Type of Income

(derived from sources within the Philippines)

Tax Rate For Resident

Citizen

Interest from any currency bank deposit & yield or any other
monetary benefit from deposit substitutes & from trust funds &
similar arrangements
Royalties (except on books & other literary works & musical
compositions)
Prizes exceeding P10,000
Other winnings except PCSO & Lotto
Royalties on books & other literary works & musical
compositions
Interest Income received by an individual (except a nonresident
individual) from a depositary bank under the expanded foreign
currency deposit system
Interest income from long term deposit or investment in the
form of savings, common or individual trust fund, deposit
substitutes, investment management accounts & other
investments evidenced by certification in such form prescribed by
the BSP
Pre-termination of such certificate before the 5th year (i.e. 4
years to less than 5 years)
3 years to less than 4 years
less than 3 years
Cash and/or Property Dividends from a domestic corp. or from
a joint stock co., insurance or mutual fund companies & regional
operating headquarters of multinational companies (tax on
dividends shall apply only on income earned on/after 1/1/98)
Share of an individual in the distributable net income after tax of
a partnership (except GPP)
Share of an individual in the net income after tax of an assn., a
joint account or a joint venture or consortium taxable as a corp. of
w/c he is a member/co-venturer
Capital gains from sale, barter, exchange or other disposition of
shares of stock (of domestic corp.) not traded in the stock
exchange

Final Tax of 20%

Not over P100,000

On any amount in excess of P100,000
Capital gains from sale, exchange or other disposition of real
property located in Philippines, classified as capital assets,
including pacto de retro sales & other forms of conditional sales

Rate For Non-Resident

Citizen (Incl. OCW)
Final Tax of 20%

Tax Rate For Resident

Alien
Final Tax of 20%

Non-Resident Alien
engaged in trade or
business
Income Tax of 20%
(GI from within the Phils. from
cinematographic films and
similar works = 25%)

Final Tax of 10%

Final Tax of 10%

Final Tax of 10%

Final Tax of 10%

Final Tax of 7.5%

Exempt from tax

Final Tax of 7.5%

Exempt from tax

Exempt from tax

Exempt from tax

Exempt from tax

Exempt from tax

Final tax
on the entire
income 5%
12%
20%
Final Tax on amount actually
received:
Beginning 1/1/98 6%;
Beginning 1/1/99 8%;
Beginning 1/1/00 10%

Final tax
on the entire
income 5%
12%
20%
Final Tax on amount actually
received:
Beginning 1/1/98 6%;
Beginning 1/1/99 8%;
Beginning 1/1/00 10%

Final tax
on the entire
income 5%
12%
20%
Final Tax on amount actually
received:
Beginning 1/1/98 6%;
Beginning 1/1/99 8%;
Beginning 1/1/00 10%

Final tax
on the entire
income 5%
12%
20%
Income Tax of 20%

Final tax on net capital

gains realized during taxable
year

Final tax on net capital

gains realized during taxable
year

Final tax on net capital

gains realized during taxable
year

Final tax on net capital

gains realized during the
year

5%
10%
Final Tax on the gross
selling price or current fair
market value whichever is
higher - 6%

5%
10%
Final Tax on the gross
selling price or current fair
market value whichever is
higher - 6%

5%
10%
Final Tax on the gross
selling price or current fair
market value w/cever is
higher - 6%

5%
10%
Final Tax on the gross
selling price or current fair
market value w/cever is
higher - 6%

Type of Income

Tax Rate
Citizen

For

Resident

Rate For Non-Resident

Citizen (Incl. OCW)

Tax Rate
Alien

For

Resident

Non-Resident
engaged
in
business

trade

Alien
or

CG from sale/disposition of principal residence by natural Exempt from CG tax

Exempt from CG tax
Exempt from CG tax
persons, the proceeds of which is fully utilized in
acquiring/constructing a new principal residence w/in 18 mos.
from date of sale, provided historical cost/adjusted basis of sold
prop be carried to the new principal residence built/acquired
Commissioner. Duly notified w/in 30 days from sale Tax exemption
can only be availed once every 10 years If no full utilization of
proceeds of sale, such portion shall be subject to CG tax
**a nonresident alien engaged in business in the Philippines is an individual who shall come to the Philippines & stay therein for an aggregate period of 180 days during any calendar year
Non-resident alien not engaged in trade or business in the Philippines

25% upon the entire income received from all sources within the Philippines
Capital gains from sale of shares of stock in a domestic corporation and real property shall be subject to capital gains tax

Type of Income
Gross Income = Salaries, Wages, Annuities,
Compensation, Remuneration, Other Emoluments (i.e.
honoraria & allowances) received from such cos. Provided,
same tax treatment shall apply to Filipinos abroad
employed & occupying same positions in these companies

Regional Or Area Headquarters &

Regional Operating Headquarters of
Multinational Cos.
15% of gross income

Tax Rate For Alien Individual Employed By

Offshore Banking Units
Petroleum Service
Subcontractor
15% of gross income

15% of gross income

NOTE: any income earned from other sources within the

Philippines by these alien employees shall be subject to
the pertinent income tax
** Multinational company = a foreign firm/entity engaged in international trade with affiliates/subsidiaries/branch offices in the Asia Pacific Region & other foreign markets

Contractor

&