Tax Rates

Coverage

Basis

Tax Rate

Persons exempt from VAT under Sec. 116

Gross Sales or Receipts

3%

Domestic carriers and keepers of garages

Gross Receipts

3%

Gross Receipts

3%

Electric , gas and water utilities

Gross Receipts

2%

Radio and television broadcasting companies

Gross Receipts

3%

International Carriers:
International air/shipping carriers doing business
in the Philippines
Franchise Grantees:

whose annual gross receipts of the preceding year

do not exceed P 10,000,000 and did not opt to
register asVAT taxpayer
Banks and non-bank financing intermediaries

Interest, commissions and discounts

from lending activities as well as income
from leasing on the basis of remaining
maturities of instruments:
Short term maturity (not over 2 years)

5%

Medium term maturity (over 2 years

3%

but not over 4 years)

Long term maturity
Over 4 years but not over 7 years

1%

Over 7 years

0%

On Dividends

0%

On royalties, rentals of properties, real or 5%

personal, profits from exchange and all
other items treated as gross income
under Sec. 32 of the Code
Finance Companies

On interest, discounts and other items of 5%

gross income paid to finance companies
and other financial intermediaries not
performing quasi banking functions

Interest, commissions and discounts paid

from their loan transactions from finance
companies as well as income from
financial leasing shall be taxed based on
the remaining maturities of instruments:
Short term maturity (not over 2 years)

5%

Medium term (over 2 years but not

3%

over 4 years)
Long Term Maturity
Over 4 years but not over 7 years

1%

Over 7 years

0%

Total premiums collected

5%

Total premium collected

10%

Total premium collected

5%

Cockpits

Gross receipts

18%

Cabarets, Night or Day Clubs

Gross receipts

18%

Boxing exhibitions

Gross receipts

10%

Professional basketball games

Gross receipts

15%

Jai-alai and race track (operators shall withheld tax

Gross receipts

30%

Every stock broker who effected a sale, barter,

Gross selling price or gross value in

of 1%

exchange or other disposition of shares of stock

money of shares of stocks sold, bartered,

listed and traded through the Local Stock

exchanged or otherwise disposed

Life Insurance Companies (except purely

cooperative companies or associations)
Agents of foreign insurance companies: (except
reinsurance premium)

Proprietors, lessee or operator of the following:

on winnings)

Exchange (LSE) other than the sale by a dealer in

securities
A corporate issuer/stock broker, whether domestic

Gross selling price or gross value of in

of foreign, engaged in the sale, barter, exchange

money of shares of stocks sold, bartered,

or other disposition through Initial Public Offering

exchanged or otherwise disposed in

(IPO)/secondary public offering of shares of stock

accordance with the proportion of

in closely held corporations

stocks sold, bartered or exchanged or

after listing in the stock exchange
Up to 25 %

4%

Over 25% but not over 33 1/3%

2%

Over 33 1/3 %

1%