SUBJECT

Resident Citizen

Non-Resident Citizen

Resident Alien

NRA-ETB

NRA not ETB

BASIS

Net basis (with the benefit of

deductions and/or personal and
additional exemptions
Net basis (with the benefit of
deductions and/or personal and
additional exemptions
Net basis (with the benefit of
deductions and/or personal and
additional exemptions
Net basis (with the benefit of
deductions and/or personal and
additional exemptions

flat tax of 25% on gross

income (without the benefit of
deductions and/or personal and
additional exemptions)

SITUS

ORDINARY INCOME TAX

WITHIN AND
WITHOUT

WITHIN

5-32% on taxable income

(other than Subsection B, C, D
income)

CAPITAL GAINS TAX

FINAL TAX (SUBSECTION B INCOME)

SUBSECTION C INCOME
Sales of shares of
domestic corporations not
listed and traded in PSE
held as capital asset

SUBSECTION D INCOME
Sale of real property in the
Philippines held as capital
asset (GSP or FMV whichever
is higher)

Interest from
currency bank deposit,
yield/monetary benefit
from deposit
substitutes/trust funds
(PH sourced), in
general

Royalties, in general

On net capital gain not over

P100,000 - 5%
On net capital gain in
excess of P100,000 - 10%

6%

20%

7.50%

n/a

10%

Interest under
Expanded Foreign
Currency Deposit
system (FCDU)

Interest Income on
Royalties on books,
Foreign Loans
literary works and musical
contracted on or after
compositions
August 1, 1986

NOTE: If royalty is
"active" (instead of
passive) - considered
(A) regular income
(business income)

Cash and/or Property

Dividends from a
domestic corporation

Prizes more than

10,000

Winnings
NOTE 1: stock dividends
are EXEMPT
NOTE 2: if dividends are
from foreign corporation,
(A) income - graduated
rate of 5%-32%

Long-term deposit or
investment issued by
banks (with maturity of 5
years or more)**

NOTE: if 10k or less,

subject to income
tax as (A) income

NOTE: PSCO and Lotto

winnings are EXEMPT

20%

20%

20%

10%

EXEMPT

5% and 10%

6%

20%

EXEMPT

n/a

10%

20%

20%

20%

10%

EXEMPT

WITHIN

5% and 10%

6%

20%

7.50%

n/a

10%

20%

20%

20%

10%

EXEMPT

WITHIN

5% and 10%

6%

20%

EXEMPT

n/a

10%

20%

20%

20%

10%

EXEMPT

5% and 10%

6%

5% and 10%

6% (to own land here, look at

capitalization; condominium
units, etc.)

20%

7.50%

n/a

20%

n/a

EXEMPT

n/a

5% and 10%

n/a

20%

7.50%

n/a

20%

n/a

EXEMPT

n/a

5% and 10%

n/a

Subject to Regular
Income Tax

EXEMPT

20%

30% flat tax (15% final tax

under "tax-sparing"
provision); if from
foreign corp - exempt

NOT SUBJECT TO FINAL

TAX; THE 30% TAX IS
IMPOSED ON GROSS
TAXABLE CORPORATE
INCOME

WITHIN

flat tax of 25% on PH sourced

gross income (without the benefit
of deductions and/or personal and
additional exemptions)
Others:
Cinematographic films and similar
works - 25% final tax on gross
income

NOTE: income subject to tax includes interest, cash and/or property dividends, rents, salaries, wages, premiums, annuities, compensation, remuneration, emoluments, or other fixed, determinable, annual or periodic gains
(FDAP income) - income forms that are usually of a recurring nature
The fact that income payment is not annual or periodic does not prevent income from being classified as FDAP income. The words "annual" and "periodical" are merely descriptive of the character of the gains, profits, and
income, as distinguished from gains, profits, and income derived from the outright sale of property (CIR v. Wodehouse)

30%

Domestic Corporation and

GOCCs (except GSIS, SSS,
PHIC, LWDs, PCSO - exempt)

generally taxable on a net basis

(with the benefit of deductions)

WITHIN AND
WITHOUT

NOTE: Proprietary educational

institutions and hospitals
(domestic) - entitled to 10%
preferential tax on taxable income,
except those covered by Section
27 (D) (i.e., passive income, CGT,
income from FCDUs)
BUT: if gross income from
unrelated trade or business or
other activity exceeds 50% of the
total gross income, 30% tax rate
applies on entire income
30%

Resident Foreign
Corporation

generally taxable on a net basis

(with the benefit of deductions)

WITHIN

Others:
1. Income derived by FCDU from
(a) residents other than OBUs 10% final tax (b) nonresidents,
other OBUs, LCBs, branches of
foreign banks - exempt
2. International carriers - 2.5% of
GPB
3. OBUs - Income derived by
FCDU from (a) residents other than
OBUs - 10% final tax (b)
nonresidents, other OBUs, LCBs,
branches of foreign banks exempt
4. RHQs/ROHQs - 10%
preferential tax on taxable income
(entitled to deductions)
5. branch profit remittance tax 15% of total profits applied or
earmaked for remittance
30%

NON-Resident Foreign
Corporation

generally subject to 30% flat

tax on gross income (without
the benefit of deductions)

Others:
1. owner or lessor of vessels
chartered by PH nationals - 4.5%
of gross rentals, lease or charter
GROSS INCOME
fees
from all sources
2. lessor of aircraft, machinery and
WITHIN
other equipment - 7.5% of gross
rentals or fees
3. Cinematographic films and
similar works - 25% final tax on
gross income
4. interest on foreign loans - 20%

Aliens employed by
ROHQs/RHQs, OBUs,
subject to flat tax of 15%
petroleum service
preferential tax on PH gross
contractors (including
income (without the benefit of
Filipinos employed and
deductions and/or personal and
occupying the same position as
additional exemptions)
these aliens employed by
multinational companies)
*Items not subject to final tax are subject to ordinary income tax.

** If pre-terminated before the

5th year:

SHARES

4 years to less than 5 years - 5%

3 years to less than 4 years - 12%
less than 3 years - 20%
REAL PROPERTY
NOTE!

SUBSECTION B income must

be PH SOURCED
In red - exceptions to GR

If shares are (a) sold by a

dealer in securities or (b)
issued by a domestic
corporation - considered (A)
income

If domestic shares are listed

and traded in PSE, sale is
subject to 0.5% stock
transaction tax on gross
selling price or gross value in
money

Except: sale of principal

residence of natural
persons, where proceeds
used to acquire or construct
new principal residence
w/in 18 months from sale,
is exempt from 6% CGT

If real property sold located

outside PH:
resident citizen - (A) income;
nonresident citizen and
resident alien - exempt

If property sold to
gov't or GOCCs,
graduated rate of 5%
to 32%, at TP's
option

NOT SUBJECT TO FINAL TAX; THE 30% TAX IS IMPOSED ON GROSS TAXABLE CORPORATE INCOME