PERCENTAGE TAX RATES TABLE

Coverage Taxable Base Tax Rate

Non-VAT registered persons under Section 109 (BB) Gross sales or receipts 3%
From July 1, 2020 to June 30, 2023 1%
(CREATE)
Domestic carriers and keepers of garages Gross receipts 3%
International air/shipping carriers doing business in the Philippines Gross receipts on transport of cargo 3%
from the Philippines to a foreign country
Franchise grantees:

Gas and water utilities Gross receipts 2%

Radio and television broadcasting companies whose annual gross

Gross receipts 3%
receipts of the preceding year do not exceed ₱10,000,000 and did
not opt to register as VAT taxpayer

Overseas dispatch, message or conversation originating from the Amount paid for the service 10%
Philippines
Banks and non-bank financial intermediaries performing quasi- Interest, commissions and discounts from lending
banking functions activities as well as income from financial leasing, on
the basis of remaining maturities of instruments from
which receipts are derived:
• If maturity period is five years or less 5%
• If maturity period is more than five 1%
years
Dividends and equity shares and net 0%
income of subsidiaries
Royalties, rentals of property, real or 7%
personal, profits from exchange and all
other items treated as gross income
under Sec. 32 of the Tax Code, as
amended
Net trading gains within the taxable year 7%
of foreign currency, debt securities,
derivatives and other similar financial
instruments
Other non-bank financial intermediaries Interest, commissions, discounts and all 5%
other items treated as gross income
under the Tax Code, as amended
Interest, commissions, discounts from lending
activities, as well as income from financial leasing on
the basis of remaining maturities of instruments from
which such receipts are derived:
• If maturity period is five years or less 5%
• If maturity period is more than five 1%
years
Life Insurance Company/Agent/Corporation (except purely Total premiums collected 2%
cooperative companies or associations)
Agents of foreign insurance companies (except reinsurance premium):
Insurance agents authorized under the Insurance Code to procure Total premiums collected 4%
policies of insurance for companies not authorized to transact
business in the Philippines
Owners of property obtaining insurance directly with foreign insurance Total premiums paid 5%
companies
Proprietor, lessee or operator of the following:
Cockpits Gross receipts 18%
Cabarets, Night or Day Clubs, videoke bars, karaoke bars, karaoke Gross receipts 18%
televisions, karaoke boxes and music lounges
Boxing exhibitions (except when the World or Oriental Championship Gross receipts 10%
is at stake in any division, provided further that at least one of the
contenders for World Championship is a citizen of the Philippines and
said exhibitions are promoted by a citizen/s of the Philippines or by a
corporation/ association at least 60% of the capital of which is owned
by said citizen/s)
Professional basketball games (in lieu of all other percentage taxes Gross receipts 15%
of whatever nature and description)
Jai-alai and race track Gross receipts 30%
Winnings on horse races • Winnings or 'dividends' 10%
• Winnings from double 4%
forecast/quinella and trifecta bets
• Prizes of owners of winning race 10%
horses
Percentage Tax for Transactions Involving Shares Rates Table
Coverage Basis Tax Rate
Sale, barter, exchange or other disposition of shares of stock listed Gross selling price or gross value in 6/10 of 1%
and traded through the Local Stock Exchange other than the sale by money
a dealer of securities
Sale, barter or exchange or other disposition through: Gross selling price or gross value in money
 Initial Public Offering (IPO) – the issuing corporation shall
pay the imposed tax (REPEALED by RA 11494, RR 23- Proportion of disposed shares to total outstanding
2020) shares after the listing in the local stock exchange:
 Secondary Public Offering – the seller shall pay the  Up to 25% 4%
imposed tax
 Over 25% but not over 33 2%
1/3%
 Over 33 1/3% 1%