NIRC National Internal Revenue Code (Tax Reform Act of 1997) or Republic Act No.

.8424 Gross Income Deducted Income Net Income Total Income FWT Final Withholding Tax
Withholding tax, also called retention tax, is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government. In most jurisdictions, withholding tax applies to employment income.

SEC. 25. Tax on Nonresident Alien Individual Section 25 (B) - Nonresident Alien Individual Not Engaged in Trade or Business Within the
Philippines. - There shall be levied, collected and paid for each taxable year upon the entire income received from all sources within the Philippines by every nonresident alien individual not engaged in trade or business within the Philippines as interest, cash and/or property dividends, rents, salaries, wages, premiums, annuities, compensation, remuneration, emoluments, or other fixed or determinable annual or periodic or casual gains, profits, and income, and capital gains, a tax equal to twenty-five percent (25%) of such income. (They are subject to tax in the Philippines on their income earned from
performing services within the Philippines regardless of their classification, that is, whether they are considered resident aliens or non-resident aliens engaged in business in the Philippines or nonresident aliens not engaged in business in the Philippines.)

Section 25 (C) - Alien Individual Employed by Regional or Area Headquarters and Regional Operating
Headquarters of Multinational Companies. - There shall be levied, collected and paid for each taxable year upon the gross income received by every alien individual employed by regional or area headquarters and regional operating headquarters established in the Philippines by multinational companies as salaries, wages, annuities, compensation, remuneration and other emoluments, such as honoraria and allowances, from such regional or area headquarters and regional operating headquarters, a tax equal to fifteen percent (15%) of such gross income: Provided, however, That the same tax treatment shall apply to Filipinos employed and occupying the same position as those of aliens employed by these multinational companies.

25 (D) - Alien Individual Employed by Offshore Banking Units.

There shall be levied, collected and paid for each taxable year upon the gross income received by every alien individual employed by offshore banking units established in the Philippines as salaries, wages, annuities, compensation, remuneration and other emoluments, such as honoraria and allowances, from such off-shore banking units, a tax equal to fifteen percent (15%) of such gross income: Provided, however, That the same tax treatment shall apply to Filipinos employed and occupying the same positions as those of aliens employed by these offshore banking units. (Branch of a foreign bank located in an offshore financial center (OFC). It may accept
deposits from other foreign banks and OBUs and make Eurocurrency loans, but may not accept deposits from (or make loans to) the residents of the country in which it is located. OBUs are otherwise unrestricted in their legitimate activities, and are free from the monetary controls of the country of location.)

25 (E) - Alien Individual Employed by Petroleum Service Contractor and Subcontractor - An Alien
individual who is a permanent resident of a foreign country but who is employed and assigned in the Philippines by a foreign service contractor or by a foreign service subcontractor engaged in petroleum operations in the Philippines shall be liable to a tax of fifteen percent (15%) of the salaries, wages, annuities, compensation, remuneration and other emoluments, such as honoraria and allowances, received from such contractor or subcontractor: Provided, however, That the same tax treatment shall apply to a Filipino employed and occupying the same position as an alien employed by petroleum service contractor and subcontractor.

SEC. 28. Rates of Income Tax on Foreign Corporations. 28 (A) (4) - Any income of nonresidents, whether individuals or corporations, from transactions with
said offshore banking units shall be exempt from income tax.

SEC. 26. Tax Liability of Members of General Professional Partnerships. 26 - Tax Liability of Members of General Professional Partnerships. - A general professional partnership
as such shall not be subject to the income tax imposed under this Chapter. Persons engaging in business as partners in a general professional partnership shall be liable for income tax only in their separate and individual capacities. For purposes of computing the distributive share of the partners, the net income of the partnership shall be computed in the same manner as a corporation. Each partner shall report as gross income his distributive share, actually or constructively received, in the net income of the partnership. Not subject to income tax - The bureau released Revenue Memorandum Circular No. 3-2012 setting the tax implications of a GPP, partnerships formed by persons for the sole purpose of exercising their common profession. Normal and Special Income Tax Rates on Corporations as Amended by R.A. No. 9337 Corporation - The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate from its owners. A joint-stock company is a business entity which is owned by shareholders. Shareholders - A shareholder or stockholder is an individual or institution (including a corporation) that legally owns any part of a share of stock in a public or private corporation. (Software copyright is the relatively recent extension of copyright law to machine-readable software. It is used by proprietary software companies to prevent the unauthorized copying of their software.)

SEC. 24. Income Tax Rates SEC. 30 Exemptions from Tax on Corporations

30 (H) - Revenue Memorandum Circular No. 76-2003 - issued on November 17, 2003 clarifies the tax
exemptions of non-stock, non-profit corporations and non-stock, non-profit educational institutions.

SEC. 27. Rates of Income tax on Domestic Corporations. 27 (C) - Government-owned or Controlled-Corporations, Agencies or Instrumentalities - The provisions
of existing special or general laws to the contrary notwithstanding, all corporations, agencies, or instrumentalities owned or controlled by the Government, except the Government Service Insurance System (GSIS), the Social Security System (SSS), the Philippine Health Insurance Corporation (PHIC), the Philippine Charity Sweepstakes Office (PCSO) and the Philippine Amusement and Gaming Corporation (PAGCOR), shall pay such rate of tax upon their taxable income as are imposed by this Section upon corporations or associations engaged in similar business, industry, or activity. Government-owned or Controlled-Corporations Examples - Bangko Sentral ng Pilipinas, Duty Free Philippines, Light Rail Transit Authority, National Food Authority, Philippine Health Insurance Corporation. Royalties - A payment made for the use of property, especially a patent, copyrighted work, franchise, or natural resource. The amount is usually a percentage of revenues obtained through its use. Dividends - The share of profits paid from one company to another in an inter-corporate relationship in the form of a dividend. FMV Fair Market Value CIR - Cost Income Ratio MCIT - MINIMUM CORPORATE INCOME TAX

SEC. 29 Imposition of Improperly Accumulated Earnings Tax

Force majeure - "superior force", is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the contract. Prima facie - is a Latin expression meaning on its first encounter, In common law jurisdictions, prima facie denotes evidence that unless rebutted would be sufficient to prove a particular proposition or fact.