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Philippine Final Tax Rates Overview

The document outlines the final tax rates for various financial instruments including interest, royalties, prizes, winnings, dividends, and informer's tax rewards. It specifies different rates for residents and non-residents, with exemptions and varying rates based on the duration of deposits and types of income. Key highlights include a 20% tax on interest from Philippine currency deposits and a 15% tax for foreign currency deposits under specific conditions.

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Shampaigne Mheg Padao
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7 views2 pages

Philippine Final Tax Rates Overview

The document outlines the final tax rates for various financial instruments including interest, royalties, prizes, winnings, dividends, and informer's tax rewards. It specifies different rates for residents and non-residents, with exemptions and varying rates based on the duration of deposits and types of income. Key highlights include a 20% tax on interest from Philippine currency deposits and a 15% tax for foreign currency deposits under specific conditions.

Uploaded by

Shampaigne Mheg Padao
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

FINAL TAX RATES

RC NRC RA NRA-ETB DC RFC NRA-NETB NRFC


1. INTEREST

1. Interest on Philippine currency


bank deposits 20% 20% 20% 20% 20% 20% 25% 25%
2. Deposit substitute,
3. Trust fund
4. Money market placement
Interest on foreign currency deposit
under the expanded foreign currency 15% Exempt 15% Exempt 15% 15% Exempt Exempt
deposit system (FCDS)
Proceeds of pre-terminated long-term
deposit:
More than 5 years Exempt Exempt Exempt Exempt 20% 20% 25% 25%
4 years to less than 5 years 5% 5% 5% 5%
3 years to less than 4 years 12% 12% 12% 12%
Less than 3 years 20% 20% 20% 20%
Interest income from long-term deposit
or investment
1. Common or Individual Trust
Funds
2. Deposit
3. Deposit substitute Exempt Exempt Exempt Exempt 20% 20% 25% 25%
4. Investment Management
Accounts (RIT for deposit (RIT for deposit
substitute issued substitute issued
5. Investments (savings) by non-banks) by non-banks)
6. Other investments evidenced by
certificates BSP
2. ROYALTIES
20% 20% 20% 20% 20% 20% 25% 25%
In general
Royalties from books, literary
10% 10% 10% 10% 20% 20% 25% 25%
works and musical compositions
3. PRIZES
RIT RIT RIT RIT RIT RIT 25% 25%
Prizes of P10,000 or less
Prizes over P10,000 20% 20% 20% 20% RIT RIT 25% 25%
4. WINNINGS
Exempt Exempt Exempt Exempt Exempt Exempt 25% 25%
PCSO and Lotto of P10,000 or less
PCSO and Lotto over P10,000 20% 20% 20% 20% 20% 20% 25% 25%
Winnings (others/ general) 20% 20% 20% 20% RIT RIT 25% 25%

5. DIVIDENDS 25% 25%


From DC, ordinary partnership, 10% 10% 10% 20% Exempt Exempt (15% if tax
sparing
association, etc applies)
From FRC and NRFC RIT RIT RIT RIT RIT RIT RIT RIT
10% 10% 10% 10% 10% 10% 10% 10%
6. INFORMER’S TAX REWARD

Source: NIRC

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