Taxation on Corporations

Domestic
Corporation
Sources of Income
Tax Base
Tax Rates

All sources
Taxable Income
30%

Subject to MCIT
Interest: Peso Banking
Deposits
Interest: FCDU
Royalties
International Air Carriers
Regional Operating
Headquarters
Branch Profit Remittances
Income of Non-resident:
- Cinematographic
- Owner lessee of
vessels
- Owner lessee of
aircrafts
Intercorporate dividends
Interest on Foreign Loans
Capital gains from sales of
land/buildings
Income on Petroleum
Operations in the PH

Yes
20%
7.5%
20%

Non-Profit
Educational
Institutions and
Hospitals
All sources
Taxable Income
10% (subject to
predominance rule)
No
20%
20%

Resident Foreign
Corporation

Non-Resident
Foreign Corporation

Income within
Taxable Income
30%

Income within
Gross Income
30%

Yes
20%

No
35%
20%
2.5%
10%

35%

15%
25%
4.5%

6%

6%

8%

7.5%
30%/15%
30%/20%
Foreign corporations are not allowed to
own land or buildings in the PH
8%
8%