INDIVIDUALS -MWE are EXEMPT

BASIC TAX Gross Income PXXX

AMOUNT OF TAX (Allowable Deductions) (XXX)
Gross Income PXXX Taxable Income PXXX
-Allowable Deductions: (XXX) Rate %
Taxable Income PXX BASIC TAX PXXX
Rate %
BASIC TAX PXXX B. PURELY SELF-EMPLOYED &
PROFESSIONALS
PASSIVE INCOME -allowed OSD
INTEREST INCOME: 1. If Gross Sales,Receipts,Non Operating
1. In general 20% Income PHP 3M VAT
a. From Bank deposit, a. Option 8%, No Business Tax
b. Deposit substitute, Gross Sales, Receipts, PXXX
c. Trust funds Non Op. Income XXX
2. Interest under FCDU *RC, RA 15% (Allowable Deduction) (250,000)
3. Interest income from long term Business Income PXXX
Deposit, investment (5yrs or more) 0% X 8%
(4-5yrs) 5% Tax Due PXXX
(3-4yrs) 12% 2. If Gross Sales,Receipts,Non Operating
(less than 3yrs) 20% Income > PHP 3M VAT
ROYALTIES: a. Graduated Tax Rate, 12% Business
1. In general 20% Tax
a. Books, Lit works, Music Comp. 10%
DIVIDENDS: C. MIXED INCOME EARNERS
1. *RC, NRC, RA 10% A. If not opted to be taxed under
2. *NRA-ETB 20% graduated tax rate
(From DC, Joint Stock Co., Insurance/Mutual 1. Compensation Income must be
Funds, share in the net distri. Income after tax computed first (graduated tax rate)
of a partnership except GPP, association, joint 2. Business Income
account, taxable joint venture or consortium) a. If not exceeded 3M VAT -
PRIZES: graduated or optional 8% (*no more
1. 10, 000 BASIC 250,000 deduction)
2. More than 10,000 20% b. If exceeded 3M VAT - graduated
WINNINGS: B. If opted to be taxed under graduated
1. PH charity sweepstakes 20% in tax rate/ not opted for 8%
PCSO excess of 10,000 *Taxable income from both compensation
2. Other winnings 20% and business must be combined - graduated.

CGT D. INCOME TAX FOR NRA-NETB

CGT ON SHARES: Gross Income, PH XXX
Sale of Shares of Stock not Traded in the Stock X 25%
Exchange Tax Due, FWT PXXX
*Applicable to ALL classes of corporations. E. INCOME TAX FOR SAE
Selling Price PXXX Gross Income, PH XXX
Cost (XX) X 15%
Selling Expense (XX) Tax Due, FWT PXXX
Net Gain PXX
X 15% Other Income, PH XXX
Capital Gains Tax PXX X 25%
CGT ON REAL PROPERTY: Tax Due, FWT PXXX
Sale of Land and/or Building
*Not applicable to FC. ESTATES AND TRUSTS
Tax Base A. IRRECOVERABLE TAXABLE
(GSP, FMV, Zonal Value, whichever is highest) B. RECOVERABLE
X 6% EXEMPT
Capital Gains Tax PXX *The tax imposed upon individuals shall apply
to the income of estates and trusts.
*Self-employed individuals are required to file
a declaration of their estimated income for the
current taxable year on or before April 15 of the
same taxable year.
Estimated tax - declared as income tax by
individual in his final adjusted and annual income
tax return from the preceding taxable year minus
the credits allowed.

GROSS INCOME
A. PURE COMPENSATION INCOME EARNERS
-graduated tax rate/tax table INCLUSIONS
-NOT allowed OSD 1. Salary, Wage Fee
2. Commission, Honoraria, Allowances
*ordinary and necessary to the business
- not taxable
*required to liquidate for - not taxable
*COLA(Cost of Living Allowance)
- not taxable
*RATA(Representation and Travelling
Allowance)
Received by PUBLIC OFFICERS which
constitute REIMBURSEMENT - not taxable
*PERA(Personnel Economic Relief Allowance)
Received by government officials and
employeed - not taxable
a) Received by REGULAR EMPLOYEE - taxable
3. 13th month pay and other benefits in excess
of 90,000
4. Holiday Pay, OT Pay, Night Differential Pay,
Hazard/Emergency Pay
*received by MWE - not taxable
5. Separation Pay
*in case of Death, sickness, other physical
disability, any cause BEYOND THE CONTROL of
the official or employee - not taxable
6. Retirement benefits, pension, gratuities,
etc
*if received by employees of private firm;
Must have retirement plan, Rendered at least
10 yrs of service, At least 50 yrs of age on
retirement, Availed only once
7. Sick Leave Pay, Vacation Leave Pay
*unused vacation leave of 10 days or less
- not taxable
8. Fringe Benefits (Rank and File Employees)
a) LIVING QUARTERS OR MEALS
*provided within the business premises of
the employer - not taxable
*provided to AFP - not taxable
b) Payment of income taxes
c) Payment of insurance premiums
d) Share in company’s profit
e) Bonus and reward for exemplary
performance
i. Monetary
EXCLUSIONS
1. Proceeds of Life Insurance
2. Return of Premium
*in excess - taxable
3. Gifts, bequests, devises
*income from such property - taxable
4. Compensation for injuries or sickness
*recovery represents damages for
LOSS PROFITS - taxable
5. Income exempt under treaty
6. Retirement benefits, pensions, gratuities,
etc
a) RETIREMENT BENEFITS - received by
employees of private firm
i. Must have retirement plan
ii. Rendered at least 10 yrs of service
iii. At least 50 yrs of age on retirement
iv. Availed only once
b) SEPARATION PAY
i. Death, sickness, other physical
disability, any cause BEYOND THE
CONTROL of the official or employee
c) SS Benefits, retirement gratuities from
FOREIGN govt agencies & other public or
private institutions.
d) Benefits from US VETERANS
ADMINISTRATION
e) SSS, GSIS
7. Income received from foreign government
i. Regional/Financing institutions owned
and controlled by them
8. Income derived by the Government of the
PH
9. Prizes and Awards
a) In recognition of charitable, artistic,
religious, civic, educational, literary,
scientific achievement
b) No effort in participating
c) Not required to render substantial future
services
10. Prizes and Awards in Sports Competition
a) Whether held IN or OUT of PH; sanctioned
by the National sports association
11. 13th Month Pay and other Benefits
a) Not exceeding 90,000
12. SSS, GSIS, Medicare, other contributions
13. Gain from the sale of retirement bonds
with maturity with more than 5 yrs.
14. Gains from redemption of shares in
Mutual Fund Company
15. Minimum Wage Earners (MWE)
a) Holiday Pay, Overtime Pay, Night
Differential Pay, Hazard Pay
*if he receives any taxable income - taxable