on expenses (properly substantiated and allowable).

Having children may increase your real-life expenses, but those expenses are not automatically deductible unless they fall under allowable deduction categories and satisfy substantiation requirements—and many personal/family expenses are non-deductible personal expenses under general tax principles.

B. “Family support” is not a tax deduction

Support for family members is generally treated as a personal expense, not an income tax deduction.

C. Withholding tax tables no longer depend on number of children

Older withholding systems used exemption status (S/ME and number of qualified dependent children). Under TRAIN-era withholding, the structure changed so that dependents are no longer the pivot for withholding computation.

8) Compliance notes and best practices

If your concern involves 2018 onward

Do not expect any refund or lower tax due simply because you have three dependents.
Focus on:
- Correct classification of income,
- Proper withholding and annualization,
- Proper registration (if self-employed),
- Proper substantiation of allowable business deductions (if applicable).

If your concern involves 2017 or earlier

Gather documentation proving:
- Relationship (birth/adoption),
- Age and marital status,
- Lack of gainful employment (where relevant),
- Disability/inability to self-support (if over 21),
- Custody/support facts in separated-parent scenarios.
Check for conflicts where another taxpayer may have claimed the same dependents.

9) Quick FAQs

Q: I have three kids. Can I claim ₱75,000 deduction like before? A: Only for pre-2018 taxable years (and only if all qualifications and procedural requirements are met). For 2018 onward, no.

Q: My employer still asks for dependent information—will it reduce my tax? A: Under the modern income tax system, dependents should not reduce income tax. Employers may request dependent info for benefits or HR records, but not for dependency-based tax exemptions.

Q: Is there any tax benefit at all to having dependents now? A: Not as a direct “dependent exemption” in income tax computation. Any tax planning must focus on income classification, proper withholding, and allowable deductions (where relevant), not on the number of dependents.

Q: Can I deduct tuition, childcare, milk, medical expenses of my kids from my income tax? A: Generally, ordinary family expenses are personal and not deductible. Deductibility depends on whether the expense qualifies as an allowable deduction under the tax code and rules applicable to your taxpayer type (compensation vs. business/professional), and whether it is properly substantiated.

10) Bottom line

For current Philippine income tax (2018 onward): having three dependents does not create an income tax deduction/exemption.
For pre-2018 years: three qualified dependent children could historically support ₱75,000 additional exemption—often relevant in audits, assessments, and disputes involving old taxable years.

If you tell me whether your situation concerns a current taxable year or a pre-2018 year under review, I can lay out the exact analysis path and the documentary checklist that typically resolves disputes fastest.