NORMAL (SCHEDULAR) TAX RATE OF INDIVIDUAL TAXPAYER

SEC. 24 (A) OF NIRC

TAXABLE INCOME INCOME TAX EXCESS OVER

OVER NOT OVER TAX OF PLUS %
- 10,000.00 - 5% -
10,000.00 30,000.00 500.00 10% 10,000.00
30,000.00 70,000.00 2,500.00 15% 30,000.00
70,000.00 140,000.00 8,500.00 20% 70,000.00
140,000.00 250,000.00 22,500.00 25% 140,000.00
250,000.00 500,000.00 50,000.00 30% 250,000.00
500,000.00 AND OVER 125,000.00 32% 500,000.00

FRINGE BENEFITS TAX ON SPECIAL ALIENS

RECIPIENT OF Fringe Benefits Tax rate Tax base

1. NRANETB 25% FBT on the GMV of the FB MV of the FB/75%
2. RAH, ROH, OBU’S 15% FBT on the GMV of the FB MV of the FB/85%

TAXES ON CORPORATE INCOME

CLASSIFICATIONS DOMESTIC CORPORATIONS RESIDENT FOREIGN NON-RESIDENT FOREIGN
CORPORATIONS CORPORATIONS
SOURCES OF TAXABLE WITHIN AND WITHOUT THE WITHIN THE Philippines WITHIN THE PHILIPPINES
INCOME Philippines
 INCOME IN GENERAL TAXABLE INCOME TAXABLE INCOME GROSS INCOME
(R.A. 9337) NORMAL TAX RATE NORMAL TAX RATE NORMAL TAX RATE
30% EFFECTIVE JAN 1, 2009 30% EFFECTIVE JAN 1, 2009 30% EFFECTIVE JAN 1, 2009

CAPITAL GAINS TAX ON CORPORATIONS

CORPORATIONS
CAPITAL GAINS WITHIN DOMESTIC RESIDENT FOREIGN NON RESIDENT FOREIGN
a. Capital gains on sale of shares of
stock not traded. Net capital gains:
 Not over 100,000 5% 5% 5%
 Excess of 100,000 10% 10% 10%
b. Percentage tax on sale of shares 1/2 of 1% 1/2 of 1% 1/2 of 1%
traded. Based on selling price
c. Capital gains on sale of land and 6% of the selling price or Not applicable Not applicable
buildings located in the Philippines FMV, whichever is higher

d. Net capital gains on sale of land or 30% Not taxable Not taxable
buildings located outside the
Philippines

PASSIVE INCOME TAX (CORPORATIONS)

CORPORATIONS
PASSIVE INCOME WITHIN DOMESTIC AND RESIDENT FOREIGN NON RESIDENT FOREIGN
a. interest from depository bank under the 7.5% tax exempt
expanded foreign currency deposit system Sec. 27 D(1); Sec 28 A 7 (a) sec. 27 D(3)
b. royalties, yield, or monetary substitutes from 20% normal corporate income tax
deposits substitutes, trust funds and similar
arrangement
c. interest on currency bank deposit 20% normal corporate income tax
SPECIAL CORPORATIONS

CLASSIFICATIONS TAX RATE

1. Proprietary Educational Inst. (EXCEPT those GROSS INCOME 10% net taxable income
from UNRELATED SOURCE EXCEEDS 50% to the total GI)
2. Non profit Hospitals 10% net taxable income
3. GOCC’s NCIT (30%)
4. Exempt Govt. org. (SSS, GSIS, PHIC, PCSO) Tax exempt
SPECIAL RESIDENT FOREIGN CORPORATIONS

CLASSIFICATIONS TAX RATE

1. International Carrier 2 1/2% PHIL. GROSS BILLINGS
2. Offshore Banking Units 10% GROSS INCOME
3. Branch Remittances 15% REMITTANCES
4. RAH TAX EXEMPT
5. ROH 10% TAXABLE INCOME
SPECIAL NON RESIDENT FOREIGN CORPORATIONS

Classifications Tax Rate

1. Cinematographic Film Owner, Lessor/ Distributor (Sec. 28B, 25% GROSS INCOME
NIRC)
2. Lessor of Machinery, aircraft, equipment and others (Sec. 28C) 7 ½% GROSS INCOME
3. Lessor of Vessels chartered by Phil. Nationals (Sec. 28D) 4 ½% GROSS INCOME
TAXES ON DIVIDENDS

1. Received FROM a DOMESTIC CORPORATION by:

a. Another Domestic Corporation
b. Resident Foreign Corporation
TAX EXEMPT 2. Received FROM a COOPERATIVE.
3. Pure Stock Dividends
4. Pure Liquidating Dividends (Return of Capital)

1. Received FROM a DOMESTIC CORPORATION by a:

a. Citizen or Resident Alien (10%)
b. Non Resident Alien doing business in the Phil. (20%)
SUBJECT TO FINAL TAX c. Non Resident Alien NOT doing business in the Phil.
(25%)
d. Non Resident Foreign Corporation (15%)final
withholding tax
1. Not included as Tax exempt dividends.
2. Not subjected to Final Tax.
SUBJECT TO NORMAL TAX 3. Distributive shares of partner in Professional Partnership.
 TAXPAYERS, RETURNABLE INCOME AND APPLICABLE TAX

TAXPAYERS INDIVIDUALS CORPORATIONS PARTNERSHIPS ESTATE/TRUST

Compensation/ Business Income Trading Income Business Income
Professional Business Business from
INCOME
Income profession
(servicing)
Itemized Deductions or Itemized Deductions or Itemized Itemized Itemized Deductions or
40% OSD based on 40% OSD based on Deductions Deductions OSD (same w/ the
GROSS SALES or Gross GROSS INCOME or 40% OSD individual taxpayer)
DEDUCTIONS Receipts from Business based on
or Profession GROSS
INCOME Distribution to
Beneficiaries
Basic= 50,000
PERSONAL
Additional= 25,000 20,000
EXEMPTIONS each child(max. of 4)
TABULAR TAX RATE NORMAL CORPORATE NORMAL TAX TABULAR TAX RATE
(TAX ON INDIVIDUALS) TAX (30%) OR MCIT (2%) CORPORATE EXEMPT (TAX ON INDIVIDUALS)
TAX RATE TAX (30%)
OR MCIT
(2%)
FWT 10% CWT
720,000
DISTRIBUTIVE =10%
SHARE MORE THAN
720,000 =
15%
 RATES OF ESTATE TAX
NET ESTATE ESTATE TAX EXCESS OVER
OVER NOT OVER TAX OF PLUS %
- 200,000.00 EXEMPT - -
200,000.00 500,000.00 - 5% 200,000.00
500,000.00 2,000,000.00 15,000.00 8% 500,000.00
2,000,000.00 5,000,000.00 135,000.00 11% 2,000,000.00
5,000,000.00 10,000,000.00 465,000.00 15% 5,000,000.00
10,000,000.00 AND OVER 1,215,000.00 20% 10,000,000.00

SCHEDULE OF DONOR’S TAX RATES

FOR RELATIVES UP TO 4TH DEGREE OF CONSANGUINITY

NET GIFT DONOR'S TAX EXCESS OVER

OVER NOT OVER TAX OF PLUS %
- 100,000.00 EXEMPT - -
100,000.00 200,000.00 - 2% 100,000.00
200,000.00 500,000.00 2,000.00 4% 200,000.00
500,000.00 1,000,000.00 14,000.00 6% 500,000.00
1,000,000.00 3,000,000.00 44,000.00 8% 1,000,000.00
3,000,000.00 5,000,000.00 204,000.00 10% 3,000,000.00
5,000,000.00 10,000,000.00 404,000.00 12% 5,000,000.00
10,000,000.00 AND OVER 1,004,000.00 15% 10,000,000.00