SUMMARY OF TAXING INCOME FOR INDIVIDUALS On Compensation Income only G oss compensation income Less E!

emptions " #ealt$ an%&o #ospitali'ation ins( ance p emi(ms Ta!a)le compensation income Applica)le Ta! Rates On Mi!e% Income *Compensation+ ,(siness+ - o.ession " Ot$e Income/ G oss income Less Allo0a)le Itemi'e% De%(ctions o Optional Stan%a % De%(ction *OSD/ Net income Less E!emptions " #ealt$ an%&o #ospitali'ation ins( ance p emi(ms Ta!a)le income Applica)le Ta! Rates On -assi1e In1estment Income *Final Ta!/ A2 Inte est o yiel% on )an3 sa1in4s %eposit+ )an3 time %eposit+ %eposit s()stit(te o money ma 3et+ t (st .(n%s o simila a an4ements5 ot$e oyalties+ p i'es *e!cept p i'es amo(ntin4 to -67+777 o less/ an% 0innin4s *e!cept -CS an% lotto 0innin4s/

,2 Royalties on )oo3s an% ot$e lite a y 0o 3s an% m(sical compositions A2 Inte est income (n%e t$e e!pan%e% .o ei4n c( ency %eposit system ,2 Inte est income on lon48te m %eposit o lon48te m in1estment ce ti.icates+ p ete minate% o 0it$% a0n9 Less t$an : yea s : yea s to less t$an ; yea s ; yea s to less t$an < yea s < yea s o mo e C2 Cas$ an%&o p ope ty %i1i%en%s . om %omestic co po ation an% s$a e in %ist i)(ta)le net income a.te income ta! o. ta!a)le pa tne s$ip+ )e4innin49 =an(a y 6+ 6>>? =an(a y 6+ 6>>> =an(a y 6+ @777 T$e .inal ta! on %i1i%en%s s$all apply only on income ea ne% )y t$e in1estee %omestic co po ation on o a.te =an(a y 6+ 6>>?2 D2 Income . om cinemato4 ap$ic .ilm an% simila 0o 3s On Income . om capital asset t ansactions *Final Ta!/ A2 Sale o. eal p ope ty locate% in t$e -$ilippines ,2 Sale o. s$a es o. stoc3 in a Domestic Co po ation9 62 T a%e% )ase% on GS- *no0 a pe centa4e ta!/ @2 Non8t a%e% )ase% on net capital 4ains o.9 Not O1e -677+77 7 O1e 677+777

Footnotes9 Fo income %e i1e% . om so( ces 0it$in t$e -$ilippines+ 0$ic$ $as )een s()Aecte% to a .inal ta! *e242+ 0innin4s+ p i'es+ oyalties+ inte est . om c( ency )an3 %eposit an% yiel% . om %eposit s()stit(tes+ t (st .(n%s an% ot$e simila a an4ements+ %i1i%en% . om %omestic co po ation an% s$a e in p o.it o. ta!a)le pa tne s$ip/ s(c$ income s$o(l% not )e incl(%e% anymo e in t$e comp(tation o. ta!a)le income in t$e ann(al income ta! et( n an% )e s()Aecte% a4ain to t$e ta! ates o. <B to :@B a2 Cit$in an% 0it$o(t t$e -$ilippines )2 Cit$in t$e -$ilippines only 62 <7+777 8 Sin4le in%i1i%(al o ma ie% in%i1i%(al A( i%ically %ec ee% as le4ally sepa ate% . om $is o $e spo(se 0it$ no D(ali.ie% %epen%ents <7+777 8 #ea% o. .amily <7+777 8 Fo eac$ ma ie% in%i1i%(al @<+777 8 Fo eac$ D(ali.ie% %epen%ent c$il% o senio citi'en *R E7&E7 (le/+ to )e claime% )y a ma ie% pe son o $ea% o. .amily+ 0$ic$ s$o(l% )e limite% to only ; %epen%ents @+;77 8 -e .amily o -@77 a mont$ act(ally pai% %( in4 t$e ta!a)le yea .o $ealt$ an%&o $ospitali'ation ins( ance ta3en )y t$e ta!paye .o $imsel.+ incl(%in4 $is .amily+ s$all )e allo0e% as %e%(ction . om $is 4 oss income2 - o1i%e%+ t$at t$e .amily 4 oss income is not mo e t$an -@<7+777 .o t$e ta!a)le yea an%+ p o1i%e% .( t$e + t$at in t$e case o. ma ie% ta!paye s+ only t$e spo(se claimin4 t$e a%%itional e!emption .o %epen%ents s$all )e entitle% to t$is %e%(ction2 In t$e case o. ma ie% in%i1i%(als 0$e e only one o. t$e spo(ses is %e i1in4 4 oss income+ only s(c$ spo(se s$all )e allo0e% t$e pe sonal e!emption o. -:@+7772 T$e a%%itional e!emption .o %epen%ents s$all )e claime% )y only one o. t$e spo(ses in t$e case o. ma ie% in%i1i%(als2 T$e $(s)an% s$all )e %eeme% $ea% o. t$e .amily an% p ope claimant o. t$e a%%itional e!emption in espect to any %epen%ent c$il% en o senio citi'ens+ (nless $e e!plicitly 0ai1es $is i4$t in .a1o o. $is 0i.e in t$e 0it$$ol%in4 e!emption ce ti.icate2 @2 Recip ocity (le F T$e pe sonal e!emptions allo0e% s$o(l% )e an amo(nt eD(al to t$at allo0e% )y t$e income ta! la0 o. t$e alienGs .o ei4n co(nt y to citi'ens o. t$e -$ilippines not esi%in4 t$e ein+ o an amo(nt p o1i%e% in t$e NIRC *see No26 a)o1e/ to citi'ens an% esi%ent aliens+ 0$ic$e1e amo(nt is lo0e 2 Aliens employe% )y e4ional o a ea $ea%D(a te s o. m(ltinational co po ation5 o..s$o e )an3in4 (nits5 pet ole(m se 1ice cont acto s o s()8cont acto s 8 Special 3in% o. non8 esi%ent aliens not en4a4e% in t a%e o )(siness 8 a e s()Aect to 6<B .inal ta! on t$e 4 oss income ecei1e%2 *Filipino employees occ(pyin4 t$e same position in t$e entities $e ein speci.ie% s$all also )e s()Aect to 6<B .inal ta! on t$ei 4 oss income ecei1e%/2 Any income ea ne% . om all ot$e so( ces 0it$in t$e -$ilippines )y sai% special 3in% o. non8 esi%ent aliens not en4a4e% in t a%e o )(siness s$all )e s()Aect to t$e no mal @<B .inal ta! ate2 GRADUATED RATES OF INCOME TAX ON INDIVIDUALS ON TAXA,LE COM-ENSATION+ ,USINESS+ -ROFESSION AND OT#ER INCOME O1e - 67+777 :7+777 H7+777 6;7+777 @<7+777 <77+777 Not O1e - 67+777 :7+777 H7+777 6;7+777 @<7+777 <77+777 !!! <B <77 pl(s 67B o. e!cess o1e @+<77 pl(s 6<B o. e!cess o1e ?+<77 pl(s @7B o. e!cess o1e @@+<77 pl(s @<B o. e!cess o1e <7+777 pl(s :7B o. e!cess o1e 6@<+777 pl(s :@B o. e!cess o1e

- 67+777 :7+777 H7+777 6;7+777 @<7+777 <77+777

Notes9 62 T$e top ma 4inal ate o. :@B 0as ma%e e..ecti1e =an(a y 6+ @7772 @2 Fo ma ie% in%i1i%(als+ t$e $(s)an% an% 0i.e s$all comp(te sepa ately t$ei in%i1i%(al income ta! )ase% on t$ei especti1e total ta!a)le income2 - o1i%e%+ t$at i. any income can not )e %e.initely att i)(te% to o i%enti.ie% as income e!cl(si1ely ea ne% o eali'e% )y eit$e o. t$e spo(ses+ t$e same s$all )e %i1i%e% eD(ally )et0een t$e spo(ses .o t$e p( pose o. %ete minin4 t$ei especti1e ta!a)le income2