Gains on dealings capital asset Tax Rates

Capital gains from sale of shares of stocks of a domestic
corporation not listed and traded thru a local stock
exchange, held as capital asset.
Capital gains from sale of real property in the Philippines
held as capital asset.
Tax on sale of domestic stocks through the PSE
15 % capital gain tax
(Net gain = selling price less cost)
6% capital gain tax
(On the gross selling price or current fair market value at
the time of sale or zonal value, whichever is higher)
60% of 1% of selling price

PASSIVE INCOME

Non- Resident person not engaged in trade or business General final taxes rate
NRA - NETB 25%
Non-Resident Foreign Corporation 30%

INTEREST INCOME OR YIELD FROM BANK DEPOSITS (Local currency)

Source of interest income Individuals Corporations

Short term deposits 20% 20%
Long-term deposits/investment certificates EXEMPT 20%

INTEREST INCOME OR YIELD FROM BANK DEPOSITS (pre-determined long term deposit)

Holding Period Final Tax

Less than 3 years 20%
3 years to less than 4 years 12%
4 years to less than 5 years 5%
5 years or more 0% / EXEMPT

INTEREST INCOME OR YIELD FROM FOREIGN CURRENCY DEPOSITS

Taxpayer Individuals Corporations

Residents 15% 15%
Non-Residents EXEMPT EXEMPT
Note: Joint account in forex deposit of a resident and non-resident. 50% is subjected with final tax while the other 50% is
EXEMPT

DIVIDENDS

Source of Dividends Individuals Corporations

Domestic Corporation 10% final tax EXEMPT
Foreign Corporation Regular tax (30%) Regular tax (30%)

BUSINESS PARTNERSHIP, TAXABLE ASSOCIATIONS, JOINT VENTURES, JOINT ACCOUNTS OR CO-OWNERSHIP

Subjected to 10% final tax at the point of predetermination of income

NRA-ETB 20%
NRA-NETB 25%
NRFC 30%

ROYALTIES

Sources of Passive Royalties Individuals Corporations

Books, literary works, and musical composition 10% 20%
(printed works)
Other sources (e-books or cd) 20% 20%
Cinematographic films 25%

PRIZES

Amount of taxable prize Individuals Corporations

Prizes exceeding 10,000 20% Regular Tax (30%)
Prizes not exceeding 10,000 Regular Tax (30%) Regular Tax (30%)
 WINNINGS

Types of winnings Individuals Corporations

PCSO/lotto winnings not exceeding 10,000 EXEMPT EXEMPT
PCSO/lotto winnings exceeding 10,000 20% 20%
Other winnings, in general 20% Regular Tax (30%)

TAX INFORMER’S REWARD

Amount of Cash Reward is subjected to 10% final tax (not exceeding 1million)

COMPENSATION INCOME

Deduction from Gross Pay (Withholding Tax)

HDMF/ Pag-ibig

Compensation is set 5,000 * 2% = 100 for employee and 100 for employer
 PhilHealth

13th month pay and other benefits not exceeding 90,000

Minimum wage earner (not exceeding 250,000)

De minimis benefits

1. Unused vacation leave and sick leave 10 days for private / exempt for government employees
(600 per month, 6,000 per year)
2. Medical Cash Allowance to dependents of employees (not exceeding 1,500 per sem /250 monthly
3. Rice Subsidy (2,000 per month, 24,000 per year)
4. Uniform and Clothing Allowance (6,000 per year)
5. Actual Medical Assistance (10,000 per year)
6. Laundry Allowance (300 monthly, 3,600 per year)
7. Employees Achievement Awards (not exceeding 10,000)
8. Gifts given during Christmas and Major Anniversary (not exceeding 5,000)
9. Daily Meal Allowance (25% of basic minimum wage)