DOMESTRIC CORPORATIONS SUBJECT TO SPECIAL TAX RATES

BASIS RATE

Proprietary educational institutions Taxable Net Income 10%

Non-profit hospitals Taxable Net Income 10%

Service Contractors/Subcontractors Gross Income from

8% FT
Engaged in Petroleum Operations petroleum operations

All business enterprises registered

Gross Income on
with PEZA, SBMA, CDA and operating 5%
registered activities
within the special ecozones

Tourism enterprises registered with Gross Income on

5%
TIEZA registered activities

Duly registered and accredited Gross receipts from

2%
Microfinance NGO microfinance operations

FCDU of a local bank under EFCDS

A. Income from foreign currency

transactions with NON-RESIDENT,
Income EXEMPT
OBUs, LOCAL commercial banks, and
branches of authorized foreign banks

B. Income from foreign currency loans

Income 10% FT
granted to PHILIPPINE RESIDENTS

C. Interest Income from foreign

Interest income 10% FT
currency interbank deposits
X RATES
NOTES

Gross income from UNRELATED activities MUST

NOT EXCEED 50% of the TOTAL gross income
from ALL SOURCE. Otherwise, ENTIRE income is
subject to 30% normal tax rate

Income from other sources is subject to regular

income tax

3% — National Govt ; 2% — Local Govt

1. this is in lieu of ALL national and local taxes

EXCEPT real estate tax
2. 1/3 — allocated among affected cities ; 1/3 —
National Govt ; 1/3 — TIEZA

1. In lieu of ALL national taxes

2. Non-microfinance operations are subject to
ALL applicable REGULAR taxes

“NON-residents”

“Philippine residents”