SCHEDULE OF FINAL TAX RATES ON CERTAIN PASSIVE INCOMES

(Sec. 24 B, 25 A (2), 27 D, 28 A (7); 28 B (5), NIRC, as amended by TRAIN Law)

PASSIVE INCOME RC NRC RA NRAETB NRANETB DC RFC NRFC
INTEREST:
Interest or yield on local currency deposit:
1. Bank deposit (savings, time)
2. Deposit substitute 20% 20% 20% 20% 25% 20% 20% 30%
3. Money market placements
4. Trusts funds (CTF, UITF, IMA)
Interest income from long term:
1. Common or Individual Trust Funds
2. Deposit
3. Deposit substitute
4. Investment Management Accounts Exempt Exempt Exempt Exempt 25% 30% RCIT 30% RCIT 30%
5. Investments in the form of savings RMC 7- RMC 7-
6. Other investments evidenced by certificates prescribed by the 2015 2015
BSP
Pre-termination of long-term deposit or investment:
1. Less than 3 years held 20% 20% 20% 20%
2. 3 years to less than 4 years held 12% 12% 12% 12% 25% 30%
3. 4 years to less than 5 years held 5% 5% 5% 5%
Interest Income on FCDU Deposit from a depositary bank 15% Exempt 15% Exempt Exempt 15% 15% Exempt
DIVIDENDS (Cash or Property):
1. From a Domestic Corporation, ordinary partnership, etc.
- January 1, 2000 earnings 10% 10% 10% 20% 25% Exempt Exempt 15% or 30%
2. From a Foreign Corporation (resident and non-resident) Pre-dominant income is within, same rule as DC, if without Regular Income Tax rules apply to RC and DC.
ROYALTIES:
1. In general 20% 20% 20% 20% 25%
2. From books, literary works and musical compositions 10% 10% 10% 10% 25% 20% 20% 30%

PRIZES (Taxable):
1. P10,000 and below Graduated tax rate 30% RCIT 30% RCIT 30% FT
2. Above P10,000 20% 20% 20% 20% 25% 30% RCIT 30% RCIT 30% FT

WINNINGS
1. In general 20% 20% 20% 20% 25% 30% RCIT 30% RCIT 30% FT
2. PCSO and Lotto winnings P10,000 is exempt; excess shall be subject to the 20% final tax
INFORMER’S TAX REWARD 10%

SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT)

Income Payment EWT Income Payment EWT
Professional/Management/Consultancy fees Gross receipts 3M or below - 5% Purchase of goods or properties by Top Withholding 1% - goods
(Individual) Gross receipts over 3M or VAT-reg – 10% Agents (TWA) - 2% - service
Professional/Management/Consultancy fees (Non- Gross receipts 720,000 or below - 10% Partners in general professional partnerships (drawings, 720,000 or less -10%
Individual) Gross receipts over 720,000 – 15% advances, sharings, allowances, etc.) Above 720,000 – 15%

Contractors/subcontractors (security, janitorial, etc.) 2% Commission (if not employee) 10%

Director’s fees (if not employee) 10% or 15% (720,000 threshold) Income distributed to beneficiaries of estates/trusts 15%
Rental 5%