FINAL TAXES- earned within INDIVIDUALS

RC NRC RA NRAETB NRANETB

1.) Bank Interst Income ( PHP)

a.) Short-term ( below 5 yrs) 20% 20% 20% 20% 25%
b.) Long-term (5 yrs and up) exempt exempt exempt exempt 25%
Pretermination @ less than 3 yrs 20% 20% 20% 20% 25%
@ less than 4 yrs 12% 12% 12% 12% 25%
@ less than 5 yrs 5% 5% 5% 5% 25%
c.) FROM FCDU/OBU 7.5% exempt 7.5% exempt exempt
d.) of EFCDU/OBU 10.0% exempt 10.0% exempt exempt
e.) From foreign loans exempt exempt exempt exempt exempt
2.) Dividends (domestic corp) 10% 10% 10% 20% 25%
a.) REIT 10% 10% 10% 10% 10%
b.) Share in NI of taxable assocs 10% 10% 10% 20% 25%
3.) Royalties (domestic)
a.) BLM 10% 10% 10% 10% 25%
b.) Other sources 20% 20% 20% 20% 25%
c.) Cinematographic and same line 20% 20% 20% 25% 25%
4.) Prizes
a.) prizes exceeding 10k 20% 20% 20% 20% 25%
b.) not exceeding 10k NT NT NT NT 25%
5.) Winnings
a.) PCSO or Lotto winnings exempt exempt exempt exempt exempt
b.) Other Winnings 20% 20% 20% 20% 25%
6.) Informer's Reward
7.) Interest income on tax-free coporate covenant bonds 30% 30% 30% 30% 30%
SPECIAL FT

8.) Branch Profit Remittances by all corps exc PEZA/SBMA/CDA

9.) Rentals of vessels 25%
10.) Rentals of aircrafts, machines, etc 25%
11.) Oil exploration services of
subcontractors (domestic or foreign) 8% 8% 8% 8% 8%
12.) Payments to Fil/Aliens employed
by petroleum service contractors
13.) Special aliens 15% GI
14.) Payments received byNRA-NETB
exc insale of domestic stock and real prop 25%

NOTES:
A. Exemption applies if BSP approved(otherwise 20% FT) and held to maturity( otherwise 5%, 12%,20%)
B. If interest is from duly registered coop, expanded foreign currency by NRA/NRC, and CARP, exempt from FT
* if EFCD(domestic bank) of Resident FT is 7.5% ,if NR where co-depositor exist in PH (resident), FT is 50% of 7.5%
* if interest is from normal business course - regular income tax
* interest on foreign loans, applicable onlt to NRFC @20% FT
* OFW is considered NRC
C. GR: all dividends are subject to FT(EXC: stock and liquidating)
* Stock dividends is taxable if: 1. subsequently redeemed and cancelled 2. stock dividend in lieu of cash dividend 3. declared option
 * FT exempt : 1. nontaxble inter-corporate principle (includes partnerships exc GPP) 2. from cooperatives 3. purely stock / purely liq
* for NRFC generally 30% but if with tax sparing rule 15%
* Normal tax: 1. received by GPP, exempt assocs 2. those not subject to FT and not exempt, 3. foreign dividends 4. GPP and exempt
* REIT dividends exempt to FT: Overseas Fil Investors (OFW NRC) exempt til aug 12 2018
*RIET on NRA/NRFC is exepmt if tax treaty says so
* taxable assocs etc are considered corp. Dividends are declared (share in NI) are also subject to 10% and 20%(NRAETB) FT to mem
* GR : what the member receives as share in NI is subject to 10% FT but if received is as expense of the assoc (compensation of rec
D.) Books and literary works WRITTEN are 10% and 20%, if on e copies and CDs considered other sources
E.) Cinematographic films and similar works (GR: other sources) paid to NRA/NRFC is subject to 25% FT
*If royalties are earned thru active income = NT
* If from abroad = NT
F.) Exempt Prizes : 1. without effort and without future services required 2. from sports supported by nat'l sports org.
* if earned abroad =NT
G.) Payments received by NRANETB within is subject to 25% FT not Income tax; NRFC 30%
H.) all other income of SUBCONTRACTORS are subject to NT (domestic) income within (foreign)
*Petroleum service contractors = NT
 CORPORATIONS NOTES
DC RFC NRFC

B
20% 20% 30%
20% 20% 30% A
20% 20% 30%
20% 20% 30%
20% 20% 30%
7.5% 7.5% exempt 7.5% on residents
10.0% 10.0% exempt 10% on residents
exempt exempt 20%
exempt exempt 30% C
exempt exempt 10%
10% 10% 30%

20% 20% 30% D

20% 20% 30% E
20% 20% 25%
F
NT NT 30%
NT NT 30%

exempt exempt exempt

NT NT 30%
10%
N/A N/A N/A

15%
4.50%
7.50%

8% 8% 8% H

15%
N/A

3. declared option of stock/cash

y stock / purely liquidating

4. GPP and exempt assocs to members

RAETB) FT to members
mpensation of receipient) NT