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    Passive Income Subject To Final Tax

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    laiza
    Passive income such as interest income earned in the Philippines by resident citizens, non-resident citizens, resident aliens, and non-resident aliens engaged in business or trade in the country is subject to a final tax rate of 20%, except for interest income from long-term deposits with the Bangko Sentral ng Pilipinas of at least 5 years, which is exempted from tax. Interest from long-term deposits pre-terminated before 5 years results in final tax rates of 5% for 4-5 years, 12% for 3-4 years, and 20% for less than 3 years.

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    Passive Income Subject To Final Tax

    Uploaded by

    laiza
    247 views1 page
    Passive income such as interest income earned in the Philippines by resident citizens, non-resident citizens, resident aliens, and non-resident aliens engaged in business or trade in the country is subject to a final tax rate of 20%, except for interest income from long-term deposits with the Bangko Sentral ng Pilipinas of at least 5 years, which is exempted from tax. Interest from long-term deposits pre-terminated before 5 years results in final tax rates of 5% for 4-5 years, 12% for 3-4 years, and 20% for less than 3 years.

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    Passive Income Subject to Final Tax

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    Passive income such as interest income earned in the Philippines by resident citizens, non-resident citizens, resident aliens, and non-resident aliens engaged in business or trade in the country is subject to a final tax rate of 20%, except for interest income from long-term deposits with the Bangko Sentral ng Pilipinas of at least 5 years, which is exempted from tax. Interest from long-term deposits pre-terminated before 5 years results in final tax rates of 5% for 4-5 years, 12% for 3-4 years, and 20% for less than 3 years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    247 views1 page

    Passive Income Subject To Final Tax

    Uploaded by

    laiza
    Passive income such as interest income earned in the Philippines by resident citizens, non-resident citizens, resident aliens, and non-resident aliens engaged in business or trade in the country is subject to a final tax rate of 20%, except for interest income from long-term deposits with the Bangko Sentral ng Pilipinas of at least 5 years, which is exempted from tax. Interest from long-term deposits pre-terminated before 5 years results in final tax rates of 5% for 4-5 years, 12% for 3-4 years, and 20% for less than 3 years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Passive Income Subject to Final Tax

    Resident Citizen Non-resident Alien


    Types of Income Non-resident Citizen Engaged in Business or
    Resident Alien Trade in the Philippines
    a. Interest Income

    1. Interest Income in the 20% 20%


    Philippines
    2. Yields or any other monetary 20% 20%
    benefits from deposit
    substitutes, trust funds, and
    similar arrangements in the
    Philippines
    3. Interest income from long term Exempted Exempted
    deposits as evidenced by
    certificates prescribed by
    Bangko Sentral ng Pilipinas
    (BSP) with maturity of 5 years
    or more
    If long term deposit is pre-
    terminated before the 5th year,
    the final tax shall be:
    4 years to less than 5 years 5% 5%
    3 years to less than 4 years 12% 12%
    Less than 3 years 20% 20%

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