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Final Income Tax Rates: Short-Term Interest or Yield Long-Term Interest or Yield
Final Income Tax Rates: Short-Term Interest or Yield Long-Term Interest or Yield
RECIPIENT
PASSIVE INCOME INDIVIDUAL CORPORATION
RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
1. INTEREST INCOME
Local Currency Deposit
Short-term interest or yield 20% 20% 20% 20% 25% 20% 20% 30%
Long-term interest or yield Exemp
Exempt Exempt Exempt 25% 20% 20% 30%
t
Pre-termination interest rate
− Less than 3 years 20% 20% 20% 20% 25% 20% 20% 30%
− 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% 25% 20% 20% 30%
− 5 years or more 0% 0% 0% 0% 25% 20% 20% 30%
Foreign Currency Deposit
Interest income from FCDUs/OBU depositary banks 15% Exempt 15% Exempt Exempt 15% 15% Exempt
Interest income of EFCDU/OBU banks 10% Exempt 10% Exempt Exempt 10% 10% Exempt
Interest income on foreign loans N/A N/A N/A N/A N/A N/A N/A 20%
Tax-free Covenant Bond 30% 30% 30% 30% 30% N/A N/A N/A
2. DIVIDEND INCOME
From domestic corporations, in general
− January 1, 1998 earnings Exemp Exemp
6% 6% 6% 20% 25% 15% (1)
t t
− January 1, 1999 earnings Exemp Exemp
8% 8% 8% 20% 25% 15% (1)
t t
− January 1, 2000 earnings and thereafter Exemp Exemp
10% 10% 10% 20% 25% 15% (1)
t t
From domestic corporations, in general Exemp Exemp
10% Exempt (2) 10% <10% (3) <10% (3) <10% (3)
t t
From foreign corporations RIT RIT RIT RIT RIT RIT RIT RIT
4. ROYALTIES
Passive Royalties
In general, 20% 20% 20% 20% 25% 20% 20% 30%
From cinematographic films and similar works 20% 20% 20% 25% 25% 20% 20% 25%
From books, literary works, and musical compositions 10% 10% 10% 10% 25% 20% 20% 30%
Active Royalties RIT RIT RIT RIT 25% RIT RIT 30%
RECIPIENT
PASSIVE INCOME INDIVIDUAL CORPORATION
RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
5. TAXABLE PRIZES
P10,000 and below RIT RIT RIT RIT 25% RIT RIT 30%
Above P10,000 20% 20% 20% 20% 25% RIT RIT 30%
6. WINNINGS
In general, 20% 20% 20% 20% 25% RIT RIT 30%
PCSO and lotto winnings > P10,000 20% 20% 20% 20% 25% 20% 20% 30%
PCSO and lotto winnings ≤ P10,000 Exempt Exempt Exemp Exempt 25% Exemp Exemp
30%
t t t
7. INFORMER’S TAX REWARD 10% 10% 10% 10% 25% 10% 10% 30%
NOTES: