Non-resident Aliens

Non-resident person not engaged in trade or business General final tax rate

Non-resident Alien Not Engaged in Trade or Business (NRA-NETB) 25%

Non-resident Alien Engaged in Trade or Business (NRA-ETB) 25%

Local Currency Deposits

Recipients
On interest income
Individuals Corporation

From banks

- Short-term deposits/certificates 20% 20%

- Long-term deposits/certificates Exempt RIT1

From non-bank institutions

- Short-term deposits/certificates RIT2 RIT2

- Long-term deposits/certificates RIT2 RIT2

Debt Instruments

Deposit Substitutes Recipient

Issued by Banks: Individuals Corporatio

- Short-term 20% 20%

- Long-term Exempt RIT

Issued by Non-banks:

- Short-term 20% 20%

- Long-term 20% RIT

Pre-termination

Holding Period Pre-termination 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%

Foreign currency deposits with Foreign currency depositary banks

Taxpayer Individuals Corporations

 Residents 15% 15%

Non-residents Exempt Exempt

Dividends

Recipient of Dividends
Source of Dividends
Individuals Corporation

Domestic Corporation 10% final tax Exempt

Foreign corporation Regular tax Regular tax

Taxable Prize

Recipient
Amount of Taxable Prize
Individuals Corporation

Prizes exceeding P10,000 20% final tax Regular tax

Prizes not exceeding P10,000 Regular tax Regular tax

Winnings

Recipient
Types of Winnings
Individuals Corporation

PCSO winnings not exceeding P10,000 Exempt Exempt

PCSO winnings exceeding P10,000 20% final tax 20% final tax

Other winnings, in general 20% final tax 20% final tax

Tax-free Corporate Covenant Bonds

Bond Investor

Individuals Corporation

Tax on interest income on tax-free corporate 30% final tax Regular Income Tax
covenant bonds

Capital Gains Tax

Gains on dealings in Capital Asset Tax Rates

Gain on sale, exchange, and other disposition of DOMESTIC stocks 15% Capital Gains Tax
DIRECTLY to buyer

Sale, exchange, and other disposition of REAL properties in the Philippines 6% Capital Gains Tax

Gains from other capital assets RIT