1.

Non-VAT registered persons under Gross sales or receipts 3%

Section 109 (BB)

2. Domestic carriers and keepers of garages Gross receipts 3%

3. International air/shipping carriers doing Gross receipts on transport of cargo 3%

business in the Philippines from the Philippines to a foreign
country

4. Franchise grantees: 2%

Gas and water utilities 3%

Gross receipts
Radio and television broadcasting companies
whose annual gross receipts of the preceding Gross receipts
year do not exceed Php10,000,000 and did not
opt to register as VAT taxpayer

5. Overseas dispatch, message or Amount paid for the service 10%

conversation originating from the
Philippines

6. Banks and non-bank financial Interest, commissions and discounts from lending
intermediaries performing quasi-banking activities as well as income from financial leasing,
functions on the basis of remaining maturities of
instruments from which receipts are derived:

• If maturity period is five years or 5%

less

• 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 7%

year of foreign currency, debt
securities, derivatives and other
similar financial instruments

7. Other non-bank financial intermediaries Interest, commissions, discounts and 5%

all 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 5%

less

• If maturity period is more than five 1%

years

8. Life Insurance Total premiums collected 2%

Company/Agent/Corporation (except
purely cooperative companies or
associations)

9. Agents of foreign insurance companies (except reinsurance premium):

10. Insurance agents authorized under the Total premiums collected 4%

Insurance Code to procure policies of
insurance for companies not authorized
to transact business in the Philippines

11. Owners of property obtaining insurance Total premiums paid 5%

directly with foreign insurance companies

12. Proprietor, lessee or operator of the following:

13. Cockpits Gross receipts 18%

14. Cabarets, Night or Day Clubs, videoke Gross receipts 18%

bars, karaoke bars, karaoke televisions,
karaoke boxes and music lounges

15. Boxing exhibitions (except when the Gross receipts 10%

World or Oriental Championship 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)
16. Professional basketball games (in lieu of Gross receipts 15%
all other percentage taxes of whatever
nature and description)

17. Jai-alai and race track Gross receipts 30%

18. 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