INDIVIDUALS

CITIZEN
RESIDENT
CITIZEN

NONRESIDENT
CITIZEN
Within

RESIDENT
ALIEN

ALIEN
NON-RESIDENT ALIEN
ETOB

Within &
Within
Within
without
Deductions: Sec. 34 (A)-(M)
Taxpayers earning income arising from personal
services rendered under employer-employee
relationship are not allowed to claim itemized
deductions, except for Sec. 34(M)
Personal Exemptions: Sec. 35
Ordinary Income: Sec. 24 A
Staying in the
Phils. for
On all taxable income in Sec. 31
more than
Other income under Sec 24 B,C,D
180 days
Graduated Income Tax 5-32%
Minimum wage earners (Sec. 22 HH) exempt
Ordinary
o Holiday pay, overtime pay, night shift
Income:
differential pay and hazard pay they
Sec. 24 A
received also exempt

Passive Income: Sec. 24 B

Interest, royalties, prizes and other
winnings final tax of 20% except:
o Books, literary works, musical
compositions 10%
o Prizes 10k or less taxed as
ordinary income
o Phil. Charity Sweepstakes and
Lotto
o Interest derived from EFCDS
(residents only) 7 % of
interest income
If non-resident corp. or
individual tax
exempt
Joint account of
resident and nonresident 50% of
account subject to 7
%
o Long Term deposit or
investment tax exempt
unless
Pre-terminated before
th
the 5 yr 5, 12 or
20%
Cash or property dividends 10%
Capital Gains: Sec. 24 C and D
Sale of shares of stock not traded in stock
exchange 5% (below 100k) or 10% (100k+)
o If traded in stock exchange of 1% of
gross selling price of shares
o Gains by dealers in securities, gains
invested in new shares of stocks in
banks etc. tax exempt
Sale of real property 6% (on gain
presumed to have been realized) of gross
selling price or current FMV whichever is
higher
o If sold to government, taxpayer may opt
to be taxed under Sec. 24 A (as ordinary
income)
o Sale of principal residence by natural
persons exempt from CGT if:
Proceeds fully utilized to acquire and
construct new principal residence;
unutilized amount subject to CGT
Within 18 months
CIR informed
Availed of once every 10 years
W/N taxable in full (Sec. 39 B)
o Held not more than 12 mo. 100%
o Held more than 12 mo. 50%

Passive
Income:
Sec. 25 A(2)
Cash or
property
dividends,
interest,
royalties,
prizes and
other
winnings
20%
Same EXC
as Sec. 24
B
Cinematogr
aphic films
25%

CORPORATIONS
FOREIGN
DOMESTIC

Not ETOB
Within
No deductions
Personal
Exemptions:
Sec. 35 D out
of reciprocity
Ordinary
Income:
Sec. 25 B
25% of entire
income
including:
Interest
cash or
property
dividends
rents
salaries
wages
premiums
annuities
compensation
remuneration
emoluments
other fixed or
determinable
annual or
periodic gains,
profits, income
and capital
gains

Capital Gains:
Same as Sec. 24 C and D
Special Aliens employed by:
Regional/Area HQ and
Regional Operating HQ
of MNC 15%
Offshore Banking Units
15%
Petroleum Service
Contractor and
Subcontractor 15%
Provided, the same tax
treatment shall apply to Filipinos
employed by the MNCs, OBUs
and petroleum con/subcontractor
All other income 25%

Within & without

ETOB

Not ETOB

Within

Within

PARTNERSHIPS
Within

Deductions: Sec. 34 (A)-(J)

No
deductions

Deductions:
Sec. 34 (A)-(J)

30% RCIT imposed on taxable

income
(TI = GI Ded Personal/Addtl.
Exemptions)
15% of gross income option, upon
approval of President and Sec. of
Finance
2% MCIT imposed on gross
income
(GI = Gross sales sales returns,
discounts, allowances, COGS)
Certain Passive
Certain
Incomes:
Incomes:
Sec. 27 D
Same as
Interest from
Domestic
deposits and yield,
Corp. with
monetary benefit
regard to
from deposit
interest,
substitutes, trust
EFCDS,
funds, royalties
and
20%
intercorpor
o Derived from
ate
EFCDS 7
dividends
%
and CGT
on shares
Capital Gains Tax
of stock not
o Shares of Stock
traded
not traded in
stock exchange
No
5 or 10%
provision
o Lands or
on CGT on
Buildings (not
lands or
used in
buildings
business) 6%
of GSP or FMV
Other taxes:
whichever is
Intl. Carrier
higher
2 % on
Income derived by
gross Phil.
depository bank
billings
under EFCDS
OBUs
o With nono from
residents, OBUs,
foreign
local commercial
currency
banks (NOLB)
transactio
tax exempt
ns with
o Others 10%
NOLB
o Net income
tax
taxable upon
exempt
recommendation
o Others
of Sec. of
10%
Finance
Branch
Intercorporate
Profit
dividends (from
Remittance
another domestic
s 15% of
corp) tax exempt
total profits
Special
applied
Corporations:
without
deductions
Proprietary
o Except
Educational
PEZA
Institutions and
Hospitals
Regional or
o 10% on taxable
Area HQs
income
tax exempt
o 30% if income
Regional
from unrelated
Operating
trade, business
HQs 10%
or other activity
of taxable
exceeds 50%
income
GOCCs, agencies,
instrumentalities
30%
o Except GSIS,
SSS,
Philhealth,
LWDs, PCSO

30% RCIT
imposed on
gross
income

Partnerships
taxed as
corporations

Except CGT
on Shares
of Stock not
traded 5
or 10%
Certain
Incomes:
Interest on
Foreign
loans
20%
Intercorpor
ate
dividends
received
from
domestic
corporatio
n 15%
o provide
d
country
where
foreign
corp. is
domicil
ed
grants
tax
credit
of 15%
Other taxes:
Cinematog
raphic
Film
Owner,
Lessor,
Distributor
25% of
gross
income
Owner or
Lessor of
Vessels
Chartered
by Phil.
Nationals
4 % of
gross
rentals or
fees
Owner or
Lessor of
Aircraft,
Machineri
es or other
equipment
7 % of
gross
rentals or
fees

GPP
Sec. 26
As such, not
subject to tax
Partners liable
in their
separate and
individual
capacities
Distributive
share derived
from net
income of
partnership to
be computed
the same way
as corporations
o Actually or
constructively
received
after
deducting
corporate
income tax,
whether
actually
distributed or
not (Sec. 73
D)