SCHEDULE OF FINAL TAX RATES ON CERTAIN PASSIVE INCOMES

(Sec. 24 B, 25 A (2), 27 D, 28 A (7), 28 B (5), NIRC, as amended by TRAIN Law)

PASSIVE INCOME RC NRC RA NRAETB NRANETB DC RFC NRFC
INTEREST:
Interest or yield on local currency deposit:
1. Bank deposit (savings, time)
2. Deposit substitute 20% 20% 20% 20% 25% 20% 20% 25%
3. Money market placements
4. Trust funds (CTF, UITF, IMA)
Interest income from long term:
1. Common or Individual Trust Funds
2. Deposit
3. Deposit substitute 20% OR 25% RCIT
25% RCIT CREATE 25% (Beg. Jan.
Exempt Exempt Exempt Exempt 25% CREATE ( Beg. July 1,
4. Investment Management Accounts (Beg. July 1, 2020) 1, 2021
2020
5. Investment in the form of savings
6. Other investments evidenced by certificates prescribed by the
BSP
Pre-termination of long-term deposit or investment:
1. Less than 3years held 20% 20% 20% 20%
2. 3 years to less than 4 years held 12% 12% 12% 12% 25% 20% 20% 25%
3. 4 years to less than 5 years held 5% 5% 5% 5%
Interest Income on FCDU Deposit from a depository bank 15% Exempt 15% Exempt Exempt 15% 15% Exempt
DIVIDENDS (Cash or Property):
1. From a Domestic Corporation, ordinary partnership, etc. 15% or 25%
- January 1, 2000 earnings 10% 10% 10% 20% 25% Exempt Exempt FWT
2. From a Foreign Corporation (resident and non-resident) Pre-dominant income is within, same rule as DC, if without Regular Income Tax rules apply to RC and DC.
ROYALTIES
1. In general 20% 20% 20% 20% 25%
2. From books, literary works and musical compositions 10% 10% 10% 10% 25% 20% 20% 25%

PRIZES (TAXABLE)
1. P10,000 and below Graduated tax rate 20% OR 25% RCIT 25% RCIT 25% FT
2. Above P10,000 20% 20% 20% 20% 25% 20% OR 25% RCIT 25% RCIT 25% FT

WINNINGS
1. In general 20% 20% 20% 20% 25% 20% OR 25% RCIT 25% RCIT 25% FT
2. PCSO and Lotto winnings P10,000 is exempt; excess shall be subject to the 20% final Tax
INFORMER'S TAX REWARD 10%

SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT)

Income Payment EWT Income Payment EWT
Professional/Management/Consultancy fees Gross receipts 3M or below - 5% Purchase of goods or properties by Top Withholding Agents 1% - goods
(Individual) Gross receipts over 3M or VAT-reg - 10% (TWA) - 2% - service
Professional/Management/Consultancy fees (Non- Gross receipts 720,000 or below - 10% Partners in general professional partnerships (drawings, 720,000 or less - 10%
Individual) Gross receipts over 720,000 - 15% advances, sharings, allowances, etc.) Above 720,000 - 15%

Contractors/subcontractors (security, janitorial, etc.) 2% Commission (if not employee) 10%

Director's fees (if not employee) 10% or 15% (720,000 threshold) Income distributed to beneficiaries of estates/trusts 15%
Rental 5%