Cheat sheet

Wednesday, 12 January 2022 8:40 AM

Cheat sheet

Type of tax Domestic corporations Other domestic Resident Foreign Resident citizen and Non-resident alien engaged in trade Nonresident alien not Alien employed by regional or
corps corporation resident aliens or business engaged in trade or business area HQ or Service contactor

Estates and trusts

In general All income All income On PH sources All income On PH Sources On PH sources On PH sources

OFW: not taxed on employment

income, taxed on all other income
Income / wages generally GOCC generally Below 250k Below 250k 25% gross 15% gross
(Gross - deductions) 25% See left (Gross - deductions) 0% 0%
25% Filipino office mates taxed the
Taxable income less than 5m GSIS, 250-400k 250-400k same rate
Total assets less than 10m SSS, Using OSD (i-250k) 20% (i-250k) 20%
(Gross - deductions)20% PHIC, (Gross-40% of
HDMF, gross)25% 400-800k 400-800k
OR Water districts 30,000 + (I-400k)25% 30,000 + (I-400k)25%
0% MINIMUM
Tax effort ratio of 20% GNP Is 1% of gross 800k-2m 800k-2m
Proprietary income 130,000 + (i-800k)30% 130,000 + (i-800k)30%
(see conditions at s27 (A)) educational (2% after June 2023)
15% gross income institutions 2m-8m 2m-8m
1% until June 30, 490,000 + (I-2m)32% 490,000 + (I-2m)32%
Using OSD 2023 International carrier
(Gross-40% of gross)25% 10% profitable 2.5% gross Philippine Over 8m Over 8m
income billings 2,410,000 + (I-8m)35% 2,410,000 + (I-8m)35%
MINIMUM
Is 1% of gross income Regional Operating From sources within PH
(2% after June 2023) HQ
20%
Exceptions:
Labor disputes
Fore majeure
Legitimate business reverses
Income for self employed Follow above

OR

If earning less than 3

million
(Gross income - 250k)8%

Using OSD
(Gross-40% of gross)25%
Mixed Different incomes
computed separately
Passive income (generally) 20% final tax 20% final tax 20% final tax 20% final tax
Books, music, compositions 10% final tax 10% final tax
Cinematographic films 25% gross income Included in income tax (Gross - deductions)20%
Lease of vehicles 4.5% gross rentals
Lease of aircraft, machinery 7.5% gross rentals
and other equipment
Prizes in general 20% final tax 20% final tax
Prizes below 10k See income tax
Prizes below 10k from PCSO 0
Prizes from sports 20% in general

0 if sanctioned by national
sports competition
Bank related Offshore banking
units
0%

Foreign currency
loans to residents
10%

Branch profit
remittances
15% of total profits
(no deduction)
Interest 20% final tax Foreign loans Included in income tax Included in income tax
20%
Interest from expanded foreign 15% final tax 7.5% 15% final tax
currency deposit system 10%???
0%

If from interest
10%
Long term deposit, trust funds, Included in income tax Included in income tax
investment accounts
If pre-terminated If pre-terminated

4-5years: 5% 4-5years: 5%
3-4years: 12% 3-4years: 12%
0-3years: 20% 0-3years: 20%
Dividends If from domestic corp 15% 10% final tax
0%
Credit against tax
If foreign sourced and reinvested
into domestic corp, and domestic
corp owns 20% shares, held 2 yrs
minimum
0%

Capital gains from sale of stock 15% final tax 15% final tax 15% final tax 15% final tax
(Outside stock exchange)
100% value if short term
Capital gains in general asset
50% if short term assets

Taxation Page 1

Capital gains from real property 6% of gain
Exclusions / Exceptions / deductions
Exclusion on Taxation in general
Exceptions on Gross income
Deductions on gross income
Not Capital gains/losses
Estate and trust
50% if short term assets
Can be carried over
6% 6%
Of selling prices or gross Of selling prices or gross market
Capital loss can be deduction market value value
(capital loss can be
deduction) (See exceptions)
100% value if short term
asset
50% if short term assets
Can be carried over
Or add to income tax
(See exceptions)
Individuals
Life insurance
Return of premium
Gifts except dividends
Damages except return on capital
Retirement benefits
Awards and prizes except raffle
Prizes in sports comp
13th month pay
Fringe benefit if convenience of employer
Fringe benefit of rank and file included in gross income)
De minimis (see limits)
Income of foreign government (comity)
Expenses
Compensation
Grossed up value of fringe benefit
Travel
Rentals
Amusement (in relation to business)
Training expenses (1/2 only)
Interest
Taxes except estate and donor tax,
Credit against foreign tax
Losses
Capital losses can only be deducted from capital gains
Bad debts
Depreciation
Depletion of oil, gas wells and mines
Charitable and other contributions
10% if individual
5% if corporation
Full if specified by NEDA, or specific NGOs
Research and development
Pensions paid to employees
Standard deduction of 40% gross income
Merger/reorganization
If trust benefits grantor (part of grantor income)
Revocable trust (part of grantor income)
Employees trust which forms part of pension
Taxation Page 2