Summary of Final Tax Rates under the NIRC, as Amended

INTEREST INCOME
Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
Local Currency Deposit
Short-term interest yield 20% 20% 20% 20% 25% 20% 20% 25%
(less than 5 years)
Long term interest yield (at Exempt Exempt Exempt Exempt 25% 20% 20% 25%
least 5 years)
Pre-termination interest yield
• < 3 years 20% 20% 20% 20% 25% 20% 20% 25%
• 3 to < 4 years 12% 12% 12% 12% 25% 20% 20% 25%
• 4 to < 5 years 5% 5% 5% 5% 25% 20% 20% 25%
• 5 years or more 0% 0% 0% 0% 25% 20% 20% 25%
Foreign Currency Deposit Units (FCDUs/EFCDUs)
Interest income from 15% Exempt 15% Exempt Exempt 15% 15% Exempt
FCDUs/EFCDUs
Interest income of 10% Exempt 10% Exempt Exempt 10% 10% Exempt
FCDUs/EFCDUs
Income on foreign loans N/A N/A N/A N/A 25% N/A N/A 20%
Tax-free covenant bonds 30% 30% 30% 30% 30% Regular Regular 25%
Income Tax Income Tax​
(except when it (except when it
qualifies a deposit qualifies a deposit
substitute where it will substitute where it will
be subjected to 20% FT) be subjected to 20% FT)

DIVIDEND INCOME
Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
From domestic corporations, in general 10% 10% 10% 20% 25% Exempt Exempt 15%
(subject to tax sparring
rule; otherwise taxable at
25%)

From Real Estate Investment Trust or 10% Exempt 10% <10% <10% Exempt Exempt <10%
REIT (subject to (subject to preferential tax
preferential tax rate rate under applicable tax
(subject to preferential tax
rate under applicable tax
under applicable treaty) treaty)
tax treaty)

From foreign corporations Regular Income Tax Rule Applies 25% Regular Income Tax 25%
Rule Applies
 SHARE IN NET INCOME
Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
Share in net income of taxable partnership, 10% 10% 10% 20% 25% RIT RIT 25%
joint venture and co-ownership

ROYALTIES
Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
Passive royalties – in general 20% 20% 20% 20% 25% 20% 20% 25%
Passive royalties – from 20% 20% 20% 25% 25% 20% 20% 25%
cinematographic films and
similar works
Passive royalties – from books, 10% 10% 10% 10% 25% 20% 20% 25%
literary works & musical
compositions
Active royalties Regular tax 25% Regular Tax 25%

TAXABLE PRIZES
Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
Prizes amounting to ₱10,000 Regular tax 25% Regular Tax 25%
and below
Prizes above ₱10,000 20% 20% 20% 20% 25% Regular Tax 25%

WINNINGS
Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
Winnings in general 20% 25% Regular Income Tax 25%
PCSO and lotto winnings > 20% 25% 20% 25%
₱10,000
PCSO and lotto winnings ≤ Exempt 25% Exempt 25%
₱10,000

INFORMER’S TAX REWARD

Particulars RC NRC RA NRA-ETB NRA-NETB DC RFC NRFC
Informer’s tax reward 10%