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INCOME

(INDIVIDUALS)
Items of Income Non-Resident Non-Resident Alien
Resident Citizen Citizen Resident Alien Engaged Not Engaged
On net capital gain on sale of shares of stock of domestic corporation
classified as capital asset not listed and traded in a local stock exchange: Final Tax of 15% Final Tax of 15% Final Tax of 15% Final Tax of 15% Final Tax of 15%
On the gross selling price or fair market value, whichever is higher, at the
time of sale of real property classified as capital asset in the Philippines Final Tax of 6% Final Tax of 6% Final Tax of 6% Final Tax of 6% Final Tax of 6%
From within the Philippines:
On interest on foreign currency deposit under the expanded foreign currency
deposit system Final Tax of 15% Exempt Final Tax of 15% Exempt Exempt
From within the Philippines:
On interest on bank deposit, yield or other monetary benefit from deposit
substitute, trust fund and similar arrangement Final Tax of 20% Final Tax of 20% Final Tax of 20% Final Tax of 20%
From within the Philippines
On interest on long term-deposit or investment in banks with maturity of 5
years or more Exempt Exempt Exempt Exempt
From within the Philippines:
On royalties from books, literary works and musical compositions Final Tax of 10% Final Tax of 10% Final Tax of 10% Final Tax of 10%
From within the Philippines:
On other royalties, prizes exceeding P10,000 and other winnings, including
PCSO sweepstakes and lotto winnings more than P10,000 Final Tax of 20% Final Tax of 20% Final Tax of 20% Final Tax of 20%
Final Tax of 25%
From within the Philippines:
On dividend from domestic corporation, or from a joint stock company,
insurance or mutual fund company, and regional operating headquarters of
multinational company, or share in the distributive net income after tax of a
partnership (except a general professional partnership), joint stock or joint
venture or consortium taxable as corporation Final Tax of 10% Final Tax of 10% Final Tax of 10% Final Tax of 20%
On other income from within the Philippines 0% to 35% 0% to 35% 0% to 35% 0% to 35%
On other income from outside the Philippines 0% to 35% Exempt Exempt Exempt
On gross income from within the Philippines

INCOME (CORPORATIONS)
Resident Non-Resident
Items of Income Domestic Foreign Foreign
Corporation Corporation Corporation
On net capital gain on sale of shares of stock of domestic corporation classified as
capital asset not listed and traded in a local stock exchange: Final Tax of 15% Final Tax of Final Tax of
Not over P100,000 5% 5%
On any amount in excess 10% 10%
On the gross selling price or fair market value, whichever is higher, at the time of sale Capital Gain Capital Gain
of land and building classified as capital asset in the Philippines Final Tax of 6% subject to subject to
Normal Tax or Final Tax of 30%
MCIT
From within the Philippines:
On interest on foreign currency deposit under the expanded foreign currency deposit system Final Tax of 15% Final Tax of 7 ½% Exempt
From within the Philippines:
On interest on bank deposit , yield or other monetary benefit from deposit substitute,
trust fund and similar arrangement and royalties Final Tax of 20% Final Tax of 20% Final Tax of 30%
Dividend from domestic corporation Exempt Exempt Final Tax of 15%

On (other) taxable income within and outside the Philippines


Normal Tax or 30% of Taxable
Income
Minimum Corporate Income Tax, whichever is higher, applicable beginning the fourth year 2% of Gross
immediately following the year in which the corporation commenced their business operations Income
On (other) taxable income within the Philippines
Normal Tax or 30% of Taxable
Income

Minimum Corporate Income Tax, whichever is higher, applicable beginning the fourth year 2% of Gross
immediately following the year in which the corporation commenced their business operations Income
Interest on foreign loans Final Tax of 20%

Other taxable gross income within the Philippines Final Tax of 30%

DEDUCTIONS (INDIVIDUALS)
Non-Resident Non-Resident Alien
Expenses and Exemptions Resident Citizen Citizen Resident Alien Engaged Not Engaged
Itemized deductions
Actual business expenses incurred:
Within the Philippines Allowed Allowed Allowed Allowed Not Allowed
Outside the Philippines Allowed Not Allowed Not Allowed Not Allowed Not Allowed
Optional standard deduction Allowed Allowed Allowed Not Allowed Not Allowed

DEDUCTIONS (CORPORATIONS)
Resident Non-Resident
Expenses Domestic Foreign Foreign
Corporation Corporation Corporation
Actual business expenses incurred:
Within the Philippines Allowed Allowed Not Allowed
Outside the Philippines Allowed Not Allowed Not Allowed
Optional standard deduction Allowed Allowed Not Allowed

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