6 11 18 Tax Summary in The Philippines Edited

TAXATION OF INDIVIDUALS: CITIZENS
CITIZENS
RESIDENT NON-RESIDENTS
Definition Sec 22 (E)
1. A citizen of the Philippines who establishes to the
Commisioner that fact of his physical presence abroad
with definite intention to reside therein.
2. A citizen of the Philippines who leaves the Philippines
during the taxable year to reside abroad, either as an
immigrantor for employment on a permanent basis.
3. A citizen of the Philippines who works and desire
income from abroad and whose employment thereat
him to be physically present abroad most of the time
during the taxable year.
4. Acitizen who has been previously considered as
non-resident citizen who arrives in the Philippines at any
time during the taxable year to reside permanently in
the Philippines shall likewise treated as a nonresident
citizen for the taxable year in which he arrives in the
Philippines with respect to his income derived from
sources abroad until the date of his arrival in the
Philippines.
NIRC Reference Sec 24 Sec 24 (income within the Philippines
Sec 23 (income outside Philippines)
Tax Base taxable income earned from all sources taxable income from all sources within the philippines
within and without the Philippines
Tax Rates - In general 0% - 35% 0% - 35% (for income w/in the philippines)
NOTE:
Self-employed Individuals and/or
Professionals have the option to avail of an
8% tax on gross sales or gross receipts and
other non-operating income in excess of
250,000 in lieu of the graduated income tax
rates and percentage tax under Sec. 116.
Mixed income earners: 1. For income from

compensation: 20% - 35% 2. From business
of Practice of professions a. 3M & below = EXEMPT (for income w/out the Philippines)
8% option b. Above 3M -20-35%
Tax Rates - On passive income derived from sources within the Philippines
Interest on any currency bank deposit and 20% FT 20% FT
yield or any other monetary benefit from
deposit substitutes [Sec 22 (Y)] and from
trust fund and similar arragements
Interest from a depository bank under the 15% FT EXEMPT [Sec 2.24 RR 10-98]
expanded foreign currency deposit
system [RR 11-2018]
Interest on long term deposit or EXEMPT EXEMPT
investment [Sec 22 (FF)] in the form of
savings, common or individual trust funds,
deposit substitutes, investment
management accounts and other
investments evidenced by certificates in
such form prescribed by the BSP
Pre-terminated long term investment 4 yrs to < 5 yrs - 5% 5 yrs to less than 5 yrs - 5%
(based on remaining maturity) 3 yrs to < 4 yrs - 12% 3 yrs to less 4 yrs - 12%
Less than 3 yrs - 20% Less than 3 yrs - 20%
Royalties - in general 20% FT 20% FT
Royalties on books, other literary works 10% FT 10% FT
and musical compositions
Prizes - more than P10,000 20% FT 20% FT
Prizes - P10,000 or less 20-35%, 33%, 32% 20-35%, 33%, 32%
Prizes - PCSO & Lotto winnings Taxable above 10,000 - 20% Taxable above 10,000 - 20%
Other winnings 20% FT 20% FT
Cash and/or Property Dividends 10% FT 10% FT
Tax rates - Capital Gains

On shares of stock not trated (based on 15% FT 15%FT
net capital gains)
On real property (based on gross selling 6% FT 6% FT
price or FMV whichever is higher) - in
general
On real property sold to the government - 6% FT or 5% -32% 6% FT or 5% - 32%
subj to option
On real property sold to acquire or EXEMPT subj to certain EXEMPT subj to certain conditions
construct new principal residence conditions
12/11/13
TAXATION OF INDIVIDUALS: ALIENS
ALIENS
NON-RESIDENT ALIEN
RESIDENT ALIEN ENGAGED IN BUSINESS NOT ENGAGED IN BUSINESS
Definition Sec 22 (F) Sec 22 (G) / Sec (A)(1) Sec 22 (G)

An individual whose residence An individual whose residence is An individual whose residence si not
is w/in the Philippines and who is not w/in the Phils. And who is not w/in the Phils. and who is not a
not a citizen thereof a citizen thereof but stays in the citizen thereof but stays in the Phils.
Phils. For an aggregate period of for an aggregate period of or less
more than 180 days during any than 180 days during any calendar
calendar year year
NIRC Reference Sec 24 Sec 25 (A) Sec 25 (B)
Tax base taxable income earned from all taxable income earned from all gross income from all sources within
sources w/in the philippines sources w/in the philippines the Philippines
Tax Rates - In general 25%
0% - 35% 0% - 35% on gross income
Tax rates - On passive income derived from sources within the Philippines
Interest on currency bank deposit and 20% FT 20% FT 25% FT
yield or any other monetary benefit from
deposit substitutes and from trust fund
and similar arrangements
Interest from depository bank under the 15% EXEMPT EXEMPT
expanded foreign currency deposit RR 11-2018 Sec 27 (D)(3) Sec 27 (D)(3)
system Sec 2.27 © RR 10-98 Sec 2.27 © RR 10-98
Interest on long term deposit or EXEMPT EXEMPT 25% FT
investment in the form of savings,
common or individual trust funds, deposi
substitutes, investment management
accounts and other investments
evidenced by certificates in such form
prescribed by the BSP [Sec 22 (FF)]
Pre-terminated long term investment 4 yrs to < 5 yrs - 5% 5 yrs to < 5 yrs - 5% 25% FT
(based on remaining maturity) 3 yrs to < 4 yrs - 12% 3 yrs to < 4 yrs - 12%
Less than 3 yrs - 20% Less than 3 yrs - 20%
Royalties - in general 20% FT 20% FT 25% FT
Royalties on books, other literary works 10% FT 10% FT 25% FT
and musical compositions
Royalties in cinematographic films and 20% FT 25% FT 25% FT
similar works [Sec 28 (B)(2)]
Prizes - more than P10,000 20% FT 20% FT 25% FT
Prizes - P10, 000 or less 20-35% 20-35% 25% FT
Prizes - PCSO & Lotto winnings Taxable above 10,000 - 20% EXEMPT less than 10K 25% FT
Other winnings 20% FT 20% FT 25% FT
Cash and/or Property Dividends 20% FT 25% FT
Tax rates - Capital Gains

On shares of stock not traded (based on 15% FT 15% FT 15% FT
net capital gains)
On real property (based on gross selling 6% FT 6% FT 6% FT
price or FMV whichever is higher) - in
general
On real property sold to the government - 6% FT or 6% FT or 6% FT or
subject to option 5% -32% 5% - 32% 5% - 32%
On real property sold to acquire or EXEMPT subj to certain N/A N/A
construct new principal residence conditions RR 13-99 RR 13-99
12/11/13
TAXATION OF CORPORATION
CORPORATIONS
RESIDENT NON-RESIDENT
DOMESTIC
FOREIGN FOREIGN
Definition Sec 22 (B) & ( C) Sec 22 (H) Sec 22 (I)
Applies to corporation createdApplies to foreign corporation Applies to a foreign corporation
or organized in the Philippines engaged in trade or business not engaged in trade or
or under its laws w/in the Philippines business w/in the Philippines
NIRC Reference Sec 27 Sec 28 (A) Sec 28 (B)
Tax Base taxable income from all sourcetaxable income from all gross income from all sources
within and without the sources within the Philippines within the Philippines
Philippines
Tax Rates - in general 30% 30% or 15% 30%
on gross income except Sec 28 (B) (2)
(3) (4)
Tax Rates - on passive income from sources within the Philippines

Interest on any currency bank 20% FT 20% FT 30% thereafter
deposit and yield or any other
monetary benefit from deposit
substitutes and from trust funds and
similar arrangements
Interest on foreign currency deposit 15% FT 7.5% FT EXEMPT
system
Interest income of FCDU
Income derived by a depository bank EXEMPT [RA 9294] EXEMPT [RA 9294]
under the expanded foreign
currency deposit system from foreign
currency transactions with non-
residents, offshore banking units in
the Philippines, local commercial
banks including branches of foreign
banks that may be authorized by the
Bangko Sentral ng Pilipinas (BSP) to
transact business with foreign
currency deposit system
Interest income from foreign currenc 10% FT 10% FT 20% FT on foreign loans
loans granted by such depository contracted on or after August
banks under said expanded system to 1, 1998
residents other than offshore bankin
units in the Philippines or other
depository banks under the
expanded system
Royalties 20% FT 20% FT N/A
Dividends - Entra corporate EXEMPT EXEMPT 15% ft (conditional)

Tax Rates - on capital gains
On shares of stock not traded 15% FT 5% / 10% FT 5% / 10% FT
(based on net capital gains)
Tax Rate - Minimum Corporate 2% on gross income 2% N/A
Income Tax (MCIT)
Tax Rate - Branch Profit r N/A 15% N/A
Remittance Tax (BPRT) Sec 28 (5)
Tax Rate - Improperly Accumulated 10% 10% N/A
Earnings Tax (Sec 29)
12/11/13
1
2
3
10
11
*As of the latest Revenue Regulation, the above list is an exclusive enumeration.
De Minimis Items
Monetized unused vacation leave credits of private employees
Monetized value of vacation and sick leave credits paid to government officials and employees
Medical Cash Allowance to dependents of employees
Rice Subsidy
Uniform and clothing allowance
Actual Medical assistance/ benefits
Laundry Allowance
Employees achievement award in the form of tangible personal property other than cash or gift certificate, under
an established written plan which does not discriminate in favor of highly paid employees
Gifts given during Christmas and major anniversary celebrations
Daily meal allowance for overtime work and night/ graveyard shift
Benefits received by an employee by virtue of a CBA and productivity incentive schemes

Excess from the de minimis thresholds above shall form part of Sec. 32(b)(7)(e) of the NIRC
*As of the latest Revenue Regulation, the above list is an exclusive enumeration.
Amendments from previous BIR Issuances and Rulings
Current Limits
RR 11-2018 RR 1-2015 RR 8-2012
10 days during the year
P1,500 per employee per P1,500 per employee per

semester or P250 per month semester or P250 per month
P2,000 or 1 sack (50 kg.) per P2,000 or one sack of 50 kg.
month amounting to not rice per month amounting to
more than P2,000 not more than P2,000
P6,000 per annum P6,000 per annum P5,000 per annum
P10,000 per annum
P300 per month
P10,000 per annum
P5,000 per annum
25% of the basic minimum

wage on a per region basis
P10,000 per taxable year P10,000 per annum

82,000 per annum
RR 5-2011
10 days during the year
P750 per employee per semester or P125 per month
P1,500 or 1 sack (50 kg) per month
P4,000 per annum
P10,000 per annum
P300 per month
P10,000 per annum
P5,000 per annum
25% of the basic minimum wage
30,000 per annum

BIR Rulings
BIR Ruling [DA-(ECB-025) 733-09], BIR Ruling [DA-(ECB-004) 061-09]
BIR Ruling [DA-469-06], BIR Ruling [DA-218-08], BIR Ruling [DA-(ECB-025)

733-09], BIR Ruling [DA-(ECE-020) 398-09], BIR Ruling [DA-(ECB-004) 061-
09]
BIR Ruling [DA-219-00], BIR Ruling [DA-335-03], BIR Ruling [DA-168-04],

BIR Ruling [DA-(ECB-025) 733-09], BIR Ruling [DA-(ECE-020) 398-09], BIR
Ruling [DA-(ECB-004) 061-09]
BIR Ruling [DA-218-08], BIR Ruling [DA-(ECE-020) 398-09], BIR Ruling [DA-
(ECB-004) 061-09]

BIR Ruling [DA-561-07], BIR Ruling [DA-(ECB-025) 733-09], BIR Ruling [DA-
(ECB-004) 061-09]
BIR Ruling [DA-003-02], BIR Ruling [DA-(ECB-025) 733-09], BIR Ruling [DA-
(ECB-006) 147-09], BIR Ruling [DA-(ECB-004) 061-09]
BIR Ruling [DA-(ECB-025) 733-09], BIR Ruling [DA-(ECB-021) 503-09]

BIR Ruling [DA-335-03], BIR Ruling [DA-218-08], BIR Ruling [DA-(ECB-025)
733-09], BIR Ruling [DA-(ECE-020) 398-09], BIR Ruling [DA-(ECB-004) 061-
09]
BIR Ruling No. 061-99, BIR Ruling [DA-219-00], BIR Ruling [DA-003-02], BIR
Ruling 23-02, BIR Ruling [DA-335-03], BIR Ruling [DA-238-03], BIR Ruling
[DA-168-04], BIR Ruling [DA-169-04], BIR Ruling [DA-205-05], BIR Ruling
[DA-561-07], BIR Ruling [DA-374-08], BIR Ruling [DA-302-08], BIR Ruling
[DA-275-08], BIR Ruling [DA-218-08], BIR Ruling [DA-(ECB-008) 435-08], BIR
Ruling [DA-(ECE-020) 398-09]
BIR Ruling [DA-169-04], BIR Ruling [DA-343-07]
BIR Ruling [DA-(ECB-004) 225-08]
Other Rulings: BIR Ruling No. DA-233-07, BIR Ruling No. DA-350-04, BIR
Ruling No. DA-13-08
FRINGE BENEFITS
The general rule under Section 33 of the Tax Code is that fringe benefits refers to any good, service or other benefit furnished or granted
an employer to an individual employee (except rank and file employees) such as but not limited to the following:
"Fringe Benefit" means any good, service or other benefit furnished

or granted in cash or in kind by an employer to an individual employee
(except rank and file employees as defined herein) such as, but not limited to, the following:
(1) Housing;
(2) Expense account;
(3) Vehicle of any kind;
(4) Household personnel, such as maid, driver and others;
(5) Interest on loan at less than market rate to the extent of the difference between the market rate and actual rate granted;
(6) Membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs
or other similar organizations;
(7) Expenses for foreign travel;
(8) Holiday and vacation expenses;
(9) Educational assistance to the employee or his dependents; and
(10) Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows.
Not taxable Fringe Benefits:

1. Fringe benefits which are authorized and exempted from tax under special laws
2. Contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans
3. Benefits given to the rank and file employees, whether granted under a collective bargaining agreement or not
4. De minimis benefits as defined in the rules and regulations to be
promulgated by the Secretary of Finance, upon recommendation of the Commissioner
5. Given to Managers and Supervisors, but required by the nature of,
or necessary to the trade, business or profession of the employer
6. When the fringe benefit is for the convenience or advantage of the employer.
a. Housing privilege of military officers inside or near military camps
b. Housing unit situated inside or at most 50 meters from the perimeter of the business premises
c. Temporary housing of an employee for 3 months or less
d. Expenses of the employee which are reimbursed by the employer provided receipted under the name of the employer and not person
employee
e. Business expenses which are paid for by the employer for the foreign travel of his employees in connection with business meetings or
7. Stock options if given to rank & files employees
Taxable Fringe Benefits Rules

(1) Housing privilege
(a) If the employer leases a residential property for the use of his employee and the said property is the usual place of residence of t
value of the benefit shall be the amount of rental paid thereon by the employer, as evidenced by the lease contract. The monetary value
shall be fifty per cent (50%) of the value of the benefit.
(b) If the employer owns a residential property and the same is assigned for the use of his employee as his usual place of residence,
the benefit shall be five per cent (5%) of the market value of the land and improvement, as declared in the Real Property Tax Declaration
as determined by the Commissioner pursuant to Section 6(E) of the Code (Authority of the Commissioner to Prescribe Real Property Va
higher. The monetary value of the fringe benefit shall be fifty per cent (50%) of the value of the benefit.
The monetary value of the housing fringe benefit is equivalent to the following:
MV = [5%(FMV or ZONAL VALUE] X 50%
WHERE:
MV = MONETARY VALUE
FMV = FAIR MARKET VALUE
(c) If the employer purchases a residential property on installment basis and allows his employee to use the same as his usual place
annual value of the benefit shall be five per cent (5%) of the acquisition cost, exclusive of interest. The monetary value of fringe benefit s
(50%) of the value of the benefit.
(d) If the employer purchases a residential property and transfers ownership thereof in the name of the employee, the value of the be
employer's acquisition cost or zonal value as determined by the Commissioner pursuant to Section 6(E) of the Code (Authority of the Co
Prescribe Real Property Values), whichever is higher. The monetary value of the fringe benefit shall be the entire value of the benefit.
(e) If the employer purchases a residential property and transfers ownership thereof to his employee for the latter's residential use, a
employer's acquisition cost, the value of the benefit shall be the difference between the fair market value, as declared in the Real Proper
Form, or zonal value as determined by the Commissioner pursuant to Sec. 6(E) of the Code (Authority of the Commissioner to Prescribe
Values), whichever is higher, and the cost to the employee. The monetary value of the fringe benefit shall be the entire value of the bene
(f) Housing privilege of military officials of the Armed Forces of the Philippines (AFP) consisting of officials of the Philippine Army, Ph
Philippine Air Force shall not be treated as taxable fringe benefit in accordance with the existing doctrine that the State shall provide its s
necessary quarters which are within or accessible from the military camp so that they can be readily on call to meet the exigencies of the
(g) A housing unit which is situated inside or adjacent to the premises of a business or factory shall not be considered as a taxable f
housing unit is considered adjacent to the premises of the business if it is located within the maximum of fifty (50) meters from the perime
premises.
(h) Temporary housing for an employee who stays in a housing unit for three (3) months or less shall not be considered a taxable frin
(2) Expense account
(a) In general, expenses incurred by the employee but which are paid by his employer shall be treated as taxable fringe benefits, ex
expenditures are duly receipted for and in the name of the employer and the expenditures do not partake the nature of a personal expen
employee.
(b) Expenses paid for by the employee but reimbursed by his employer shall be treated as taxable benefits except only when the exp
receipted for and in the name of the employer and the expenditures do not partake the nature of a personal expense attributable to the s
(c) Personal expenses of the employee (like purchases of groceries for the personal consumption of the employee and his family me
reimbursed by the employer to the employee shall be treated as taxable fringe benefits of the employee whether or not the same are dul
name of the employer.
(d) Representation and transportation allowances which are fixed in amounts and are regular received by the employees as part of th
compensation income shall not be treated as taxable fringe benefits but the same shall be considered as taxable compensation income
imposed under Sec. 24 of the Code.
(3) Motor vehicle of any kind
(a) If the employer purchases the motor vehicle in the name of the employee, the value of the benefit is the acquisition cost thereof.
of the fringe benefit shall be the entire value of the benefit, regardless of whether the motor vehicle is used by the employee partly for his
and partly for the benefit of his employer.
(b) If the employer provides the employee with cash for the purchase of a motor vehicle, the ownership of which is placed in the nam
the value of the benefits shall be the amount of cash received by the employee. The monetary value of the fringe benefit shall be the ent
benefit regardless of whether the motor vehicle is used by the employee partly for his personal purpose and partly for the benefit of his e
same was subjected to a withholding tax as compensation income under Revenue Regulations No. 2-98.
(c) If the employer purchases the car on installment basis, the ownership of which is placed in the name of the employee, the value
the acquisition cost exclusive of interest, divided by five (5) years. The monetary value of the fringe benefit shall be the entire value of the
whether the motor vehicle is used by the employee partly for his personal purpose and partly for the benefit of his employer.
(d) If the employer shoulders a portion of the amount of the purchase price of a motor vehicle the ownership of which is placed in the
employee, the value of the benefit shall be the amount shouldered by the employer. The monetary value of the fringe benefit shall be the
benefit regardless of whether the motor vehicle is used by the employee partly for his personal purpose and partly for the benefit of his e
(e) If the employer owns and maintains a fleet of motor vehicles for the use of the business and the employees, the value of the ben
acquisition cost of all the motor vehicles not normally used for sales, freight, delivery service and other non-personal used divided by five
monetary value of the fringe benefit shall be fifty per cent (50%) of the value of the benefit.
The monetary value of the motor vehicle fringe benefit is equivalent to the following:
MV = [(A)/5] X 50%
where:
MV = Monetary value
A = acquisition cost
(f) If the employer leases and maintains a fleet of motor vehicles for the use of the business and the employees, the value of the ben
amount of rental payments for motor vehicles not normally used for sales, freight, delivery, service and other non-personal use. The mon
fringe benefit shall be fifty per cent (50%) of the value of the benefit.
(g) The use of aircraft (including helicopters) owned and maintained by the employer shall be treated as business use and not be su
benefits tax.
(h) The use of yacht whether owned and maintained or leased by the employer shall be treated as taxable fringe benefit. The value o
measured based on the depreciation of a yacht at an estimated useful life of 20 years.
(4) Household expenses

Expenses of the employee which are borne by the employer for household personnel, such as salaries of household help, personal drive
other similar personal expenses (like payment for homeowners association dues, garbage dues, etc.) shall be treated as taxable fringe b
(5) Interest on loan at less than market rate

(a) If the employer lends money to his employee free of interest or at a rate lower than twelve per cent (12%), such interest foregone
the difference of the interest assumed by the employee and the rate of twelve per cent (12%) shall be treated as a taxable fringe benefit.
(b) The benchmark interest rate of twelve per cent (12%) shall remain in effect until revised by a subsequent regulation.
(c) This regulation shall apply to installment payments or loans with interest rate lower than twelve per cent (12%) starting January 1
(6) Membership fees, dues, and other expenses borne by the employer for his employee, in social and athletic clubs or oth
organizations
These expenditures shall be treated as taxable fringe benefits of the employee in full.
(7) Expenses for foreign travel
(a) Reasonable business expenses which are paid for by the employer for the foreign travel of his employee for the purpose of atten
meetings or conventions shall not be treated as taxable fringe benefits. In this instance, inland travel expenses (such as expenses for foo
local transportation) except lodging cost in a hotel (or similar establishments) amounting to an average of US$300.00 or less per day, sh
fringe benefit tax. The expenses should be supported by documents proving the actual occurrences of the meetings or conventions.
The cost of economy and business class airplane ticket shall not be subject to a fringe benefit tax. However, 30 percent of the cost of firs
shall be subject to a fringe benefit tax.
(b) In the absence of documentary evidence showing that the employee's travel abroad was in connection with business meetings or
entire cost of the ticket, including cost of hotel accommodations and other expenses incident thereto shouldered by the employer, shall b
fringe benefits. The business meetings shall be evidenced by official communications from business associates abroad indicating the pu
meetings. Business conventions shall be evidenced by official invitations/communications from the host organization or entity abroad. Ot
cost thereof shouldered by the employer shall be treated as taxable fringe benefits of the employee.
(c) Travelling expenses which are paid by the employer for the travel of the family members of the employee shall be treated as taxa
the employee.
(8) Holiday and vacation expenses

Holiday and vacation expenses of the employee borne by his employer shall be treated as taxable fringe benefits.
(9) Educational assistance to the employee or his dependents
(a) The cost of the educational assistance to the employee which are borne by the employer shall, in general, be treated as taxable
However, a scholarship grant to the employee by the employer shall not be treated as taxable fringe benefit if the education or study invo
connected with the employer's trade, business or profession, and there is a written contract between them that the employee is under ob
the employ of the employer for period of time that they have mutually agreed upon. In this case, the expenditure shall be treated as incur
convenience and furtherance of the employer's trade or business.
(b) The cost of educational assistance extended by an employer to the dependents of an employee shall be treated as taxable fringe
employee unless the assistance was provided through a competitive scheme under the scholarship program of the company.
(10) Life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows
The cost of life or health insurance and other non-life insurance premiums borne by the employer for his employee shall be treated as ta
except the following: (a) contributions of the employer for the benefit of the employee, pursuant to the provisions of existing law, such as
Security System (SSS), (R.A. No. 8282, as amended) or under the Government Service Insurance System (GSIS) (R.A. No. 8291), or si
arising from the provisions of any other existing law; and (b) the cost of premiums borne by the employer for the group insurance of his e
Computation of the tax:

1. Grossed-up monetary value of the fringe benefit (divide by the rate)
65% if Resident Citizen
85% if Alien & Filipino employed in the same position as those of aliens employed in multinational companies
75% Non-resident alien not engaged in trade or business
2. Apply the tax rate (multiply the applicable rate)
35% if Resident Citizen
15% if Alien & Filipino employed in the same position as those of aliens employed in multinational companies
25% Non-resident alien not engaged in trade or business
Source: Title II, Chapter VI, Section 33 of the Tax Code, RR No. 3-1998, RR No. 11-2018
Example:
P300,000 Rental accomodation for rank and file employees only.
P300,000 Rental accomodation for expatriates at a luxurious rest house at away from principal office and for recreation purposes.
Solution and answer:

P300,000 / 65% * 35% = P161,538.46 in Fringe Benefits Tax to be paid by the employer.
(The fringe benefits for the rank and file employees are necessary and for the convenience of the employer. No FBT)
We use BIR Form 1603 and filed quarterly. Deadline is the 15th day the month following the quarter end.
Paragraph under
Sec. 2.57.2, RR 2-98
(A) Professional fees, talent fees, etc. for

services rendered by individuals
(1) Individually engaged in the practice of

profession or callings; lawyers; CPA; doctor;
architects; engineers; marine surveyors. Etc.
(2) Professional entertainers
(3) Professional athletes
(4) All directors and producers involved in
movies, stage, radio
(5) Insurance agents and adjusters
(6) Management and technical consultants
(7) Bookkeeping agents and agencies
(8) Other recipients of talent fees
(9) Fees of directors who are not employees of
the company paying such fees
(10) Income payment to certain brokers and
agents
(11) Commission of independent and/or

exclusive sale representatives, and marketing
agents of companies
Professional fees, talent fees, etc. for services of

taxable juridical persons
(B) Rentals
(5) Cinematographic film rentals and other

payments
(C) Income payments to certain contractors

(C) Income payments to certain contractors
(1) General engineering contractors

(2) General building contractors
(3) Specialty contractors
(4) Other contractors
(e) Transportation contractors
(D) Income distribution to the beneficiaries
(E) Income payments to partners of general

professional partnerships
(F) Gross selling price or total amount of

consideration or its equivalent paid to the
seller/owner for the sale, exchange or transfer of
real property other than capital assets
(G) Additional income payments to government
personnel from importers, shipping and airline
companies, or their agents
(H) Certain income payments made by credit

card companies
(I) Income payments made by the top

withholding gents, either private corporations or
individuals, to their local/resident supplier of
goods and services other than those covered by
other rates of withholding tax
(J) Income payments by government office,

national or local, including barangays, or their
attached agencies or bodies, and gocc to its
local/resident supplier of goods/services, other
than those covered by other rates of withholding
tax
(K) Tolling fees paid to refineries
(L) Payments made by pre-need companies to

funeral parlors
(M) Payments made to embalmers
(N) Income payments made to suppliers of

agricultural products
(O) Income payments on purchases of minerals,

mineral products and quarry resources
(P) Meralco payments

(P) Meralco payments
(Q) Interest income on the refund paid either through

direct payment or application against customers'
billings by other electric Distribution Utilities (DUs) in
accordance with the rules embodied in ERC Resolution
No. 8, Series of 2008, dated June 4, 2008, governing
the refund of meter deposits which was approved and
adopted by ERC in compliance with the mandate of
Article 8 of the Magna Carta for Residential Electricity
Consumers and Article 3.4.2 of DSOAR, exempting all
electricity consumers, whether residential or non-
residential, from the payment of meter deposit.
(R) Income payments made by political parties

and candidates of local and national elections of
all their purchase of goods and services as
campaign expenditures, and income payments
made by individuals or juridical persons for their
purchases of goods and services intended to be
given as campaign contribution to political
parties and candidates.
(R) Income payments made by political parties
and candidates of local and national elections of
all their purchase of goods and services as
campaign expenditures, and income payments
made by individuals or juridical persons for their
purchases of goods and services intended to be
given as campaign contribution to political
parties and candidates.
(S) Interest income derived from any other debt

instruments not within the coverage of ‘deposit
substitutes’ and Revenue Regulations No. 14-
2012, unless otherwise provided by law or
regulations
(T) Income payments to Real Estate Investment

Trust (REIT). – Income payments made to
corporate taxpayers duly registered with the
Large Taxpayers Regular Audit Division of the
Bureau of Internal Revenue, as REITs for
purposes of availing the incentive provisions of
Republic Act No. 9856, otherwise known as “The
Real Estate Investment Trust Act of 2009”, as
implemented by RR No. 13-2011.
(U) Income payments on locally produced

raw sugar.
[1] Not necessarily date of effectivity.

As amended by (date of issuance[1])
RR 6-2001 (July 31, 2001)
RR 12-2001 (September 7, 2001)
RR 30-2003 (December 12, 2003)
RR 10-2013 (May 10, 2013)
RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001)
RR 30-2003 (December 12, 2003)
RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001)

RR 14-2002 (September 9, 2002)
RR 17-2003 (March 31, 2003) RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001) RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001)

RR 14-2002 (September 9, 2002)
RR 17-2003 (March 31, 2003)
RR 30-2003 (December 12, 2003) RR 11-2018 (January 31, 2018)
Nesic Phil., Inc. v. CIR, CTA EB Case No. 524 dated May 6, 2010: not
limited to transportation of goods/merchandise, but also includes
carriage of passengers. RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001)

RR 30-2003 (December 12, 2003)
RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001)
RR 17-2003 (March 31, 2003)
RR 11-2018 (January 31, 2018)

RR 6-2001 (July 31, 2001)

RR 14-2008 (November 26, 2008)
RR 6-2009 (June 3, 2009)
RR 17-2003 (March 31, 2003)
RR 11-2014 (December 5, 2014)
RR 11-2018 (January 31, 2018)
RR 6-2001 (July 31, 2001)
RR 14-2002 (September 9, 2002)
RR 17-2003 (March 31, 2003)
RR 30-2003 (December 12, 2003)
RR 11-2018 (January 31, 2018)
RR 14-2002 (September 9, 2002) RR 11-2018 (January 31, 2018)
RR 17-2003 (March 31, 2003)

RR 30-2003 (December 12, 2003)
RR 11-2014 (December 5, 2014)
RR 11-2018 (January 31, 2018)
RR 17-2003 (March 31, 2003)
RR 8-2005 (February 23, 2005)

RR 2-2009 (February 4, 2009)
RR 2-2009 (February 4, 2009)
RR 8-2009 (October 22, 2009)
RR 10-2009 (December 23, 2009) [changed from par. (W) to par. (X)]
RMO 48-13 (June 28, 2013)
RR 14-2012 (November 7, 2012)
RR 11-2014 (December 5, 2014)
RR 11-2014 (December 5, 2014)
RR 7-2015
Rate ATC Code
If the current year’s gross income did not exceed 3,000,000 - 5% WI010
If the current year's gross income exceeds 3,000,000 or is VAT Registered - 10% WI011
If the current year’s gross income exceeds 720,000 - 15% WC011
If the current year's gross income is less than or equal P720,000 - 10% WC010
5% WI100/WC100
5% WI110/WI110
2% WI120/WC120
2% WI120/WC120
2%
2%
2%
2%
2%
15% WI130
If the gross income for the current year exceeds P720,000 - 15%, if otherwise 10% WI152 or WI153
1.) If seller/transferor is exempt from the CWT in accordance with Section 2.57.5 of
these regulations - Exempt
2.) If seller is habitually engaged in the real estate business:
* Selling price of 500,000 or less - 1.5%
* Selling price of more than 500,00 but not more than 2,000,000 - 3%
* With selling price of more than two million pesos - 5%
3.) Seller or transferor is not habitually engaged in real estate business = 6% (i.e. banks)
Socialized and low cost housing exempt from CWT.

15% WI159
1% of ½ WI156/WC156
1% for goods WI158/WC158

2% for services WI160/WC160
1% for goods
2% for services
WI157/WC157
5% WI540/WC540
1% WI535/WC535
1% WI530
1% WI610
5% WI630/WC630
10% on gross amount of interest on the refund of meter deposit whether paid directly
to the customers or applied against customer's billing if monthly electric consumption
does not exceed 200 kwh
20% on gross amount of interest on the refund of meter deposit whether paid directly WI661/WC661
to the customers or applied against customer's billing if non-residential customer
25%
WI650/WC650
on refunds to customers with active contracts
32%
WI651/WC651
on Refunds to customers with terminated contracts
10% for Residential and General Service customers who do not exceed 200 kwh
monthly electricity consumption
20% if non-residential customer WI663/WC663
5% WI680/WC680
5% WI680/WC680
20% WI710/WC710
1% WI700/WC700
1%
SUBJECT TO FINAL WITHHOLDING TAXES ON PASSIVE INCOME
Interest from peso bank deposits, trust funds, etc, royalties (excluding those from literary or musical works),
prizes or winnings of greater than P10,000 in monetary value (excluding the Charity sweepstakes and lotto up
to P10,000)
Royalties on literary or musical works (books, songs and compositions)
Interest income from a FCDU deposit (EXCEPT those

received by nonresident inviduals
Interest from a long-term deposit or investment which has lasted for:
less than 3 years
4 years – less than 5 years
3 years – less than 4 years
5 years and longer
Prizes ( except prizes amounting to P10,000 or less)
Other winnings (except PCSO and Lotto Winnings: now taxable above 10,000)
Cash and property dividends from a domestic corporation; or from an ROHQ of a multinational company, or on
the share of an individual in the distributable net income after tax of a partnership (except from a GPP) of which
he is a partner or share in the net income after tax of a joint venture or consortium of which is her a co-
venturer.
Income derived by a depository bank under the expanded foreign currency deposit system from foreign
currency transactions with local commercial banks, including branches of foreign banks that may be authorized
by the Bangko Sentral ng Pilipinas (BSP) to transact business with foreign currency depository system units
and other depository banks under the expanded foreign currency deposit system, including interest income
from foreign currency loans granted by such depository banks under said expanded foreign currency deposit
system to residents
Net capital gains from sale of shares of stocks in a domestic corporation not listed and traded in the stock
exchange except shares sold or disposed of thru the exchange
Capital Gain on real property
Gross income derived from contracts by sub-contractors from service contractors engaged in petroleum
operatios as defined under PD87.
Any income of nonresidents, whether individuals or corporations, from transactions with depository banks
under the expanded system shall be exempt from income tax.
Entire income received from all sources within the Philippines by every nonresident alien individual not
engaged in trade or business within the Philippines as interest, cash and/or property dividends, 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,
TAX CODE BASIS RATE
Individual/ Section 24 (B) (1) 20%

Corporation Section 27 (D) (1)

Individual/ Section 24 (B) (1) 15.00%
Individual/ Section 25 (A) (2) 20%

Corporation 5%
12%
Exempt
Individual/
Section 25 (A) (2) 20%
Corporation
Individual/
Section 24 (B) (2) 10%
Corporation
Corporation Section 27 (D) (3) 10%
Individual/ 15%
Section 28 (5)(C)
Corporation
Individual/ Section 24 (D) 6%

Individual/ 8%
Section 1 of PD 1354
Corporation
Individual/ 0%
R.A 9294
Corporation
Individual Section 25 (B) 25%

Tax Code Tax Due
Document Taxable Unit % of Unit
Section Per Unit
Original Issue of Shares of Stock with P200.00 or fraction
2 1%
par value thereof
Original Issue of Shares of Stock without

par value
P200.00 or fraction
thereof
2 1%
174
Stock Dividend
P200.00 or fraction
thereof
2 1.0%
Sales, Agreements to Sell, Memoranda
of Sales, Deliveries or Transfer of
Shares or Certificates of Stock 7.5
P200.00 or fraction
175 1.5
thereof
50%
Stock without par value
Bonds, Debentures, Certificate of Stock

P200.00 or fraction
176 or Indebtedness issued in foreign 0.75 3.75%
thereof
Countries
Certificate of Profits or Interest in P200.00 or fraction
177 1 0.50%
Property or Accumulation thereof
Bank Checks, Drafts, Certificate of
178 Deposit not bearing interest and other On each Document 3
Instruments
P200.00 or fraction
179 All Debt Instruments 1.5 .5%
thereof
P200.00 or fraction
180 All Bills of Exchange or Drafts 0.6 0.30%
thereof
Acceptance of Bills of Exchange or

order for the payment of money P200.00 or fraction
181 0.6 0.30%
purporting to be drawn in a foreign thereof
country but payable in the Philippines
Foreign Bills of Exchange and Letters of P200.00 or fraction
182 0.6 0.30%
Credit thereof
If the amount of insurance

does not exceed exempt
P100,000.00


exceeds P100,000.00 but
20.00
does not exceed
P300,000.00

50
does not exceed
P500,000.00

183 Life Insurance Policies 100
does not exceed
P750,000.00

150
does not exceed
P1,000,000.00

200
exceeds P1,000,000.00
P4.00 premium or fraction

184 Policies Of Insurance upon Property 0.5 12.50%
thereof
Fidelity Bonds and other Insurance P4.00 premium or fraction
185 0.5 12.50%
Policies thereof
Policies of Annuities or other P200.00 or fraction

1 0.50%
instruments thereof
186
P200.00 or fraction
thereof
186
Pre-Need Plans 0.4 0.20%
187 Indemnity Bonds P4.00 or fraction thereof 0.3 0.075
Certificates of Damage or otherwise and

Certificate or document issued by any
customs officers, marine surveyor,
188 Each Certificate 30
notary public and certificate required by
law or by rules and regulations of a
public office
Warehouse Receipts (except if value

189 Each Receipt 30
does not exceed P200.00)
P1.00 cost of ticket
Jai-alai, Horse Race Tickets, lotto or

190 .20 20%
Other Authorized Number Games Additional P0.20 on every
P1.00 or fraction thereof if
cost of ticket exceeds
P1.00
If the value of such goods

exceeds P100.00 and
2.00
does not exceed
P1,000.00
If the value exceeds

20
P1,000.00
Freight tickets covering

goods, merchandise or
effects carried as
Bills of Lading or Receipts(except accompanied baggage of
191
charter party) passengers on land and exempt
water carriers primarily
engaged in the
transportation of
passengers
Proxies(except proxies issued affecting

the affairs of associations or
192 Each proxy 30
corporations, organized for religious,
charitable or literary purposes)
Powers of Attorney(except acts

connected with the collection of claims
due from or accruing to the Government
193 Each Document 10
of the Republic of the Philippines, or
the government of any province, city or
Municipality)
First 2,000 or fractional
6 15%
part thereof
Lease and other Hiring agreements or For every P1,000 or

memorandum or contract for hire, use fractional part thereof in
194 excess of the first P2,000
or rent of any land or tenements or 2 0.20%
for each year of the term
portions thereof
of the said contract or
agreement
First 5,000 40 0.008
Mortgages Pledges of lands, estate, or

195
property and Deeds of Trust
On each P5,000 or
fractional part thereof in 20 0.004
excess of 5,000
First 1,000 15 0.015
Deed of Sale, instrument or writing

Conveyances and Donations of Real
196
Property (except grants, patents or
original certificate of the government)
For each additional

P1,000 or fractional part
15 0.015
thereof in excess of
P1,000
P1000.00
for the first
6 months
Plus P100
1,000 tons and below each month
or fraction
thereof in
excess of 6
months
P2,000 for
the first 6
months Plu
s P200
1,001 to 10,000 tons each month
or fraction
thereof in
excess of 6
months
197 Charter parties and Similar Instruments P3,000 for

the first 6
months Plu
s P300
Over 10,000 tons each month
or fraction
thereof in
excess of 6
months
At the
same rate
Stamp Tax on Assignments and
as that
198 Renewals or Continuance of Certain
imposed on
Instruments
the original
instrument.
Taxable Base
ATC Code
Par value of shares of stocks
DS 101
Actual consideration for the

issuance of shares of stocks
Actual value represented by

each share
Par value of such stock

DS 102
DST paid upon the original

issuance of said stock. DS 125
Par value of such bonds,

debentures, Certificate of
Stock or Indebtedness DS 103
Face value of such certificate /
memorandum DS 104
DS 105
Issue price of any such
instruments DS 106
Face value of any such bill of
exchange or draft DS 126
Face value of such bill of
exchange or order or the
Philippine equivalent of such
value, if expressed in foreign
currency
DS 107
Face value of such bill of
exchange or letter of credit or
the Philippine equivalent of
such value, if expressed in
foreign currency
DS 108
Amount of Insurance
DS 109
amount of insurance
Amount of Insurance
amount of insurance
amount of insurance
amount of insurance
Premium charged
Premium charged
Premium or installment
payment or contract price
collected DS 112
Premium or contribution
collected DS 112
Premium charged DS 113
DS 114
DS 115
Cost of the ticket DS 116
Cost of the ticket
Value of such goods
DS 117
value of such goods
DS 118
DS 119
DS 120
Amount Secured DS 121
Amount Secured
Consideration or Fair Market

Value, whichever is higher (if
government is a party, basis
shall be the consideration) DS122
Consideration or Fair Market

Value, whichever is higher (if
government is a party, basis
shall be the consideration)
Registered gross tonnage
DS 130
DS 131
DS 132
Excise Tax ATC
A. Alcohol Products
Sec. 141
XA035
XA036
142
XA061
XA062
XA070
XA080
XA090
143
XA055
XA056
XA057
144
XT010
XT010
XT010
XT020
145
XT035
XT036
XT040
XT140
XT150
148 XP010 -XP 190
XP010
XO020
XO030
XP040
XP050
XP060
XP060
XP070
149
XG021-XG064
150 XG110
XG100/XG120
150-A XC010
150-B
XB010
XB020
XB030
XB040
XB050
XB060
XB070
XB080
XB090
XB100
151
XM010
XM020
XM030
XM040
XM040
Producs
1. Distilled Spirits, Ad Valorem & Specific Tax
a. Ad Valorem Tax Rate
b. Specific Tax Rate
Wines
a. Sparkling wines/ champanges
b. Still wines and carbonated wines containing 14% of alcohol

by volume or less
c. Still wines and carbonated wines containing more that 14%
(of alcohol by volume) but not more than 25% of alcohol by
volume
d. Fortified wines containing more than 25% of alcohol by
volume
Fermented Liquor
a. If the NRP (excluding excise and VAT) per liter of volume
capacity:
1. P50.60 and below
2. More than P50.60
b. If brewed and sold at microbreweries or small

establishments such as pubs, and restaurant, regardless of
NRP
Tobacco Products
A. Tobacco Products
a. Tobacco twisted by hand or reduced into condition to be
consumed in any manner other than the ordinary mode of
drying and curing
b. Tobacco prepared or partially prepared with or without

the use of any machine or instrument or without being
pressed or sweetened
c. Fine-cut shorts and refuse, scraps, clipping, cuttings,
stems, midribs and sweepings of tobacco
2. Chewing tobacco unsuitable for use in any other manner
Cigars and Cigarettes

1. Cigars
a. Based on NRP per cigar (excluding the excise and VAT

b. Per Cigar
2 Cigarettes, packed by hand
3. Cigarrettes packed by machine
Petroluem Products
1. Lubricating oils and greases, including but not limited to

base stock for lube oils and greases, high vacuum distillates,
aromatic extracts and other similar preparations, and
additives for lubricating oils and greases, whether such
additives are petroleum based or not
2. Processed gas
3. Waxes and petrolatum
4. Denatured alcohol to be used for motive power
5. Naphtha, regular gasoline, pyrolysis, gasoline, and similar

products of distillation
Note: Includes the by-product including fuel oil, diesel fuel,

kerosene, pyrolysis gas, liquefied petroleum gas, similar
oils which are produced in the processing of naphtha into
petrochemical products
Note: Not apply when such by-products are transferred to
any of the local oil refineries through sale, barter or
exhange for further processing or blending into finished
products
6. Unleaded premium
7. Aviation turbo jet fuel, aviation gas
8. Kerosene
9. Diesel fuel oil and on similar fuel oils having more or less
the same generating power
10. Liquefied petroleum gas used for motive power
Note: if used as raw material in production of petrochemical
products,
If used forIRR of Secpower - same rate as excise tax on diesel
motive
fuel oil
11. Asphalts
12. Bunker fuel oil

13. Petroleum coke
Note: if used as feedstock to any power generating facility
14. Naphta and pyrolysis gasoline, when used as a raw
material in the production of petrochemical products or in the
refining of petroleum products etc.
Note: all rates of 1-13 will increase again in 2019
Excise tax on automobiles
1. Automobiles
Non-essential goods
Non-essential services
Sweetened Beverages
1. Using purely caloric and non-caloric sweetener
a. Sweetened Juice Drinks
b. Sweetened Tea
c. Carbonated Beverages
d. Flavored Water
e. Energy and Sports Drinks
f. Powdered Drinks not classified as Milk, Juice,
Tea and Coffee
g. Cereal and Grain Beverages
h. Other Non-alcoholic Beverages that contain
added Sugar
2. Using purely high fructose corn syrup
3. Using purely coconut sap sugar and purely
Steviol Glycosides
Mineral and Mineral Products

1. Domestic and importerd coal and coke
2. Nonmetallic minerals and quarry resources
a. Locally extracted or produced
b. Imported
c. Locally extracted natural gas and liquefied natural gas
3. All metallic minerals
a. Locally extracted or produced copper, gold, chromite and

other metallic minerals
b. Imported copper, gold, chromite, and other metallic

minerals
4. Indigenous petroleum
Tax Base Tax Rate
Net retail prices per

proof (excluding excise
and VAT) 20%
21.64 Note: Effective 1/1/16, increases by
Per proof liter 4% every year thereafter
Per liter of volume Note It increases by 4% every

capacity year after 2014
Net retail prices per
bottle of 750 mL
regardless of proof
(excluding excise and
VAT)
P500 or less 292.47
More than P500 818.9
35.1
70.2
Taxed as distilled spirits
Per Liter of volume

capacity
Note: increases by 4% starting
2018
23.5
23.5
Note: increases by 4% starting

32.76 2014
Per kilogram
2.05
2.05
2.05
1.75
Per Cigar
Note: increased by 4% starting
20% from 2014
5.85
Per pack Jan 1 to June 30 '18 - P32.50
July 1 to Dec. 31 '19 - P35
Jan 1 2020 to Dec. 31 '21 - P37.5
Jan 1 2022 - Dec. 31 '23 - P40
Jan '24 onwards - 4% yearly increase
Per Pack Jan 1 to June 30 '18 - P32.50
July 1 to Dec. 31 '19 - P35
Jan 1 2020 to Dec. 31 '21 - P37.5
Jan 1 2022 - Dec. 31 '23 - P40
Jan '24 onwards - 4% yearly increase
Provided: lubicating oils and

greases produced from
basestocks and additives on
Per liter and kg, which the excise tax has already
respectively of volume been paid shall no longer be
capacity or weight 8 subject to excise tax
Per liter of volume
capacity 8
Per kg 8
Provided: that unless otherwise
provided by special laws, if the
denatured alcohol is mixed with
gasoline, the excise tax on
which has already been paid,
only the alcohol content shall
Per liter of volume be subject to the tax herein
capacity 8 prescribed
provided: naphtha and pyrolysis

gasoline, when used as a raw
material in the production of
petrochemical products or in
refining of petroleum products
or replacement fuel for natural-
Per liter of volume gas-fire-combined cycle power
capacity 7 plant - Php0
Per liter of volume

Capacity 7
Per liter of volume
capacity 4
Per liter of volume Provided, if used as aviation
capacity 3 fuel - 4
Per liter of volume
capacity 2.5
Per kg 2.5
Per kg 8
Per liter of volume
capacity 2.5
Per metric ton 2.5
0
pet liter of volume
capcity 0
Manufacturer's/
assembler's or importer's
selling price, net of
excise and VAT Up to P600,000 -4%
600,001 - 1,000,000 - 10%
1,000,001 - 4,000,000 - 20%
Over 4,000,001 - 50%
Provided, hybrid cars - 50% of applicable
excise tax rtes on automobiles
If imported sales not for sale - tax based on

total landed value, including transaction
value, customs duty and all other charges
Exempt -purely electric vehicles, pick-ups,
exclusively used within freeport
Wholesale price or value

of importation used by
BOC 20%
gross receipts (net excise

and VAT) 5%
No tax if procedures necessary to

ameliorate a deformity arising from an
accident or trauma, or disfiguring disease,
tumor, virus or infection, cases/treatments
covered by National Insurance Program
Per liter
P6.00
P6.00
P6.00
P6.00
P6.00
P6.00
P6.00
P6.00
P12.00
Exempt
Per Metric Ton Jan. 1, 2018 - P50

Jan. 1 2019 - P100
Jan. 1, 2020 - P150
Actual Market Value of

gros output 4%
Value used by BOC in

determining tariff and
custom duties 4%
Exempt
Actual market value of

gross output at time of
removal 4%
Value used by BOC in

determining tariff and
custom duties 4%
Fair international market
price 6%
Note: in case of fermented
liquors affected by the no
downward reclassification
provision, the 4% shall apply to
their respective applicable tax
rate
Provided further: locally
produced or imported oils
previously taxed as such but
are subsequently reprocessed,
refined or recycled - also
subject to tax
Note: the removal of
denatured alcohol of not less
than 180 degrees proof shall be
deemed to have been moved
for motive power, unless
shown otherwise
Production of petroleum
products, whether or not they
are classified as products of
distillating and for use solely
for the production of gasoline -
exempt
COUNTRY
1 Australia
2 Barbados
3 Bermuda
4 British Virgin Islands

5 Cayman Islands
6 China
7 Commonwealth of the Bahamas
8 Cook Islands
9 Germany
10 Hong Kong
11 Japan
12 Luxembourg
13 Mauritius
14 Netherlands
14 Netherlands
15 Republic of Vanuatu
16 Singapore
17 Spain
18 Switzerland
19 UAE
20 USA
RULINGS RATE
DA ITAD BIR Ruling No. 20-07 15%
ITAD BIR Ruling No. 33-04 15%
BIR Ruling No. 062-16 15%
BIR Ruling No. DA-(C-284) 706-09 15%
BIR Ruling No. DA-(C-285) 707-09 15%
BIR Ruling No. DA-(C-286) 708-09 15%
BIR Ruling No. DA-(C-287) 709-09 15%
BIR Ruling No. DA-(C-288) 710-09 15%
BIR Ruling No. DA-(C-289) 711-09 15%
Caltex v. CIR, CTA Case No. 4986, October 6, 1995 15%
BIR Ruling No. DA-145-07 15%
BIR Ruling No. DA-(C-339) 821-09 15%
DA ITAD BIR Ruling No. 58-10 VARIOUS
ITAD BIR Ruling No. 11-10 VARIOUS
Marubeni v. CIR, GR No. 76573, Sept 14, 1989 15%
DA ITAD BIR Ruling No. 54-09 VARIOUS
Singapore Telecom v. CIR, CTA Case No. 7406, Apr. 7, 2009 15%
Zurich Insurance v. CIR, CTA Case No. 4643, Dec. 24, 1993 15%
CIR v. Wander, G.R. No. L-68375, April 15, 1988 15%
BIR Ruling No. DA-(C-273) 687-09 15%
BIR Ruling No. DA-(C-114) 372-08 15%
CIR v. Procter & Gamble, GR No. L-66838, Dec. 2, 1991 15%
SUBJECT YEAR
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
VARIOUS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
ROYALTIES #NAME?
DIVIDENDS #NAME?
ROYALTIES #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
ROYALTIES #NAME?
DIVIDENDS #NAME?
ROYALTIES #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
VARIOUS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
DIVIDENDS #NAME?
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DIVIDENDS #NAME?
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VARIOUS #NAME?
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DIVIDENDS #NAME?
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ROYALTIES #NAME?
DIVIDENDS #NAME?
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COUNTRY
1 Australia
2 Austria
3 Bahrain
4 Bangladesh
5 Belgium
6 Brazil
7 Canada
8 China
9 Czech Republic
10 Denmark
11 Finland
12 France
13 Germany
14 Hungary
15 India
16 Indonesia
17 Israel
18 Italy
19 Japan
20 Korea
21 Kuwait
22 Malaysia
23 Netherlands
24 New Zealand
25 Nigeria
26 Norway
27 Pakistan
28 Poland
29 Qatar
30 Romania
31 Russia
32 Singapore
33 Spain
34 Sri Lanka
35 Sweden
36 Switzerland
37 Thailand
38 Turkey
39 United Arab Emirates
40 United Kingdom of Great Britain and Northern Ireland

41 United States of America
42 Vietnam
DIVIDENDS INTEREST
RATE ARTICLE RATE ARTICLE
(a) 15% where the payee is a 10 (a) Exempt when paid to the 11
company government of a contracting state,
or any other body exercising
(b) In any other case, 25% governmental functions or to the
the central bank
(b) 10% when paid on public

issues of bonds, debentures or
other similar obligations
(c) In all other cases, 15%
(a) 10% where the payee is a 10 (a) Exempt from tax when paid to 11
company holding directly at least the government or the central
10% of either the paying bank, or on a loan or credit
company's voting stock or the guaranteed or indirectly financed
total shares issued by that by the government or the central
company over 6 months prior to bank
the payment date
(b) 10% when paid in relation to
(b) 25% in all other cases public issues of bonds, debentures
or similar obligations
(c) 15% in all other cases
company (excluding a government
partnership) holding directly at
least 10% of the paying company's (b) 10% of the gross amount of the
capital income of the debt-claims
(b) 15% in any other case
company (excluding a government or the central bank,
partnership) holding directly at or on a loan or credit indirectly
least 25% of the paying company's financed by the government or the
capital central bank
(b) 15% in all other cases (b) In any other case, not
exceeding 15%
(a) 10% where the payee is a 10 (a) Exempt when paid on 11

company holding directly at least government bonds or debentures,
10% of the paying company's or on a loan or credit financed,
capital guaranteed or insured by the
government
(b) 15% in all other cases
(a) 15% of the gross amount of the 10 (a) Exempt when paid to the 11
dividents, if the recepient is a government, a political
company including a partnership subdivision thereof or any agency
(b) 25% gross amount of the (b) 10% when paid on public
dividends in all other cases issues of bonds or debentures
(a) 15% where the gross amount 10 (a) 10% when paid on public 11
of any dividend paid to a company issues of bonds or debentures
which is a resident of Canada
which controls at least 10% of the (b) 15% in all other cases
voting power of the company
paying the dividend.
(b) 25% of the gross amount of the

dividends in all other cases
company holding directly at least government, a local authority or
10% of the paying company's the central bank, or paid on debt-
capital claims indirectly financed by the
government
(b) 15% of gross amount the
dividends in all other cases (b) In all other cases, 10% of the
gross amount of the interest
company holding directly at least government or the central bank
10% of the paying company's or paid on a loan or credit
capital guaranteed by the government
(b) 15% in all other cases (b) 10% in all other cases
(a) 10% where the payee is a 10 (a) Exempt when paid on a loan 11
company (excluding a made by, or guaranteed or insured
partnership) holding directly at by the government or the central
least 25% of the paying company's bank or any other agency or
capital instrumentality
(b) 15% dividends in all other (b) shall not exceed 10% gross
cases income
(a) 15% where the payee is a 10 (a) 10% when paid on public 11
company (excluding a issues of bonds or debentures
partnership) holding at least 10%
of the paying company's voting (b) 15% in other cases
stock
(a) 10% where the payee is a 10 (a) Exempt when paid on a loand 11
company (excluding a made, guaranteed or insured, pr a
partnership) holding directly at credit guaranteed or insured by
least 10% of the paying company's the Central Bank
voting shares
(b) 15% in all other cases issues of bonds or debentures
(a) 5% of the gross amount of the 10 (a) Exempt when interest 11
dividends if the payee holds at payment is in consideration of a
least 70% of the capital of the loan guaranteed by the Federal
company paying the dividend; Republic of Germany in respect of
export or foreign direct
(b) 10% of the gross amount if the investment or paid to the
payee is a company holds at least Government of the Federal
25% of the capital of the company Republic of Germany, the Deusche
paying the dividends; Bundesbank, the Kredistanslalt fur
Wiederaufbau or the DEG-
(c) 15% of the gross amount of the Duetsche Investitions-und
dividends in all other cases Entwicklungsgesellschaft mbH are
tax exempt

25% of the paying company's or on a loan or on a loan or credit
capital extended, financed, refinanced,
guaranteed or insured by the
(b) 20% in all other cases central bank or other
governmental agencies or lending
institutions
(a) 15% of the gross amount of the 11 (a) Exempt when paid to the 12
dividends if the beneficial owner government or the central bank,
is a company which owns at least or because of a transaction
10% of the shares of the company approved by Philippines
paying the dividends;
(b) 10% when paid to a financial
(b) 20% of the gross amount of the institution or insurance company,
dividends in all other cases or paid on public issues of bonds
or debentures

25% of the paying company's or on a loan or credit financed,
capital guaranteed or insured by the
central bank

company (excluding a government bonds or debentures,
partnership) holding directly at or on a loan or credit financed,
least 10% of the paying company's guaranteed or insured by the
capital central bank
(b) 15% in all other cases (b) 10% in all other cases
(a) not exceed 15% of the gross 10 (a) Exempt when paid to or by the 11
amount of the dividends government, or on a loan
approved by both governments
issues of bonds or debentures
company holding directly at least government or the central bank,
10% of either the paying or on a loan or credit guaranteed,
company's voting stock or the insured or indirectly financed by
total shares issued by that the government or the central
company over six months prior to bank
the payment date
(b) not exceed 10% in all other
(b) 15% in all other cases cases
capital, or when paid by a central bank or a specified
company registered with the institution
Philippine Board of Investments
and engaged in preferred areas of (b) 10% when paid on public
activity issues of bonds or debentures, or
by a company registered with the
(b) 25% in all other cases Philippine Board of Investments
and engaged in preferred areas of
activity
company (excluding a government or the central bank,
partnership) holding directly at or on a loan guaranteed by the
least 10% of the paying company's government or the central bank
capital
(a) Not exceeding 15% of the 10 (a) Exempt if paid to the 11

gross amount of the dividends if Government of a Contracting State
the recepient is a company in the other Contracting State in
respect of interest derived by the
(b) Not exceeding 25% of the Government from that other State
gross amount of the dividends in
all other cases (b) Not exceeding 15% of the
(a) Not exceeding 10% of the 10 (a) Exempt if: (i) interest arising in 11
gross amount of the dividends if one of the States and paid in
the recepient is a company the respect of a bond, debenture or
capital of which is wholly or other similar obligation of the
partially dividend into shares and Government of that State or of a
which holds directly at least 10% political subdivision or local
of the capital of the company authority; or (ii) interest arising in
paying the dividends one of the States and paid in
respect of a loan made by or
(b) Not exceeding 15% of the guaranteed or insured by the
gross amount of the dividends in Government of the other State, the
all other cases central bank of that other State or
any agency or instrumentality
(including a financial institution)
owned or controlled by that
Government in the first-
mentioned State
(b) Not exceeding 10% of the
gross amount if such interest is
paid: (i) in connection with the
sale on credit of any industrial,
commercial or scientific
equipment; or (ii) on any loan of
whatever kind granted by a bank,
or any other financial
institution; or (iii) in respect of
public issues of bonds, debentures
or similar obligations,
(c) Not exceeding 15% of the gross

amount of the interest in all other
cases
(a) Not exceeding 15% of the 10 (a) Not exceeding 10% of the 11
gross amount of the dividends gross amount of the interest
(a) Not exceeding 12.5% of the 10 (a) Exempt if the interest arises in 11
gross amount of the dividends if a Contracting State and paid to a
the beneficial owner is a company resident of the other Contracting
(excluding partnerships) which State if it is derived and
holds directly at least 10% of the beneficially owned by the
capital of the paying company Government of the other
Contracting State or a local
(b) Not exceeding 15% of the authority thereof or any agency or
gross amount of the dividends in instrumentality of that
all other cases Government or local authority

(a) Not exceeding 15% of the 10 (a) Exempt if interest is derived 11

gross amount of the dividends if from sources within one of the
the beneficial owner is a company Contracting States by a resident of
which controls directly or the other Contracting States
indirectly at least 10 per cent of shall in all events be exempt from
the voting power in the company tax by the first-mentioned State if:
paying the dividends (1) the interest is beneficially
owned by, or is paid by, a
(b) Not exceeding 25% of the Contracting State, a political
gross amount of the dividends in subdivision or local authority
all other cases thereof or an instrumentality,
subdivision or authority of a
Contracting State which is not
subject to tax by that State; and
(2) the income received is from
investments by both Contracting
States in loans, stocks, bonds or
other domestic securities, or from
interest on their deposits by
financing institutions owned,
controlled, or enjoying refinancing
from the government, and
international or regional financing
institutions established by the
governments of both Contracting
States
all other cases
(a) Not exceeding 15% of the 10 (a) Exempt in both Contracting 11
gross amount of the dividends if States in the interest arising in a
the beneficial owner is a company Contracting State and paid in
(excluding partnership) which respect of a bond, debenture or
holds directly at least 25 % of the other similar obligation of the
capital of the paying company government of that Contracting
during the part of the paying State or of a political subdivision
company’s taxable year which or local authority
precedes the date of payment of
the dividends and during the (b) Not exceeding 10% of the
whole of its prior taxable year, if gross amount of the interest on
any interest arising in the Philippines
in respect of public issues of
(b) Not exceeding 25% of the bonds, debentures or similar
gross amount of the dividends in obligations and paid by a company
all other cases which is a resident of the
Philippines to a resident of
Pakistan
(c)) Not exceeding 15% of the

gross amount of the interest in all
other cases
(a) Not exceeding 10% of the 10 (a) Not exceeding 10% of the 11
gross amount of the dividends if gross amount of the interest
the beneficial owner is a company
(excluding partnerships) which (b) Exempt if the interest is paid in
holds directly at least 25% of the respect of: (1) a bond, debenture
capital of the paying company or other similar obligation of the
government of that State or a
(b) Not exceeding 15% of the political subdivision or local
gross amount of the dividends in authority thereof; or (2) a loan or
all other cases credit extended, guaranteed,
insured or refinanced by the
Central Bank of the Philippines
and other lending institutions as
maybe specified and agreed in
letters of exchange between the
competent authorities of the
Contracting States
(a) Not exceeding 10% of the 10 (a) Exempt from tax if the 11
gross amount of the dividends of beneficial owner of the interest is:
the beneficial owner is a company (1) the other Contracting State
(excluding partnerships) which itself or a political subdivision or a
holds at least 10% of the capital of local authority of the State; and
the paying company (2) any governmental owned and
controlled institution of the other
(b) Not exceeding 15% of the Contracting State created under
gross amount of the dividends in the national legislation of that
all other cases State

(a) Not exceeding 10% of the 10 (a) Not exceeding 10% if such 11
gross amount of the dividends if interest is paid: (1) in connection
the recipient is a company with the sale on credit of any
(excluding partnership) and industrial, commercial or scientific
during the part of the paying machine or equipment, or similar
corporations taxable year which installation; or (2) on any loan of
precedes the date of payment of whatever kind granted by a bank;
the dividends and during the or (3)in respect of public issues of
whole of its prior taxable year (if bonds, debentures or similar
any), at least 25% of the obligations
outstanding shares of the voting
stock of the paying corporation (b) Not exceeding 15% of the
was owned by the recipient gross amount of such interest in
corporation connection with the sale on credit
of any means of transport and in
(b) Not exceeding 15% of the all other cases
all other cases Notwithstanding the above-given
rates:
(a) Interest arising in a
Contracting State and paid in
respect of a bond, debenture or
other similar obligation of the
government of that Contracting
State or of a political subdivision, a
local authority, or a territorial
administrative unit thereof shall,
provided that the interest is
beneficially owned by a resident of
the other Contracting State, be
taxable only in that State
(b) Interest arising in a
Contracting State and paid to a
(a) not exceed 15% of the gross 10 resident
(a) of the
Exempt whenother
paidContracting
to the 11
amount of the dividends government
(a) 15% where the payee is a 10 (a) Exempt when paid on a loan or 11
company (excluding a credit financed, guaranteed or
partnership) holding at least 15% insured by a government
of the paying company's voting approved institution
stock during the part of the paying
company's taxable year preceding (b) 10% when paid on public
the payment date, and during the issues of bonds or debentures
whole of its prior taxable year (if
any) (c) Not exceed 15% of the gross
amount of interest in all other
(b) In all other cases, 25% of the cases
gross amount of the dividends

voting stock central bank
(b) 15% gross amount of (b) 10% if interest paid: (i)

dividends in connection with the sale on
credit of any industrial,
commercial or
scientific equipment, or (ii)
in respect of issues of bonds,
debentures or similar obligations
offered to
the general public
The tax so charged shall not 10 If the recipient is the beneficial 11

exceed: (a) 15% of the gross owner of the interest, the tax so
amount of the dividends if the charged shall not exceed 15% of
beneficial owner is a company the gross amount of the interest
(excluding partnership) (b) 25%
of the gross amount of the
(a) 10% of the gross amount of 10 (a) Exempt when paid on 11
the dividends if the beneficial government bonds or debentures,
owner is a or on a loan or credit financed,
company (excluding partnerships) guaranteed or insured by the
which holds directly at least 25 central bank or a specified
per cent of institution
the capital of the paying company
(b) 15% gross amount of the interest in other cases
dividends in all other cases.
(a) 10% of the gross amount of the 10 (a) Shall not exceed 10% gross 11
dividends if the beneficial owner amount of interest
is a company (excluding
partnerships) which holds directly
at least 10 per cent of the capital
of the paying company
(b) 15% gross amount of the
If the beneficial owner of the 11 (a) Not exceeding 10% of the 12

dividends is a resident of the other gross amount of interest if it arises
contracting State, the tax so in the Philippines in respect of
charged shall not exceed: public issues of bonds, debentures
or similar obligations
(a) 10% of the gross amount of the
dividends if the beneficial owner (b) Not exceeding 15% of the
is a company (excluding gross amount of interest in other
partnerships) which directly at cases
leat 25% of the capital of the
paying company;

individuals in all other cases.
(a) Not exceeding 10% if the 10 (a) Exempt when received by the 11
company (excluding partnerships) government of a Contracting State
which hold directly at least 25% of
the capital of the paying company (b) Not exceeding 10% of the
(b) Not exceeding 15% in all other
cases
(a) 0% when paid to the 10 (a) Exempt when paid on a loan 11

government financed, guaranteed or insured
by the government
(b) 10% where the payee is a
company (excluding a (b) Not exceeding 10% in other
partnership) holding directly at cases
least 10% of the paying company's
capital
company holding at least 10% of government, or on a loan financed,
the paying company's voting stock guaranteed or insured by a
government approved institution
issues of bonds or debentures
(c) Not exceed 15% in all other

cases
company holding at least 10% of government or the central bank,
the paying company's voting stock or on a loan or credit guaranteed
during the part of the paying or insured by the government or
company's taxable year preceding the central bank
the payment date, and during the
whole of its prior taxable year (if (b) 10% when paid on public
any) issues of bonds
(b) 25% in all other cases (c) not exceed 15% in all other
cases
company (excluding a government
partnership) holding directly at
least 25% of the paying company's (b) Not exceed 15% in other cases
capital

ROYALTIES EFFECTIVITY DATE
RATE ARTICLE
(a) 15% when paid by a company 12 January 1, 1980
registered with the Philippine Board of
Investments and engaged in preferred
areas of activity

pioneer areas of investments
(b) In any other case, not exceeding 15%
(a) 15% when arising from the use of, or 12 January 1, 2004
the right to use, any copyright of literary,
artistic or scientific work including
cinematograph films or tapes for
television or broadcasting
(b) 10%, in any other case
(a) Not exceeding 15% of the gross 11 January 1, 2004
amount of royalties
(a) 15% of the gross amount of royalties 12 January 1, 2000 as

Amended
(a) 25% of the gross amount of royalties 12 January 1, 1992

arising from the use of or the right to use
trade mark and cinematograph films or
tapes for television or radio
broadcasting
(a) The lesser of: (i) 25% of the gross 12 January 1, 1977
amount of the royalties, and (ii) the
lowest rate of Philippine tax that may be
imposed on royalties of the
same kind paid in similar circumstances
to a resident of a third State.
arising from the use of, or the right to
use, any patent, trade mark, design or
model, plan, secret formula or process,
or from the use of, or the right to
use, industrial, commercial, or
scientific equipment, or for information
concerning industrial, commercial or
scientific experience
(b) 15% of the gross amount of royalties

use, any copyright of literary, artistic
or scientific work including
cinematograph films or tapes for

use, any patent, trade mark, design or
model, plan, secret formula or process,
or from the use of, or the right to
use, industrial, commercial, or
scientific equipment, or for information
concerning industrial, commercial or
scientific experience

royalties arising from the use of, or the
right to use, any copyright of
cinematograph films, and films or tapes
for television or radio broadcasting.
(a) shall not exceed 15% of the gross 12 January 1, 1998
amount of the royalties
(a) 15% where the royalties are paid by 12 January 1, 1982

an enterprise registered with and
engaged in preferred areas of activities,
and also royalties in respect of
cinematographic films or tapes for
television or broadcasting, and royalties
for the use of, or the right to use, any
copyright of literary, artistic or scientific
work
(a) 15% 12 January 1, 1998 as

Amended
(a) Shall not exceed 10% the gross 12 January 1, 2016
amount of royalties
(a) Shall not exceed the lesser of: (i) 11 January 1, 1998
15% of the gross amount of the
royalties, (ii) the lowest rate of the
Philippine tax that may, under similar
circumstances, be imposed on royalites
derived by a resident of a 3rd state.

Investments
areas of activity
(a) Shall not exceed the lesser of: (i)15% 12 January 1, 1997
of the gross amount of the royalties, (ii)
the lowest rate of Philippine tax that
may, under similar circumstances, be
imposed on royalties derived by a
resident of a 3rd state

areas of activity, or for cinematographic
films or tapes for television or
broadcasting
(a) 15% when paid for the use or the 12 January 1, 2009 as
right to use cinematograph films and Amended
films or tapes for radio or television
broadcasting
areas of activity if recipient is beneficial
owner
(a) 20% of the gross amount of the 12 January 1, 2014

royalties

amount of the royalties where the
royalties are paid by a registered
enterprise as well as the use of, or the
right to use, cinematograph films, or
tapes for radio or television
broadcasting
(b) Not exceeding 25% of the gross

amount of the royalties in all other cases
royalties are paid by an enterprise
registered, and engaged in preferred
areas of activities in that State
(a) Not exceeding 15% of the gross 12 December 1, 2008 as

amount of the royalties Amended
amount of the interest

amount of the royalties, including 25%
of the gross rentals or amount paid for
the use of, or the right to use, motion
picture films, films or tapes for radio or
television broadcasting,
(b) Not exceeding 7.5% of the gross

rentals or amount paid for the use of or
the right to use containers, or
(c) The lowest rate of the Philippine tax

that may be imposed on royalties of the
same kind paid in similar circumstances
to a resident of a third State
(d) Not exceeding 10% of the gross

amount of the royalties on the amount of
tax imposed by the Philippines on the
royalties paid by a company, being a
resident of the Philippines, registered
with the Board of Investments and
engaged in preferred pioneer ares of
investment under the investment
incentives laws of the Philippines to a
resident of Norway, who is the beneficial
owner of the royalties
registered with, and engaged in
preferred areas of activities in that
Contracting State

amount of the royalties, where the
registered with the Board of
Investments in the case of the
Philippines and with the Romanian
Agency for Development in the case of
Romania and engaged in preferred
pioneer areas of activities
amount of the royalties, in respect of
cinematographic films and tapes for
television of broadcasting
(c) Not exceeding 25% of the gross
amount of the royalties, in all other
cases
(a) Not exceed 15% 12 January 1, 1998

areas of activity, or royalties for
cinematographic films or tapes for

areas of activity
(b) 20% for cinematographic films or
tapes for television or broadcasting
(a) 15% of the gross amount of the 12 January 1, 2019

royalties where the royalties are paid by
an enterprise registered with, and
engaged in preferred areas of activities
in that Contracting State (b) in all other
cases, 25% of the gross amount of the
royalties
(a) Not exceed 15% of the gross amount 12 January 1, 2004
of the royalties
(a) Shall not exceed 15% of gross 12 January 1, 2002

amount of royalties
Not exceed 15% of the gross amount of 13 January 1, 2019

the royalties
(a) Not exceeding 15% of the gross 12 Signed March 18,
amount of the royalties arsising from the 2009
use of, or the right to use, any Ratified December 14,
cinematograph files or tapes for 2015
television or radio broadcasting
amount of the royalties arising from the
use of, or the right to use, any copyright
of literary, artistic or scientific work, any
patent, trade mark, design or model,
plan, secret formula or process, or from
the use of, or the right to use, industrial,
commercial, or scientific equipment, or
for information concerning industrial,
commercial or scientific experience
(a) Not exceed 10% of the gross amount 12 January 1, 2009

of the royalties

areas of activity, or for cinematographic
films or tapes for television or radio
broadcasting
(a) The least of: (i) 25% of the gross 13 January 1, 1983
amount of the royalties, (ii) 15% of the
gross amount of the royalties where paid
by a corporation registered with the
Philippine Board of Investments and
engaged in preferred areas of activities,
and (iii) the lowest rate of Philippine tax
that may be imposed on royalties of the
same kind paid under similar
circumstances to a resident of a 3rd
state.


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TAXATION OF INDIVIDUALS: CITIZENS

Mixed income earners: 1. For income from

Tax rates - Capital Gains

Definition Sec 22 (F) Sec 22 (G) / Sec (A)(1) Sec 22 (G)

Tax rates - Capital Gains

Tax Rates - on passive income from sources within the Philippines

Dividends - Entra corporate EXEMPT EXEMPT 15% ft (conditional)

Uniform and clothing allowance

Actual Medical assistance/ benefits

Benefits received by an employee by virtue of a CBA and productivity incentive schemes

P1,500 per employee per P1,500 per employee per

P6,000 per annum P6,000 per annum P5,000 per annum

P10,000 per annum

P300 per month

P10,000 per annum

P5,000 per annum

25% of the basic minimum

P10,000 per taxable year P10,000 per annum

P750 per employee per semester or P125 per month

P1,500 or 1 sack (50 kg) per month

P4,000 per annum

P10,000 per annum

P300 per month

P10,000 per annum

P5,000 per annum

25% of the basic minimum wage

30,000 per annum

BIR Ruling [DA-469-06], BIR Ruling [DA-218-08], BIR Ruling [DA-(ECB-025)

BIR Ruling [DA-219-00], BIR Ruling [DA-335-03], BIR Ruling [DA-168-04],

BIR Ruling [DA-335-03], BIR Ruling [DA-168-04], BIR Ruling [DA-343-07],

BIR Ruling [DA-(ECB-025) 733-09], BIR Ruling [DA-(ECB-021) 503-09]

"Fringe Benefit" means any good, service or other benefit furnished

Not taxable Fringe Benefits:

Taxable Fringe Benefits Rules

(2) Expense account

(3) Motor vehicle of any kind

(4) Household expenses

(5) Interest on loan at less than market rate

(7) Expenses for foreign travel

(8) Holiday and vacation expenses

(9) Educational assistance to the employee or his dependents

Computation of the tax:

Solution and answer:

(A) Professional fees, talent fees, etc. for

(1) Individually engaged in the practice of

(11) Commission of independent and/or

Professional fees, talent fees, etc. for services of

(5) Cinematographic film rentals and other

(C) Income payments to certain contractors

(1) General engineering contractors

(e) Transportation contractors

(D) Income distribution to the beneficiaries

(E) Income payments to partners of general

(F) Gross selling price or total amount of

(H) Certain income payments made by credit

(I) Income payments made by the top

(J) Income payments by government office,

(K) Tolling fees paid to refineries

(L) Payments made by pre-need companies to

(M) Payments made to embalmers

(N) Income payments made to suppliers of

(O) Income payments on purchases of minerals,

(P) Meralco payments