FIXED TAX ON INDIVIDUALS

**A nonresident alien engaged in trade or business is an individual who shall come to the Philippines & stay therein for an aggregate period of more than
180 days during any calendar year

NON-RESIDENT
NON-RESIDENT NON-RESIDENT
RESIDENT ALIEN NOT
TYPE OF INCOME CITIZEN (INCL. RESIDENT ALIEN ALIEN ENGAGED IN
CITIZEN ENGAGED IN
OCW) TRADE / BUSINESS
TRADE / BUSINESS

Interest from any currency bank deposit & yield 20% Final Tax 20% Final Tax 20% Final Tax 20% Final Tax 25% Final Tax
or any other monetary benefit from deposit
substitutes & from trust funds & similar
arrangements

Royalties (except on books & other literary works

& musical compositions)

Prizes> P10,000

Other winnings except PCSO & Lotto <

P10,000Other winnings except PCSO & Lotto

Royalties on books & other literary works & 10% Final Tax 10% Final Tax 10% Final Tax 10% Final Tax 25% Final Tax
musical compositions

Prizes< P10,000 Schedular rate Schedular rate Schedular rate Schedular rate 25% Final Tax

Winnings from PCSO& Lotto < P10,000 Exempt Exempt Exempt ExemptExempt 25% Final Tax Commented [TCE1]: Note: Provision of the law was not
amended by TRAIN
Winnings from PCSO& Lotto > P10,000 20% Final Tax 20% Final Tax 20% Final Tax

Winnings from PCSO& Lotto (Based on Sec. 5 (Based on Sec. 5 of

of (Based on Sec. 5 of TRAIN)Exempt
TRAIN)Exempt TRAIN)Exempt

Interest Income received by an individual 15% Final Tax Exempt 15% Final Tax Exempt Exempt
(except a nonresident individual) from a
depositary bank under the expanded foreign (Based on Sec. 5 (Based on Sec. 5 of
currency deposit system of TRAIN)7.5% TRAIN)7.5% Final
Final Tax Tax

Interest income from long term deposit or Exempt Exempt Exempt Exempt 25% Final Tax
investment in the form of savings, common or
individual trust fund, deposit substitutes,
investment management accounts & other
investments evidenced by certification in such
 NON-RESIDENT
NON-RESIDENT NON-RESIDENT
RESIDENT ALIEN NOT
TYPE OF INCOME CITIZEN (INCL. RESIDENT ALIEN ALIEN ENGAGED IN
CITIZEN ENGAGED IN
OCW) TRADE / BUSINESS
TRADE / BUSINESS

form prescribed by the BSP (held for 5 years or

more)

Pre-termination of such certificate before the 5th 5% Final Tax on 5% Final Tax on 5% Final Tax on the 5% Final Tax on the N/A
year (i.e. 4 years to less than 5 years) the entire income the entire income entire income entire income

3 years to less than 4 years 12% 12% 12% 12% N/A

less than 3 years 20% 20% 20% 20% N/A

Cash and/or Property Dividends from a 10% Final Tax 10% Final Tax 10% Final Tax 20% Final Tax 25% Final Tax
domestic corp. or from a joint stock co., insurance
or mutual fund companies & regional operating
headquarters of multinational companies;

Share of an individual in the distributable net

income after tax of a partnership (except GPP);

Share of an individual in the net income after

tax of an assn., a joint account or a joint venture
or consortium taxable as a corp. of w/c he is a
member/co-venturer

Capital gains from sale, barter, exchange or 15% Final Tax 15% Final Tax on 15% Final Tax on 15% Final Tax on net 15% Final Tax on net
other disposition of shares of stock (of domestic on net capital net capital gains net capital gains capital gains capital gains
corp.) not traded in the stock exchange gains realized realized during the realized during the realized during the realized during the
during the taxable yr. taxable yr. taxable yr. taxable yr.
For the first P100,000 taxable yr.
(Based on Sec. 5 of (Based on Sec. 5 of (Based on Sec. 5 of (Based on Sec. 5 of
(Based on Sec. 5 TRAIN)5% Final TRAIN)5% Final Tax TRAIN).5% Final Tax TRAIN)5% Final Tax
of TRAIN)5% Tax on net capital on net capital gains on net capital gains on net capital gains
Final Tax on net gains realized realized during the realized during the realized during the
capital gains during the taxable taxable yr. taxable yr. taxable yr.
realized during yr.
the taxable yr.

On any amount in excess of P100,000 10% 10% 10% 10% 10%

Capital gains from sale, exchange or other 6% Final Tax on 6% Final Tax on 6% Final Tax on the 6% Final Tax on the 6% Final Tax on the
disposition of real property located in Philippines, the gross the gross selling gross selling price gross selling price gross selling price
classified as capital assets, including pacto de selling price or price or current or current fair or current fair or current fair
retro sales & other forms of conditional sales current fair fair market value market value or market value or market value or
market value or or zonal value zonal value zonal value zonal value
zonal value whichever is higher whichever is higher whichever is higher whichever is higher
whichever is
 NON-RESIDENT
NON-RESIDENT NON-RESIDENT
RESIDENT ALIEN NOT
TYPE OF INCOME CITIZEN (INCL. RESIDENT ALIEN ALIEN ENGAGED IN
CITIZEN ENGAGED IN
OCW) TRADE / BUSINESS
TRADE / BUSINESS

higher

CG from sale/disposition of principal residence by

natural persons, the proceeds of which is fully
utilized in acquiring/constructing a new principal
residence w/in 18 mos. from date of sale,
provided historical cost/adjusted basis of sold Exempt from CG Exempt from CG Exempt from CG tax Exempt from CG tax Exempt from CG tax
property be carried to the new principal residence tax tax
built/acquired. Commissioner must be duly
notified w/in 30 days from sale. Tax exemption
can only be availed once every 10 years. If no full
utilization of proceeds of sale, such portion shall
be subject to CG tax
 FIXED TAX ON CORPORATION

TYPE OF INCOME DOMESTIC CORP RESIDENT FOREIGN NON-RESIDENT

CORP FOREIGN

Interest on currency bank deposits & yield or any other monetary 20% Final Tax 20% Final Tax 30% Income Tax
benefit form deposit substitutes & from trust funds & similar
arrangement

Royalties (similar within the Philippines)

Interest income from a depositary bank under the expanded foreign 15% Final Tax 7.5 Final Tax7.5 Final Tax Exempt from Tax Commented [TCE2]: Not yet amended by TRAIN. With
currency deposit system (EFCDS) pending Senate Bill.
(Based on Sec. 7 of
TRAIN)7.5% Final Tax

Capital Gainsfrom sale, barter, exchange or other disposition of 15% Final tax on net capital
shares of stock of domestic corporation NOT traded in the stock gains realized during the
exchange taxable yr
For the first P100,000 (Based on Sec. 7 of
TRAIN)5% Final tax on net
capital gains realized during
the taxable yr
5% Final tax on net capital
gains realized during the
taxable yr5% Final tax on
net capital gains realized
during the taxable yr
5% Final tax on net capital
gains realized during the
taxable yr5% Final tax on Commented [TCE3]: Not yet amended by TRAIN. With
net capital gains realized pending Senate Bill.
during the taxable yr
Commented [TCE4]: Not yet amended by TRAIN. With
pending Senate Bill.

On any amount in excess of P100,000 10% 10% 10%

Income derived by depositary bank under the EFCDS from foreign Exempt from Final Tax – Exempt from Final Tax –
currency transactions with non-residents, offshore banking units in Part of gross income subject Part of gross income
the Philippines, local commercial banks including branches of to 35%/30% corp. income subject to 35%/30% corp.
foreign banks that may be authorized by the BSP to transact tax income tax
business with FCDS units & other depositary banks under the
EFCDS

(RA 9294) (RA 9294)

Interest income from foreign currency loans granted by such 10% Final Tax 10% Final Tax N/A
depository banks under said EFCDS to RESIDENTS

Inter-corporate dividends (from a domestic corp.) Exempt from Tax Exempt from Tax 15% Final Tax
*subject to the rule on tax
credit for tax actually paid
and tax deemed paid.
Otherwise, subject to
regular income tax rate of
35%/30%
Capital Gainsfrom sale, exchange or other disposition of lands 6% Final tax on gross selling 30% Income Tax 30% Income Tax
and/or buildings which are not used in the business of a corp. & are price or FMV or zonal value,
treated as capital assets whichever is higher

TYPE OF INCOME TAX RATE FOR ALIEN INDIVIDUAL EMPLOYED BY

** MULTINATIONAL COMPANY = a foreign firm/entity engaged in international trade with Regional or Area Headquarters & Regional Operating headquaters
affiliates/subsidiaries/branch offices in the Asia Pacific Region & other foreign markets of Multinational Cos.

Gross Income = Salaries, Wages, Annuities, Regular income Tax Rate under Sec. 24 (A) (2) (a) of the Tax Code, as amended.
Compensation, Remuneration and Other
Emoluments (i.e., honoraria & allowances received
from such companies. Provided, same tax treatment
shall apply to Filipinos abroad employed & (Based on Sec. 6 of TRAIN and veto message of President Duterte. Veto message is embodied in Sec.4(C)
occupying same positions in these companies of RR 8-2018)

15% of gross income

Other income (that is income other than Subject to regular graduated tax Offshore Banking Units Petroleum Service Contractor
compensation from being employed by a rate and Subcontractor
RHQ/ROHQ, OBU or Petroleum Service Contractor
& Subcontractor