TAX ON CORPORATIONS

FORMULA:

Domestic/Resi
dent Foreign
Corp
GROSS SALES/RECEIPTS

Less: Sales Returns, Sales Discounts and allowances

COST OF SALES/SERVICES
GROSS INCOME
Less: Operating Expenses
Net Taxable Income 30%

Summary of Income Tax Rates for Domestic Corporations:

1. RCIT - 30% of net taxable income
2. MCIT - Minimum corporate income tax - 2% of Gross Income for Domestic/Resident Foreign Corp
Carry forward of excess MCIT

Year RCIT
2018 50,000.00
Tax Payable
2019 60,000.00
Tax Payable
2020 100,000.00
Less: Excess MCIT in 2018 25,000.00
Excess MCIT in 2019 40,000.00
Net Tax Payable 35,000.00
3. Improperly accumulated earnings tax - 10% of the improperly accumulated taxable income
4. Proprietary educational institutions and hospitals - 10% of the net taxable income
provided, GI from unrelated activities do not exceed 50% of the total GI
5. GOCCS - Generally subject to 30% RCIT
Except:
1. GSIS
2. PHIC
3. LWDs
4. SSS
6. Passive Income
Interest Income 20%
Interest Income under the EFCDS 15%
Capital Gains from Sale of Shares of stock 15% of the net capital gain
Intercorporate dividends - Received by a domestic corporation from another
domestic corp Exempt
Capital Gains - Sale of real properties 6% of the Selling Price, FMV Asses
 Non-Resident
Foreign Corp MCIT RCIT MCIT
500,000.00 500,000.00

50,000.00 50,000.00
250,000.00 250,000.00
30% 2% 200,000.00 200,000.00
10,000.00 2%
190,000.00 4,000.00
30%
57,000.00

MCIT EXCESS MCIT

75,000.00 25,000.00
75,000.00
100,000.00 40,000.00
100,000.00
60,000.00

of the net capital gain

of the Selling Price, FMV Assessors, or Zonal Value, whichever is higher