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  • MARTINEZ, MOLINA, GARIMBAO, VILLOTA Design 3

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    Brigit Martinez
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    1) Special corporations, both domestic and foreign, that are subject to tax on net income in the Philippines must use itemized deductions and file their tax return using BIR Form 1702-MX. 2) Non-resident foreign corporations are generally subject to a 30% final tax, except for non-resident owners of films (25% tax), vessels chartered by Filipinos (4.5% tax), and aircraft/equipment (4% tax). 3) Did you know - definitions for terms like WTI, PTI, PGI, and GPB, and that non-resident foreign corporations do not file tax returns but final taxes are withheld and remitted through BIR Form 16

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    1) Special corporations, both domestic and foreign, that are subject to tax on net income in the Philippines must use itemized deductions and file their tax return using BIR Form 1702-MX. 2) Non-resident foreign corporations are generally subject to a 30% final tax, except for non-resident owners of films (25% tax), vessels chartered by Filipinos (4.5% tax), and aircraft/equipment (4% tax). 3) Did you know - definitions for terms like WTI, PTI, PGI, and GPB, and that non-resident foreign corporations do not file tax returns but final taxes are withheld and remitted through BIR Form 16

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    10 views1 page

    MARTINEZ, MOLINA, GARIMBAO, VILLOTA Design 3

    Uploaded by

    Brigit Martinez
    1) Special corporations, both domestic and foreign, that are subject to tax on net income in the Philippines must use itemized deductions and file their tax return using BIR Form 1702-MX. 2) Non-resident foreign corporations are generally subject to a 30% final tax, except for non-resident owners of films (25% tax), vessels chartered by Filipinos (4.5% tax), and aircraft/equipment (4% tax). 3) Did you know - definitions for terms like WTI, PTI, PGI, and GPB, and that non-resident foreign corporations do not file tax returns but final taxes are withheld and remitted through BIR Form 16

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    REPORTING OF SPECIAL CORPORATIONS

    TAXABLE ON NET INCOME


    Special corporations, domestic or resident foreign, subject to tax on net
    income are mandatorily required to use the itemized deduction. They are
    not allowed the optional standard deduction. They file their income using
    BIR Form 1702-MX.

    SPECIAL NON-RESIDENT
    FOREIGN CORPORATION
    Non-resident foreign corporations are generally subject to 30% final tax.

    1.Non-resident cinematographic film owner, lessor, or distributor


    2.Non-resident lessor of vessels chartered by Philippine
    nationals
    3.Non-resident owner or lessor of aircraft, machineries, and other
    equipment

    NON-RESIDENT CINEMATOGRAPHIC
    FILM OWNER, LESSOR OR DISTRIBUTOR
    Cinematographic film includes motion picture films, films,
    tapes, discs and such other similar or related products (RR6-
    2001).
    Under the NIRC, owners, lessors, or distributors of
    cinematographic films are subject to a 25% final tax on their
    gross income from all sources within the Philippines. The
    phrase "from all sources within" is broad to encompass any
    taxable income, passive or active, other than those arising
    from rentals of cinematographic films.

    NON-RESIDENT LESSOR OF VESSELS


    CHARTERED BY PHILIPPINE NATIONALS

    These are subject to a 4 1/2% final tax on gross rentals,


    lease, or charter fees from leases or charters to Filipino
    residents or corporations as approved by the Maritime
    Industry Authority.

    NON-RESIDENT OWNER OR LESSOR OF AIRCRAFT,


    MACHINERIES, AND OTHER EQUIPMENT

    A non-resident owner or lessor of aircraft,


    machineries, and other equipment is subject to tax
    at 4% of gross rental.
    This tax is applied on a quarterly basis.

    DID YOU KNOW...

    WTI = World taxable income


    PTI = Philippine Taxable income
    PGI = Philippine gross income
    GPB = Gross Philippine billings
    That gross income is gross receipts less the direct cost of
    services while Gross Philippine Billings relates to gross
    receipts.
    That non-resident foreign corporations, special or resident,
    do not file income tax returns. Philippine residents who make
    income payments to them must withhold the final tax and
    remit the same to the government through BIR Form 1601-F.

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