Income Tax

Classification of Taxpayers (Sec. 23) Sources

Section Rate Basis

Resident Citizen Within and without Sec. 24 5% - 32% Net income

Nonresident Citizen Within Sec. 24 5% - 32%
Resident Alien Within Sec. 24 5% - 32%
Nonresident Alien ETB Within Sec. 25 (A) 5% - 32%
Nonresident Alien NETB Within Sec. 25 (B) 25%
Domestic Corporation Within and without Sec. 27 30% Net income
Resident Foreign Corporation Within Sec. 28 (A) 30%
Nonresident Foreign Corporation Within Sec. 28 (B) 30%
 Royalties (Based on Gross Prizes and other winnings
Interests (Based on Gross Income) Income) (Based on Gross Income)

Books, Literary
Local Foreign Long-term (5 years If preterminated In General Works, Musical In General
Deposit Deposit or more) Composition
20% 7.50% Exempt 5%/12%/20% 20% 10% 20%
20% 7.50% Exempt 5%/12%/20% 20% 10% 20%
20% 7.50% Exempt 5%/12%/20% 20% 10% 20%
20% - Exempt 5%/12%/20% 20% 10% 20%
25% - - - - -
20% 7.50% 20% - -
20% 7.50% 20% - -
30% - 30% - -
Prizes and other winnings Capital Gains (Based on Gross Income)
(Based on Gross Income)
Cash/Property Dividends
(Based on Gross Income)
Less than Sale of Shares of Stocks not Traded in Stock Sale of Real
P10,000 Exchange Property

See Sec. 24(A) 10% 5% (not over P100K)/10% (in excess of P100K) 6%
See Sec. 24(A) 10% 5% (not over P100K)/10% (in excess of P100K) 6%
See Sec. 24(A) 10% 5% (not over P100K)/10% (in excess of P100K) 6%
See Sec. 24(A) 20% 5% (not over P100K)/10% (in excess of P100K) 6%
- 25% 5% (not over P100K)/10% (in excess of P100K) 6%
30% Exempt (intercorporate) 5% (not over P100K)/10% (in excess of P100K) 6%
- Exempt (intercorporate) 5% (not over P100K)/10% (in excess of P100K) -
- 30%/15% 5% (not over P100K)/10% (in excess of P100K) -
 Vessels Aircraft,
Branch Cinematographic
International Offshore Chartered Machineries,
MCIT Profits Owner, Lessor or
Carrier Banking Units by Phil. and other
Remittance Distributor Nationals Equipment

Exempt
Exempt
2% -
2% 2.50% 15%
- - Exempt 25% 4.50% 7.50%
 Exemptions
Interest on
Foreign
Loans
Additional
Basic personal exemptions

Allowed Allowed
Allowed Allowed
Allowed Allowed
Allowed (Reciprocity) Not Allowed
Not Allowed Not Allowed
- -
- -
20% - -