RC/NRC/RA/NRAETB

Amount of Net Taxable Income
Over

Rate

But Not Over
P10,000

5%

P10,000

P30,000

P500 + 10% of the Excess over P10,000

P30,000

P70,000

P2,500 + 15% of the Excess over P30,000

P70,000

P140,000

P8,500 + 20% of the Excess over P70,000

P140,000

P250,000

P22,500 + 25% of the Excess over P140,000

P250,000

P500,000

P50,000 + 30% of the Excess over P250,000
P125,000 + 32% of the Excess over P500,000 in 2000 and
onward

P500,000

Tax Rate

Taxable Base

1. Domestic Corporations:
a. In General

30% (effective Jan. 1, 2009)

Net taxable income
from all sources

b. Minimum Corporate Income Tax*

2%

Gross Income

c. Improperly Accumulated Earnings

10%

Improperly
Accumulated Taxable
Income

10%

Net taxable income
provided that the
gross income from
unrelated trade,
business or other
activity does not
exceed 50% of the
total gross income

10%

Net taxable income
provided that the
gross income from
unrelated trade,
business or other
activity does not
exceed 50% of the
total gross income

a. In General

30%

Net taxable income
from all sources

b. Minimum Corporate Income Tax*

2%

Gross Income

c. Improperly Accumulated Earnings

10%

Improperly
Accumulated Taxable
Income

a. In General

30%

Net taxable income
from all sources

b. Minimum Corporate Income Tax*

2%

Gross Income

c. Improperly Accumulated Earnings

10%

Improperly

2. Proprietary Educational
Institution

3. Non-stock, Non-profit
Hospitals

4. GOCC, Agencies &
Instrumentalities

5. National Gov't. & LGUs

Winnings (except from PCSO and lotto) 20% 5.Accumulated Taxable Income 6. Offshore Banking Units (OBUs) 10% Gross Taxable Income On Foreign Currency Transaction 30% On Taxable Income other than Foreign Currency Transaction 10% Gross Taxable Income On Foreign Currency Transaction 30% On Taxable Income other than Foreign Currency Transaction 13. Interest Income of Foreign Currency Deposit 7.5% 6. Taxable Partnerships a. On Exempt Activities 0% b. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income 7. Corporation covered by Special Laws Rate specified under the respective special laws 10. Foreign Currency Deposit Units (FCDU) Net taxable income from all sources Passive Income 1.000 or less ) . Prizes (P10.In general 3. On capital gains presumed to have been realized from sale.In excess of P10. trust funds and deposit substitutes 20% 2. exchange or other 6% disposition of real property (capital asset) . General Professional Partnerships 0% 9.To individuals from Domestic Corporations 10 % . Royalties (on books as well as literary & musical composition) 10% . Regional Operating Head 10% Taxable Income 12.5% Gross Philippine Billings 11.000 20% 5% (graduated scale) 20% 4. International Carriers 2. Interest from currency deposits. Exempt Corporation a. Cash and Property Dividends .To Domestic Corporations from Another Domestic Corporations 0% 7. On Taxable Activities 30% 8. In General 30% Net taxable income from all sources b. Minimum Corporate Income Tax* 2% Gross Income c.

Not over P100. 6% 3. Interest Income from long-term deposit or investment in the form of savings. deposit substitutes. investment management accounts and other investments evidenced by certificates Exempt Upon pretermination before the fifth year . On capital gains presumed to have been realized from the exchange or other disposition of real property located in the Phils.In general 20% 2.000 10% 9. investment management accounts and other investments evidenced by certificates Exempt Upon pretermination before the fifth year.Any amount in excess of P100.000 10% . On capital gains presumed to have been realized from the sale.Any amount in excess of P100. exchange or other disposition of real property 6% 4. On the gross amount of income derived from all sources within the Philippines 25% 2. deposit substitutes. trust funds and deposit substitutes.000 5% - Any amount in excess of P100.000 5% .8. there should be imposed on the entire income from the proceeds of the long-term deposit based on the remaining maturity thereof: Holding Period: -Four (4) years to less than five (5) years 5% -Three (3) years to less than four (4) years 12% -Less than three (3) years 20% 3.Not over P100. On capital gains for shares of stock not traded in the Stock Exchange - Not Over P100. Interest from currency deposits.000 5% . common or individual trust funds. Royalties (on books as well as literary & musical composition) 10% . 20% 2. there should be imposed on the entire income from the proceeds of the long-term deposit based on the remaining maturity thereof: Holding Period - Four (4) years to less than five (5) years 5% - Three (3) years to less than four (4) years 12% - Less than three (3) years 20% For Non-Resident Aliens Engaged in Trade or Business 1. common or individual trust funds. On capital gains for shares of stock not traded in the Stock Exchange .000 10% For Non-Resident Aliens Not Engaged in Trade or Business 1. Interest Income from long-term deposit or investment in the form of savings. On capital gains for shares of stock not traded in the stock exchange . Prizes (P10.000 or less ) 5% (graduated scale) 3.

Offshore Banking Units (OBUs). In General – on net taxable income b.50% 3) Regional Operating Headquarters on gross income 10% 4) Corporation Covered by Special Laws Rate specified under the respective special laws 5) Offshore Banking Units (OBUs) on gross income 10% 6) Foreign Currency Deposit Units (FCDU) on gross income 10% . Petroleum Service Contractor and Subcontractor 15% E) General Professional Partnerships 0% Resident Foreign Corporation 1)a.D) On the gross income in the Philippines of Aliens Employed by Regional Headquarters (RHQ) or Area Headquarters and Regional Operating Headquarters (ROH). Minimum Corporate Income Tax – on gross income 30% 2% c. Improperly Accumulated Earnings – on improperly accumulated taxable income 10% 2) International Carriers – on gross Philippine billings 2.