NARCA SUMMARY OF TAX BASE AND TAX RATES ON INDIVIDUAL TAXPAYERS [2046] as amended by RA 10963 [TRAP RESIDENT NON RESIDENT cmzen AEN comizeN NRAEST NRANEST SEirerenty | -stayedwatin | stayed cutee tne | _ Stayed wt the ine EayeainPhis or | thePnis tor” | Phe 18a caye or | his more nan 160 | Pris, 180 Soe CATEGORY OF INCOME Stayecoutaae | mere hn 12 more ‘ys orless Teco 103 days | months rom date stand ar win Wie Wa win Sources Prippines | Philipines pnigpnes | Philippines _ 7 Compensation”, BusnessProFesson™ 2, Brass ofP 10,000 ors aed on Taxable Income ow25% ‘Foceion source incame of resident citizens and all Shedular Normal Tax rate: NIRC Sec: 24 (A): 0% ~ 35% Strerincome not subject oa Preferential or (MANE exerted Special rate ‘rom income te lunder RA 9504) 3. ntrest, Royals, Winrings/Prizes aoe eee gO0g bow reginomal rate] | Gross Income _winin 20% _Finalitnexing _Tax_ (FHT) _ JP Roylies- books, Rerary works, usicl ‘compositions Gross__income wih 10% Final Winholdng Tax (FW) _| GROSS INCOME Interest longterm investment year oF ore) ex eM PT ‘wiTtiN 2 Cevings, common or néigua st, Incase of re eenaaon remaining of matuy of (omy 25% funds, depost subettue,avestrent years 0 fess tthanS years = S% AT management account in denomntion ‘years to less han years - 12% FWT cof P10, 000 ora preserved by he BSP 27 ess than 3 yours 20% FAT 6: CashiProperty Guidends (HO PART ORIN) Siw 40% FT ewan ew “inst reg Gui, Dope Sen) or 16% FAT ake cure Capital Gains on Sate of Share Net capital gains win. 15% (not wadedstack xchange) eats on Stare ied 10 (60% oF 1% of he Seng ree, [BusnessPercenage Tax, Sec. 127, NIRC] exchange 70" Gaptal Gain on See of Real Property os angie oF Caren FUN, wherever @ Higher 6% capil gains tax = Prppine Sweepstakes ‘eas han PIO DDO. EXEMPTED 1. Waning on Pailpine Swempenkes toto Wore tman P10.000. 20% FWT 9: API 97K Bye ) {ston GW on salaries, wages, compersaten remuneration and emoluments, [Preferential tx 12. Alens Employed by Regona or Area HO and | veatmentaa nase appizaye, subject now to graduated rates 0% 35%] Joral Operating HO of MNCS Lee Oe tevcon Gi onslares, wages, compensation. emuneraion and emohments, Preferential tax 13. Alans employed by Oenore Bankng Unis | veatrertpolonarapazabe, sje ow io gradates is 76-35%) 14. Alens employed by Petoleum Service eve on GW on slates, wages, compensation remuneraton and emolament. [Peferenti! ox | ation So longer appieae, subject now to graduated rates 0% 35%] Gonttacor ang Subcontractor CBACK PLEASE ) MARCA2 NOTES: ‘Ra 3604 Minmam Wage Earner (MWEs) wna are workers inthe private sector aid under tha statutory minimum wage fixe by the RTWPBINWPC, orto employees in the public sector receiving not more than the SMW shal be exampt from income fas, The holiday pay, overtime pay, nightshift differential and hazard pay received by the MWES are also exempt from income tax. RA 109 90,000 exemption for 13" Mon. Pay and Other Benefits em “Four Types of Individual income taxpaye' 4, Compensation income earners: subject to tax under the graduated rates from 0% ~ 35% under Sec. 24(A)(2)'@) 2. Self-employed 4. Professional: Seitemployed individuals or practice of profession: whose gross sales/eceipts and other non-operatin income does not exceed the VAT threshold of P3Million shall have the option to avail of: erating ‘a. An 8% tax on gross sales or receipts and other non-operating income in excess of P250,000 -sornxaus in lieu of fre graduated rates 0%-35% uncler Sec. 24(A)(2)(a) for income tax and the percentage tax under Sec. 146 of the NIRC; or meet b- The graduated rates 0%-35% under Sec. 24(AK2Ka) tx ofthe IRC: -w mer 71> 1k Mixed income earners, are those who are earning income both from compensation and from self-employment oF practice of profession: ’2. the compensation income shal 24(a)(2May; and 1 be subject to tax under the graduated rates from 0% ~ 35% under Sec. bb the income from business or practice of profession shall be subject to: reo oes ealeslreccipte and other non-operating income does not exceed the VAT threshold of P8Miillion shall have the option to be taxed at: and other non-operating income in iow of the ~ Beane? wear ame 2S income tax onky graduated rates 0%-35% under Sec. 24(A)(2}(a) for income tax and the percentage tax under Sec. 116 of the NIRC; or b. The graduated rates 01-35% under Soc. 24(A) tax of the NIRC.-erreamtenners od Sop sup. gross salesirecelpts and other non-operatng income exsgads the VAT threshold of P2Milion 2 oeeto the graduated rates 0%-38% under Sec. 24(A)(2Va) of the NIRC,TAXATION ON CORPORATE INCOME (2018) as amended by RA 10963 [TRAIN] CLASSIFICATIONS DOMESTIC RESIDENT FOREIGN NON-RESIDENT FOREIGN CORPORATIONS. CORPORATIONS CORPORATIONS SOURCES OF Within and without the Within the Within the TAXABLE INCOME Philippines Phiippines Philippines INCOME IN GENERAL ALL OTHER INCOME NOT SUBJECT TO PREFERENTIALISPECIAL RATE AND INCOME WITHOUT OF DOMESTIC CORPS. TAXABLE INCOME Normal Tax Rate TAXABLE INCOME Normal Tax Rate 30% effective January 1, 2009 (unith MCIT application) 30% effective January 1, 2009 (yith MCIT application ) TAXABLE INCOME Normal Tax Rate 30% effective January 1, 2009 [CAPITAL GAIN WITHIN 1. Capital gains on sale of shares of stocks not traded at the stock exchange. |Net capital gains: 15% 15% 18% 2, Percentage tax on sale of shares of stock traded in the local stock exchange. [Based on seling price (Sec. 127 NIRC) 610 of 16" 6110 of 196" 6110 of 196" [3. Capital gains on sale or exchange or disposition of lands and or buildings located in the Philippines ‘Gi of Seling Price oF FM, whichever is higher | Same as domestic 30% final tax 6% SP or FMV effective Jan, 2008 4. Net capital gains on sales or exchange lor disposition of lands and / or buildings Normal tax rate (30%) Not taxable Not taxable located outside the Philipines 5. International Carriers (FOREIT CORPBY > 2 112% on gross Phil Billings 6. Offshore Banking Units (OBU) Exempted 7. Branch Profit Remmitances: 15% of profits applied for remmitance [&: Regional Operating Headquarters 10% of taxable income [o. Regional or area Headquarters - Exempted 5 "Note: * 6/10 of 19% tax on sale of shaves of stock traded in local stock exchange is a percentage tax not an income tax Its payment will exempt the transaction from income tax. * Sale on real property by nonresident foreign corporation is subject toa final final tx of 30% based on gain by Jan. 2009 (RA9337). ‘Sale of real property outside by resident citizen and domestic corporation is subject to normal tax rate based on gain PASSIVE INCOME WITHIN Interest from depository bank under the lexpanded foreign currency deposit system. Tax exempt Sec. 27 B13) [2 Royalties, Vield or monetary substitutes from deposites substitutes, trust funds and simitar arrangements. Normal Corporate Income Taxat 30% [3 Interest on currency bank deposit Normal Corporate Income Tax at 30% [4 Cash/Property Dividends 19% Sec, 7D 15% See. 70H, See. 28 Aa) Sec. 28 A(7)(@) 20% 20% 20% 20% 0% 0% (inter-corporate div.) |(inter-corporate div.) 30% ifnot or 15% ifentitled to.a tax sparing credit