TAXATION OF PASSIVE INCOME (1)

Citizen and
Passive Income Resident
Alien
A. Interest income from any currency bank deposit 20%

B. Yields from deposits substitutes; trust fund 20%

C. Royalties 20%
D. Royalties on books, literary works, and Musical
10%
compositions
E. Prizes of more than P10,000 20%
Graduated
F. Prizes of less than P10,000
rates or 8%

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 TAXATION OF PASSIVE INCOME (2)
Citizen and
Passive Income
Resident Alien

G. Winnings 20%

Exempt, if P10k
H. PCSO or Lotto Winnings
or less

I. Interest income 15%

J. Cash and Property dividends received from

Domestic and Joint stock company, insurance and 10%
mutual fund company beg. 1.1.00

K. Share of a partner from the net-after-tax income of

10%
the partnership except GPP.

L. Share of an individual member of co-venturer in the

net after-tax income of an association , joint account 10%
and joint venture
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 TAXATION OF PASSIVE INCOME (3)
Citizen and NRA NRA
Passive Income
Resident Alien ETB NETB
M. Interest income of member’s savings and time
EXEMPT
deposit from a cooperative.

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 CAPITAL GAINS TAX OF INDIVIDUALS (4)

Transaction Tax Base Tax Rate

1. Sale of Shares of Stock of a Domestic Corporation

a. If not trade in a local stock

Net Capital Gain 15%
exchange
b. If the shares are traded in local
Gross Selling Price 0.6 of 1%
stock exchange
Highest of the:
2. Sale of real property classified as Capital a) GSP
Asset b) Zonal Value 6%
a. General Rule c) Assessor’s value

(Unutilized
b. Proceeds of sale of principal residence are not fully utilized
amount/GSP) x
6%
(Higher of GSP or
in the purchase of a new residence.
FMV)

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 END OF LESSON
(Week 7)