Gross Income Taxes: FIT, CGT, RIT
Final Income Tax (Certain Passive Income)
1. Interest Income from banks - 20%
a. Except for recipient NRA-NETB & NRFC = 25% for active and passive
income (applicable to all)
b. Except for income from LONG-TERM DEPOSIT at least 5 yrs and > = exempt
c. Except income from LTD pre-terminated <4 yrs = 12%
d. Except income from LTD pre-terminated <5 yrs = 5%
Interest income from a depositary bank on FCDU Deposit = 15% Residents but
remained 7.5% for RFC | Exempt Non-Residents
Interest income on foreign loans = N/A all except NRFC subject to 20%
Interest income by FCDU banks = N/A individual & NRFC | 10% DC & RFC
2. Cash/Property/Script Dividends from Domestic Corporation - 10%
a. Except for recipient NRA-NETB & NRFC = 25% (15% for NRFC if with tax
sparing rule)
b. Except recipient NRA-ETB = 20%
c. Except for intercorporate dividends = exempt
i. Except for NRFC above
Stock Dividends in lieu of cash or vice versa - 10%
Net Income from JV/BP - 10%
Dividends from Foreign Corporations - RIT with predominance test
3. Royalties - 20%
a. Except for income from books/musical composition/literary works of
INDIVIDUAL = 10%
b. Except for NRA-NETB & NRFC = 25%
c. Except for active royalties = RIT
4. Prizes for Individual >10K - 20%
a. Except for prize for mere recognition of excellence/notable works = Exempt
b. Except for prizes from sports organized by PSC/NSA = Exempt
c. Except for NRA-NETB = 25%
d. Except for recipient Corp = RIT | NRFC = 25%
e. Except for 10K and below for Individuals excluding letter c = RIT
5. Winnings from PCSO/Lotto >10K and General winnings - 20%
a. Except for NRA-NETB & NRFC = 25%
b. Except for General winnings of Corpo = RIT
c. < or equal 10K PCSO = Exempt all except letter a (NRA-NETB should also be
exempt but forgot to be updated in the law)
6. Informer’s rewards - 10% regardless of the taxpayer
7. Fringe Benefit
8. Others
Capital Gains Tax (Capital Asset Disposal)
1. 15% - Gains on the disposal of Domestic Stocks (CA) directly to the buyer
a. Net Capital Gains (SP - Cost - Selling Expenses)
b. DST Par Value Stock = 1.5/200 x par value
c. DST No-Par Stock = 25% of DST paid on the original issuance of stock
All except FC - subject to the old rate of 5% on the first 100K and 10% on the excess
2. 6% - Gains on the disposal of Real Property (CA)
a. Higher between FMV and GSP
i. FMV = higher between Zonal value and FV per Tax Declaration
ii. GSP
b. DST 15/1000 of FMV or GSP whichever is higher (1.5%)
All except FC because they are not allowed to own land in the PH = RIT
