Passive Income Tax Rate
1. Interest from currency deposits, trust funds and deposit substitutes 20%
2. Royalties (on books as well as literary & musical compositions) 10%
- In general 20%
Graduated
Income Tax
3. Prizes (P10,000 or less ) Rates
- Over P10,000 20%
4. Winnings (except from PCSO and Lotto amounting to P10,000 or
less ) 20%
- From PCSO and Lotto amounting to P10,000 or less exempt
5. Interest Income from a Depository Bank under the Expanded
Foreign Currency Deposit System 15%
6. Cash and/or Property Dividends received by an individual from a
domestic corporation/ joint stock company/ insurance or mutual fund
companies/ Regional Operating Headquarter of multinational
companies 10%
7. Share of an individual in the distributable net income after tax of a
partnership (except GPPs)/ association, a joint account, a joint
venture or consortium taxable as corporation of which he is a member
or co-venture 10%
8. Capital gains from sale, exchange or other disposition of real
property located in the Philippines, classified as capital asset 6%
9. Net Capital gains from sale of shares of stock not traded in the
stock exchange 15%
10. Interest Income from long-term deposit or investment in the form of
savings, common or individual trust funds, deposit substitutes,
investment management accounts and other investments evidenced
by certificates in such form prescribed by the Bangko Sentral ng
Pilipinas (BSP)
Upon pre-termination before the fifth year, there should be imposed
on the entire income from the proceeds of the long-term deposit
based on the remaining maturity thereof:
Holding Period Exempt
- Four (4) years to less than five (5) years 5%
- Three (3) years to less than four (4) years 12%
- Less than three (3) years 20%
Amount of Net Taxable Income Rate
Over But Not Over
- P250,000
P250,000 P400,000
P400,000 P800,000
P800,000 P2,000,000
P2,000,000 P8,000,000
P8,000,000
same manner
as individual
citizen and
A. Tax Rate in General – on taxable income from all sources resident alien
within the Philippines individual
B. Certain Passive Income Tax Rates
1. Interest from currency deposits, trust funds and deposit substitutes 20%
2. Royalties (on books as well as literary & musical compositions) 10%
- In general 20%
Graduated
Income Tax
3. Prizes (P10,000 or less ) Rates
- Over P10,000 20%
4. Winnings (except from PCSO and Lotto) 20%
- From PCSO and Lotto exempt
5. Cash and/or Property Dividends received from a domestic
corporation/ joint stock company/ insurance/ mutual fund companies/
Regional Operating Headquarter of multinational companies 20%
6. Share of a non-resident alien individual in the distributable net
income after tax of a partnership (except GPPs) of which he is a
partner or from an association, a joint account, a joint venture or
consortium taxable as corporation of which he is a member or co-
venture 20%
7. Interest Income from long-term deposit or investment in the form of
savings, common or individual trust funds, deposit substitutes,
investment management accounts and other investments evidenced
by certificates in such form prescribed by the Bangko Sentral ng
Pilipinas (BSP)
Upon pre-termination before the fifth year, there should be imposed
on the entire income from the proceeds of the long-term deposit
based on the remaining maturity thereof:
Holding Period Exempt
- Four (4) years to less than five (5) years 5%
- Three (3) years to less than four (4) years 12%
- Less than three (3) years 20%
8. Capital from the sale, exchange or other disposition of real property
located in the Philippines classified as capital asset 6%
9. Net Capital gains from sale of shares of stock not traded in the
Stock Exchange
- Not over P100,000 5%
- Any amount in excess of P100,000 10%
0%
20% of the excess over P250,000
P30,000 + 25% of the excess over P400,000
P130,000 + 30% of the excess over P800,000
P490,000 + 32% of the excess over P2,000,000
P2,410,000 + 35% of the excess over P8,000,000
