FINAL WITHHOLDING TAX ON PASSIVE INCOME

RC NRC RA NRA- NRA- DC RFC NRFC

ETB NETB
Interest from currency deposits, trust funds and
deposit substitutes(from atlst 20 persons), gov’t debt 20% (if not within the coverage, RIT) 25% 20% 20% 30%
instrument (T bills)
Interest income issued by bank from ST investment 20% 25% 20% 30%
LT investment E E E E 25% 20% 30%
HOLDING PERIOD RULE  Pretermination of LT 4yrs-less than 5yrs 5%
investments
3yrs-less than 4yrs 12%
For Individuals only (RC  NRA-ETB)
Less than 3yrs 20%
Interest Income from a (foreign currency deposit)
Depository Bank under the Expanded Foreign 15% E 15% E E 15% 7.5% E
Currency Deposit System (joint account on forex ½)
Interest income from foreign banks, (bank or non
bank)
RIT E RIT E E RIT E
Depository banks earn interest income from its own Source
operation/forex transaction Resident OBU, FCDU Resident, other banks Off shore/NR
FCDU – division of domestic bank
Income fr forex
EFCDU – division of D/RF bank authorized  EFCDS transactions
E 10% E
OBU – division of foreign bank  FCDT Income fr non forex
transactions
RCIT
Royalties w/in (RIT if w/o) - book, literary & musical
comp
10% 25% 20% 30%
- not book 20% 25% 20% 30%
Prizes - P10,000 or less RIT 25%
- Over P10,000 sources within, if w/o -RIT 20% 25% RIT (di pa withheld) 30%
Winnings sources within, if without RIT
(PCSO and Lotto – dati exempt)
20% 25% RIT (di pa withheld) 30%
Dividends from – Domestic Corp
(except stock and liquidating dividends) 15%
 Share in Net income of taxable JV
10% 20% 25% E E
30%
 Share in Net income of taxable Partnership
– RFC RIT E E E RIT E E
Capital Gains fr sale of real prop in the Phil as cap ass 6% 6% RIT
Net capital gains from sale of share directly to buyer 15% 5% and 10% 15% 5% and 10%
Tax informer’s reward (violation of NIRC/discover 10% of revenues, fees, imposed or 1M -
smuggled goods) LOWER