ORDINARY INCOME

INCOME Resident Non-Resident Resident Non-Resident Alien

Citizen Citizen Alien Engaged Not Engaged
RANGE OF TAXABLE TAX DUE = a + (b*c)
INCOME
OVER NOT OVER BASIC AMOUNT ADDITIONAL RATE OF EXCESS
(a) (b) OVER
Jan. 1, 2018
- 250,000 - - - Final Withholding
until Dec.
250,000 400,000 - 20% 250,000 Tax 25%
31, 2022
400,000 800,000 30,000 25% 400,000
800,000 2,000,000 130,000 30% 800,000
2,000,000 8,000,000 490,000 32% 2,000,000
8,000,000 - 2,410,000 35% 8,000,000
RANGE OF TAXABLE TAX DUE = a + (b*c)
INCOME
OVER NOT OVER BASIC AMOUNT ADDITIONAL RATE OF EXCESS
(a) (b) OVER
Jan. 1, 2023 - 250,000 - - - Final Withholding
onwards 250,000 400,000 - 15% 250,000 Tax 25%
400,000 800,000 22,500 20% 400,000
800,000 2,000,000 102,500 25% 800,000
2,000,000 8,000,000 402,500 30% 2,000,000
8,000,000 - 2,202,500 35% 8,000,000
Graduated Tax Rates or
Purely SEP
8% of GSRONOI (do not exceed the 3 million VAT threshold)
Mixed From Compensation Income: Graduated Tax Rates; plus,
Income From Business or Profession Income: Graduated Tax Rates or
Earner 8% of GSRONOI (do not exceed 3M)
TAXATION ON INDIVIDUALS
PASSIVE INCOME
Type of Income Resident Non-Resident Resident Non-Resident Alien
Citizen Citizen Alien Engaged Not Engaged
Interest 20%
Interest (FCDS) 15% EXEMPT 15% EXEMPT
Interest (LTD) EXEMPT
4 to less 5 5%
3 to less 4 12%
Less than 3 20%
Final Withholding
Royalties 20%
Tax 25%
Royalties in Book 10%
Prizes 20%
Prizes 10k or less Graduated Tax Rates
Winnings 20% (if less 10k EXEMPT)
Dividends 10%
Share 10%

CAPITAL GAINS
Stock not listed 15% of net capital gains 15% of NCG
Real Property 6% on Gross Selling Price 6% of GSP
 TAXATION ON CORPORATION
ORDINARY INCOME
DC RFC NRFC
MSME (100M assets; 5M NI) 20% Not Applicable Not Applicable
RCIT 25% 25% 25% of Gross Income (FWT)
MCIT 2%; 1%; 2% 2%; 1%; 2% Not Applicable

PASSIVE INCOME
DC RFC NRFC
Interests 20% 20% 25% of Gross Income (FWT)
Interests (FCDS) 15% TRAIN: 7.5% CREATE: 15% EXEMPT
Royalties 20% 20%
Dividends EXEMPT

CAPITAL GAINS
DC RFC NRFC
Shares of Stock 15% of net capital gains
Real Properties (Only DCs) 6%

Formula to compute tax due using RCIT vs MCIT (Trading/Merchandising/Manufacturing)

RCIT MCIT
Gross Sales xxx Gross Sales xxx
-Sales Return xx -Sales Return xxx
-Sales Discount xx -Sales Discount xxx
-Sales Allowances xx (xxx) -Sales Allowance xxx (xxx)
Net Sales xxx Net Sales xxx
-COGS (xxx) -COGS (xxx)
GP from Sales xxx
+Other Gross Inc xxx
Gross Income xxx Gross Income xxx
-Deductions (xxx)
Net Income xxx
Multiply: Tax Rate 25% Multiply: Tax Rate 1% or 2%
Normal Tax/RCIT xxx MCIT xxx

Formula to compute tax due using RCIT vs MCIT (Sale of Service Cash Basis)
RCIT MCIT
Gross Receipts xxx Gross Receipts xxx
-Sales Return xx -Sales Return xxx
-Sales Discount xx -Sales Discount xxx
-Sales Allowances xx (xxx) -Sales Allowance xxx (xxx)
Net Receipts xxx Net Receipts xxx
+Other Gross Inc xxx -Cost of Service (xxx)
Gross Income xxx Gross Income xxx
-Deductions (xxx)
Net Income xxx
Multiply: Tax Rate 25% Multiply: Tax Rate 1% or 2%
Normal Tax/RCIT xxx MCIT xxx