2023 Graduated Tax Rate

2018-2022 Graduated tax rate

Passive Incomes derived from PH Sources subject to FWT

Citizens & NRA - NRA - NETB

Residents ETB

Interest

A. Interest from any currency bank deposit 20% 20% 25%

B. Yield or any other monetary benefit from deposit substitute 20% 20% 25%

C. Yield or any other monetary benefit from trust funds and similar 20% 20% 25%
arrangements

D. Interest incomes received from a depository bank under expanded 15% Exempt Exempt
foreign currency deposit system NRC =
Exempt

E. Interest income from long term deposit or investment Exempt Exempt 25%

If pre-determined before fifth year, a final tax shall be imposed based

on remaining maturity:
● 4 years to less than 5 years 5% 5% 25%
● 3 years to less than 4 years 12% 12% 25%
● Less than 3 years 20% 20% 25%

Royalties

A. Royalties in general 20% 20% 25%

B. Royalties on books, as well as their literary works and musical 10% 10% 25%
compositions

Prizes

Prizes exceeding 10,000 20% 20% 25%

Prizes not exceeding 10,000 are subject to basic tax except those
received by NRA NETB which are subject to 25% FWT

Other Winnings
Under Create Act

Other Winnings Regardless of Amount 20% 20% 25%

PCSO Winnings

Amount is ≤ 10,000 Exempt Exempt 25%

Amount is > 10,000 20% 20% 25%

Cash and/or property dividend

A. cash/property dividends received from a domestic corp. or from 10% 20% 25%
joint stock company, or mutual fund companies and ROHQ of
multinational companies

B. Share of an individual in the distributable net income after tax of a 10% 20% 25%
partnership

C. Share of an individual in the net income after tax of an 10% 20% 25%
Association, a Joint Account, or a Joint Venture or Consortium
taxable as a corporation, which he is a member or a co-venturer

Creditable Withholding Tax

Purchase of / Payment For: CWT %

Professional Fees

● Individual Payee
★ If gross income for the current year ≤ 3M 5%
★ If gross income for the current year > 3M 10%
● Non-individual payees
★ If gross income for the current year ≤ 720K 10%
★ If gross income for the current year > 720K 15%

Rentals 5%

Goods 1%

Services 2%

Income payments to beneficiaries of estates/trusts 15%

Income payment to partners of GPPs

● If gross income for the current year ≤ 720K 10%
● If gross income for the current year > 720K 15%

Certain income payments made by credit card companies 1%

Applicable Taxes of MWE

Taxpayer Income Tax CWT

Purely MWE Exempt Exempt

MWE with additional benefits from Exempt Exempt

exceeding tax exempt threshold
such as 90,000 limit

MWE with additional business Min. Wage = Exempt Min. Wage = exempt
Income Bus. Income = subject to basic tax Bus. Income = subject to creditable
withholding tax
 Citizens & NRA - NRA -
Residents ETB NETB

Capital gain from sales of shares of stock of domestic corporation 15% 15% 15%
not traded in local stock exchange

Sale of real property located in Philippines 6% 6% 6%

Type of Income Income Tax PER MONTH

Gross Income From OGl 25% FWT or 12,500 per month, whichever is higher

Income from all other sources within the Philippines Subject to pertinent income tax imposed under the
Tax Code, as amended