Final Tax Table for Philippine Residents Source of Income a Sale of shares of stock of domestic corporation not listed

and traded thru the stock exchange: Net Capital Gain not over 100,000 On any amount in excess of 100,000 Sales of shares via PSE or IPO pays only stock transaction tax of 0.5% on transaction amount in lieu of capital gains tax b Sale of Real Property in the Philippines held as capital assets, based on the gross selling price or the current fair market value at the time of sale, whichever is higher Passive Income of Interest from Philippine Bank Peso short term deposits, deposit substitutes, trust funds Passive Income of Interest from Philippine Bank Peso long term deposits with maturity of 5 years or more Passive Income of Interest from Philippine Bank under expanded foreign currency deposits d From sources within the Philippines, in passive income of royalties on books, literary works and musical composition From Royalties other than (d) above, from prizes exceedig P 10,000 and other winnings except PCSO and Lotto Philippine Charity Sweepstakes and Lotto Winnings f Dividend from domestic corporation, distributable net income of partnership, joint account or venture paid to individual Dividend paid by one domestic corporation to another g Income other than above subject to graduated tax table

Tax Rate

5% 10%

6%

20%

Exempt

7.50%

10%

20% Exempt

10% Exempt 5 to 35%

Graduated Tax Table for Individual Income Taxpayer Not over P 10,000 5% Over P 10,000 but not over 30,000 .. P 500 + 10% of excess over 10T Over P 30,000 but not over 70,000 .. P 2.500 + 15% of excess over 30T Over P 70,000 but not over 140,000 P 8,500 + 20% of excess over 70T Over P 140,000 but not over 250,000 ..P22,500 + 25% of excess over 140T Over P 250,000 but not over 500,000 . P50,000 + 30% of excess over 250T Over P 500,000 .... P125,000 + 32% of excess over 500

Individual Standard Deductions Pesos Each Individual 50,000.00 Each dependent not exceeding 4 25,000.00 For corporations and for individuals engaged in business or professions Optional Standard Deduction for Business Income 40% in lieu of preparing financial statements for other deductions allowed under the NIRC * Republic Act No. 9504 of 2008 June 22, 2008

Corporate Income Tax a Net Income Tax (NIT) Beginning Jan 1, 2006 and thereafter 35% of taxable income 30% 32%

Beginning Jan 1, 2009 and thereafter Before Jan 1, 2006

Minimum Corporate Income Tax (MCIT) Beginning with the 4th year from start of business operation, company pays Net Income tax or MCIT gross income whichever is higher.

2% of gross income

Gross Income Tax Option 15% Effective January 1, 2000, corporations may be allowed by the Secretary of gross of Finance, incometo pay this option equivalent to gross sales less sales returns, discounts and allowances and cost

Note: Sec 22 (b)

The term corporation includes partnerships, no matter how created or organized, joint stock companies, joint accounts, associations or insurance companies, but does not include general professional partnerships and a joint venture or consortium for the purpose of undertaking a construction project.... General professional partnerships are formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in trade or business.

Special Corporations a b c Non-stock, non-profit education institution Proprietary education institution and non profit hospital Resident International Carrier based on Gross Philippine Billings Non-resident owner or lessor of vessel based on gross rentals lease and charter fees in the Phils. Non-resident cinematographic film owner, lessor or distributor based on gross income from the Philippines Non-resident lessor of aircraft, machinery and equipments based on gross rentals, charter and other fees from Phils. Regional operating headquarters based on Philippine taxable income Exempt 10%

2.50%

4.50%

25%

7.50% 10%

Estate Tax Not over P 200,000 0% Over P 200,000 but not over 500,000 5% of excess over 200T Over P 500,000 but not over 2,000,000. P15,000 + 8% of excess over 500T Over P 2.0 M but not over 5.0 M ... P 135,000 + 11% of excess over 2M Over P 5.0 M but not over 10.0 M . P 465,000 + 15% of excess over 5M P 10,000,000 and over...... P 1,250,000 + 20% of excess over 10M

Allowable deductions from Gross Estate 1. Expenses, losses, indebtedness, taxes a. Funeral Expense - Actual amount or 5% of Gross Estate, Max 200,000 b. Medical Expense - Incurred one year before death, Max 500,000 c. Judicial Expenses 2. Transfer for Public Purpose 3. Standard Deduction of P 1,000,000 4. Family Home, up to P 1,000,000 5. Death Benefits from Employer 6. Share of the surviving spouse in the community of property

Donor's Tax Not over P 100,000 0% Over P 100,000 but not over 200,000 2% of excess over 100T Over P 200,000 but not over 500,000 P 2,000 + 4% of excess over 200T

Over P 500,000 but not over 1,000,000. P14,000 + 6% of excess over 500T Over P 1.0 M but not over 3.0 M .. P 44,000 + 8% of excess over 1M Over P 3.0 M but not over 5.0 M P 204,000 + 10% of excess over 3M Over P 5.0 M but not over 10.0 M . P 404,000 + 12% of excess over 5M P 10,000,000 and over...... P 1,004,000 + 15% of excess over 10M Where donee is a stranger (neither brother, sister, spouse, anscestor, and lineal descendants nor relatives by consanguinity within the fourth degree of relation), above table does not apply. Donor's tax is 30%. Business Taxes a Value Added Tax See Sec. 106 and 108 for Zero Rated Sales See Sec. 109 for VAT Exempt Transactions and Entities 12%

Percentage Taxes (Title V) - Persons exempt from VAT - Domestic Carrier and Keepers of Garage - International Carriers - Franchise Tax for Electric, Gas, Water Utilities - Franchise Tax for others granted by law - Overseas Communication Tax - Insurance Premium Tax - Amusement Tax on Cockpits, Cabarets, Nightclubs - Amusement Tax on Boxing Exhibition; Provided, however - Amusement Tax on Professional Basketball Games - Amusement Tax on Jai-Alai, racetracks - Tax on Shares of Stock Sold Through IPO Up to 25% listed Over 25% but not over 33 1/3% Over 33 1/3%

Of Gross Receipt 3% 3% 3% 2% 3% 10% 5% 18% 10% 15% 30% 4% 2% 1%

Excise Taxes See Title VI. Sec 129 to 172 - Alchohol Products (Sec. 141 to 143) - Tobacco Products (Sec. 144 to 147) - Petroleum Products (Sec. 148) - Automobiles (Sec. 149) Non essential Goods like jewelry, perfumes and toilet waters, yachts and vessels pleasure or sports (Sec 150) - Mineral Products (Sec. 151) Documentary Stamp Tax See Title VII. Sec 173 to 198 - Bank Checks, Drafts, Certificate of Dep. P1.50 on each check - Original Issue of Shares of Stock P1.00 on each P 200 - Sale/Transfer of Certificates of Stocks P0.75 on each P 200 - Certificate of Profits or Interest in Property P0.50 on each P 200 or Accumulations - Debt Instruments P1.00 on each P 200 if instrument is less than 1 year, proportionate - Bills of Exchange/Drafts P0.30 on each P 200 Foreign L/C - Life Insurance (Based on Premium) P0.50 on each P 200 Annuities - Property Insurance (Based on Premium) P0.50 on each P 4 - Pre Need Insurance (Based on Premium) P0.20 on each P200 - Deed of Sale and Conveyance of Real P15 for every P 1000 Property * As amended by R.A. 9243, Feb 2004