Income Tax Rate Table

Resident Non-Resident
Non-Resident Alien
Non-Resident Alien Not
Citizen Alien Citizen Engaged in Trade or
Category of Income Engaged in Trade or Business
Business
sourced within the sourced within the sourced within the
All Sources sourced within the Philippines
Philippines Philippines Philippines
1. Compensation/Business/Profession Based on Taxable Income (i.e. Net) GIW - 25%
Refer to the Schedule of Income Tax Rates Below (i.e. 0% to 35%)
2. Prizes of Ten Thousand Pesos (P10,000.00) or For those earning purely business or professional income or mixed income not exceeding the threshold gross
less sales/receipts of the year of Three Million Pesos (P3,000,000.00), the taxpayer can opt to avail of the eight
percent (8%)tax on gross sales/receipts in lieu of the gradual income tax rates and percentage tax - for the
business/professional income portion - upon the option of the taxpayer.

1. interest from any currency bank deposit, Gross Income within the Philippines (GIW) - Twenty Percent (20%) Final Withholding Tax
etc.

2. royalties in general

3. winnings/prizes [except prizes Ten Thousand

(P10,000.00) below]
1. royalties from books, literary, works, musical GIW - Ten percent (10%) Final Withholding Tax
compositions
1. interest from long-term deposit or EXEMPT; However:
investment certificates, which have a in case of pre-termination, with remaining maturity of:
maturity of five (5) years or more four (4) years to less than five (5) years - five percent (5%) on entire income
three (3) years to less than four (4) years - twelve percent (12%) on entire income
less than three (3) years - twenty percent (20%) on entire income
Cash/Property dividends from a domestic GIW - Ten percent (10%) Final Withholding Tax GIW - Twenty Percent 20%
corporation, etc. OR share in the distributed
net income after tax of a partnership (except
general professional partnership), etc.

Interest (expanding Foreign Currency Deposit GIW - Fifteen Percent (15%) Final Withholding Tax EXEMPT
System
Prizes subject to schedular if not exceeding ten percent (10%)
Winnings of Philippine Sweeptakes/Lotto exempt if Ten Thousand Pesos (P10,000.00) below
 Capital Gains on Sale of Shares of Domestic
Corporation (not traded in a domestic stock
exchange)
Capital Gains on Sale of Real Property in the
Philippines
Sale of shares of Domestic Corporation
(traded in a domestic stock exchange)
Sale of Real Property located abroad
Sale of shares of foreign corporation
Passive income from abroad
SCHEDULE OF INCOME TAX RATES FOR INDIVIDUAL CITIZENS, RESIDENTS, AND NRAETB
RANGE OF INCOME TAX
0-250,000
Over 250,000 but not more than 400,000
Over 400,000 but not more than 800,000
Over 800,000 but not over 2,000,000
Over 2,000,000 but not over 8,000,000
Over 8,000,000
net capital gains - fifteen percent (15%) final tax
Gross Selling or Fair Market Value, whichever is higher - six percent (6%) withholding tax
0.6% or one percent (1%) of the selling price stock (Stock Transaction Tax)
Note: Stock Transaction Tax is not an income tax but a business percentage tax
Schedular/Graduated Income Tax Rates (i.e 0%-35%)
for those earning purely business or professional income or mixed income, the taxpayer can opt to avail of the 8% tax on gross sales/receipts
in lieu of the graduated rates - for the business/professional income portion - upon the option of the taxpayer.
TAX DUE (a+b)
Basic Amount (a) Additional Rate (b)
- -
- 20% of excess over 250,000
30,000 25% of excess over 400,000
130,000 30% of excess over 800,000
490,000 32% of excess over 2,000,000
2,410,000 35% of excess over 8,000,000