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TANTOCO

Resident
Citizen

Income
<10K
5%
10K to 500 + 10%
<30K
of >10K
30K to 2.5K +
<70K
15% of
>30K
70K to 8.5K +
<140K 20% >70K
140K
22.5K +
to
25% of
250K
>140K
250K
50K + 30%
to
of >250K
500k
>500K 125K +
32% of
>500k
Married Individuals:
Compute Separately
Income cannot be
defined then half
equally then add to
respective spouse.

NonResident
Citizen
Resident
Alien

MWE Exempt from


tax even overtime,
night differential, etc.

I,DS,TF,R

Interest - EFCD

20%

7.5%

Imposed upon:
1. Interest from
any currency
bank deposit,
yield, or
monetary
benefit
2. Deposit
substitutes,
and from
3. Trust Funds
and
4. Other similar
arrangements
and royalties.

This is the interest


from the Foreign
Currency Deposit
System
This is only on
those who are
residents. Ergo...
Not applicable to
non-resident
individuals.
If it is in a joint
account between
an OCW and a
spouse (who is a
resident), then
50/50. Half is tax
free while the
other half is
subject to tax of
7.5%

EXEMPT
(See Sec 27.D(3))

Same As resident
Citizen

Interest - LTD

Exempt
This is the interest
on Long Term
Deposits
Generally Exempt.
But there will be a
tax when it is
withdraws before
the lapse of 5
years in which
case:
If you remove:
4 to
5%
< 5th
yr.
3 to
12%
th
<4
yr.
< 3rd 20%

Tax on Individuals
Royalties

*10%
Royalties from:
1. Books,
2. Literary
works, and
3. Musical
compositions.
*Note: If the
royalty is not
from the above,
then it is subject
to the 20% tax

Prizes

Dividends

*20%

10%

EXCEPT: If
winnings from
PCSO & Lotto
then: EXEMPT
These
contemplates that
the prizes and
winnings are
made here in the
PH.
*If winnings are
less than 10K
then they go into
your taxable
income thus they
are subject to the
scale.

Includes cash and


property
dividends.
Does not matter if
actually or
constructively
received.
Apples to those
received from:
1. Domestic Corp
2. Joint Stock
Company
3. Insurance or
mutual fund
4. Regional
Operating HQ of
MNC
5. Share in Part. &
JV/Con.

In Partnership,
not included yung
GPPs
STOCK
DIVIDENDS = Not
taxable\

CG-SS
Not
5%
Over
100K
Over 10%
100K
This only applies
to those shares of
stock which are
not traded in the
PSE.
Imposed on net
Capital Gains
If the stock is
traded in the PSE
then it is 0.5%
This contemplates
that the shares of
stock sold are that
of a domestic
corporation.

CG-RP

6%
Of Gross selling
price of current fair
market value
whichever is higher.
RP has to be:
CAPITAL ASSET.
Sale is to the
government, TP can
choose if he wants
the 6% or the
Scales.
IF: sale of RP is the
principal residence
to make a new
house then no
CGT.
BUT:
(a) Proceeds of sale
= fully utilized for
new residence, w/in
18 months.
(b) Notice to the
CIR.
(c) Can only avail
once every 10
years,
(d) If you dont use
all for the new
house, that portion
is subject to tax.

NonResident
Alien
Engaged in
trade and
Business

NonResident
Alien NETB

Employed by
a Regional or
Area
Headquarter
of MNCs

Income
Same tax rate as the
individuals, but only
from sources which are
derived from the PH.
If in the PH for an
aggregate of more than
180 days you are
deemed to be doing
business in the PH.

*Same

Tax on Individuals Aliens


Interest - LTD
Royalties

I,DS,TF,R

Interest EFCD

20%

EXEMPT EXEMPT
But the pretermination
rates also
apply.

*10%

Prizes

Dividends

*20%

20%

*Same
If prize is < 10K,
considerations as then the tax
above
according to
scale.

STOCK DIVIDENDS
= Not taxable

*Same as above

25%
If in the PH for an aggregate of more than 180 days = deemed doing business in the PH. But take note of special considerations below. So if they
fall under any of the FF, when they are taxable the 15% and not the 25% but also only on those that are mentioned there.
Special Considerations for Aliens

CG-SS
Not
5%
Over
100K
Over 10%
100K

CG-RP

6%

Imposed on net
Capital Gains
Note: Any other
kind of capital gains
will be 25%

15% on GROSS
The 15% tax is on his salary, wages, annuities, compensation, remuneration, and other emoluments. This provision also applied to Filipinos occupying the same positions as the aliens in the
MNC.
Any income earned from other sources in the Philippines shall be taxed accordingly.

Employed by
an Offshore
Banking Unit

15% on GROSS
Tax is on the gross income by foreigners employed by offshore banking units established here in the Philippines. Imposed on the same base as above. This provision also applied to Filipinos
occupying the same positions as the aliens in the OBU
Any income earned from other sources in the Philippines shall be taxed accordingly.

Employed by
Petroleum
Service
Contractor
and Sub
Contractor

15% on salary, wages, annuities, compensation & remuneration


This contemplates that the resident is a permanent resident of a foreign country, but he is employed in the Philippines by a foreign service contractor or subcontractor engaged in petroleum
operations in the Philippines. This provision also applied to Filipinos occupying the same positions as the aliens in the Petroleum Service Contractor
Any income earned from other sources in the Philippines shall be taxed accordingly.

Taxpayer
Domestic
Corporation
GIT = Gross Income Tax
EFCD = Expanded
Foreign Currency
Deposit System
LCB = Local Commercial
Bank
FB = Foreign Bank

Tax on Corporations Domestic


Income from FCDU
Interest EFCD

Income

GIT

I,DS,TF,R

30%

15% of
Gross
income

20%

7.5%

Exempt/10%

Imposed upon:
5. Interest from
any currency
bank deposit,
yield, or
monetary
benefit
6. Deposit
substitutes, and
from
7. Trust Funds and
Other similar
arrangements and
royalties

This is applied to
income derived
by a domestic
corporation from
a depositary bank
under the EFCD

Must be transacting with


foreign currency.

Not available
now.
This can be
availed of when:
1. Tax effort Ratio
of 20% of GNP
2. Ratio pf 40% of
income tax
collection to
total tax
revenues
3. A VAT effort of
4% of GNP
4. 0.9% ratio of
consolidated
Public Sector
Financial
Position

This is the interest


earned while
Refers to interest
dahil nagpautang
and other stuff
pa.

Exempt from ALL taxes


EXCEPT: NET INCOME
from such transactions as
specified by the Secretary
of Finance
Income of non-residents
from transactions with
depositary banks under
the EFCD system are
exempt whether
individual or corp.
Income derived by
depository bank under
the EFCD with:
1. Nonresidents
2. Offshore banking units
in the PH
3. LCB
4. Branches of FBs in PH
authorized by the BSP
BUT interest income
derived from foreign
currency loans granted to
residents other than:
1. Offshore banking units
2. Other depositary banks
under the expanded
system
Will be subject to a final
tax rate of *10%.

Intercorp Dividends

NOT
SUBJET
TO TAX

CG-SS
Not
5%
Over
100K
Over 10%
100K

STOCK DIVIDENDS
= Not taxable

Imposed on net
Capital Gains
Note: Stock is
NOT traded in
the PSE. If the
stock is being
traded in the PSE
then it is 0.5%

CG-RP

MCIT

6%

2%

Of Gross selling
price of current
fair market value
whichever is
higher.
RP has to be:
CAPITAL ASSET

This is applied to
Gross Income
This can be
imposed
beginning the 4th
taxable year from
start of business.
MCIT-NIT =
Excess; the
difference
(excess) can be
deducted for
three immediately
succeeding
taxable years.
Relief:
1. Suffers loses
due to
prolonged labor
dispute
2. Force majeure
3. Legitimate
business
reverses

Tax on Corporations
Taxpayer
Proprietary
Educational
Institution

Income

GIT

I,DS,TF,R

Interest EFCD

Income from FCDU

Intercorp Dividends

10%

N/A

20%

7.5%

N/A

NOT
SUBJET
TO TAX

CG-SS
Not
5%
Over
100K
Over 10%
100K

STOCK DIVIDENDS
= Not taxable

Imposed on net
Capital Gains

On Taxable
Income.
If the gross
income from
other activities is >
50%, then taxed
as a corp.

GOCC

Interest Income
from a foreign
currency deposit

CG-RP

MCIT

6%

N/A

Of Gross selling
price of current
fair market value
whichever is
higher.
RP has to be:
CAPITAL ASSET

Same as Local Corporation


The only ones that are exempt from taxes are: GSIS, SSS, PHIC, LWD, PCSO.

What firms is the MICT not applicable to?


1. Domestic Corporations operating as proprietary educational institutions subject to tax at 10% of their taxable income
2. Domestic Corporations engaged in hospital operations which are non-profit subject to tax at 10% on their taxable income
3. Domestic Corporations engaged in business as depository banks under the FCDU on their income from foreign currency transactions with local commercial banks and other banks under the EFCD
authorized by the BSP, including their interest income from foreign currency loans granted to residents of the PH under the EFCDS, subject to a final tax of 10% income tax.
4. Those that are under a special tax regime (The PEZA law)

Taxpayer
Resident Foreign
Corporation

Income

GIT / MCIT

IC

30%

GIT: 15% of
Gross income

2.5%
Base: GPB

IC = International Carrier

Not available now.

GPB = Gross Philippine


Billings
IAC = International Air
Carrier
IS = International
Shipping
OBU = Offshore Banking
Unit
BRP = Branch Profit
Remittance
RA = Regional or Area
Headquarters
RO = Regional Operating
Headquarters

For IAC:
- Amount of gross
This can be availed of
revenue derived from
when:
carriage originating
5. Tax effort Ratio of 20% from the PH in a
of GNP
continuous and
6. Ratio pf 40% of
uninterrupted flight.
income tax collection - If a ticket is
revalidated,
to total tax revenues
exchanged, or
7. A VAT effort of 4% of
indorsed to another
GNP
carrier = still
8. 0.9% ratio of
constitute GPB
consolidated Public
- If may stopover:
Sector Financial
taxable lang the leg
Position
from PH.

MCIT: 2% of
Gross income
Minimum Corporate
Income Tax. Same as
for local corps

For IS
- Gross revenue from
stuff originating from
the PH, regardless of
place of sale or
payment of the
passage or freight
docs.
- International Carriers
DBIP may avail of
preferential rate or
exemption on their
revenue basta may
treaty

Tax on Corporations Foreign


OBU
BRP

EXEMPT/10%

15%

Income derived by
OBUs authorized by the
BSP, from foreign
currency transactions
with:

Base: Total Profits


applied or earmarked
for remittance without
any deduction for the
tax component (Except
those activities which
are registered with the
PEZA)

1. Nonresidents
2. Offshore banking units in
the PH
3. LCB
4. Branches of FBs in PH
authorized by the BSP

Shall be exempt from all


taxes EXCEPT such
transactions that may be
specified by the SOF.
BUT interest income
derived from foreign
currency loans granted to
residents other than:
1. Offshore banking units
2. LCB*
3. Local branches of FBs
authorized by BSP to
transact business with
OBUs
Will be subject to a 10%
tax.

Interests, Dividends,
Rents, Royalties,
Remuneration for
Technical Services,
Salaries, Services,
Wages, Premiums,
Annuities,
Emoluments, or other
fix or determinable
annual, periodic or
casual gains, profit,
income, and capital
gains received by a FC
SHALL NOT BE
TREATED AS BRACH
REMITANCE PROFIT.
UNLESS THEY ARE
EFFECTIVELY
CONNETED WITH
TRADE OR BUSINESS
OF THE CORP IN THE
PH

R-HQ

RA =
Exempt
RO = 10%
RA = Branch established
in the PH by MNCs
which do not earn or
derive income from the
PH. They just act
supervisory,
communications, and
coordination center for
their affiliates.
RO = Brach established In
the PH by MNCs which
are engaged in:
1. General administration
& planning
2. Business planning &
coordination
3. Sourcing &
Procurement of raw
materials and
components
4. Corporate finance
advisory services
5. Marketing control &
sales promotion
6. Training & personnel
management
7. Logistics services
8. R&D and PD
9. Tech support &
Maintenance
10. Data Processing
11. BD

Others

I,DS,TF,R = 20%
There is no provision for the 10% for books,
musical compositions, etc.

Income from FCDU = Exempt


Income derived by depository bank under the
EFCD with:
1. Nonresidents
2. Offshore banking units in the PH
3. LCB
4. Branches of FBs in PH authorized by
the BSP
EXCEPT: if the interest income from foreign
currency loans granted to:
1. Residents other than offshore banking
units
2. Other depositary banks under the
expanded system
Will be subject to final tax rate of 10%

Interest EFCD = 7.5%


CG-SS:
Not Over 100K
Over 100K

5%
10%

Imposed on net Capital Gains

Intercorp Dividends = Not


Subject to Tax
STOCK DIVIDENDS = Not taxable

Income
Non-Resident Foreign Corporation

30%

Tax on Corporations - Foreign


Interest on Foreign Loans
Intercorporate Dividends

20%
This is a final withholding tax imposed
on the amount of interest on foreign
loans.

15%
Final withholding tax is imposed on the
amount of cash and/or property
dividends received from a domestic
corporation.
But this is subject to the condition that
the country in which the NRFC is
domiciled allows a credit against the tax
due from the NRFC taxes deemed to
have been paid in the PH. This Credit
should be equivalent to 15%. This 15% is
the difference between the Regular
Income Tax (30%) and the Tax on
Dividends (15%)

Non-Resident Cinematographic Film


Owner, Lessor, or Distributor

25%
Base: Gross income from ALL sources
in the PH

Non-Resident Owner or Lessor of


Vessels Chartered by PH Nationals

4.5%
Base: Gross rentals, lease or charter
fees from leases or charters to Filipino
Citizens or Corporations; as approved
by the Maritime Industry Authority.

Non-Resident Owner or Lessor of


Aircraft, Machineries, and Other
Equipment

7.5%
Base: Gross Rentals of Fees from:
Rentals, Charters, and other fees
derived by a non-resident lessor of
aircraft, machineries, and other
equipment.

CG-SS
Not Over 100K
5%
Over 100K
10%
Imposed upon net capital gains