Income Taxation Summary

Summary for Income Taxation

Income tax: conduc uc tax on person's income , emolument, profits arising from property , practice of profession , cond less the deductions and/or personal and additional exemptions , if any, any, aut author horize ized d for such such incom incom

Individuals: Resident Citizen CAPITAL GAIN TAX:

On capital gains presumed to have been realized from sale of capital asset located in the Philippines  -based on Selling Price, Zonal Value or Assessed Value whichever is highest On capital gains for shares of stock of a domestic corporation not traded in the stock exchange -Not over P100,000 -Excess over P100,000

6%

5% 10%

PASSIVE INCOME TAX within the Philippines:

1. Interest from currency deposits, trust funds and deposit substitutes 2. Royalties -Books, Literary and Musical Compositions -Others 3. Prizes -P10,000 or less -more than P10,000 4. Winnings -PCSO and LOTTO -Others 5. Interest Income from Foreign Currency Deposit 6. Cash and Property Dividends from Domestic Corporations 7. Interest Income from Long-Term Deposit or Investment  but if preterminated before 5th year. Interest incomes must be taxed based on the holding period: -Less than 3 years -3 years to less than 4 years -4 years to less than 5 years -5years or more  ALL OTHER INCOME 

20%

10% 20% Schedular Tax of 5-32% 20% Exempt 20% 7.50% 10% 0%

20% 12% 5% 0% Schedular Tax of 5-32%

Corporations

Domestic Corporations

General Income

30% -Net Taxable Income

MCIT 

2% -Gross Income

IAET 

10% - IAE Table

t of trade or business  or on the pertinent items of gross income spec specif ifie ied d in th th , by the Tax Code, as amended, or other special laws.

Non-Resident Citizen

NR-Citizen / R-Alien

6%

6%

5%

5%

10%

10%

20%

20%

10%

10%

20%

20%

Schedular Tax of 5-32%

Schedular Tax of 5-32%

20%

20%

Exempt

Exempt

20%

20%

0%

7.50%

10%

10%

0%

0%

20%

20%

12%

12%

5%

5%

0%

0%

Schedular Tax of 5-32%

Schedular Tax of 5-32%

Proprietary Proprietary Educationa Educationall Instituti Institution on

GOCC, Agencie Agenciess and Instrumenta Instrumentalities lities

10%,  if other income does not exceed

50% of total gross income, 30%

30% -Net Taxable Income

otherwise. - Net Taxable Income 2% -Gross Income 10% - IAE Table

e Tax Code of 1997, as amended,

NRA - Engaged in T/B

NRA - Not Engaged in T/B

6%

6%

5%

5%

10%

10%

Aliens employed by MultiNational Companies

20%

15% based

10% 20% Schedular Tax of 5-32% 20% Exempt 20%

0% 20% 0%

20% 12% 5% 0% Schedular Tax of 5-32%

25% based on Gross Income

on Gross Income

Taxable Partnerships

30% -Net Taxable Income

Exempt Corporations

0%  for Exempt Activities, 30% for Taxable Activities

Resident Foreign Corporation

30% -Net Taxable Income

2% -Gross Income

2% -Gross Income

10% - IAE Table

10% - IAE Table

International Carriers

Regional Operating Headquarter of MultiNational Companies

2.5% based on Gross Philippine Billings

10% based on Gross Income