TAXES ON CORPORATE INCOME

RESIDE
NONCLASSIFICATI DOMEST
NT
RESIDENT
ONS
IC
FOREIG
FOREIGN
N
W/in &
Within
Within
w/o
30% TI
30% TI
30% GI
Tax Rate
(NCIT)
(NCIT)
(FWT)
NOT
2% GI
2% GI
Tax Rate
APPLICABL
(MCIT)
(MCIT)
E
PAGCOR

5% Franchise
Tax
CAPITAL GAINS TAX WITHIN
DOMESTIC

Sale of stocks (NOT

TRADED):
5%
Not over 100,000
10%
Excess of 100,000
Sale
of
stocks
of 1%* (SP)
(TRADED)
Sale or exchange of
6% of SP or
lands or buildings
FMV,
located
in
the
whichever is
PHILIPPINES
higher
Net
capital
gains
30% (SP
located outside the
Cost)
Philippines
*A PERCENTAGE TAX, not an income tax.
PASSIVE INCOME TAX WITHIN
DOMESTI
C&
RESIDENT
FOREIGN
1. Interest on
depository bank
under EFCD
2. Royalties, Yield
or monetary

7.5%
20%

NONRESIDE
NT
FOREIG
N
TAXEXEMP
T
30%
NCIT

RESIDENT
FOREIGN

NONRESIDENT
FOREIGN

5%
10%

5%
10%

of 1%* (SP)

of 1%* (SP)

6% of SP or
FMV,
whichever is
higher

30% FWT (SP Cost)

NOT Taxable

NOT Taxable

substitutes
3. Interest on
CURRENCY BANK
DEPOSIT

20%

30%
NCIT

SPECIAL DOMESTIC CORPORATIONS

CLASSIFICATIONS
APPLICABLE TAX
1. PROPRIETARY educational
10% NET Taxable
institutions*
Income
2. NONPROFIT hospitals
10% NET Taxable
Income
3. GOCC
30% NCIT
4. GSIS, SSS, PHIC, PCSO
TAX-EXEMPT
*Except whose GI from unrelated source exceeds 50% of the total GI.

1.
2.
3.
4.
5.

SPECIAL RESIDENT FOREIGN CORPORATIONS

CLASSIFICATIONS
APPLICABLE TAX FOR
INCOME WITHIN
International carrier
2 % of the Phil. GROSS
billings
Offshore Banking Units
10% of GROSS Income
(OBU)
Branch remittances
15% of remittances
Regional AREA
TAX-EXEMPT
headquarters
Regional OPERATING
10% OF TAXABLE Income
headquarters

SPECIAL NONRESIDENT FOREIGN

CORPORATIONS
APPLICABLE
TAX FOR
CLASSIFICATIONS
INCOME
WITHIN
1. Cinematographic
25% of Gross
film
owner,
Income
Lessor/Distributor
2. Lessor
of
machinery,
7 % of Gross
equipment,
Income
aircraft and others
3. Lessor of vessel
4 % of Gross
chartered by Phil.
Income
Nationals

INCOME TAX ON PROFESSIONAL OR TALENT FEES

CLASSIFICATIONS
CREDITABLE WITHHOLDING TAX
10% for annual income of P720,000
1. Practice of
and below
Profession
15% for annual income more than
P720,000
2. Professional
10% for annual income of P720,000
athletes,
and below
entertainers,
15% for annual income more than
musical and
P720,000
movie directors

1.
2.
3.
4.

5.
6.

SUMMARY OF TAX BASE AND TAX RATES ON INDIVIDUAL TAXPAYERS

RESIDENT
NON-RESIDENT
CITIZEN
ALIEN
CITIZEN
NRAEBT
NRANEBT
ALL
CATEGORY OF INCOME
WITHI
SOURCE
WITHIN
WITHIN
WITHIN
N
S
1. Compensation,
Business/Profession
25% Gross
2. Prizes of P10,000 or
Based on Taxable Income
Income
less
Schedular Normal Tax rate: NIRC Sec. 24
Within
3. Cinematographic film
and the like
4. Interest, royalty,
25%
GIW 20% FWT
winnings/prizes (except
GROSS
no. 2)
INCOME
5. Royalties-books, literary,
WITHIN
GIW 10% FWT
musical
(GIW)
6. Interest (long term
EXEMPT
investment) savings,
In case of pretermination, remaining maturity of:
common or individual trust
5% - 4 years to less than 5 years

7.

funds, deposit substitute in

denomination of P10,000
7. Cash/Property
Dividends
8. Interest (EFCD System)
9. Capital Gains on Sales of
Shares (NOT TRADED)
10. Sale of Shares
(TRADED)
11. CG on Sale of Real
Property
12. Winnings on Phil.
Sweepstakes/Lotto

12% - 3 years to less than 4 years

20% - less than 3 years
GIW 20%
GIW 10% FWT
FWT
GIW 7.5% FWT
EXEMPT
NET CAPITAL GAINS WITHIN:
5% - Not over P100,000
10% - Excess of P100,000
of 1% of the SELLING PRICE, Business Tax
6% of Selling Price or Fair Market Value, whichever is
higher

EXEMPTED