Type of Income Income tax rate Interest on currency bank deposits & yield or any other monetary benefit

from deposit substitutes & from trust funds & similar arrangement Royalties (similar within the Philippines) Interest income from a depositary bank under the expanded foreign currency deposit system (EFCDS) CG from sale, barter, exchange or other disposition of shares of stock (of domestic corp.) not traded in the stock exchange. For the first P100,000 On any amount in excess of P100,000 Income derived by depositary bank under the EFCDS from foreign currency transactions with non-residents, offshore banking unites in the Philippines, local commercial banks including branches of foreign banks that may be authorized by the BSP to transact business with FCDS units & other depositary banks under the EFCDS Interest income from foreign currency loans granted by such depository banks under said EFCDS to RESIDENTS Inter-corporate dividends (from a domestic corp.)

Domestic Corp 30% 20% Final Tax

Resident Foreign Corp 30% 20% Final Tax

Non-Resident Foreign 30% 20% Final Tax

7.5% Final Tax 5% Final tax on net capital gains realized during the taxable yr: 10% Exempt from Final tax Part of gross income subject to 32/%35% corp. income tax (RA 9294)

7.5% Final Tax 5% Final tax on net capital gains realized during the taxable yr: 10% Exempt from Final tax Part of gross income subject to 32/%35% corp. income tax (RA 9294)

Exempt from tax 5% Final tax on net capital gains realized during the taxable yr: 10% N/A

10% Final Tax

10% Final Tax

N/A

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 32%/35%

CG from sale, exchange or other disposition of lands and/or buildings which are not used in

6% Final tax on gross selling price or FMV or zonal value, whichever is

the business of a corp. & are treated as capital assets

higher

Type of Corporate Taxpayer International Air Carrier Gross Phil. Billings = amount of gross revenue derived from carriage of persons, excess baggage, cargo & mail originating from the Philippines in a continuous & uninterrupted flight, irrespective of the place of sale/issue & the place of payment of the ticket or passage document; Includes tickets revalidated, exchanges &/or indorsed to another intl airline if the passenger boards a plane in a port/point in the Philippines. For a flight which originates from the Philippines but transshipment of passenger takes place at any port outside the Philippines on another airline, only the aliquot portion of the cost of the ticket corresponding to the leg flown from the Philippines to the point of transshipment shall form part of the GPB International Shipping Gross Phil Billings = gross revenue whether for passenger, cargo or mail originating from the Philippines. up to final destination, regardless of the place of sale/ payments of passage of freight documents Offshore Banking Units Branch Profits remitted (connected with the conduct of its trade/business in the Philippines.) = based on the total profits applied/earmarked for remittance without any deduction for the tax component thereof (except those registered with the PEZA) Regional/Area Headquarters of Multinational Cos. = do not earn/derive income from the Philippines. & w/c act as supervisory, communication & coordinating center for their affiliates, subsidiaries or branches in the Asia-Pacific Region & other foreign markets Regional Operating Headquarters of Multinational Companies = engaged in any of the following services: a. General Administration & planning b. Business planning & coordination c. Sourcing & procurement of raw materials & components d. Corporate finance advisory services e. Marketing control & sales promotion f. Training & personnel mgt. g. Logistic services

Tax Rate 2 % on Gross Phil Billings

Final Tax of 10% on gross income from transactions with residents 15% on branch profits remittance

Exempt from tax

10% of taxable income

h. Research & development i. Services & product development j. Technical support & maintenance k. Data processing & communication l. Business development

Type of Taxpayer Nonresident cinematographic film owner, lessor or distributor (NOTE: Even to individuals) Nonresident owner or lessor of vessels chartered by the Phil. Nationals Nonresident owner or lessor of aircraft, machineries & other equipment

Tax Rate 25% of gross income 4.5% of gross rentals, lease or charter fees 7.5% of gross rentals or fees

Type of Income

Gross Income = Salaries, Wages, Annuities, Compensation, 15% of gross income Remuneration, Other Emoluments (i.e. honoraria & allowances) received from such cos. Provided, same tax treatment shall apply to Filipinos abroad employed & occupying same positions in these companies ** Multinational company = a foreign firm/entity engaged in international trade with affiliates/subsidiaries/branch offices in the Asia Pacific Region & other foreign markets

Tax Rate For Alien Individual Employed By Regional Or Area Offshore Banking Headquarters & Units Regional Operating Headquarters of Multinational Cos. 15% of gross income 15% of gross income

Petroleum Service Contractor & Subcontractor