TYPES OF INCOME Income Resident Citizen On Taxable Income Non-Resident Citizen Resident Alien Non-Resident Alien Engaged 5% - 32%

Not Engaged FT 25%

5% - 32% or Graduated Tax

On PASSIVE INCOME *In general *Cash or Property dividends On CAPITAL GAIN *Sale of shares of stock NOT traded in SEC *Sale of real property 5% - 10% 5% - 10% 20% 6%, 8%, 10% 20% 20% FT 25% FT 25%

6%

6%

PASSIVE INCOME PASSIVE INCOME Interests Royalties: In general On books, literary works and musical composition 20% 10% 20% 10% Resident Citizen Non-Resident Citizen Resident Alien 20% 20% *Non-Resident Alien ENGAGED in trade or business

Prizes and Winnings In general0 Less than 10,000 PCSO and Lotto winnings 20% Graduated tax EXEMPT 10% 20% Graduated tax EXEMPT 20%

Cash or Property dividends