INDIVIDUALS
CITIZEN ALIEN
RESIDENT NON-RESIDENT RESIDENT NRS NRS
CITIZEN CITIZEN ALIEN ETOB NON-ETOB
Within & without Within Within Within Within
Deductions: Sec.34 (A)-(M) No deductions
Taxpayers earning income arising from personal services rendered
under employer-employee relationship are not allowed to claim Personal
itemized deductions, except for Sec. 34 (M) Exemptions:
Sec. 35 D- out of
Personal Exemptions: Sec. 35 reciprocity.
Ordinary Income: Sec. 24 (A) Staying in the Philippines Ordinary Income:
On all taxable income in Sec. 31 for more than 180 days. Sec. 25 (B)
Other income under Sec. 24 (B, C,
D) Ordinary Income: 25% of the entire
Graduated Income Tax- 5-32% Sec. 24 (A) income including:
Minimum wage earners (Sec. 22 -Interest
HH) exempt. -Cash or property
[Holiday pay, overtime pay, night shift dividends
differential pay, andhazard pay they -Rents
received is also exempted.] -Salaries
Passive Income: Sec. 25 (B) Passive Income: Sec. 25 -Wages
Interest, royalties, prizes and other winnings- final tax of (A) 2 -Premiums
-Annuities
Books, literary works, musical Cash or property dividends -Compensation
compositions- 10% interest, royalties, prizes -Remunerations
Prizes 10k or less- taxed as ordinary and other winnings: -Emoluments
income -Other fixed or
Phil. Charity Sweepstakes SameandEXC
Lottoas Sec. 24 (B) determinable
Interest derived from EFCDS annual or periodic
Cinematographic films- 25%
(residents only) – 7 ½ of interest gains, profits,
income income and
capital gains.
If non-resident corp. or individuals- tax
exempt.
Joint account of resident and non-
resident- 50% of account subject to 7 ½
%
Long term deposit or investment- tax
exempt unless
Pre-terminated before the 5th year- 5,
12, or 20%
Cash or property dividents- 10%
Capital Gains: Sec. 24 (C & D) Capital Gains:
Same as Sec. 24 (C & D)
Sale of shares of stock not traded in Special Aliens employed by:
stock exchange- 5% (below 100k) or Regional/ Area HQ and Regional
10% (100k plus) Operating HQ o MNC- 15%
If traded in stock exchange- ½ of 1% Offshore Banking Units- 15%
of gross selling price of shares. Petroleum Service Contractor and
Gains by dealers in securities, gains Subcontractor- 15%
in invested in new shares of stocks
in banks etc. – tax exempt Provided, the same tax treatment shall apply to
Filipinos employed under MNCs, OBUS and
Sale of real property- 6% (on gain petroleum contractor or subcontractor.
presumed to have been realized) of
gross selling price or current FMV All other income: 25%
whichever is higher.
If sold to government, taxpayer may
opt to be taxed under Sec. 24 (A)
[as ordinary income].
Sale of principal residence by
natural persons exempt from CGT if:
Proceeds fully utilized to acquire and
construct new principal residence;
Within 18 months
CIR informed
Availed of once every 10 years.
W/N taxable in full (Sec. 39 B)
Held not more than 12 months – 100 %
Held more than 12 months- 50%
CORPORATIONS
DOMESTIC FOREIGN FOREIGN PARTNERSHIPS
ETOB Not ETOB
Within & without Within Within Within
Deductions: Sec. 34 (A)-(J) No deductions Deductions:
Sec. 34 (A)-(J)
30% RCIT imposed on taxable income 30% RCIT imposed Partnerships taxed as
(TI= GI- Ded- Personal/Additional on gross income corporations.
Exemptions)
15% of gross income option, upon Except CGT on GPP
approval of President and Sec. of Shares of Stock not Sec. 26
Finance traded- 5 or 10%
2% MCIT imposed on gross income As such, not subject to
(GI= Gross sales- sales returns, tax.
discounts, allowances, COGS) Partners liable in their
Certain Passive Certain Incomes: Certain Incomes: separate and
Incomes: Same as Interest on individual capacities
Sec. 27 (D) Domestic Foreign loans- Distributive share
Corporations with 20% derived from net
Interest from regard to interest, Intercorporate income of partnership
deposits and EFCDS, and dividends to be computed the
yield, monetary intercorporate received from same way as
benefit dividends and domestic corporations.
substitutes, trust CGT on shares of corporation- Actually or
funds, royalties- stock not traded. 15% constructively
20% No provision on - Provided received-after
- Derived from CGT on lands or country where deducting corporate
EFCDS- 7 ½ % buildings. the foreign income tax, whether
corporation is actually distributed
Capital Gains Other taxes: domiciled or not. (Sec. 73 D)
Tax International grants tax
- Shares of stock Carrier- 2 ½ % on credit of 15%.
not traded in gross Philippine
stock exchange- billings Other taxes:
5 or 10% Cinematographic
- Lands or OBUs Film Owner,
buildings (not -From foreign Lessor of Vessels
used in currency Chartered by
business)- 6% of transactions with Philippine
GSP or FMV NOLB- tax Nationals- 4 ½ %
whichever is exempt of gross rentals or
higher. fees.
Branch Profit
Income derived Remittance- 15%
by depository of total profits
bank under applied without
EFCDS. deductions
- With non- - Except PEZA
resident, OBUs, Regional or Area
HQs- tax exempt
Regional
Operating HQs-
10% of taxable
income.
