INDIVIDUAL CORPORATION

Citizen Alien Foreign

RC NRC RA NRA- NRA- DC RFC NRFC
ETB NETB
GENERAL RULES IN INCOME TAXATION
Taxable on income earned within Philippines / / / / / / / /
Taxable on income earned outside Philippines / /
SUMMARY OF FINAL TAX
INTEREST INCOME
Local Currency Deposit
Short-term Interest or Yield 20% 20% 20% 20% 25% 20% 20% 25%
Long-term Interest or Yield Exempt Exempt Exempt Exempt 25% RIT RIT 25%
Pre-termination interest rate
- less than 3 years 20% 20% 20% 20% 25% 20% 20% 25%
- 3 to less than 4 years 12% 12% 12% 12% 25% 20% 20% 25%
- 4 to less than 5 years 5% 5% 5% 5% 25% 20% 20% 25%
Foreign Currency Deposit
Interest income from FCDUs/OBU Depositary Banks 15% Exempt 15% Exempt Exempt 15% 15% Exempt
Interest income of FCDU/EFCDU 10% Exempt 10% Exempt Exempt 10% 10% Exempt
Interest income on Foreign Loans N/A N/A N/A N/A N/A N/A N/A 20%
Tax Free Covenant Bonds 30% 30% 30% 30% 30% N/A N/A N/A
DIVIDEND INCOME
From domestic corporation, in general 10% 10% 10% 20% 25% Exempt Exempt 15%
From Foreign Corporation RIT RIT RIT RIT RIT RIT RIT RIT
From REIT 10% Exempt 10% <10%^^ <10%^ Exempt Exempt <10%^
SHARE IN NET INCOME of taxable partnership, joint 10% 10% 10% 20% 25% 10% 10% 25%
venture and co-ownership
ROYALTIES
Passive royalties in general 20% 20% 20% 20% 25% 20% 20% 25%
from climatographic films and similar works 20% 20% 20% 25% 25% 20% 20%
from literary works & musical composition 10% 10% 10% 10% 25% 20% 20% 25%
Active Royalties RIT RIT RIT RIT 25% RIT RIT 25%
TAXABLE PRIZES
P10,000 and below RIT RIT RIT RIT 25% RIT RIT 25%
Above P10,000 20% 20% 20% 20% 25% RIT RIT 25%
WINNINGS
In general 20% 20% 20% 20% 25% RIT RIT 25%
PCSO & lotto winning > P10,000 20% 20% 20% 20% 25% 20% 20% 25%
PCSO & lotto winning < P10,000 Exempt Exempt Exempt Exempt 25% Exempt Exempt 25%
INFORMER’S TAX REWARD 10% 10% 10% 10% 25% 10% 10% 25%
CAPITAL GAINS TAX RATES
Gain from domestic stocks directly to buyer 15% 15% 15% 15% 15% 15% 15% 15%
Gain from real property in the Philippines 6% 6% 6% 6% 6% 6% 6% 6%
Gain from other capital assets RIT RIT RIT RIT RIT RIT RIT RIT
FRINGE BENEFIT TAX RATE (2018 and above) 35% 35% 25% 25% 25%
GROSSED-UP MONETARY VALUE RATE (2018 and above) 65% 65% 75% 75% 75%

Income tax table for individual taxpayers Summary of regular corporate tax rates
P250,000 and below 0% Taxpayer type DC RFC
P250,000 to P400,000 20% of the excess over P250,000 MSME corporate taxpayer
P400,000 to P800,000 P30,000 + 25% of the excess over P400,000 with < 5M taxable income 20% 25%
P800,000 to P2,000,000 P130,000 + 30% of the excess over P800,000 with > 5M taxable income 25% 25%
P2,000,000 to P8,000,000 P490,000 + 32% of the excess over P2,000,000 Large corporation taxpayer
Above P8,000,000 P2,410,000 + 35% of the excess over P8,000,000 with < 5M taxable income 25% 25%
with > 5M taxable income 25% 25%