Tax Based and Tax Rate

Taxpayer Tax Base Tax Rate Tax Situs

RC Net Income Graduated Within & Without
NRC Net Income Graduated Within
RA Net Income Graduated Within
NRAETB Net Income Graduated Within
NRANETB Gross Income Final Tax of 25% Within
 GRADUATED TAX RATE

AMOUNT OF TAXABLE INCOME

TAX RATE
over but not over
~ 250, 000 none (0%)
250, 000 400, 000 20% of excess over ₱250,000
400, 000 800, 000 ₱30,000 + 25% of excess over ₱400,000
800, 000 2, 000, 000 ₱130, 000 + 30% of excess over ₱800,000
2, 000, 000 8, 000, 000 ₱490,000 + 32% of excess over ₱2,000,000
8, 000, 000 ₱2,410,000 + 35% excess over ₱8,000,000
 Resident Non-Resident
Category of Income
Citizen Alien Citizen NRAETB NRANETB

Interest or yeild on local currency short

20% 20% 20% 20% 25%
term depsit (LESS THAN 5 YEARS)

Interest (long-term investment) - savings,

EXEMPT IN CASE OF PRETERMINATION:
common or indicidul trust funds, deposit less than 3 years
substitute investment management
- 20% 3 years to less 25%
account in denoomination of ₱10, 000 or
than 4 years - 12% 4 years to less
as prescirbe by the BSP (MORE THAN 5
YEARS) than 5 years - 5%

Interest (Foreign Currency Deposit 15% 15% Exempt Exempt Exempt

System/ FCDU)
Cash/Propety Dividends 10% 10% 10% 20% 25%
Royalties, in general 20% 20% 20% 20% 25%
Royalties, LBM (Literary works, books,
10% 10% 10% 10% 25%
musical composition)
Prizes ( ABOVE 10, 000) 20% 20% 20% 20% 25%
Winnings, in general 20% 20% 20% 20% 25%
Up to 10, 000 - EXEMPT
Winnings on PCSO and Lotto Winnings Exempt 25%
Above 10, 000 - 20%
Capital Gains on Sales of Shares (not Net Capital within: 5% (not over 100k); 10% in excess
traded in Stock Exchange of 100k

Capital Gains on Sales of Real Property Gross Sales Price of FMV whichever is higher * 6%