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Philippine Withholding Tax Guide

This document outlines final withholding taxes in the Philippines, including taxes on interest, royalties, prizes, and dividends from Philippine sources. It specifies tax rates for citizens and residents as well as nonresident aliens with or without employment in the Philippines.

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50 views2 pages

Philippine Withholding Tax Guide

This document outlines final withholding taxes in the Philippines, including taxes on interest, royalties, prizes, and dividends from Philippine sources. It specifies tax rates for citizens and residents as well as nonresident aliens with or without employment in the Philippines.

Uploaded by

creacion impresiones
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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FINAL WITHHOLDING TAXES

Final withholding taxes is a kind of tax, which is prescribed on “certain income” derived from the
Philippine sources.
PASSIVE INCOME DERIVED FROM PHILIPPINE SOURCES SUBJECT TO FINAL WITHHOLDING TAXES
1.INTEREST Citizens and NRA-ETB NRA-NETB
Residents
a. Interest from any currency bank deposit 20% 20% 25%
b. Yield or any other monetary benefit from deposit 20% 20% 25%
substitutes
c. Yield or any other monetary benefit from trust 20% 20% 25%
funds and similar arrangements
d. Interest income received from a depositary bank RC: 15% Exempt Exempt
under expanded foreign currency deposit system NRC: exempt
NOTE: Only residents are subject to this type of
tax. Nonresident taxpayers are exempt from tax on
this particular income
e. Interest income from long-term deposit or Exempt Exempt 25%
investment
If pre-terminated before fifth year, a final tax
shall be imposed based on remaining maturity as
follows:
5% 5% 25%
● 4 years to less than 5 years
12% 12% 25%
● 3 years to less than 4 years 20% 20% 25%

● Less than 3 years

II. ROYALTIES
a. Royalties, in general (other than royalties 20% 20% 25%
described in letter B)
b. Royalties on books, as well as other literary 10% 10% 25%
works and musical compositions
III. PRIZES
a. Prizes (except prizes amounting to P10,000 or 20% 20% 25%
less which shall be subject to regular tax)
b. Other winnings 20% 20% 25%
c. PCSO and/or Lotto winnings in the Philippines Exempt Exempt 25%
amounting to P10,000 or less
d. PCSO and/or Lotto winnings in the Philippines 20% Exempt 25%
amounting to more than P10,000
IV. DIVIDENDS
a. Cash and/or property dividends actually or 10% 20% 25%
constructively received from:
● Domestic corporation

● Joint stock company

● Insurance or mutual fund companies

● Regional operating headquarters of


multinational companies
● On the share of an individual partner in the
distributable net income after tax of
partnership (except GPP)
● On the share of an individual in the net
income after tax of an association, a joint
account, or a joint venture or consortium of
which he is a member or co-venturer

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