Professional Documents
Culture Documents
DOMESTIC
Definition
CORPORATIONS
RESIDENT
FOREIGN
NON-RESIDENT
FOREIGN
Sec 22 (I)
Applies to a foregin
corporation not
engaged in trade or
business within the
Philippines
Sec 27
Sec 28 (A)
Sec 28 (B)
taxable income from taxable income from gross income from
all sources within
all sources within all sources within the
the Philippines
Philippines
and without the
Philippines
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
Tax Rates - on Passive Income (Subject to Final Tax [FT])
Interest on any currency bank deposit and
20% FT
yield or any other monetary benefit from
deposit substitutes and from trust funds
and similar arragements
Sec 22 (H)
Applies to foreign
corporation engaged
in trade or business
within the Philippines
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
20% FT
7.5% FT
7.5% FT
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
EXEMPT
N/A
N/A
20% FT
N/A
DOMESTIC
CORPORATIONS
RESIDENT
FOREIGN
NON-RESIDENT
FOREIGN
10% FT
10% FT
N/A
N/A
N/A
N/A
10% FT
N/A
Royalties
20% FT
20% FT
Dividends
EXEMPT
EXEMPT
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
15% FT (conditional)
5% / 10% FT
5% / 10% FT
5% / 10% FT
6% FT
based on gross
selling price or FMV
whichever is higher
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
2%
34% in 1998
33% in 1999
32% in 2000-2005
35 % in 2006-2008
30% in 2009 &
thereafter
N/A
2%
DOMESTIC
CORPORATIONS
RESIDENT
FOREIGN
NON-RESIDENT
FOREIGN
N/A
15%
N/A
10%
10%
N/A