TAX ON CERTAIN PASSIVE INCOME

The following DOMESTIC PASSIVE INCOME shall be subject to the following final II. Passive Royalties
income tax rates as provided by the NIRC and other special laws: A. In general
B. Royalties on books, literary works and musical compositions.
I. Interest Income on bank deposits C. Cinematographic films and similar works
A. Interests from local currency bank deposit and yield or any other monetary
benefit from deposit substitutes and from trust funds and similar Royalties RC NRC RA NRA- NRA- DC RFC NRFC
arrangements. ETB NETB
B. Interest income received by a taxpayer from a depository bank under the A 20% 20% 20% 20% 25% 20% 20% 25%
expanded foreign deposit system. B 10% 10% 10% 10% 25% 20% 20% 25%
C. Proceeds of pre-terminated long-term deposit for individual taxpayers or C 20% 20% 20% 25% 25% 20% 20% 25%
investment in the form of savings' common or individual trust funds, deposit
substitutes, investment management accounts and other investment III. Taxable Prizes, amounting to:
evidenced by certificates in such form as prescribed by the Bangko Sentral ng A. P10, 000 and below
Pilipinas (BSP) - shall be based on the remaining maturity of the investment B. More than P10, 000
for individuals (except NRA-NETB at 25%):
1. Less than 3 years Prizes RC NRC RA NRA- NRA- DC RFC NRFC
2. 3 years to less than 4 years ETB NETB
3. 4 to less than 5 years A RIT RIT RIT RIT 25% RIT RIT 25%
If the long-term deposit completed the period of five years or more, the interest B 20% 20% 20% 20% 25% RIT RIT 25%
income accumulated will be exempt from income tax.
IV. Winnings
Int. RC NRC RA NRA- NRA- DC RFC NRFC A. In general
Inc ETB NETB B. PCSO and Lotto Winnings, more than P10, 000
A 20% 20% 20% 20% 25% 20% 20% 25% C. PCSO and Lotto Winnings, P10, 000 and below
B 15% Exempt 15% Exempt Exempt 15% 15% Exempt
C.1 20% 20% 20% 20% 25% 20% 20% 25% Royalties RC NRC RA NRA- NRA- DC RFC NRFC
C.2 12% 12% 12% 12% 25% 20% 20% 25% ETB NETB
C.3 5% 5% 5% 5% 25% 20% 20% 25% A 20% 20% 20% 20% 25% RIT RIT 25%
B 20% 20% 20% 20% 25% 20% 20% 25%
C Exempt Exempt Exempt Exempt 25% Exempt Exempt 25%
V. Dividends (except stock and liquidating dividends) and Income Distributions NON RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS (NRA-ETB)
A. From domestic corporations ln general, the income tax rates applicable to this taxpayer shall be the rates
B. From taxable partnership, joint ventures, and taxable co-ownership imposed on individual citizen and a resident alien individual on the taxable
C. From resident foreign corporations, situs of dividend is within partly. income derived within the Philippines, except if the law requires a different
treatment.
Dividends/ RC NRC RA NRA- NRA- DC RFC NRFC
Share in ETB NETB NON RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESS (NRA-NETB)
income All income sources within the Philippines by this taxpayer such as interest, cash
A 10% 10% 10% 20% 25% Exempt Exempt 15%* and/or property dividends, rents, salaries, wages, premiums, annuities,
B 10% 10% 10% 20% 25% 10% 10% 25% compensation, remuneration, emoluments, or other fixed or determinable
C RIT RIT RIT RIT 25% RIT RIT 25% annual or periodic or casual gains, profits and income and capital gains from
*NRFC- subject to tax sparring rule on dividends, otherwise 25% dealings in properties are subject to 25%. These taxpayers do not have regular
income tax. These means that their income is either subject to final tax or
VI. Informer’s Reward exempt.
✓ Amount of cash reward is 10% of revenues, surcharges, or fees covered and
collected or P1, 000, 000, whichever is lower. The amount lower is NON RESIDENT FOREIGN CORPORATIONS (NRFC)
subjected to 10% final tax (Sec 282 A and B of NIRC) All income sources within the Philippines by this corporation are subject to 25%
final tax, except if the law requires a different treatment. These taxpayers do
Informers’ RC NRC RA NRA- NRA- DC RFC NRFC not have regular income tax. These means that their income is either subject to
Reward ETB NETB final tax or exempt.
I 10% 10% 10% 10% 25% 10% 10% 25%

FINAL WITHHOLDING TAX RETURN

Other Passive Income Subject to Final Tax (Special Laws)
I. Dividends on Tax Free Corporate Covenant Bonds BIR Form 0619F- Monthly Remittance Return of Final Income Taxes Withheld-
II. Dividends form Real Estate Investment Trust (REIT) shall be filed in triplicate by every withholding agent or payor for the first two
III. Dividends from cooperatives to members- exempt from income tax. months of the quarter and be filed and paid on or before the 10th day of the
next month in which the withholding was made.
Other RC NRC RA NRA- NRA- DC RFC NRFC
Income ETB NETB BIR Form 0619FQ- Quarterly Remittance Return of Final Income Tax Withheld
I 30% 30% 30% 30% 30% N/A N/A N/A shall be filed on or before the last day of the month after each quarter.
II 10% Exempt 10% 10%* 10%* Exempt Exempt 10%*
*rates are subject to preferential tax rates under applicable tax treaty.