Percentage Tax

Coverage Taxable Base Tax Rate
Non-VAT registered persons under Section 109 Gross sales or receipts 3%

(BB)
Domestic carriers and keepers of garages Gross receipts 3%
International air/shipping carriers doing business Gross receipts on transport of cargo 3%

in the Philippines from the Philippines to a foreign
country
Franchise grantees:
2%
Gas and water utilities
Radio and television broadcasting companies Gross receipts 3%

whose annual gross receipts of the preceding
year do not exceed Php10,000,000 and did not Gross receipts
opt to register as VAT taxpayer
Overseas dispatch, message or conversation Amount paid for the service 10%
originating from the Philippines
Banks and non-bank financial intermediaries Interest, commissions and discounts from lending
performing quasi-banking functions activities as well as income from financial leasing,
on the basis of remaining maturities of instruments
from which receipts are derived:
• If maturity period is five years or less 5%
• If maturity period is more than five 1%

years
Dividends and equity shares and net 0%

income of subsidiaries
Royalties, rentals of property, real or 7%

personal, profits from exchange and
all other items treated as gross
income under Sec. 32 of the Tax
Code, as amended
Net trading gains within the taxable 7%

year of foreign currency, debt
securities, derivatives and other
similar financial instruments
Other non-bank financial intermediaries Interest, commissions, discounts and 5%

all other items treated as gross
income under the Tax Code, as
amended
Interest, commissions, discounts from lending

activities, as well as income from financial leasing
on the basis of remaining maturities of instruments
from which such receipts are derived:
• If maturity period is five years or less 5%
• If maturity period is more than five 1%

years
Life Insurance Company/Agent/Corporation Total premiums collected 2%

(except purely cooperative companies or
associations)
Agents of foreign insurance companies (except reinsurance premium):
Insurance agents authorized under the Insurance Total premiums collected 4%

Code to procure policies of insurance for
companies not authorized to transact business in
the Philippines
Owners of property obtaining insurance directly Total premiums paid 5%

with foreign insurance companies
Proprietor, lessee or operator of the following:
Cockpits Gross receipts 18%
Cabarets, Night or Day Clubs, videoke bars, Gross receipts 18%

karaoke bars, karaoke televisions, karaoke boxes
and music lounges
Boxing exhibitions (except when the World or Gross receipts 10%

Oriental Championship is at stake in any division,
provided further that at least one of the
contenders for World Championship is a citizen of
the Philippines and said exhibitions are promoted
by a citizen/s of the Philippines or by a
corporation/ association at least 60% of the
capital of which is owned by said citizen/s)
Professional basketball games (in lieu of all other Gross receipts 15%
percentage taxes of whatever nature and
description)
Jai-alai and race track Gross receipts 30%
Winnings on horse races  Winnings or 'dividends' 10%
 Winnings from double 4%

forecast/quinella and trifecta bets
 Prizes of owners of winning race 10%

horses
 Non-VAT taxpayers with gross annual revenues not exceeding

P3M ( most freelancers and sole proprietors who are just starting
out fall under this category).
 Domestic and international carriers except those who
use bancas and animal-drawn vehicles
 Franchisees of the either of the following: gas or water
utilities; radio and/or TV broadcasting companies whose gross
annual revenues do not exceed P10M; services that send
overseas dispatch, messages, or conversations from the
Philippines
 Proprietors, lessees, or operators of cockpits, cabarets,
racetracks, night or day clubs, professional basketball games,
etc.
 Banks, non-bank financial intermediaries and finance
companies
 Life insurance companies and agents of foreign insurance
companies

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Percentage Tax

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Coverage Taxable Base Tax Rate

Non-VAT registered persons under Section 109 Gross sales or receipts 3%

Domestic carriers and keepers of garages Gross receipts 3%

International air/shipping carriers doing business Gross receipts on transport of cargo 3%

Radio and television broadcasting companies Gross receipts 3%

• If maturity period is five years or less 5%

• If maturity period is more than five 1%

Dividends and equity shares and net 0%

Royalties, rentals of property, real or 7%

Net trading gains within the taxable 7%

Other non-bank financial intermediaries Interest, commissions, discounts and 5%

Interest, commissions, discounts from lending

• If maturity period is more than five 1%

Life Insurance Company/Agent/Corporation Total premiums collected 2%

Agents of foreign insurance companies (except reinsurance premium):

Insurance agents authorized under the Insurance Total premiums collected 4%

Owners of property obtaining insurance directly Total premiums paid 5%

Proprietor, lessee or operator of the following:

Cockpits Gross receipts 18%

Cabarets, Night or Day Clubs, videoke bars, Gross receipts 18%

Boxing exhibitions (except when the World or Gross receipts 10%

Jai-alai and race track Gross receipts 30%

Winnings on horse races  Winnings or 'dividends' 10%

 Winnings from double 4%

 Prizes of owners of winning race 10%

 Non-VAT taxpayers with gross annual revenues not exceeding

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