This document classifies taxpayers based on their income amount and applicable tax rates. It divides taxpayers into individuals, corporations, and partnerships. Individuals are further divided into citizens and aliens of the Philippines based on their residency status. Corporations are categorized as domestic or foreign, and as resident or non-resident. Partnerships can be taxable or exempt depending on their type of partnership.
This document classifies taxpayers based on their income amount and applicable tax rates. It divides taxpayers into individuals, corporations, and partnerships. Individuals are further divided into citizens and aliens of the Philippines based on their residency status. Corporations are categorized as domestic or foreign, and as resident or non-resident. Partnerships can be taxable or exempt depending on their type of partnership.
This document classifies taxpayers based on their income amount and applicable tax rates. It divides taxpayers into individuals, corporations, and partnerships. Individuals are further divided into citizens and aliens of the Philippines based on their residency status. Corporations are categorized as domestic or foreign, and as resident or non-resident. Partnerships can be taxable or exempt depending on their type of partnership.
Income of taxpayers, with distinction based on the amount of income subject to tax, or applicable tax
rates, or both are classified as follows:
A. Individuals: 1. Citizens of the Philippines: a. Residents of the Philippines [Secs. 23 (A) and 24 (A)] i. Filipinos residing in the Philippines ii. Filipinos living abroad but without intention of residing there permanently. [Sec. 22 (E)] b. Not Residents of the Philippines [Secs. 23 (B) and 24 (A)] i. One has intention to reside permanently abroad c. OFW and Seaman [Sec. 23 (C) and 24 (A)] 2. Aliens a. Residents of the Philippines b. Not Residents of the Philippines [Secs. 22 (G); 23 (D); 25 (A) and (B) i. Non-resident alien engaged engaged in trade and business in the Philippines ii. Non- resident alien engaged in trade or business in the Philippines c. Aliens employed by multinational companies, offshore banking units and petroleum contractors and subcontractors. 3. Estates and Trusts B. Corporations: 1. Domestic Corporations (Sec. 27) Domestic Corporations are liable to pay corporate income tax from sources within or without. 2. Foreign Corporations a. Resident Corporations - foreign corporations engaged in trade or business in the Philippines; b. Non- resident corporations - foreign corporations not engaged in business or trade in the Philippines. 3. Partnerships a. Taxable Partnership b. Exempt Partnership 1. General Professional Partnership (GPP) 2. Joint Venture or Consortium undertaking construction activity, or engaged in petroleum operations with operating contract with the government.