Passive Incomes from PH subject to FWT

(interest income, dividend income from domestic corp., royalties, prize & winnings)
NRA-NETB
1 Interest Citizens and Residents (RC/NRC/RA) NRA-ETB
(always 25% except E)
Int. Inc. from bank deposit
*yield/monetary benefit from deposit substitutes
20% 20% 25%
*yield/monetary benefit from trust funds and
similar arrangements
Int. Inc. from Foreign Currency Deposit 15%
E E
System/Unit (FCDS/FCDU) (except NRC= E)
Int. Inc. from long-term investments (at
E E 25%
least 5 years)
 4 yrs less than 5 5% 5% 25%
 3 yrs less than 4 12% 12% 25%
 Less than 3 20% 20% 25%
2 Royalties
Royalties in general 20% 20% 25%
Royalties on books, literary works and
10% 10% 25%
musical compositions
3 Prizes
Prizes in general 20% 20% 25%
Prizes in 10K or less Graduated Graduated 25%
4 Winnings
Winnings in general (regardless of amt.) 20% 20% 25%
Winnings in PCSO 10K or less E E 25%
Winnings in PCSO more than 10K 20% E 25%
5 Dividends
Dividends from domestic corp. 10% 20% 25%
*share of net income after tax of a
10% 20% 25%
Partnership
*share of net income after tax of an
association, joint account, joint venture or 10% 20% 25%
consortium

Capital Gains subject to CGT

Citizens and Residents (RC/NRC/RA) NRA-ETB NRA-NETB
Capital Gains from sale of shares of stock
of domestic corp. not traded in local 15% 15% 15%
stock exchange
Sale of real property located in the
Philippines 6% 6% 6%
TAX BASE: SP or FMW (whichever is higher)

Sale/Barter/Exchange of Assets
Ordinary Asset Capital Assets
Real Property Share of Stocks Other Assets
 15% CGT if shares
of closely-held
domestic corp.
Basic Tax  6% CGT  6/10 of 1% stock
Including sale of real property by a real estate  E if sale of principal transaction tax
dealer residence (business tax) if  Basic tax
And sale of shares/securities by a “dealer in  6% CGT or basic tax if shares of publicly
securities” sold to gov’t listed domestic
corp.
 Basic tax if shares
of foreign corp.
MWES
Taxpayer Income Tax CWT
Purely MWE E E
MWE w/ additional benefits from the Still MWE except on income in excess of Still MWE except on income in excess of
employer exceeding tax-exempt limit limit
thresholds such as the P90k limit
MWE with additional business income SMW (wage) = E SMW = E
Business income = taxable Business income = basic income tax/ CWT
at source

Special Employees (Special Aliens and Filipino Counterparts)

 All = graduated income tax rate