Individual Citizen and Individual Resident Alien

amount of interest from any currency bank deposit 20%

and yield or any other monetary benefit from
deposit substitutes and from trust funds and similar
arrangements; royalties, except on books, as well as
other literary works and musical compositions,

prizes (except prizes amounting to Ten thousand 20%

pesos (PhP10,000) and other winnings (except
winnings amounting to Ten thousand pesos
(PhP10,000) or less from Philippine Charity
Sweepstakes and Lotto which shall be exempt),
derived from sources within the Philippines

books, as well as other literary works and musical 10%

compositions

interest income received by an individual taxpayer 15%

(except a non-resident individual) from a depository
bank under the expanded foreign currency deposit
system

long-term deposit or investment shall be exempt Four (4) years to less than five (5) years ..... 5%;

However, should the holder of the certificate pre- Three (3) years to less than (4) years ........ 12%;
terminate the deposit or investment before the fifth
and Less than three (3) years ........................... 20%.
(5th) year

Cash and/or property dividends actually or 10%

constructively received

net capital gains realized during the taxable year 15%

from the sale, barter, exchange or other disposition
of shares of stock in a domestic corporation,
gross selling price or current fair market value as 6%
determined in accordance with Section 6(E) of this
Code, whichever is higher, is hereby imposed upon
capital gains presumed to have been realized from
the sale exchange, or other disposition of real
property located in the Philippines, classified as
capital assets, including pacto de retro sales and
other forms of conditional sales

EXCEPTION

capital gains presumed to have been realized within

eighteen (18) calendar months from the date of sale
or disposition, shall be exempt from the capital
gains tax imposed

historical cost or adjusted basis of the real property

sold or disposed shall be carried over to the new
principal residence built or acquired

That the said tax exemption can only be availed of

once every ten (10) years

no full utilization of the proceeds of sale or

disposition, the portion of the gain presumed to
have been realized from the sale or disposition shall
be subject to capital gains tax.

Non-resident Alien Individual Engaged in Trade

or Business within the Philippines

amount of interest from any currency bank deposit 20%

and yield or any other monetary benefit from
deposit substitutes and from trust funds and similar
arrangements; royalties, except on books, as well as
other literary works and musical compositions,
prizes (except prizes amounting to Ten thousand 20%
pesos (PhP10,000) and other winnings (except
winnings amounting to Ten thousand pesos
(PhP10,000) or less from Philippine Charity
Sweepstakes and Lotto which shall be exempt),
derived from sources within the Philippines

books, as well as other literary works and musical 10%

compositions

net capital gains realized during the taxable year 15%

from the sale, barter, exchange or other disposition
of shares of stock in a domestic corporation,
gross selling price or current fair market value as 6%
determined in accordance with Section 6(E) of this
Code, whichever is higher, is hereby imposed upon
capital gains presumed to have been realized from
the sale exchange, or other disposition of real
property located in the Philippines, classified as
capital assets, including pacto de retro sales and
other forms of conditional sales

EXCEPTION

capital gains presumed to have been realized within

eighteen (18) calendar months from the date of sale
or disposition, shall be exempt from the capital
gains tax imposed

historical cost or adjusted basis of the real property

sold or disposed shall be carried over to the new
principal residence built or acquired

That the said tax exemption can only be availed of

once every ten (10) years

no full utilization of the proceeds of sale or

disposition, the portion of the gain presumed to
have been realized from the sale or disposition shall
be subject to capital gains tax.

Non-resident Alien Individual NOT engaged in

Trade or Business within the Philippines
income received from all sources within the 25%
Philippines by every non-resident alien individual
not engaged in trade or business within the
Philippines as interest, cash and/or property
dividends, rents, salaries, wages, premiums,
annuities, compensation, remuneration,
emoluments, or other fixed or determinable annual
or periodic or casual gains, profits, and income, and
capital gains

Capital gains realized by a non-resident alien 15%; 6%

individual not engaged in trade or business in the
Philippines from the sale of shares of stock in any
domestic corporation and real property

Domestic Corporation

amount of interest on currency bank deposit and (20%)

yield or any other monetary benefit from deposit
substitutes and from trust funds and similar
arrangements received by domestic corporations,
and royalties, derived from sources within the
Philippines

That interest income derived by a domestic 15%

corporation from a depository bank under the
expanded foreign currency deposit system

net capital gains realized during the taxable year 15%

from the sale, exchange or other disposition of
shares of stock in a domestic corporation except
shares sold or disposed of through the stock
exchange.
interest income derived by a domestic corporation 15%
from a depository bank under the expanded foreign
currency deposit system

interest income from foreign currency loans granted exempt

by such depository banks under said expanded
system to residents other than offshore banking
units in the Philippines or other depository banks
under the expanded system

nterest income from foreign currency loans granted 10%

by such depository banks under said expanded
system to residents other than offshore banking
units in the Philippines or other depository banks
under the expanded system,

Dividends received by a domestic corporation from exempt

another domestic corporation

gain presumed to have been realized on the sale, 6%

exchange or disposition of lands and/or buildings
which are not actually used in the business of a
corporation and are treated as capital assets

Tax on Resident Foreign Corporations

Interest from any currency bank deposit and yield or 20%

any other monetary benefit from deposit substitutes
and from trust funds and similar arrangements and
royalties derived from sources within the Philippines

interest income derived by a resident foreign 7.5%

corporation from a depository bank under the
expanded foreign currency deposit system
Income derived by a depository bank under the EXEMPT
expanded foreign currency deposit system from - net income from such transactions as may be
specified by the Secretary of Finance, upon
foreign currency transactions with non-residents,
recommendation by the Monetary Board to be
offshore banking units in the Philippines, local subject to the regular income tax payable by banks
commercial banks including branches of foreign
banks that may be authorized by the Bangko
Sentral ng Pilipinas (BSP) to transact business with
foreign currency deposit system units and other
depository banks under the expanded foreign
currency deposit system

interest income from foreign currency loans granted 10%

by such depository banks under said expanded
system to residents other than depository banks
under the expanded system

net capital gains realized during the taxable year Not over PhP100,000 ............. 5%
from the sale, barter, exchange or other disposition
On any amount in excess of PhP100,000
of shares of stock in a domestic corporation except
………………….10%
shares sold or disposed of through the stock
exchange:

Dividends received by a resident foreign EXEMPT

corporation from a domestic corporation

Tax on Non-resident Foreign Corporation

Non-resident Cinematographic Film Owner, Lessor 25%

or Distributor

Non-resident Owner or Lessor of Vessels Chartered 4.5%

by Philippine Nationals

Non-resident Owner or Lessor of Aircraft, 7.5%

Machineries and Other Equipment

Interest on Foreign Loans 20%

Intercorporate Dividends 15%

- amount of cash and/or property dividends

received from a domestic corporation

Imposed upon the net capital gains realized during Not over PhP100,000 ................................. 5%
the taxable year from the sale, barter, exchange or
On any amount in excess of PhP100,000..... 10%
other disposition of shares of stock in a domestic
corporation, except shares sold, or disposed of
through the stock exchange:

Imposition of Improperly Accumulated Earnings Tax 10%