Sec

2.57.1 (D) formerly G Revenue Regulations 2-98 as amended by Revenue

Regulations Nos. 8-98, 6-2001, 17-2003, 11-2018

§2.57.1 (G)(D) Income Payment to a Domestic Corporation. — The following items of
income shall be subject to a final withholding tax in the hands of a domestic
corporation, based on the gross amount thereof and at the rate of tax prescribed
therefor:

(1) Interest from any currency bank deposit and yield or any other
monetary benefit from deposit substitutes and from trust fund and
similar arrangements derived from sources within the Philippines —
Twenty Percent (20%).

(2) Royalties derived from sources within the Philippines — Twenty percent
(20%).

(3) Interest income derived from a depository bank under the Expanded
Foreign Currency Deposit System, otherwise known as a Foreign
Currency Deposit Unit (FCDU) — Seven and one-half percent (7.5%) –
fifteen percent (15%) (per Section 1 of RR No. 11-2018, 15 March,
retroactively effective to 01 January).

(4) Income derived by a depository bank under the Expanded Foreign
Currency Deposit System from foreign transactions with local
commercial banks including branches of foreign banks that may be
authorized by the Bangko Sentral ng Pilipinas (BSP) to transact business
with Foreign Currency Deposit System Units and other depository banks
under the expanded foreign currency deposit system including interest
income from foreign currency loans granted by such depository bank
under the said expanded foreign currency deposit system to residents —
Ten percent (10%).

(5) On capital gains presumed to have been realized from the sale, exchange
or other disposition of real property located in the Philippines classified
as capital assets, including pacto de retro sales and other forms of
conditional sales (Section 2, RR No. 17-03) based on the gross selling
price or fair market value as determined in accordance with Sec. 6(E) of
the Code, whichever is higher — Six percent (6%). (see Section 2, RR No.
8-98)

In case of a sale on installment of real property classified as capital
asset, the procedures stated under Sec. 2.57.2(J) hereof on the sale
of real property classified as ordinary asset shall apply with the
exception that the withholding tax on the former shall be final
 whereas that on the latter shall be creditable. (Section 2, RR No. 17-
03)

(6) Capital Gains from Sale of Shares of Stock Not Traded in the Stock
Exchange. - On the net capital gains realized during the taxable year
from the sale, barter, exchange or other disposition of shares of
stock in a domestic corporation - Fifteen percent (15%) (per Section
1 of RR No. 11-2018, dated 15 March, retroactively effective to 01
January)

(7) Gross income derived from contracts by subcontractors from
service contractors engaged in 'petroleum operations' as defined
under P.D. 87 (also known as the 'Oil Exploration and Development
Act') in the Philippines — Eight percent (8%) of its gross income
derived from such contracts in lieu of any and all taxes, national and
local, as imposed under P.D. 1354. (see Section 2, RR No. 6-01)