TABLE 1.

PASSIVE INCOME TAX RATES FOR INDIVIDUALS

TYPE OF INCOME
RESIDENT CITIZEN
NON-RESIDENT
CITIZEN

RESIDENT ALIEN

INTEREST

20% FINAL TAX

20% FINAL TAX

ROYALTIES ON BOOKS,
LITERARY WORKS AND
MUSICAL COMPOSITIONS
ROYALTIES ON OTHER
THINGS

10% FINAL TAX

20% FINAL TAX

NON-RESIDENT ALIEN
ENGAGED IN TRADE
OR BUSINESS
20% FINAL TAX

NON-RESIDENT ALIEN
NOT ENGAGED IN
TRADE OR BUSINESS
25% FINAL TAX

10% FINAL TAX

10% FINAL TAX

10% FINAL TAX

25% FINAL TAX

20% FINAL TAX

20% FINAL TAX

20% FINAL TAX

20% FINAL TAX

25% FINAL TAX

INTEREST INCOME DERIVED

FROM DEPOSITARY BANKS
UNDER THE EXPANDED
CURRENCY DEPOSIT SYSTEM
INTEREST FROM LONG TERM
DEPOSITS

7.5% FINAL TAX

EXEMPT

7.5% FINAL TAX

EXEMPT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

25% FINAL TAX

CASH OR PROPERTY
DIVIDENDS

10% FINAL TAX

10% FINAL TAX

10% FINAL TAX

20% FINAL TAX

25% FINAL TAX

TABLE 2. PASSIVE INCOME TAX RATES FOR CORPORATIONS

TYPE OF INCOME
DOMESTIC CORPORATION

RESIDENT FOREIGN
CORPORATION

NON-RESIDENT FOREIGN
CORPORATION

INTEREST

20% FINAL TAX

20% FINAL TAX

32% FINAL TAX

ROYALTIES

20% FINAL TAX

20% FINAL TAX

35% FINAL TAX

INTEREST INCOME FROM

DEPOSITARY BANK UNDER ECFDS

7.5% FINAL TAX

7,5% FINAL TAX

EXEMPT

INTEREST INCOME FROM

FOREIGN CURRENCY LOANS
INTER-CORPORATE DIVIDENDS

10% FINAL TAX

10% FINAL TAX

NONE

EXEMPT

EXEMPT

32/35%