RC, NRC &

INCOME RA NRANETB
PASSIVE INCOME (FWT)
INTEREST INCOME
5 yrs. or more EXEMPT
Deposits 4 yrs. to less than 5 yrs. 5% 25%
(20%) 3 yrs. to less than 4 yrs. 12%
Less than 3 yrs. 20%
Deposits under EFCDS (aplicable 15% EXEMPT
only on RC & DC)
ROYALTIES
Copyrights, trademarks, patents, non- 20% 25%
literary compositions
Musical and literary compositions 10% 25%
PRIZES
10,000 Below Subject to 25%
normal tax
10, 000 Above 20% 25%
WINNINGS
10,000 Below (Except PCSO) 20% 25%
10,000 Above 20% 25%
CAPITAL GAIN TAX (CGT)
Sale share of stocks (not traded in stock of exchange) (Net gain)
Not over 100,000 5% 5%
Amount Excess of 100,000 10% 10%
Sale of Property (FMV OR GSP, higher)
6% 6%
TAX INFORMERS REWARD (TIR) (1M or 10%)
Total revenue x tax base 10%

FRINGE BENEFIT TAX (FBT)

Monetary Value (Net of tax) 35% 25%
 ORDINARY CORPORATIONS
RCIT MCIT IAT
(Itemized or OSD 40%) (4TH taxable yr.) (100,000
Reseanable
)
Train Create TB Train Create
(July 1, 2020 –
June 30, 2023)
Domestic 30% 20% NTI 2% 1% 10%
Corporation (Asset <
100M, NTI <
5m)
25%
Resident Foreign 25% 25% NTI 2% 1% 10%
Corp.
Non-Resident 25% 25% GI N/A N/A N/A
Foreign Corp.

SPECIAL CORPORATIONS TAX RATE TRAIN TAX RATE CREATE

Propriety Educational Instittuions and 10% 1%
Hospitals (Non-profit) (Predominance Test)
Government- owned of controlled
Taxpayer TaxCorp.
Base Either 20% of Rate
Tax 25% With exemption
Taxable Source
RESIDENT
RC FOREIGN CORPORATION
Net Taxable Income (NTI) Tax Table Within/ out Phil.
NRC International Carrier NTI 2.5% of gross
Tax billings
Table Within Phil.
Branch
NRAETB Profit Remmitances NTI 15% FWTTable
Tax With exemption
Within Phil.
Regional
NRANETB Operating Headquarters
Gross Income 10%25% FT Within Phil.

PASSIVE DIVIDEND BY A STOCKHOLDER

FROM DOMESTIC CORPORTION TAX RATE
To domestic Not taxable
Resident Foreign Not taxable
NRFC 25% FTW, 15% With receprocity
RC, CA 10% FWT
NRAETB 20% FWT
NRANETB 25% FWT

PASSIVE DIVIDEND BY A STOCKHOLDER

FROM FOREIGN CORPORTION TAX RATE
To domestic 25% Normal Tax
Resident Foreign Ordinary Income
Foreign Corporation Not Taxable
NRC, CA, NRA Not Taxable
CASH DIVIDEND Amount of Cash Received
STOCK DIVIDEND Not Taxable

FOREIGN TAX CREDIT

A. FIRST LIMITATION
Net Income (per foreign country) / Total net incom X Phil. Tax
B. SECOND LIMITATION
Net Income (All foreign country) / Total net incom X Phil. Tax

SALE OF STOCKS
 LISTED Sec. 127 (a) 1%
NOT LISTED DC Sec. 24 (c) 15% (CGT)
FC Sec. 24 (a) Basic Tax
SALE OF REAL PROPERTY
Located in the Phil. Not. Gov. Sec. 24 (d) 6% CGT
Gov. Sec. 24 (a) or (d) unless exempt
Located Abroad Sec. 24 (a) Basic Tax