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    Corporate Income Tax Rate

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    Juliana Cheng
    The document summarizes corporate income tax rates, capital gains tax rates, and other income tax rates that apply to different types of corporations and common carriers in the Philippines. It outlines the regular corporate income tax rate of 30% for domestic, resident foreign, and non-resident foreign corporations. It also discusses minimum corporate income tax of 2%, passive income tax rates, capital gains tax rates, special tax rates for proprietary educational institutions, non-profit organizations, and common carriers.

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    Corporate Income Tax Rate

    Uploaded by

    Juliana Cheng
    272 views3 pages
    The document summarizes corporate income tax rates, capital gains tax rates, and other income tax rates that apply to different types of corporations and common carriers in the Philippines. It outlines the regular corporate income tax rate of 30% for domestic, resident foreign, and non-resident foreign corporations. It also discusses minimum corporate income tax of 2%, passive income tax rates, capital gains tax rates, special tax rates for proprietary educational institutions, non-profit organizations, and common carriers.

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    CORPORATE-INCOME-TAX-RATE

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    The document summarizes corporate income tax rates, capital gains tax rates, and other income tax rates that apply to different types of corporations and common carriers in the Philippines. It outlines the regular corporate income tax rate of 30% for domestic, resident foreign, and non-resident foreign corporations. It also discusses minimum corporate income tax of 2%, passive income tax rates, capital gains tax rates, special tax rates for proprietary educational institutions, non-profit organizations, and common carriers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    272 views3 pages

    Corporate Income Tax Rate

    Uploaded by

    Juliana Cheng
    The document summarizes corporate income tax rates, capital gains tax rates, and other income tax rates that apply to different types of corporations and common carriers in the Philippines. It outlines the regular corporate income tax rate of 30% for domestic, resident foreign, and non-resident foreign corporations. It also discusses minimum corporate income tax of 2%, passive income tax rates, capital gains tax rates, special tax rates for proprietary educational institutions, non-profit organizations, and common carriers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    CORPORATE INCOME TAX RATE

    Domestic Resident Foreign Non-resident


    Corporation Corporation Foreign Corporation
    1. Regular Corporate
    Income Tax (RCIT) 30% 30% 30%
    RATE:
    Net income Net income Gross Income
    Tax base:
    (within and without) (within only) (within only)
    2. Minimum Corporate
    Income Tax MCIT 2% 2% Not applicable
    RATE:
    Gross Income Gross Income
    Tax base: Not applicable
    (within and without) (within only)
    3. Gross Income Tax
    (GIT) OPTIONAL 15% 15% Not applicable
    RATE:
    Gross Income Gross Income
    Tax base: Not applicable
    (within and without) (within only)

    Note: if there’s a loss in last year’s operation – deduct such loss from the current taxable income.

    PASSIVE INCOME SUBJECT TO FINAL TAXES


    DC RFC NRFC
    1. Interest in any currency bank deposit 20 20 30
    2. Yield/monetary benefit from deposit
    20 20 30
    substitute
    3. Yield/monetary benefit from trust fund and
    20 20 30
    other similar arrangement
    4. Royalties 20 20 30
    5. Interest Income derived from depository bank
    15 7.5 Exempt
    under FOREIGN CURRENCY DEPOSIT SYSTEM
    6. Inter-corporate dividends received from
    exempt exempt 15/30
    domestic corporation

    CAPITAL GAINS SUBJECT TO CAPITAL GAINS TAX


    DC Foreign Corporation: RFC NRFC
    1. Sale of share of stock not traded in
    First 100,000 5 5
    the local stock exchange
    15
    Amount in excess of
    10 10
    TAX BASE: NET CAPITAL GAIN 100,000
    3. Sale or exchange or disposition of
    Land or buildings.
    6 NOT APPLICABLE
    TAX BASE: SELLING PRICE OR FAIR
    VALUE WHICHEVER IS HIGHER
    TAX TREATMENT OF CO-VENTURER’S SHARE IN THE NET INCOME OF A JOINT VENTURE
    Joint Venture By a Corporate Co-Venturer By an Individual Co-Venturer
    Net Income: dividend income
    (Inter-corporate Dividend)
    1. Taxable Joint Venture TAX EXEMPT FWT

    Note: income is not distributed Note: Income is NOT


    distributed to individual
    The respective share in the The respective share in the
    joint venture profit shall be joint venture profit shall be
    included in the computation of subject to basic tax (graduated
    2. Tax-exempt Joint the corporate co-venturer’s tax).
    Venture taxable income of 30%

    Note: income is distributed to Note: income is distributed to


    co-venturer co-venturer

    INCOME TAX RATES OF SPECIAL CORPORATIONS


    1. DOMESTIC CORPORATIONS: (BASIS: NET INCOME) Rate
     Proprietary educational institutions (PEI)
    10
    Note: GI<UNRELATED INCOME = 30%
     Non-profit hospitals 10
    2. RESIDENT FOREIGN CORPORATION (BASIS: NET INCOME)
     International Carrier 2.5
     Regional Operating headquarters (ROHQ) of
    10
    multinational corporation
    3. NON-RESIDENT FOREGN CORPORATION
    (BASIS: GROSS INCOME)
     Non-resident owner or lessor of vessel 4.5
     Non-resident cinematography film owner, lessor
    25
    or distribution
     Non-resident lessor of aircraft, machinery 7.5
    APPLICABLE INCOME TAX OF EDUC ATION INSTTUTIONS IN THE PHILIPPINES
    Passive
    Educational Institution Ordinary Income Capital Gains
    Income
    Proprietary Educational Generally, 10% of net income
    FWT CWT
    Institution (PEI) 30% - unrelated income>related income
     Philippine Constitution, Art. XIV, Sec.
    4(3) – all REVENUES and ASSETS of
    non-s tock, non-profit educational
    Non-stock non-profit institutes used actually, directly,
    educational institutions exclusively for educational purposes.
    (NSEIs) = TAX EXEMPT
     Section 30, NIRC = TAX EXEMPT
    (h) = A non-stock non-profit FWT CGT
    educational institution
    Government Educational Section 30, NIRC – the following shall not be
    Institutions (GEIs) taxes:
    (i) Government educational institution FWT CGT
    and
     As provided in the law or charter
    creating the GEI

    APPLICABLE INCOME TAX OF COMMON CARRIERS (SUMMARY)


    Common Carrier Ordinary Passive Income Capital Gains

    Domestic Common Carriers (Higher): 30%


    FWT CGT
    (Local companies) RCIT or 2% MCIT

    GR: 2.5% GPB; or

    Preferential % or
    International Carriers (RFCs) FWT CGT
    exempt on the
    basis of a treaty
    of reciprocity

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