MATRIX

GEOGRAPHICAL SOURCES OF INCOME

General Principles of Income Taxation in the Philippines (Sec. 23)
TAXPAYER

A. INDIVIDUAL
1. Citizens
a. Resident citizen
b. Non-resident citizen
c. Overseas contract worker & seaman
treated as an overseas contract worker
2. Aliens
a. Resident alien
b. Non-resident alien
i.
Engaged in business in the Philippines
ii.
Not engaged in business in the Philippines
B. CORPORATION
1. Domestic corporation
2. Foreign corporation
a. Resident foreign corporation
b. Non-resident foreign corporation

Income Items to Tax

Sec. 24 (A)
Not enumerated

Tax Base
Tax Rate

Net income
Graduated tax rate

w/in

Tax on Non-resident Alien Individual (Sec. 25)

w/o

x
x

x
x

TAXPAYER

SPECIAL INDIVIDUALS
(C) Alien individual employed by regional or area
headquarters
(D) Alien individual employed by offshore banking units
(E) Alien individual employed by petroleum service
contractor and subcontractor

w/in

w/o

Citizen and Individual Resident Alien of the Philippines (Sec. 24)

Sec. 24 (B)
Sec. 24 (C)
Certain passive income
Capital gains from sale of shares of
(i.e., Interests, royalties, prizes, and other
stock not traded in the stock exchange
winnings), etc.
Gross income
Gross income
Final tax rate
Final tax rate
20% on the amount of interest from
currency bank deposits, on royalties, on
prizes, and on other winnings except
Philippine Charity Sweepstakes and Lotto
winnings

Not over P100,000

In excess of P100,000

5%
10%

Sec. 24 (D)
Capital gains from sale of real
property
SP / FMV
Final tax rate
6% based on the gross selling
price or current fair market
value, whichever is higher

10% on royalties on books, literary works,

musical compositions, etc.
Applicable to income derived within
& without the Philippines
Correlate with Sec. 23 MATRIX
Geographical Source

Within the Philippines

Within the Philippines

Within the Philippines