3 Income Taxation - Artificial Persons

WELCOME TO OUR INCOME TAXATION
LEARNING TEAM MEET

LOG IN
Format: Good day everyone. I am Ara L. Na
and my top 3 concepts from our past lessons
are: (1) ______________ (2) ___________
(3) ___________ . Good day everyone.
Agenda:
1. Login
2. Opening Prayer
3. Lesson 3: Income Taxation: Estates and Trusts
4. Lesson 4: Gross Income: Inclusions and exclusions
5. Lesson 5: Income Taxation: Corporations Including Partnerships
6. Q & A
7. Closing Prayer
8. Documentation Picture
9. Logout
Opening Prayer
FLOW OF TOPICS
A. INTRODUCTION
o Two (2) kinds of Persons
o Already covered Income taxation of Individuals (Natural Persons)
o Current topic is about Income Taxation of Juridical or Legal Persons
(Estates; Trusts; Partnerships; Corporations)
B. Applicable Income Tax Rates for Juridical Persons
I. ESTATES
II. TRUSTS
III. PARTNERSHIPS
a. General Professional Partnerships
b. General Commercial Partnerships
FLOW OF TOPICS
IV. CORPORATIONS
a. Domestic Corporations
b. Resident Foreign Corporation
c. Non-resident foreign Corporations
C. ALLOWABLE DEDUCTIONS (NEXT WEEK)

PERSONS SUBJECT TO
INCOME TAX
PERSONS SUBJECT TO INCOME TAX
The term 'person’ means an individual, a trust, estate or
corporation.
PERSON:
• INDIVIDUAL
• TRUST
• ESTATE
• CORPORATION
PERSONS SUBJECT TO INCOME TAX
PARTICULARS NATURE OF TAXATION
BEING
INDIVIDUAL NATURAL Income taxation for individuals
(NIRC Section 24)
TRUST ARTIFICIAL Income taxation for individuals
(NIRC Sections 60 & 24)
ESTATE ARTIFICIAL Income taxation for individuals
(NIRC Sections 60& 24)
CORPORATION ARTIFICIAL Income taxation for corporations
(NIRC Section 27)
‘ CORPORATION ‘ INCLUDE
• One person corporations
• Partnerships, no matter how created or organized, joint-stock
companies, joint accounts (cuentas en participacion), associations, or
insurance companies,
‘ CORPORATION ‘ DOES NOT INCLUDE
• General professional partnerships
• A joint venture or consortium formed for the purpose of
undertaking construction projects or engaging in petroleum, coal,
geothermal and other energy operations pursuant to an
operating consortium agreement under a service
contract with the Government.
GPPs not included as ‘CORPORATION’
'General professional partnerships’ are partnerships formed by persons
for the sole purpose of exercising their common profession, no part of
the income of which is derived from engaging in any trade or business.
(NIRC Section 22)
TAXATION OF ARTIFICIAL BEINGS
Individual Income Taxation applies to:
Members of a Professional Co-ownership Trust Estate

Partnership NIRC Section 60-61 Estates and Trusts
OTHERS THAT ARE CLASSIFIED AS INDIVIDUAL
INCOME TAX FOR INDIVIDUALS APPLY ALSO TO:

 Members of General Professional Partnership
 Co-ownership (Individuals` shared ownership of property)
 Estates
 Trusts
MEMBERS OF GENERAL PROFESSIONAL PARTNERSHIP

GPPs are partnerships formed by persons for the sole purpose of
exercising their common profession, no part of the income of
which is derived from engaging in any trade or business.
Professionals (CPAs, Lawyers, etc.) who bound themselves to contribute money, property, or industry to
a common fund, with the intention of dividing the profits among themselves
Should report as gross income their respective

distributive share in the net income of the
partnership.
Income Taxation –members of GPPs
Distributive share of a GPP (GPP: Bola Dola & Co., CPAs)

Particulars Income from Interests and Capital gains net TOTAL
operations other passive
: BOLA DOLA of Capital Gains
& Co., CPAs
incomes net of Tax
Final
Withholding
Tax
A B C =A+B+C
Gross Income Php2,000,000

Allowable deductions 800,000
Net Income Php 1,200,000 Php 160,000 Php 40,000 Php1,400,000
Partner’s P&L % 50% 50% 50%
Share in income Php 600,000 Php 80,000 Php 20,000 Php 700,000
Distributive share of a GPP and it’s income taxation to the member of the GPP
Particulars Income from Interests and other Capital gains net of TOTAL
operations passive incomes net Capital Gains Tax
of Final Withholding
Tax

Partner’s P&L % 50% 50% 50%
Question: If Mr. Romeo Bola is one of the partners of the above GPP, how much is
the distributive share of Mr. Romeo Bola in the income of Bola Dola & Co., CPAs?
a. Php700,000 c. Php 680,000

b. Php600,000 d. Php721,277
Tax

Partner’s P&L % 50% 50% 50%
ANSWER: Mr. Romeo Bola’s distributive share in the income of Bola Dola & Co.,
CPAs is….
a. Php700,000 c. Php 680,000
b. Php600,000 d. Php721,277
The interests and capital gains are not relevant as these were already subjected to
final tax
Tax


Partner’s P&L % 50% 50% 50%
COMPUTATION OF MR. BOLA’s TOTAL TAXABLE INCOME: MR. BOLA’s INCOME TAX DUE AND PAYABLE
Taxable compensation income (if any) Php 600,000
Gross business income (if any) Php 1,200,000 Tax due Php 370,000
Allowable deductions from Business ( 800,000 ) Withholding tax on compensation
Income (if any) (if any) ( 80,000 )
Distributive share from GPP Php 600,000
Mr. BOLA’s TOTAL TAXABLE INCOME Php 1,600,000 Tax due and payable Php 290,000
Income Taxation –members of GPPs
SOME SALIENT POINTS TO REMEMBER

 A Member of a GPP can not avail of the 8% on gross sales
income tax option
REASON: Their distributive share from the GPP is already net of costs and expenses
 A Member of a GPP shall be liable for income tax only on

his/her separate and individual capacity
Income payments made periodically or at the end of the year
by a GPP to the partners are subject to withholding tax (10%
if <Php720K; 15%, otherwise as per RR 11-2018)

 Members of General Professional Partnership
 Co-ownership (Individuals` shared ownership of property)
 Estates
 Trusts
Individual Income Taxation also apply to Co-Ownership
CO-OWNERSHIP
• Created when 2 or more heirs or beneficiaries inherit or
received as gift an undivided property from a decedent or
donor
• Co-owners are taxed individually on their distributive share in
the income of co-ownership
Reason: Activities generally limited to preservation of the common property
• When inherited property remained undivided for more than
10 years AND NO ATTEMPT was ever made to divide the
property among the heirs, to be treated as an unregistered
partnership, hence, taxed as a corporation.
CO-OWNERSHIP
Important Concepts
• Not taxable in itself because the activities are generally limited to the
preservation of the common property and the collection of the income
therefrom
• Co-owners taxed individually on their distributive share in the income of
the co-ownership.
• If Co-owners invest the income in business for profit, it becomes a
partnership and therefore, taxed as a corporation.

 Co-ownership (Individuals` shared ownership of property)
 Estates
 Trusts
INCOME TAX FOR INDIVIDUALS APPLY ALSO TO…
ESTATES
• Estate is the collective term for all the properties and assets left
behind by a deceased person at the time of death.
• Income tax of an estate refers to the tax on income received by
the estate during the period of administration or settlement.
• Subject to graduated rates
• Aside from allowable deductions, income of the estate paid to
heir is a special deduction from the estate’s taxable income
(However, this becomes a taxable income to the heir)

 Estates
 Trusts
INCOME TAX FOR INDIVIDUALS APPLY ALSO TO…
TRUSTS
• Pertains to a right on property, real or personal, held by one
party for the benefit of another.
• Taxable to the trustee if to be held for accumulation
• Taxable to Grantor/Trustor if any part of the principal of the
trust may be revested to the Grantor; or the income of the trust
may be held or distributed to the benefit of the grantor
• Taxable to the beneficiaries if the income is to be distributed to
the beneficiaries.
• The distribution of the year’s income to an heir or beneficiary is
a special item of deduction for the trust.

 Estates
 Trusts
What we have covered so far…..
SOMETHING TO THINK ABOUT

1. If a Mixed Income Earner whose sales do not exceed the VAT Threshold of
Php3,000,000 have chosen the graduated rates to apply on taxable income (even
knowing that by doing so, the taxable income bracket would normally be
increased by the inclusion of compensation income), what could have been the
most valid reason for the decision?
2. If you put yourself as a Business Owner and having known that increasing Sales
would naturally increase taxable income and increasing Allowable Deductions
naturally decrease taxable income, what would be your course of action to
minimize your income tax?
PART 2
Inclusions to and Exclusions from Gross
Income & Introduction to Allowable
Deductions
Inclusions to and Exclusions from Gross
Income & Introduction to Allowable
Deductions
1. Gross Income Definition
2. The General Rule on the Coverage of Territorial Limits (SITUS)
3. Territorial Limit: Source of Income
Definition of Gross Income
THE INCOME OF A TAXPAYER SUBJECT TO TAX
(Within or Without the Philippines; Legal or illegal)
All wealth which flows into the taxpayer other than
capital
NIRC tells Employee: Gross Income = Compensation Income
NIRC tells Business Person: Gross Income = Gross Profit
Gross Profit = Sales – Inventory Sold
NIRC tells Employees and Business Person: Gross Income = Other
Income
Definition of Gross Income
Key concepts:
• Principal or Capital pertains to Funds but Income is the
FLOW
• SOURCES of Income that are Included in Gross Income:
 Compensation Income
 Professional/Business Income
 Other Income
INCLUSIONS TO GROSS INCOME
The general rule:
The taxing authority cannot go beyond
the territorial limits of the taxing
authority
THE BROAD COVERAGE OF TERRITORIAL
LIMITS (SITUS)
Residence or domicile
Nationality
Source (Compensation Income;
Professional/Business Income; Other Income)
THE BROAD COVERAGE OF TERRITORIAL LIMITS (SITUS): SOURCE OF INCOME
SOURCE OF INCOME
o Compensation Income
Payments received by the employee from his/her employer for rendering
services to his/her employer arising from an employee-employer
relationship.
o Professional/Business Income
Receipts of revenues for services of professionals and sales of products
and/or services of persons to its customers.
o Other Income
Sources of income included in Gross Income: Detailed Items of Income
DETAILED ITEMS OF INCOME INCLUDED IN GROSS INCOME

1. Compensation for services 5. Rents 9. Prizes and winnings
2. Gross income derived from 6. Royalties 10. Pensions

the conduct of trade or
business or the exercise of a
profession
3. Gains derived from dealings 7. Dividends 11. Partner's distributive share from
in property the net income of the general
professional partnership
4. Interests 8. Annuities
ITEMS OF GROSS DEFINITION/ SOURCE OF INCOME
INCOME DESCRIPTION CLASSIFICATION
Compensation for services Payment of services arising Compensation Income

Including, but not limited to from an employee-employer
fees, salaries, wages, relationship.
commissions, and similar
items
Gross income derived from Receipts of revenues for Professional/Business
the conduct of trade or services of professionals and Income
business or the exercise of a sales of products and/or
profession ; services of persons to its
customers. (Sales – cost of
goods sold/cost of services)
Sources of income included in Gross Income

Gains derived from dealings in Casual dealings in personal, or Other Income

property real property
Interests Other Income
Rents Other Income
Royalties Other Income

Dividends Other Income
Annuities Other Income
Prizes and winnings Other Income

Pensions
Partner's distributive share
from the net income of the
general professional
partnership
EXCLUSIONS FROM GROSS INCOME:
Items not taken into account in

determining Gross Income
Exclusions from Gross Income
Reasons for exclusions :
Exempted by the fundamental law or by

statute;
Does not come within the definition of
income
EXCLUDED FROM GROSS INCOME
Life Insurance Retirement Benefits 13th Month Pay and Other Benefits;
Amount Received by Insured as Pensions, Gratuities, etc GSIS, SSS, Medicare and Other
Return of Premium Contributions
Gifts, Bequests, and Devises Income Derived by Foreign Gains from the Sale of Bonds,
Government; Income Derived by the Debentures or other Certificate of
Government or its Political Indebtedness
Subdivisions;
Compensation for Injuries or Prizes and Awards Gains from Redemption of Shares in
Sickness Mutual Fund; Income Derived from
the Sale of Gold Pursuant to
Republic Act No. 7076
Income Exempt under Treaty Prizes and Awards in sports

Competition;
PART 3
Income Taxation: Corporation

TAXATION OF ARTIFICIAL BEINGS
Income Taxation for Corporations
Income Taxation: Corporation
 Definition of Corporation
 Others that are classified as Corporation (Includes GCPs)
 Tax Exempt Corporations
 Classifications of Corporations
 Income Tax Rates
 Regular Corporate Income Tax Rate
 Minimum Corporate Income Tax
 Final Taxes on Certain Passive Incomes of the Corporation
 Branch Profit Remittance Tax
 Special Corporations
 Cases and Examples
Income Taxation: Corporations
DEFINITION OF CORPORATION
Definition of a Corporation
A Corporation is an artificial being created

by operation of law, having the right of
succession and the powers, attributes and
properties expressly authorized by law or
incident to its existence. (Corporation
Code of The Philippines)
A corporation is therefore a juridical person (legal
person). It can sue and be sued.
OTHERS THAT ARE CLASSIFIED AS

CORPORATION
(For Income Taxation Purposes As per
NIRC)
Others that are classified as Corporation for Income Taxation
CORPORATIONS also include

• General Commercial Partnerships (no
matter how created or organized)
• Joint stock companies
• Joint accounts
• Associations
• Insurance Companies
Others that are classified as Corporation for Income Taxation: General Commercial Partnerships
PARTNERSHIPS ARE OF TWO (2) KINDS

• General Commercial Partnerships(GCPs). Partnerships
other than GPPs.
• General Professional Partnerships(GPPs). Partnership
formed by persons for the sole purpose of exercising
their common profession. Net Income of a GPP is
computed in the same manner as a corporation
Others that are classified as Corporation for Income Taxation: General Commercial Partnerships
• Joint stock companies are non-SEC registered companies

operating as a corporation.
• Joint accounts (Cuentas en participacion) are non-SEC
registered partnership not subject to any formality and may
be privately contracted orally or in writing
• Associations are all organizations which have substantially
the salient features of a corporation to be taxed as a
“corporation”.
TAX EXEMPT CORPORATIONS

Tax Exempt Corporations

1. Labor, agricultural or horticultural organization not
organized principally for profit
2. Mutual savings bank not having a capital stock represented

by shares, and cooperative bank without capital stock
organized and operated for mutual purposes and without
profit
3. A beneficiary society, order or association, operating for the
exclusive benefit of the members such as a fraternal organization
operating under the lodge system, or mutual aid association or a
nonstock corporation organized by employees providing for the
payment of life, sickness, accident, or other benefits exclusively to the
members of such society, order, or association, or nonstock
corporation.
4. Cemetery company owned and operated exclusively for the benefit
of its members
5. Nonstock corporation or association organized and operated
exclusively for religious, charitable, scientific, athletic, or cultural
purposes, or for the rehabilitation of veterans, no part of its net
income or asset shall belong to or inure to the benefit of any member,
organizer, officer or any specific person
6. Business league chamber of commerce, or board of trade,
not organized for profit and no part of the net income of which
inures to the benefit of any private stockholder, or individual
7. Civic league or organization not organized for profit but
operated exclusively for the promotion of social welfare
8. A nonstock and nonprofit educational institution
9. Government educational institution

10. Farmers' or other mutual typhoon or fire insurance company,
mutual ditch or irrigation company, mutual or cooperative telephone
company, or like organization of a purely local character, the income of
which consists solely of assessments, dues, and fees collected from
members for the sole purpose of meeting its expense.

11. Farmers', fruit growers', or like association organized and
operated as a sales agent for the purpose of marketing the
products of its members and turning back to them the
proceeds of sales, less the necessary selling expenses on the
basis of the quantity of produce finished by them
CLASSIFICATIONS OF CORPORATIONS
CLASSIFICATIONS OF CORPORATIONS
Domestic Corporations
SITUS OF INCOME: Income from within and without the Philippines
Resident Foreign Corporation

SITUS OF INCOME: Income from within the Philippines
Nonresident Foreign Corporations
SITUS OF INCOME: Income from within the Philippines
INCOME TAX RATES

INCOME TAX RATES

Regular Corporate Income Tax Rate (RCIT)
Minimum Corporate Income Tax Rate (MCIT)
Final Tax on Certain Passive Incomes (FT)
Branch Profit Remittance Tax (BRT)
Special Corporation Rates (SCR)
Income Taxation: Corporations – Income Tax Rates
REGULAR CORPORATE INCOME TAX RATE

DOMESTIC CORP. (DC) RESIDENT NON-RESIDENT
FOREIGN CORP. FOREIGN CORP (NRFC)
(RFC)
If Taxable Net Income does
not exceed Php5mn. and
with Total Assets excl. land
does not exceed
Php100mn. : 20%
Otherwise: 25% of 25% of Taxable 25% of Gross Income

Income Taxation: Corporations – Regular Corporate Income Tax Rate
REGULAR CORPORATE INCOME TAX RATE-20%
Applicable only to Domestic Corporations whose Taxable Net Income Does not Exceed Php5Mn. And with Total Assets
excluding land does not exceed Php100mn.
Particulars AMOUNT 20% RCIT Application
Gross sales Php10,000,000 Income Tax:
Discounts 200,000 Taxable Net Income
NET SALES Php 9, 800,000 =Php3,500,000
Cost of sales 4,500,000 Php3,500,000x 20%
Gross Profit Php 5,300,000 =Php 700,000
Expenses 2,200,000
Rent income 400,000
Income Taxation: Corporations – Regular Corporate Income Tax Rate
REGULAR CORPORATE INCOME TAX RATE-25%
20% applicable only to Domestic Corporations whose Taxable Net Income Does not Exceed Php5Mn. And with Total
Assets excluding land does not exceed Php100mn.
Particulars AMOUNT 25% RCIT Application
Gross sales Php100,000,000 Income Tax:
Discounts 200,000 Taxable Net Income
NET SALES Php 99,800,000 =Php37,500,000
Gross Profit Php 55,300,000 = Php9,375,000
Expenses 22,200,000
Rent income 4,400,000
MINIMUM CORPORATE INCOME TAX

MINIMUM CORPORATE INCOME TAX (MCIT)- 2%

1% - up to June 30, 2023; 2% thereafter
DOMESTIC CORP. (DC) RESIDENT NON-RESIDENT
FOREIGN CORP. FOREIGN CORP (NRFC)
(RFC)
YES YES NO
* MCIT is 2% x Gross income (Gross Profit)

Income Taxation: Corporations – MCIT
MINIMUM CORPORATE INCOME TAX (MCIT).
Particulars AMOUNT MCIT

Gross sales Php10,000,000 MCIT:
Discounts 200,000 Gross Income
NET SALES Php 9, 800,000 =Php5,700,000
Gross Profit Php 5,300,000 =Php 114,000
Expenses 2,200,000
Rent income 400,000
MINIMUM CORPORATE INCOME TAX (MCIT)- 2%

1% - up to June 30, 2023; 2% thereafter
THE RULES
1. IF RCIT < MCIT; The Income Tax is MCIT
2. IF RCIT < MCIT; and a Net Loss; The Income Tax is MCIT; The MCIT is
Carried Forward up to 3 Years; Net Operating Loss is Carried Forward
up to 3 Years (NOLCO)
3. IF RCIT > MCIT; The Income Tax is RCIT
Final Taxes on Certain Passive

Incomes of the Corporation
Final Taxes on Certain Passive Incomes of the Corporation…
Corporation: Income Tax Rates–Certain Passive

Incomes and Capital Gains Subject to Final Tax
(Within the Philippines)
Income Tax-Corporations: Final Tax on Certain Passive Incomes and Capital Gains Subject to Final Tax
PASSIVE INCOME/CAPITAL GAINS DC RFC NRFC
Interest Bank Deposit/Deposit substitutes 20% 20% 25%

(Peso)
Interest (FCDU) 15% 15% 25%
Royalties 20% 20% 25%
Intercorporate Dividends received from Exempt Exempt 15%
domestic corporation
Capital gains from sale of shares of stock not 15% 15% 15%
traded in PSE
Capital gains from sale of Land or buildings 6% N/A N/A
Dividends and Remittances of Branch

Office of MNCs to their Head Office
Dividends and Remittances of Branch Office of

MNCs to their Head Office
Any profit remitted by a branch to its head office shall be subject
to a tax of fifteen (15%) which shall be based on the total profits
applied or earmarked for remittance without any deduction for
the tax component thereof (except those activities which are
registered with the Philippine Economic Zone Authority).
Updates on Corporate Income

Taxation and
Special Corporations’ Income Tax
Rates
Income Taxation: Corporations - Updates on Corporate Income Taxation and Special Corporations’ Income Tax Rates
Updates on Corporate Income Taxation:
NO MORE IMPROPERLY ACCUMULATED

EARNINGS TAX (REPEALED BY CREATE
LAW)!!!!
Income Taxation: Corporations-Updates on Corporate Income Taxation and Special Corporations’ Income Tax Rates
Special Corporations’ Income Tax Rates

• Proprietary educational institutions and Non-profit hospitals – 10%
• International Carriers which are RFC – 2.5% of Gross Phil. Billings
• Regional Operating Headquarters (ROHQ) of multinational
Corporations – RCIT
• NRFC Owner or Lessor of Vessel – 4.5% of Gross rentals
• NRFC Cinematographic film owner, lessor or distributor – 25% of
Gross Income
• NRFC lessor of aircraft, machinery and other
equipment -7.5% of Gross rentals
Q&A
CLOSING PRAYER
DOCUMENTATION PICTURE
HAVE A GOOD DAY!
LOG OUT FORMAT:

Ara L. Na here and my top 3 take outs from our
Learning Team Meet are (1) _________ (2)
_______ (3) _____________

3 Income Taxation - Artificial Persons

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

3 Income Taxation - Artificial Persons

Uploaded by

Copyright:

Available Formats

WELCOME TO OUR INCOME TAXATION

LEARNING TEAM MEET

C. ALLOWABLE DEDUCTIONS (NEXT WEEK)

Members of a Professional Co-ownership Trust Estate

INCOME TAX FOR INDIVIDUALS APPLY ALSO TO:

MEMBERS OF GENERAL PROFESSIONAL PARTNERSHIP

Should report as gross income their respective

Distributive share of a GPP (GPP: Bola Dola & Co., CPAs)

Gross Income Php2,000,000

Gross Income Php2,000,000

a. Php700,000 c. Php 680,000

Gross Income Php2,000,000

Gross Income Php2,000,000

Net Income Php 1,200,000 Php 160,000 Php 40,000 Php1,400,000

SOME SALIENT POINTS TO REMEMBER

 A Member of a GPP shall be liable for income tax only on

INCOME TAX FOR INDIVIDUALS APPLY ALSO TO:

INCOME TAX FOR INDIVIDUALS APPLY ALSO TO:

INCOME TAX FOR INDIVIDUALS APPLY ALSO TO:

INCOME TAX FOR INDIVIDUALS APPLY ALSO TO:

SOMETHING TO THINK ABOUT

DETAILED ITEMS OF INCOME INCLUDED IN GROSS INCOME

2. Gross income derived from 6. Royalties 10. Pensions

Compensation for services Payment of services arising Compensation Income

ITEMS OF GROSS DEFINITION/ SOURCE OF INCOME

Gains derived from dealings in Casual dealings in personal, or Other Income

Rents Other Income

Royalties Other Income

Dividends Other Income

Annuities Other Income

Prizes and winnings Other Income

Items not taken into account in

Reasons for exclusions :

Exempted by the fundamental law or by

Income Exempt under Treaty Prizes and Awards in sports

Income Taxation: Corporation

A Corporation is an artificial being created

OTHERS THAT ARE CLASSIFIED AS

CORPORATIONS also include

PARTNERSHIPS ARE OF TWO (2) KINDS

• Joint stock companies are non-SEC registered companies

TAX EXEMPT CORPORATIONS

TAX EXEMPT CORPORATIONS

2. Mutual savings bank not having a capital stock represented

9. Government educational institution

TAX EXEMPT CORPORATIONS

Resident Foreign Corporation

INCOME TAX RATES

INCOME TAX RATES

REGULAR CORPORATE INCOME TAX RATE

Otherwise: 25% of 25% of Taxable 25% of Gross Income

MINIMUM CORPORATE INCOME TAX

MINIMUM CORPORATE INCOME TAX (MCIT)- 2%

* MCIT is 2% x Gross income (Gross Profit)

MINIMUM CORPORATE INCOME TAX (MCIT).

Particulars AMOUNT MCIT

MINIMUM CORPORATE INCOME TAX (MCIT)- 2%

1. IF RCIT < MCIT; The Income Tax is MCIT

Final Taxes on Certain Passive

Corporation: Income Tax Rates–Certain Passive

Interest Bank Deposit/Deposit substitutes 20% 20% 25%

Dividends and Remittances of Branch