Taxpayer Tax Base Source of Taxable

Income
RC Net income Within and without
NIRC, RA, NRA-ETB Net income Within only
NRA-NETB Gross income Within only

GRADUATED TAX TABLE [ORDINARY OR REGULAR INCOME]

PRIOR TO 2018 TRAIN LAW – TAXABLE YEAR 2023
2018 – 2022 ONWARDS
INCOME TAX INCOME TAX TAX
Not over 5% Not over Exempt Exempt
10,000 250,000
Over 10,000 500 + 10% Over 250,000 20% of 15% of
but not over excess of but not over excess over excess over
30,000 10,000 400,000 250,000 250,000
Over 30,000 2,500 + 15% in Over 400,000 30,000 + 25% 22,500 + 20%
but not over excess of but not over in excess of in excess of
70,000 30,000 800,000 400,000 400,000
Over 70,000 8,500 + 20% in Over 800,000 130,000 + 102,500 +
but not over excess of but not over 30% in excess 25% in excess
140,000 70,000 2,000,000 of 800,000 of 800,000
Over 22,500 + 25% Over 490,000 + 402,500 +
140,000 but in excess of 2,000,000 32% in excess 30% in excess
not over 140,000 but not over of 2,000,000 of 2,000,000
250,000 8,000,000
Over 50,000 + 30% Over 2,410,000 + 2,202,500 +
250,000 but in excess of 8,000,000 35% in excess 35% in excess
not over 250,000 of 8,000,000 of 8,000,000
500,000
Over 125,000 + 32%
500,000 in excess of
500,000
 SELF-EMPLOYED AND/OR PROFESSIONALS (SEP)
PURELY SEP MIXED INCOME EARNER
with gross sales/receipts
BUSINESS/
PROFESSIONAL INCOME
3M AND ABOVE COMPENSATION 3M AND ABOVE
BELOW 3M BELOW 3M
Regular Regular Regular income + Regular Regular
income tax income tax income tax income
or tax or tax
8%** tax on 8% on Gross
Gross Sales/Receipts
Sales/Receipts and other
and other operating
operating income IN
income in LIEU of the
excess of graduated tax
250,000 INI rate and Sec.
LIEU of the 116
graduated tax
rate and
Sec.116
**Provided, the SEP:
1) Non-vat registered
2) Not engaged in vat exempt-sales/transaction
3) Not subject to other OPT other than Sec. 116 of the Tax Code
 PASSIVE INCOME – PH SOURCES [FINAL WITHHOLDING TAX]
INTEREST Citizens & NRA- NRA-
Residents ETB NETB
A. Interest from any currency 20% 20% 25%
bank deposit
B. Yield or any other monetary 20 20 25
benefit from deposit substitutes
C. Yield or any other monetary 20 20 25
benefit from trust funds and
similar arrangements
D. Interest incomes received Prior to Exempt Exempt
from a depositary bank under 2018:
expanded foreign currency 7 ½%
deposit system NRC
=exempt
Note: Only residents are subject Beg. 2018: Exempt Exempt
to this type of tax. Nonresident 15%
taxpayers are exempt from tax NRC
on this particular income. =exempt
E. Interest income from long- Exempt Exempt 25
term deposit or investment
If pre-terminated before fifth
year, a final tax shall be imposed
based on remaining maturity as
follows:
4 years to less than 5 years 5 5 25
3 years to less than 4 years 12 12 25
Less than 3 years 20 20 25
ROYALTIES
A. Royalties, in general 20 20 25
B. Royalties on books, as well as 10 10 25
other literary works and musical
composition
PRIZES
Prizes exceeding 10,000 20 20 25
Note: Prizes ≤ 10,000 are subject
to basic tax except those
received by NRA-NETB which are
subject to 25% FWT
OTHER WINNINGS
Prior to 2018: 20 20 25
Regardless of amount except including
PCSO and/or Lotto winnings (tax PCSO/
exempt) Lotto
Beginning 2018: 20 20 25
OTHER WINNING Regardless of
amount
PCSO/Lotto winnings:
Amount is ≤ 10,000 Exempt Exempt 25
Amount is ≥ 10,000 20 Exempt 25
CASH and/or PROPERTY
DIVIDEND
A. Cash and/or property 10 20 25
dividends actually received from
a domestic corp. or from a joint
stock co., insurance or mutual
fund companies beginning Jan.
2000
B. Share of an individual in the 10 20 25
distributable net income after
tax of a PARTNERSHI[ (OTHER
THAN a GPP) beginning Jan 1,
2000
C. Share of an individual in the 10 20 25
net income after tax of an
Association, a Joint Account, or a
Joint Venture or Consortium
taxable as a corporation, which
he is a member or a co-venturer
beginning Jan. 1, 2000
 CAPITAL GAINS [CAPITAL GAINS TAX]
(1) Capital gains from sale Citizens & NRA-ETB NRA-NETB
of shares of stock of a residents
domestic corporation not
traded in the local stock
exchange
Prior to 2018
st
1 100,000 of capital gain 5% 5% 5%
In excess of 100,000 10% 10% 10%
capital gain
Beginning Jan 1 2018
Basis: Capital gain 15% 15% 15%
(2) Sale of real property
located in the Philippines
TAX BASE: Selling price or 6% 6% 6%
Fair Market Value,
whichever is higher
Note: the assets sold in the table above must refer to capital assets. Capital
assets are assets not used in business nor for sale in the ordinary course of
trade or business.

ORDINARY CAPITAL ASSETS

ASSET
REAL PROPERTY SHARES OF STOCKS OTHER ASSETS
Basic tax 6% CGT 15% CGT if shares Basic tax; apply
including sale of of closely held rules of holding
real property by May be exempt domestic corp period and net
a real estate in pertaining to capital loss
dealer and sale of sale of principal 6/10 of 1% stock carry-over
shares/securities residence transaction tax if
by a “dealer in shares are publicly
securities” 6% CGT or basic listed domestic
tax if sold to corporation
government
Basic tax if shares
Basic tax if of foreign corp.
situated abroad
PURE COMPENSATION INCOME EARNER
Gross taxable income (net of exclusions) xxx
Tax due (graduated tax rate) xxx
Less: CWT on compensation income (xxx)
Income tax payable xxx

PURE BUSINESS INCOME EARNER

Gross sales/receipts Xxx
(-) cost of sales/ cost of direct services Xxx
Gross business/professional income Xxx
(-) allowable business expenses Xxx
Taxable net income ** xxx

Income tax due (graduated tax rate) Xxx**

(-) CWT
Prior year’s excess credit Xxx
Tax payments for the previous quarters Xxx
Tax withheld at source Xxx
Foreign income tax credit Xxx (xxx)
Income tax payable Xxx

PURE BUSINESS INCOME EARNER

Gross compensation income Xxx
Gross sales/receipts Xxx
(-) cost of sales/ cost of direct services Xxx
Gross business/professional income Xxx
(-) allowable business expenses Xxx
Taxable net income ** xxx

Income tax due (graduated tax rate) Xxx**

(-) CWT
 CWT on compensation income Xxx
Prior year’s excess credit Xxx
Tax payments for the previous quarters Xxx
Tax withheld at source Xxx
Foreign income tax credit Xxx (xxx)
Income tax payable Xxx