TAXATION OF NONRESIDENT

Final Withholding tax rates for Individual Nonresident Taxpayers

Nonresident Nonresident not
Sources of Income Tax Subject to Nonresident
Engaged in trade or Engaged in trade or
Tax Citizen
business business
1. Share in the distributable net
income after tax of a --- 20% 25%
partnership
2. Passive income
Royalties 20% 20% 25%
Dividends 10% 20% 25%
Prizes and other taxable
20% 20% 25%
winnings
Interest income from
Philippine currency bank
deposits and yield or any
other monetary benefit from 20% 20% 25%
deposit substitutes and from
trust funds and similar
arrangements
Interest income from foreign
7.5% Exempt Exempt
currency bank deposits
Gains from sale of shares of
5% - 10% 5% - 10% 25%
stock
Gains from sale of real
property classified as capital 6% 6% 6%
assets
3. Other Sources of Income
Other fixed or
determinable gains, profits --- --- 25%
and income

Philippines withholding tax rate may be reduced to lower rate applicable under a double tax treaty
agreement or special law.