INDIVIDUAL CORPORATION

PASSIVE INCOME ALIEN

FOREIGN
(DITWRISP) CITIZEN RESIDENT NON-RESIDENT
RC NRC RA ETB NETB DC RFC NRFC
DIVIDEND INCOME
*All kinds of dividends except STOCK DIVIDENDS and LIQUIDATING DIVIDENDS (except : SUBSEQUENT CANCELLATION AND
REDEMPTION AND STOCK DIVIDENDS IN LIEU OF CASH)
**Inter-corporate dividends (received by DC and RFC from DC) and Dividends from exempt cooperatives are EXEMPT
***Note: DC includes Business partnerships and NOT EXEMPT Ventures and Co-Ownership
FROM DOMESTIC CORPORATION
Jan 1, 2000 earnings and thereafter 10% 10% 10% 20% 25% E-DT E-DT 15%*
Jan 1, 1999 earnings 8% 8% 8% 20% 25% E-DT E-DT 15%*
Jan 1, 1998 earnings 6% 6% 6% 20% 25% E-DT E-DT 15%*
FROM FOREIGN CORPORATION (RESIDENT and NON-RESIDENT) RIT
INTEREST INCOME
ON LOCAL CURRENCY DEPOSITS *savings or time deposits with cooperatives are not subject to final tax
SHORT TERM YIELD (less than 5 years) *Bank deposits, Deposit substitute, money market placement and trust funds (CTF, UIFT, IMA) 20% 20% 20% 20% 25% 20% 20% 30%
LONG TERM YIELD (5 years and above) *Deposits, Investment in the form of savings, Common or Individual Trust Funds, Investment EXEMPT 25% 20% 20% 30%
Management Accounts, Deposit substitute and Other Investments evidenced by certificate prescribed by the BSP
PRE-TERMINATION OF LONGTERM DEPOSITS OR INVESTMENT OF INDIVIDUALS *Individual ceases to be exempt from long-term yield
by pre-termination before 5 years
Less than 3 years held 20% 20% 20% 20%
3 years to less than 4 years 12% 12% 12% 12% 25% 20% 20% 30%
4 years to less than 5 years 5% 5% 5% 5%
ON FOREIGN CURRENCY DEPOSIT *NO LONGTERM OR SHORT TERM CLASSIFICATION
FROM FOREIGN CURRENCY DEPOSITARY UNITS DEPOSITARY BANKS (BANKS WITHIN PH) *NIRC (7.5%) *** JOINT ACCOUNTS ON FOREIGN
CURRENCY DEPOSITS OF NON-RESIDENT AND RESIDENT TAX PAYER IS 50% EXEMPT AND 50% SUBJECT TO FINAL TAX
15% E 15% E E 15% 15% E
OF FOREIGN CURRENCY UNIT DESPOSITARY BANKS * BANKS ARE CORPORATIONS N/A 10% 20% N/A
ON FOREIGN LOANS *MOSTLY GIVEN TO CORPORATIONS N/A 20%
TAX-FREE CORPORATE COVENANT BONDS-INTEREST INCOME *WITHHOLD BY OBLIGOR *FINANCIAL LIABILITIES OF DC AND RFC WITH TAX FREE PROVISION 30% RIT
WINNINGS
IN GENERAL *earned within 20% 25% RIT 30%
PSCO AND LOTTO WINNING (10,000 AND BELOW = EXEMPT) *NIRC NO CLASSIFICATION AS TO EXCEEDING 10,000 ALL ARE EXEMPT 20% 25% 20% 30%
ROYALTIES
PASSIVE ROYALTIES *earned within
IN GENERAL 20% 25% 20% 20% 30%
FROM books, literary works and musical compositions 10% 25% 20% 20% 30%
Active Royalties *earned within RIT 25% RIT 30%
INFORMER’S TAX REWARD 10%
SHARE IN NET INCOME
OF TAXABLE PARTNERSHIP, JOINT VENTURE AND CO-OWNERSHIP *not a dividends *If bonus, salaries and interest of partners are expensed = RIT 10% 20% 25% 10% 10% 30%
FROM REAL ESTATE INVESTMENT TRUST OR REIT (IN FORM OF DIVIDENDS) 10% E 10% 10% 10% E E 10%
PRIZES (TAXABLE)
10,000 and Below RIT (Progressive) RIT
Above 10,000 20% 25% RIT