Tax Base For Resident and Foreign Companies
VAT is applied in the same way to residents and non residents. For additional information, consult the Bureau of Internal Revenue.
Income Tax | The rate is 30% on net income but there are some preferential rates and exemptions. Preferential rates vary from 2 to 20%. Regional headquarters are taxed at 10%. |
Capital Gains Tax | These are taxed like income, except those from selling shares in companies (5-10% if not exchanged on the Stock Exchange; half of 1% of the selling price otherwise), and those from selling real estate not used for business purposes (6%). |
Deductions on dividends | Deduction of 15% on ...view middle of the document...
For any additional information access the PKFTax guide on the Philippines.
Other Corporate Taxes
Tax of 3 to 7% on companies in certain sectors (banking, insurance, finance, transport). Various duties apply at various rates depending on the type of document.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Tax Base For Residents and Non-Residents
Resident citizens are taxed on all of their income, while foreign residents and non residents are only taxed on their Filipino income.
Income Tax | Rates vary between 0 and 32% (higher rate for revenues over PHP 500 000) according to the income of natural persons. |
From PHP 0 to 10,000 | 5% |
From PHP 10,000 to 30,000 | 10% |
From PHP 30,000 to 70,000 | 15% |
From PHP 70,000 to 140,000 | 20% |
From PHP 140,000 to 250,000 | 25% |
From PHP 250,000 to 500,000 | 30% |
Over PHP 500,000 | 32% |
Tax on capital income | 6% (real estate); 5% up to 100 000 PHP then 10%...