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Summary for Income Taxation

Income tax:
Individuals:
Resident Citizen
CAPITAL GAIN TAX:
On capital gains presumed to have been realized from
sale of capital asset located in the Philippines -based
on Selling Price, Zonal Value or Assessed Value whichever
is highest
6%
On capital gains for shares of stock of a domestic
corporation not traded in the stock exchange
-Not over P100,000 5%
-Excess over P100,000 10%
PASSIVE INCOME TAX within the Philippines:
1. Interest from currency deposits, trust funds and
deposit substitutes
20%
2. Royalties
-Books, Literary and Musical Compositions 10%
-Others 20%
3. Prizes
-P10,000 or less Schedular Tax of 5-32%
-more than P10,000 20%
4. Winnings
-PCSO and LOTTO Exempt
-Others 20%
5. Interest Income from Foreign Currency Deposit 7.50%
6. Cash and Property Dividends from Domestic
Corporations
10%
7. Interest Income from Long-Term Deposit or Investment
0%
but if preterminated before 5th year. Interest incomes
must be taxed based on the holding period:
-Less than 3 years 20%
-3 years to less than 4 years 12%
-4 years to less than 5 years 5%
-5years or more 0%
ALL OTHER INCOME Schedular Tax of 5-32%
tax on person's income, emolument, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997, as amended,
less the deductions and/or personal and additional exemptions, if any, authorized for such income, by the Tax Code, as amended, or other special laws.
Corporations
Domestic Corporations
General Income 30% -Net Taxable Income
MCIT 2% -Gross Income
IAET 10% - IAE Table
Non-Resident Citizen NR-Citizen / R-Alien
6% 6%
5% 5%
10% 10%
20% 20%
10% 10%
20% 20%
Schedular Tax of 5-32% Schedular Tax of 5-32%
20% 20%
Exempt Exempt
20% 20%
0% 7.50%
10% 10%
0% 0%
20% 20%
12% 12%
5% 5%
0% 0%
Schedular Tax of 5-32% Schedular Tax of 5-32%
tax on person's income, emolument, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997, as amended,
less the deductions and/or personal and additional exemptions, if any, authorized for such income, by the Tax Code, as amended, or other special laws.
Proprietary Educational Institution GOCC, Agencies and Instrumentalities
10%, if other income does not exceed
50% of total gross income, 30%
otherwise. - Net Taxable Income
30% -Net Taxable Income
2% -Gross Income
10% - IAE Table
NRA - Engaged in T/B NRA - Not Engaged in T/B
Aliens employed by MultiNational
Companies
6% 6%
5% 5%
10% 10%
20%
10%
20%
Schedular Tax of 5-32%
20%
Exempt
20%
0%
20%
0%
20%
12%
5%
0%
Schedular Tax of 5-32%
tax on person's income, emolument, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997, as amended,
less the deductions and/or personal and additional exemptions, if any, authorized for such income, by the Tax Code, as amended, or other special laws.
25%
based on
Gross
Income
15% based
on Gross
Income
Taxable Partnerships Exempt Corporations Resident Foreign Corporation
30% -Net Taxable Income
0% for Exempt Activities,
30% for Taxable Activities
30% -Net Taxable Income
2% -Gross Income 2% -Gross Income
10% - IAE Table 10% - IAE Table
International Carriers
Regional Operating
Headquarter of
MultiNational Companies
2.5% based on Gross Philippine
Billings
10% based on Gross Income