Tax Rate

A. For Individuals Earning Purely Compensation Income and Individuals Engaged in Business
and Practice of Profession

Amount of Net Taxable Income Rate

Over But Not Over

P10,000 5%

P10,000 P30,000 P500 + 10% of the Excess over P10,000

P30,000 P70,000 P2,500 + 15% of the Excess over P30,000

P70,000 P140,000 P8,500 + 20% of the Excess over P70,000

P140,000 P250,000 P22,500 + 25% of the Excess over P140,000

P250,000 P500,000 P50,000 + 30% of the Excess over P250,000

P500,000 P125,000 + 32% of the Excess over P500,000 in 2000 and onward

Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments,
the first installment to be paid at the time the return is filed and the second installment 15 of the same
year at on or before July the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District
Office (RDO) where the taxpayer is registered.

Tax Rate Taxable Base

1. Domestic Corporations:

a. In General 30% (effective Jan. Net taxable income from all sources
1, 2009)

b. Minimum Corporate Income Tax* 2% Gross Income

c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income

2. Proprietary Educational Institution 10% Net taxable income provided that the
gross income from unrelated trade,
business or other activity does not
exceed 50% of the total gross income

3. Non-stock, Non-profit Hospitals 10% Net taxable income provided that the
gross income from unrelated trade,
business or other activity does not
exceed 50% of the total gross income

4. GOCC, Agencies & Instrumentalities

a. In General 30% Net taxable income from all sources

b. Minimum Corporate Income Tax* 2% Gross Income

c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income

5. National Gov't. & LGUs

a. In General 30% Net taxable income from all sources

b. Minimum Corporate Income Tax* 2% Gross Income

c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income

6. Taxable Partnerships

a. In General 30% Net taxable income from all sources

b. Minimum Corporate Income Tax* 2% Gross Income

c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income

7. Exempt Corporation

a. On Exempt Activities 0%
b. On Taxable Activities 30% Net taxable income from all sources

8. General Professional Partnerships 0%

9. Corporation covered by Special Laws Rate specified

under the
 respective special
laws

10. International Carriers 2.5% Gross Philippine Billings

11. Regional Operating Head 10% Taxable Income

12. Offshore Banking Units (OBUs) 10% Gross Taxable Income On Foreign
Currency Transaction

30% On Taxable Income other than Foreign

Currency Transaction

13. Foreign Currency Deposit Units 10% Gross Taxable Income On Foreign
(FCDU) Currency Transaction

30% On Taxable Income other than Foreign

Currency Transaction

*Beginning on the 4th year immediately following the year in which such corporation commenced its
business operations, when the minimum corporate income tax is greater than the tax computed using
the normal income tax.

Passive Income

1. Interest from currency deposits, trust funds and deposit substitutes 20%

2. Royalties (on books as well as literary & musical composition) 10%

- In general 20%

3. Prizes (P10,000 or less ) 5%

- In excess of P10,000 20%

4. Winnings (except from PCSO and lotto) 20%

5. Interest Income of Foreign Currency Deposit 7.5%

6. Cash and Property Dividends

- To individuals from Domestic Corporations 10 %

- To Domestic Corporations from Another Domestic Corporations 0%

7. On capital gains presumed to have been realized from sale, exchange or other
6%
disposition of real property (capital asset)

8. On capital gains for shares of stock not traded in the stock exchange

- Not over P100,000 5%

- Any amount in excess of P100,000 10%

9. Interest Income from long-term deposit or investment in the form of savings, common
or individual trust funds, deposit substitutes, investment management accounts and
other investments evidenced by certificates
Upon pretermination before the fifth year , there should be imposed on the entire Exempt
income from the proceeds of the long-term deposit based on the remaining maturity
thereof:
Holding Period

- Four (4) years to less than five (5) years 5%

- Three (3) years to less than four (4) years 12%

- Less than three (3) years 20%

B. For Non-Resident Aliens Engaged in Trade or Business

1. Interest from currency deposits, trust funds and deposit substitutes 20%

2. Interest Income from long-term deposit or investment in the form of savings, common
or individual trust funds, deposit substitutes, investment management accounts and
other investments evidenced by certificatesUpon pretermination before the fifth year, Exempt
there should be imposed on the entire income from the proceeds of the long-term
deposit based on the remaining maturity thereof:Holding Period:

-Four (4) years to less than five (5) years 5%

-Three (3) years to less than four (4) years 12%

-Less than three (3) years 20%

3. On capital gains presumed to have been realized from the sale, exchange or other
6%
disposition of real property

4. On capital gains for shares of stock not traded in the Stock Exchange

- Not over P100,000 5%

- Any amount in excess of P100,000 10%

C) For Non-Resident Aliens Not Engaged in Trade or Business

1. On the gross amount of income derived from all sources within the Philippines 25%

2. On capital gains presumed to have been realized from the exchange or other
6%
disposition of real property located in the Phils.

3. On capital gains for shares of stock not traded in the Stock Exchange

- Not Over P100,000 5%

- Any amount in excess of P100,000 10%

D) On the gross income in the Philippines of Aliens Employed by Regional Headquarters (RHQ)
or Area Headquarters and Regional Operating Headquarters (ROH), Offshore Banking Units
(OBUs), Petroleum Service Contractor and Subcontractor

On the gross income in the Philippines of Aliens Employed by Regional Headquarters 15%
(RHQ) or Area Headquarters and Regional Operating Headquarters (ROH), Offshore
Banking Units (OBUs), Petroleum Service Contractor and Subcontractor

E) General Professional Partnerships

General Professional Partnerships 0%

F) Domestic Corporations

1) a. In General on net taxable income 30%

b. Minimum Corporate Income Tax on gross income 2%

c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%

2) Proprietary Educational Institution and Non-profit Hospitals 10%

- In general (on net taxable income) 10%

- If the gross income from unrelated trade, business or other activity exceeds 50% of
30%
the total gross income from all sources

4) GOCC, Agencies & Instrumentalities

a. In General - on net taxable income 30%

b. Minimum Corporate Income Tax on gross income 2%

c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%

5) Taxable Partnerships

a. In General on net taxable income 30%

b. Minimum Corporate Income Tax on gross income 2%

c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%

6) Exempt Corporation

a. On Exempt Activities 0%

b. On Taxable Activities 30%

8) Corporation covered by Special Laws Rate specified
under the
respective special
laws
G) Resident Foreign Corporation

1) a. In General on net taxable income 30%

b. Minimum Corporate Income Tax on gross income 2%

c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%

2) International Carriers on gross Philippine billings 2.50%

3) Regional Operating Headquarters on gross income 10%

4) Corporation Covered by Special Laws Rate specified

under the
respective special
laws

5) Offshore Banking Units (OBUs) on gross income 10%

6) Foreign Currency Deposit Units (FCDU) on gross income 10%

REVISED WITHHOLDING TAX TABLES

Effective January 1, 2009

DAILY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 1.65 8.25 28.05 74.26 165.02 412.54
Status (000P) +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 33 99 231 462 825 1,650
2. S/ME 50.0 1 165 198 264 396 627 990 1,815
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 248 281 347 479 710 1,073 1,898
2. ME2 / S2 100.0 1 330 363 429 561 792 1,155 1,980
3. ME3 / S3 125.0 1 413 446 512 644 875 1,238 2,063
4. ME4 / S4 150.0 1 495 528 594 726 957 1,320 2,145

WEEKLY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 9.62 48.08 163.46 432.69 961.54 2,403.85
Status +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 192 577 1,346 2,692 4,808 9,615
2. S/ME 50.0 1 962 1,154 1,538 2,308 3,654 5,769 10,577
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 1,442 1,635 2,019 2,788 4,135 6,250 11,058
2. ME2 / S2 100.0 1 1,923 2,115 2,500 3,269 4,615 6,731 11,538
3. ME3 / S3 125.0 1 2,404 2,596 2,981 3,750 5,096 7,212 12,019
4. ME4 / S4 150.0 1 2,885 3,077 3,462 4,231 5,577 7,692 12,500

SEMI-MONTHLY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 20.83 104.17 354.17 937.50 2,083.33 5,208.33
Status +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 417 1,250 2,917 5,833 10,417 20,833
2. S/ME 50.0 1 2,083 2,500 3,333 5,000 7,917 12,500 22,917
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 3,125 3,542 4,375 6,042 8,958 13,542 23,958
2. ME2 / S2 100.0 1 4,167 4,583 5,417 7,083 10,000 14,583 25,000
3. ME3 / S3 125.0 1 5,208 5,625 6,458 8,125 11,042 15,625 26,042
4. ME4 / S4 150.0 1 6,250 6,667 7,500 9,167 12,083 16,667 27,083

MONTHLY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 41.67 208.33 708.33 1,875.00 4,166.67 10,416.67
Status +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 833 2,500 5,833 11,667 20,833 41,667
2. S/ME 50.0 1 4,167 5,000 6,667 10,000 15,833 25,000 45,833
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 6,250 7,083 8,750 12,083 17,917 27,083 47,917
2. ME2 / S2 100.0 1 8,333 9,167 10,833 14,167 20,000 29,167 50,000
3. ME3 / S3 125.0 1 10,417 11,250 12,917 16,250 22,083 31,250 52,083
4. ME4 / S4 150.0 1 12,500 13,333 15,000 18,333 24,167 33,333 54,167

Legend: Z-Zero exemption S-Single ME-Married Employee 1;2;3;4-Number of qualified dependent

children

S/ME = P50,000 EACH WORKING EMPLOYEE Qualified Dependent Child = P25,000 each but not
exceeding four (4) children

USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED DEPENDENT

1. Married Employee (Husband or Wife) whose spouse is unemployed.

2. Married Employee (Husband or Wife) whose spouse is a non-resident citizen receiving income
from foreign sources
3. Married Employee (Husband or Wife) whose spouse is engaged in business
4. Single
6. Zero Exemption for employees with multiple employers for their 2nd, 3rd..employers (main
employer claims personal & additional exemption
7. Zero Exemption for those who failed to file Application for Registration

USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH QUALIFIED

DEPENDENT

1. Employed husband and husband claims exemptions of children

2. Employed wife whose husband is also employed or engaged in business; husband waived claim
for dependent children in favor of the employed wife
3. Single with qualified dependent children

Premium Contribution Table

Salary Salary Salary Total Monthly Employee Employer
Bracket Range Base Premium Share* Share

*Employee share represents half of the total monthly premium

while the other half is shouldered by the employer.

**For Kasambahay helper receiving a wage of less than Five Thousand Pesos (P5,000.00)
per month,
the employer will shoulder both the employee and employer share based on the premium
schedule.

8,999.99** and
1 8,000.00 200.00 100.00 100.00
below

9,000.00 -
2 9,000.00 225.00 112.50 112.50
9,999.99

10,000.00 -
3 10,000.00 250.00 125.00 125.00
10,999.99
 Salary Salary Salary Total Monthly Employee Employer
Bracket Range Base Premium Share* Share

11,000.00 -
4 11,000.00 275.00 137.50 137.50
11,999.99

12,000.00 -
5 12,000.00 300.00 150.00 150.00
12,999.99

13,000.00 -
6 13,000.00 325.00 162.50 162.50
13,999.99

14,000.00 -
7 14,000.00 350.00 175.00 175.00
14,999.99

15,000.00 -
8 15,000.00 375.00 187.50 187.50
15,999.99

16,000.00 -
9 16,000.00 400.00 200.00 200.00
16,999.99

17,000.00 -
10 17,000.00 425.00 212.50 212.50
17,999.99

18,000.00 -
11 18,000.00 450.00 225.00 225.00
18,999.99

19,000.00 -
12 19,000.00 475.00 237.50 237.50
19,999.99

20,000.00 -
13 20,000.00 500.00 250.00 250.00
20,999.99

21,000.00 -
14 21,000.00 525.00 262.50 262.50
21,999.99

22,000.00 -
15 22,000.00 550.00 275.00 275.00
22,999.99

23,000.00 -
16 23,000.00 575.00 287.50 287.50
23,999.99

24,000.00 -
17 24,000.00 600.00 300.00 300.00
24,999.99

25,000.00 -
18 25,000.00 625.00 312.50 312.50
25,999.99
 Salary Salary Salary Total Monthly Employee Employer
Bracket Range Base Premium Share* Share

26,000.00 -
19 26,000.00 650.00 325.00 325.00
26,999.99

27,000.00 -
20 27,000.00 675.00 337.50 337.50
27,999.99

28,000.00 -
21 28,000.00 700.00 350.00 350.00
28,999.99

29,000.00 -
22 29,000.00 725.00 362.50 362.50
29,999.99

30,000.00 -
23 30,000.00 750.00 375.00 375.00
30,999.99

31,000.00 -
24 31,000.00 775.00 387.50 387.50
31,999.99

32,000.00 -
25 32,000.00 800.00 400.00 400.00
32,999.99

33,000.00 -
26 33,000.00 825.00 412.50 412.50
33,999.99

34,000.00 -
27 34,000.00 850.00 425.00 425.00
34,999.99

35,000.00 and
28 35,000.00 875.00 437.50 437.50
up