income tax table summary
DESCRIPTION
taxation 1TRANSCRIPT
Income TaxResident Citizen
Non-resident Citizen
Resident Alien
Non-resident Alien in Business
Non-resident
Alien Not in
Business
Domestic Corporations
On direct sale to buyer* of shares of stock of a domestic corporation not listed and traded in a local stock exchange, held as a capital asset
Capital gain on shares of stock of domestic corporation FT of 5% (not over P100,000) and 10% (on any amount in excess of P100,000)
On sale of real property held as capital asset: On the gross selling price whichever is higher
Capital gain on sale of real property in the Philippines FT of 6%
From sources within the Philippines, on passive income of:
Interest under the expanded currency deposit system FT of 7 ½ % Exempt FT of 7 ½ % Exempt FT of 7 ½ %Interest on any currency bank deposit, yield, or other monetary benefits from deposit substitute, trust fund and similar arrangement
FT of 20% Exempt FT of 20%
Royalty from books, literary works and musical compositions FT of 10%Royalty other than above; Price exceeding 10,000; Other winnings, except Philippine Charity Sweepstakes and lotto winnings
FT of 20%
Dividend from a domestic corporation, or from a joint stock company, insurance or mutual fund company, and regional operating headquarters of multinational company, or share in the distributive net income after tax of a partnership (except a general professional partnership), joint stock or joint venture or consortium taxable as a corporation
FT of 10% FT of 20%Exempt
(intercompany dividend)
Interest on long-term deposit or investment in banks (with maturity of 5 years or more) Exempt
Taxable income (others) may arise from:• Employer-employee relationship (compensation income) and/or• Business or practice of profession
Taxable income (others) within the Philippines 5% to 32 %
Gross income from within the Philippines from cinematographic films and similar works FT of 25%Gross income from within the Philippines FT of
25%
Taxable income (NET) from all sources within and outside the Philippines
NORMAL TAX (NT, or RCIT) But beginning with the fourth year from start of operations, whichever is higher of:
30%
NORMAL TAX and 30%MINIMUM CORPORATE INCOME TAX (MCIT), on MCIT gross income 2%