TAXATION
Final Withholding Tax Rules
Individual Taxpayers Corporate Taxpayers
Within Without Within Without
Naturalized / Legal Resident Citizen ✓ ✓ Domestic Corporration ✓ ✓
Atleast 183 Days Non-Resident Citizen ✓ Resident Foreign ✓
More than 1 Year Resident Alien ✓ Non - Resident Foreign ✓
181 Days - 1 Year NRA - ETB ✓
0 - 180 Days NRA - NETB ✓
Final Income Tax Table
CITIZEN ALIEN CORPORATION
RC NRC RA NRA - ETB NRA - NETB DC RFC NRFC
INTEREST INCOME
Local Currency Deposits
Short Term From Banks 20% 20% 20% 20% 25% 20% 20% 25%
Long Term From Banks Excempt Excempt Excempt Excempt 25% 20% 20% 25%
Short Term Non - Bank Regular Income Tax
Long Term Non - Bank Regular Income Tax
Note: Short Term deposits are those made for a period of less than five (5) years.
Deposit Substitute
Short Term Bank Issued 20% 20% 20% 20% 25% 20% 20% 25%
Long Term Bank Issued Excempt Excempt Excempt Excempt 25% 20% 20% 25%
Short Term Non - Bank 20% 20% 20% 20% 25% 20% 20% 25%
Long Term Non - Bank 20% 20% 20% 20% 25% 20% 20% 25%
Note: Debt Instrument is not considered Deposit Substitute if there are only 19 or less lenders ; Exception : Government
Pre Termination of Long Term Deposits or Investment of INDIVIDUALS
Holding Period Pre - Termination Tax
Note: This is only applicable to
Less than 3 Years (0 - 2.99) 20%
INDIVIDUALS. If previously
excempt, pre-termination tax
3 Years to less than 4 Years (3 - 3.99) 12%
applies retrospectively 4 Years to less than 5 Years (4 - 4.99) 5%
5 Years or MORE (5 - infinity) 0%
Foreign Currency Deposit with Foreign Currency Depositary Banks
Interest Income FROM 15% Excempt 15% Excempt Excempt 15% 15% Excempt
Interest Income BY 10% Excempt 10% Excempt Excempt 10% 10% Excempt
DIVIDEND INCOME
Domestic Corporation 10% 10% 10% 20% 25% Excempt Excempt 25%/15%
Foreign Corporation Regular Income Tax
Real Estate Inv Trust 10% Excempt 10% 10% 10% Excempt Excempt 10%
SHARE IN NET INCOME
Note: Applicable only to Business Partnerships, Taxable Associations, Joint Ventures, and Co-ownerships
Share In Net Income 10% 10% 10% 20% 25% RIT RIT 25%
ROYALTIES
Books, Lit Works, Mjusic 10% 10% 10% 10% 25% 20% 20% 25%
Other Sources 20% 20% 20% 20% 25% 20% 20% 25%
Active Royalties Regular Income Tax
PRIZES
Exceeding 10,000 20% 20% 20% 20% 25% RIT RIT 25%
NOT Exceeding 10,000 Regular Income Tax
Note: Excempt prizes are received without any effort, and sports competition sanctioned by sports organization
WINNINGS
PCSO NOT exceeding 10,000 Excempt Excempt Excempt Excempt 25% Excempt Excempt 25%
PCSO exceeding 10,001 20% 20% 20% 20% 25% 20% 20% 25%
Other Winnings 20% 20% 20% 20% 25% RIT RIT 25%
INFORMER'S TAX REWARD = 10%. Ceiling of 1,000,000 subject to 10% Final Tax
CAPITAL GAINS TAXATION
6% CGT 15% CGT
Tax Object Gain on Real Property Gain on Sale of DOMESTIC Stocks
Basis of the Tax Presumed Gain Actual Gain
Nature of the Tax Final Tax Self - Assessed Tax
Frequency of Paymnet Per Transaction Transactional and Annual Tax
Note: Applicable only for REAL property Note: Applicable only for Non - Dealer sold
GOOOODDLUCKKK!!! classified as capital asset located in the DIRECTLY to buyer
Note: CGT is 6% of the Selling Price or the Fair Note: Tax basis is NET GAIN less Documentary
GATHER GATHER
Value, whichever is HIGHER Stamp Tax if paid by SELLER
GATHER. WATER OFF Exception are Alternative Taxation Rule for
Note: No CGT if there is a loss. This is applicable
THE DUCK'S BACK Individual if the Government is the Buyer and
in a case to case basis.
Principal Residence