Philippines Tax Rates PDF

# Tax Rates in the Philippines ## Individual vs. Corporation Tax Rates This table shows the difference in tax rates between individuals and corporations in the Philippines. | Category | Individual | Corporation | |---|---|---| | **Share in Net Income** of taxable partnership, joint venture, and c...

# Tax Rates in the Philippines ## Individual vs. Corporation Tax Rates This table shows the difference in tax rates between individuals and corporations in the Philippines. | Category | Individual | Corporation | |---|---|---| | **Share in Net Income** of taxable partnership, joint venture, and co-ownership | 10% | 25% | | **Royalties** | | | | - Passive royalties | 20% | 25% | | - Passive royalties from cinematographic films & similar works | 25% | 25% | | - Passive royalties from books, literary works & musical compositions | 25% | 25% | | - Active royalties | | | | - Regular tax | 25% | 25% | | - RIT | 25% | 25% | | **Taxable Prizes** | | | | - P10,000 and below | 25% | 25% | | - Above P10,000 | 25% | 25% | | **Winnings** | | | | - In general | 25% | 25% | | - PCSO & lotto winnings > P10,000 | | 25% | | - PCSO & lotto winnings ≤ P10,000 | Exempt | 25% | | **Informer's Tax Reward** | 10% | | ## Interest Income This table shows different interest income tax rates for individuals and corporations. | Type | Individual | Corporation | |---|---|---| | **Local Currency Deposit** | | | | - Short term interest or yield | Exempt | 25% | | - Long term interest or yield | Exempt | 25% | | - Pre-termination interest rate | | | | - Less than 3 years | 20% | 25% | | - 3 to less than 4 years | 12% | 25% | | - 4 to less than 5 years | 5% | 25% | | **Foreign Currency Deposit** | | | | - Interest income from FCDUs/EFCDUs | Exempt | Exempt | | - Interest income of FCDUs/EFCDUs | Exempt | Exempt | | - Interest income on foreign loans | 25% | 20% | | - Tax-free covenant bonds | 30% | 25% | ## Dividend Income | From | Individual | Corporation | |---|---|---| | Domestic corporations, in general | Exempt | 15% | | Real Estate Investment Trust or REIT | 10% | exempt | | Foreign corporations | 10% | | **Notes:** * RIT refers to Regular Income Tax. * Exempt indicates that the income is not subject to tax. * Tax sparing rule: income from dividends is subject to a 15% tax if the corporation is exempt from paying corporate income tax. There is no tax sparing rule for individuals. * The 10% tax on dividends from foreign corporations is only applicable under a tax treaty.