Income

Resident
Citizen

<10
K
10K
to
<30
K
30K
to
<70
K
70K
to
<14
0K
140K
to
250K
250K
to
500k
>50
0K

NonResident
Citizen
Resident

5%
500 +
10% of
>10K
2.5K +
15% of
>30K
8.5K +
20%
>70K
22.5K
+ 25%
of
>140K
50K +
30% of
>250K
125K +
32% of
>500k

Married
Individuals:
Compute
Separately
Income cannot be
defined then
half equally
then add to
respective

I,DS,TF,R

Interest EFCD

20%

7.5%

Imposed upon:
1. Interest
from any
currency
bank
deposit,
yield, or
monetary
benefit
2. Deposit
substitutes,
and from
3. Trust Funds
and
4. Other
similar
arrangemen
ts and
royalties.

This is the
interest from
the Foreign
Currency
Deposit
System
This is only on
those who are
residents.
Ergo... Not
applicable to
non-resident
individuals.
If it is in a joint
account
between an
OCW and a
spouse (who is
a resident),
then 50/50.
Half is tax free
while the
other half is
subject to tax
of 7.5%

EXEMPT
(See Sec
27.D(3))

Same As

Tax on Individuals
Interest Royalties
LTD

Exemp
t
This is the
interest on
Long Term
Deposits
Generally
Exempt. But
there will be a
tax when it is
withdraws
before the
lapse of 5
years in which
case:
If you
4 to
<
5th
yr.
3 to
<
4th
yr.
<
3rd

remove:
5%

12
%

20
%

Prizes

Dividends

*10%

*20%

10%

Royalties
from:
1. Books,
2. Literary
works, and
3. Musical
compositio
ns.

EXCEPT: If
winnings from
PCSO & Lotto
then:

Includes cash
and property
dividends.

EXEMPT

Does not
matter if
actually or
constructively
received.

*Note: If the
royalty is not
from the
above, then
it is subject
to the 20%
tax

These
contemplates
that the prizes
and winnings
Apples to those
are made here received from:
in the PH.
1. Domestic
*If winnings
are less than
10K then
they go into
your taxable
income thus
they are
subject to
the scale.

Corp
2. Joint Stock
Company
3. Insurance or
mutual fund
4. Regional
Operating HQ
of MNC
5. Share in Part.
& JV/Con.

In Partnership,
not included
yung GPPs
STOCK
DIVIDENDS =
Not taxable\

CG-SS

CG-RP

Not 5%
Ove
r
100
K
Ove 10
r
%
100
K

6%

This only
applies to
those shares
of stock which
are not traded
in the PSE.
Imposed on
net Capital
Gains
If the stock is
traded in the
PSE then it is
0.5%
This
contemplates
that the
shares of
stock sold are
that of a
domestic
corporation.

Of Gross selling
price of current
fair market
value
whichever is
higher.
RP has to be:
CAPITAL
ASSET.
Sale is to the
government,
TP can choose
if he wants
the 6% or the
Scales.
IF: sale of RP is
the principal
residence to
make a new
house then
no CGT.
BUT:
(a) Proceeds of
sale = fully
utilized for new
residence, w/in
18 months.
(b) Notice to the
CIR.
(c) Can only
avail once every
10 years,

Alien

spouse.

resident
Citizen

(d) If you dont

use all for the
new house, that
portion is
subject to tax.

MWE Exempt
from tax even
overtime, night
differential, etc.

NonResident
Alien
Engaged
in trade
and
Business

Income

I,DS,TF,R

Same tax rate as

the individuals,
but only from
sources which are
derived from the
PH.

20%

If in the PH for an
aggregate of more
than 180 days you
are deemed to be
doing business in
the PH.

*Same

Interest
EFCD

Tax on Individuals Aliens

Interest Royalties
Prizes
LTD

EXEM EXEM
PT
PT
But the pretermination
rates also
apply.

Dividends

*10%

*20%

20%

*Same
consideratio
ns as above

If prize is <
10K, then the
tax according
to scale.

STOCK
DIVIDENDS =
Not taxable

*Same as
above

CG-SS
Not 5%
Ove
r
100
K
Ove 10
r
%
100
K

CG-RP

6%

Imposed on net
Capital Gains
Note: Any other
kind of capital
gains will be
25%

NonResident
Alien
NETB
Employed
by a
Regional
or Area

25%
If in the PH for an aggregate of more than 180 days = deemed doing business in the PH. But take note of special
considerations below. So if they fall under any of the FF, when they are taxable the 15% and not the 25% but also
only on those that are mentioned there.
Special Considerations for Aliens

15% on GROSS
The 15% tax is on his salary, wages, annuities, compensation, remuneration, and other emoluments. This provision also applied to Filipinos occupying the

Headquar
ter of
MNCs
Employed
by an
Offshore
Banking
Unit

same positions as the aliens in the MNC.

Any income earned from other sources in the Philippines shall be taxed accordingly.

15% on GROSS
Tax is on the gross income by foreigners employed by offshore banking units established here in the Philippines. Imposed on the same base as above.
This provision also applied to Filipinos occupying the same positions as the aliens in the OBU
Any income earned from other sources in the Philippines shall be taxed accordingly.

Employed
by
Petroleu
m
Service
Contract
or and
Sub
Contract
or

15% on salary, wages, annuities, compensation & remuneration

This contemplates that the resident is a permanent resident of a foreign country, but he is employed in the Philippines by a foreign service contractor or
subcontractor engaged in petroleum operations in the Philippines. This provision also applied to Filipinos occupying the same positions as the aliens in
the Petroleum Service Contractor
Any income earned from other sources in the Philippines shall be taxed accordingly.

Taxpayer
Domestic
Corporation
GIT = Gross
Income Tax
EFCD = Expanded
Foreign Currency
Deposit System
LCB = Local
Commercial Bank
FB = Foreign Bank

Income

GIT

30%

15% of
Gross
income

Tax on Corporations Domestic

Income from FCDU
I,DS,TF,R
Interest
EFCD

20%

Imposed upon:
5. Interest
from any
Not available
currency
now.
bank
deposit,
This can be
yield, or
availed of
monetary
when:
benefit
1. Tax effort
6. Deposit
Ratio of 20%
substitutes,
of GNP
and from

7.5%
This is applied
to income
derived by a
domestic
corporation
from a
depositary
bank under
the EFCD
This is the
interest

Exempt/
10%
Must be transacting
with foreign
currency.
Exempt from ALL
taxes EXCEPT: NET
INCOME from such
transactions as
specified by the
Secretary of
Finance

Intercorp
Dividends

NOT
SUBJET
TO TAX
STOCK
DIVIDENDS =
Not taxable

CG-SS

CG-RP

MCIT

Not 5%
Ove
r
100
K
Ove 10
r
%
100
K

6%

2%

Of Gross
selling price
of current fair
market value
whichever is
higher.

This is applied
to Gross
Income

Imposed on
net Capital
Gains
Note: Stock is

RP has to be:
CAPITAL
ASSET

This can be
imposed
beginning the
4th taxable
year from start
of business.
MCIT-NIT =
Excess; the

2. Ratio pf 40% 7. Trust Funds

of income
and
tax
Other similar
collection to
arrangements
total tax
and royalties
revenues
3. A VAT effort
of 4% of
GNP
4. 0.9% ratio of
consolidated
Public Sector
Financial
Position

earned
while
Refers to
interest dahil
nagpautang
and other stuff
pa.

NOT traded in
the PSE. If
the stock is
being traded
in the PSE
then it is
0.5%

Income of nonresidents from

transactions with
depositary banks
under the EFCD
system are exempt
whether individual
or corp.

difference
(excess) can
be deducted
for three
immediately
succeeding
taxable years.
Relief:
1. Suffers loses
due to
prolonged
labor dispute
2. Force majeure
3. Legitimate
business
reverses

Income derived by
depository bank
under the EFCD
with:
1. Nonresidents
2. Offshore banking
units in the PH
3. LCB
4. Branches of FBs in
PH authorized by
the BSP
BUT interest income
derived from foreign
currency loans
granted to residents
other than:
1. Offshore banking
units
2. Other depositary
banks under the
expanded system
Will be subject to
a final tax rate of

*10%.
Taxpayer

Income

GIT

I,DS,TF,R

Proprietary
Educational

10%

N/A

20%

Tax on Corporations
Income from
Interest
FCDU
EFCD

7.5%

N/A

Intercorp
Dividends

NOT

CG-SS

CG-RP

MCIT

Not 5%
Ove

6%

N/A

Institution

On Taxable
Income.

Interest
Income from a
foreign
currency
deposit

If the gross
income from
other activities
is > 50%, then
taxed as a
corp.

SUBJET
TO TAX
STOCK
DIVIDENDS =
Not taxable

r
100
K
Ove 10
r
%
100
K
Imposed on
net Capital
Gains

Of Gross
selling price of
current fair
market value
whichever is
higher.
RP has to be:
CAPITAL
ASSET

Same as Local Corporation

GOCC

The only ones that are exempt from taxes are: GSIS, SSS, PHIC, LWD, PCSO.
What firms is the MICT not applicable to?
1. Domestic Corporations operating as proprietary educational institutions subject to tax at 10% of their taxable income
2. Domestic Corporations engaged in hospital operations which are non-profit subject to tax at 10% on their taxable income
3. Domestic Corporations engaged in business as depository banks under the FCDU on their income from foreign currency transactions with local
commercial banks and other banks under the EFCD authorized by the BSP, including their interest income from foreign currency loans granted to
residents of the PH under the EFCDS, subject to a final tax of 10% income tax.
4. Those that are under a special tax regime (The PEZA law)

Taxpayer

Income

GIT / MCIT

IC

Tax on Corporations Foreign

OBU
BRP

R-HQ

Others

Resident
Foreign
Corporation
IC = International
Carrier

GPB = Gross
Philippine Billings
IAC = International
Air Carrier
IS = International
Shipping
OBU = Offshore
Banking Unit
BRP = Branch
Profit Remittance
RA = Regional or
Area Headquarters
RO = Regional
Operating
Headquarters

30%

GIT: 15% of
Gross
income
Not available now.
This can be availed
of when:
5. Tax effort Ratio of
20% of GNP
6. Ratio pf 40% of
income tax
collection to total
tax revenues
7. A VAT effort of 4%
of GNP
8. 0.9% ratio of
consolidated
Public Sector
Financial Position

MCIT: 2% of
Gross
income
Minimum
Corporate Income
Tax. Same as for
local corps

2.5%
Base: GPB
For IAC:
Amount of gross
revenue derived
from carriage
originating from
the PH in a
continuous and
uninterrupted
flight.
If a ticket is
revalidated,
exchanged, or
indorsed to
another carrier =
still constitute
GPB
If may stopover:
taxable lang the
leg from PH.

EXEMPT/
10%
Income derived by
OBUs authorized
by the BSP, from
foreign currency
transactions with:
1.Nonresidents
2.Offshore banking
units in the PH
3.LCB
4.Branches of FBs in
PH authorized by
the BSP

Shall be exempt
from all taxes
EXCEPT such
transactions that
may be specified by
the SOF.

For IS
BUT interest income
Gross revenue
derived from foreign
from stuff
currency loans
originating from
granted to residents
the PH,
other than:
regardless of
1.Offshore banking
place of sale or
units
payment of the 2.LCB*
passage or
3.Local branches of
freight docs.
FBs authorized by
International
BSP to transact
Carriers DBIP
business with OBUs
may avail of
Will be subject to a
preferential rate
10% tax.
or exemption on
their revenue
basta may treaty

15%
Base: Total Profits
applied or
earmarked for
remittance
without any
deduction for the
tax component
(Except those
activities which
are registered with
the PEZA)

RA =
Exempt
RO =
10%
RA = Branch
established in the
PH by MNCs which
do not earn or
derive income from
the PH. They just
act supervisory,
communications,
and coordination
center for their
affiliates.

Interests,
Dividends, Rents,
Royalties,
Remuneration for
Technical Services,
Salaries, Services,
Wages, Premiums, RO = Brach
established In the
Annuities,
PH by MNCs which
Emoluments, or
are engaged in:
other fix or
1.General
determinable
administration &
annual, periodic or
planning
casual gains,
2.Business planning &
profit, income,
coordination
and capital gains
3.Sourcing
&
received by a FC
Procurement
of
SHALL NOT BE
raw
materials
and
TREATED AS
components
BRACH
4.Corporate finance
REMITANCE
advisory services
PROFIT.
5.Marketing control &
sales promotion
UNLESS THEY
6.Training & personnel
ARE
management
EFFECTIVELY
7.Logistics services
CONNETED
8.R&D and PD
WITH TRADE OR 9.Tech support &
BUSINESS OF

I,DS,TF,R = 20%
There is no provision for the 10% for
books, musical compositions, etc.

Income from FCDU =

Exempt
Income derived by depository bank
under the EFCD with:
1. Nonresidents
2. Offshore banking units in the
PH
3. LCB
4. Branches of FBs in PH
authorized by the BSP
EXCEPT: if the interest income from
foreign currency loans granted to:
1. Residents other than offshore
banking units
2. Other depositary banks under
the expanded system
Will be subject to final tax rate of 10%

Interest EFCD =
7.5%
CG-SS:
Not Over
100K
Over 100K

5%
10%

Imposed on net Capital Gains

Intercorp Dividends
= Not Subject to Tax
STOCK DIVIDENDS = Not

THE CORP IN
THE PH

Income
Non-Resident Foreign
Corporation

30%

Maintenance
10. Data Processing
11. BD

taxable

Tax on Corporations - Foreign

Interest on Foreign Loans
Intercorporate Dividends

20%

15%

This is a final withholding tax

imposed on the amount of
interest on foreign loans.

Final withholding tax is imposed

on the amount of cash and/or
property dividends received
from a domestic corporation.

CG-SS
Not Over
5%
100K
Over 100K
10%
Imposed upon net capital
gains

But this is subject to the

condition that the country in
which the NRFC is domiciled
allows a credit against the tax
due from the NRFC taxes
deemed to have been paid in
the PH. This Credit should be
equivalent to 15%. This 15% is
the difference between the
Regular Income Tax (30%) and
the Tax on Dividends (15%)
Non-Resident
Cinematographic Film Owner,
Lessor, or Distributor
Non-Resident Owner or
Lessor of Vessels Chartered
by PH Nationals
Non-Resident Owner or
Lessor of Aircraft,
Machineries, and Other
Equipment

25%
Base: Gross income from ALL sources in the PH

4.5%
Base: Gross rentals, lease or charter fees from leases or charters to Filipino Citizens or Corporations; as approved by the Maritime
Industry Authority.

7.5%
Base: Gross Rentals of Fees from: Rentals, Charters, and other fees derived by a non-resident lessor of aircraft, machineries, and
other equipment.