CLASSIFICATION OF TAXPAYER

INDIVIDUAL TAXPAYER
1.) Resident Citizen
Income derived from sources w/n and w/o the Phil.

CORPORATION
i.
Domestic corporation / special corporation
Created and organized in the Philippines or under its law. It is taxable for income
derived from sources within and without the Philippines.

2.) Non-resident citizen

From income derived from sources within the Philippines; means a Filipino citizen:
Establishes the satisfaction of the fact of his physical presence abroad with a
definite intention to reside therein;
Who leaves the Phil during the taxable year to reside abroad either as an
immigrant or for employment on a permanent basis;
Work and derives income abroad whose employment requires him to be
physically present abroad during taxable time
Previously considered as a non-resident and who arrived in the Phil at anytime
during taxable year to reside thereat permanently shall be considered nonresident for the taxable year in which he arrives in the Phil with respect to his
income derived from sources abroad until date of his arrival

ii.
Foreign corporation / resident foreign corporation
Engaged in trade or business within the Philippines. It is taxable for income derived
from sources within the Philippines

3.) Resident alien

For income derived from sources within the Philippines
Means an individual whose residence is within the Phil and who is not a citizen
thereof
One who comes to the Phil from a definite purpose which in its nature would
require extended stay, and makes his home permanently in the country
becomes a resident alien
Length of stay is indicative of intention. An alien who shall have stayed in the
Phil for more than 1 year by the end of the calendar year is a resident alien
4.) Non-resident alien / engaged in trade or business
GR: shall be subject to an income tax in the same manner as an individual citizen and
a resident alien individual, on taxable income received all sources within the
Philippines.
NOTE: a non-resident alien individual who shall come to the Philippines and stay
therein for an aggregate period of more than 180 days during any calendar year shall
be deemed a non-resident alien doing business in the Philippines.
5.) Non-resident alien / not engaged in trade or business
The entire income received all sources within the Philippines by every non-resident
alien individual not engaged in trade or business within the Philippines as interest,
cash, rents, salaries, wages, premiums, annuities, compensation, remuneration,
emoluments, or other fixed or determinable annual or periodic or casual gains, profits,
and income, and capital gains.
A tax equal to 25% of such income. Capital gains realized by a non-resident alien
individual not engaged in trade or business in the Philippines the sale of shares of stck
in any domestic corporation and real property shall be subject to the income tax.

iii.
Foreign corporation / non-resident foreign corporation
Not engaged in trade or business within the Philippines. It is taxable for income
derived from sources within the Philippines.
PARTNERSHIP
1.) General co-partnership
2.) General professional partnership
TRUST
1.) Revocable trust
2.) Irrevocable trust
ESTATE
1.) Classification of taxpayer
A. INDIVIDUAL TAXPAYER
B. CORPORATION
C. PARTNERSHIP
1.) General co-partnership
2.) General professional partnership
A general profession partnership as such shall not be subject to the income tax
imposed;
Persons engaging in business as partners in a general professional partnership
shall be liable for income tax only in their separate and individual capacities
For purposes of computing the distributive share of the partners, the net
income of the partnership shall be computed in the same manner as a
corporation.
Each partner shall report as gross income his distributive share actually or
constructively received, in the net income of the partnership.
D. ESTATES
E. TRUST

1. Revocable trust

2. Irrevocable trust