A. Taxable Income (Sources) B. Ordinary Income (Subject to graduated rates) C. On Passive Income Subject to FT 1 Interest Income a.

From any currency bank deposit& yield or any other monetary benefit from deposit substitute & from trust funds & similar arrangements b. From a depositary bank under expanded FCDU c. From long term deposit/investments 1 Held for 5yrs or more 2 4yrs - less than 5yrs 3 3yrs - less than 4yrs 4 less than 3yrs e. From foreign currency loans granted by FCDUs to residents other than OBUs or other depositary under expanded syter f. From foreign currency loans granted by OBUs or local commercial banks, including branches of foreign banks that may be authorized by BSP to transact business w/ OBUs 2 Royalties (sources w/n) a. In general (patents/franchise, etc) b. On books/literary works/musical composition if derived form sources w/o: 3 Prizes a. 10,000 or less (not subject to FT except NRA-NETB) b. Exceeding 10,000 4 Winnings PCSO & Lotto winnings - not subject to FT 5 Dividends a. From DC either property/cash dividends; share in distributable NI-AT of a taxable or business partnership; share in NI-AT of association, joint account, or join venture or consortium taxable as corp of which he is a member/co-venture b. From FC either cash/property dividends *subject to Sec. 42(A) in relation to Sec. 23 of NIRC (AS GR:STOCK Dividends is NOT Taxable - it represents Capital NOT Income, OTHERWISE same as no. 5) D. Special Classes of Individual Employees 1 Individual whether FILIPINO/ALIEN employed by: R/A HQ and ROHQ of multi national companies in Phils; offshore banking units established in Phils; foreign service contartors/sub-contractors in petroleum operations in the Phils - 15% FT (Filipinos has the OPTION to pay by way of 15% FT or regular IT rate on compensation - graduated rates)

RC w/n & w/o /

RA w/n /

INDIVIDUAL TAXPAYER NRC w/n /

NRA-ETB w/n /

NRA-NETB w/n 25%

20%

20%

20%

20%

25%

7.50% exempt 5% 12% 20% 10%

7.50% exempt 5% 12% 20% 10%

exempt exempt 5% 12% 20%

exempt exempt 5% 12% 20%

exempt 25% 25% 25% 25%

10% 20% 10% Graduated Rates Graduated Rates 20% 20%

10% 20% 10% exempt Graduated Rates 20% 20% 20% 10% exempt Graduated Rates 20% 20% 20% 10% exempt Graduated Rates 20% 20% 25% 25% exempt 25% 25% 25%

10% 10% Graduated Rates Graduated Rates* if w/n and EXEMPT if w/o

10% Graduated Rates* if w/n and EXEMPT if w/o

20% Graduated Rates* if w/n and EXEMPT if w/o

25% 25% if w/n and EXEMPT if w/o

Lessors & Distributors 25% 2 Owner/Lessor of Vessels Cahrtered by Phils National 4.50% 7. 1986 20% f. trust funds and pensions and DC only Sale of Principal Residence of Individual w/ proceeds FULLY utilized in acquiring or constructing a new principal residence w/n 18 months from date of sale . MCIT 2% 2% D. trusts. the GAIN is SUBJECT to NET CAPITAL GAINS per transaction basis TAX BASE: NET CAPITAL GAINS = GSP minus costs. 30% if GI from unrelated activity exceeds 50% b. On Passive Income 1 Interest Income a. OBUs. NRC and RA.Prov or Municipal) RESTRICTION: for INDIVIDUAL. local commercial banks including branches of foreign banks that may be authorized by the BSP to transact business with FCDUS and other depositary banks under E-FCDUS 4 R/A HQ of Multi-national Companies exempt 5 ROHQ of Multi-national Companies 10% G. 42(A) (subject to Sec.EXEMPT on RC. then subject to: 5% for the first 100. From Domestic Corp exempt exempt 15% w/ tax sparing 30w/o tax sparing b. EXEMPT if NSNP educational institution 2 Depositary Banks (FCDU) 10% GR: exempt from all taxes on income derived under E-FCDUS from foreign currency transactions w/ nonresidents. From Foreign Corp 30% 30% if w/n 30% if w/n exempt if w/o exempt if w/o (subject to Sec.000 10% for the amount in excess of 100.NOT subject to CGT but to stock transactions tax on GSP (1/2 of 1%) 2 If made by dealer in securities. OBUs.50% 2 Offshore Banking Units authorized by BSP 10% GR: exempt from all taxes on income derived under E-FCDUS from foreign currency transactions w/ nonresidents. From foreign currency loans granted by FCDUs to residents other than OBUs or other depositary under expanded syter 10% 10% d. From FCDU Deposits 7. local commercial banks including branches of foreign banks that may be authorized by the BSP to transact business with FCDUS and other depositary banks under E-FCDUS 3 Depositary Banks (FCDU) 10% GR: exempt from all taxes on income derived under E-FCDUS from foreign currency transactions w/ nonresidents.50% c. trusts. Special RFC 1 International Carriers (on GPB) 2. Special NRFC 1 Cinematographic Film Owners. On foreign loans contracted on or after Aug 1. local commercial banks including branches of foreign banks that may be authorized by the BSP to transact business with FCDUS and other depositary banks under E-FCDUS F. Sale of Shares of Stock of a DC which is NOT listed & NOT traded in SE by a NON dealer in securities 1 If TRADED in SE .50% H. including branches of foreign banks that may be authorized by BSP to transact business w/ OBUs 10% 10% e.RC and NRC TPs including estate. trust funds and pensions B. subject to compliance of certain conditions under RR 14-00 DC w/n & w/o 30% CORPORATE TAXPAYERS RFC NRFC w/n w/n 30% 30%* C. From any currency bank deposit& yield or any other monetary benefit from deposit substitute & from trust funds & similar arrangements 20% b. the CGT of 6% applies to REAL Properties while for DC it applies only to LAND and BUILDING Liable TP .50% 3 Owner/Lessor of Aircraft & Machineries & Other Equipments 7. Sale or Disposition of Real Property 1 of sale of CAPITAL asset located in the Phils by NON dealer in real estate . OBUs. From transactions w/ depositary banks under FCDs exempt 2 Dividends (property/cash/scrip) a.all TPs including estate.higher of GSP or ZV of BIR or FMV(Assessors sched . From foreign currency loans granted by OBUs or local commercial banks. NCIT *NOT subject to NCIT but FT on GI w/o deductions C. Special DC (tax base on NI) 1 Proprietary Educational Institutions and Non-profit hostpitals 10% a.6% TAX BASE OF 6% .000 Liable TP . Taxable Income (Sources) B. IAET 10% E. 42(A) in relation to Sec 23) in relation to Sec 23) RULES ON CAPITAL GAINS (INDIVIDUAL/CORPORATE TP'S) A.A. .

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