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Gross income
GR: Non resident Foreign Within the Philippines 30% Gross Income meaning:
Corporation (without deductions) Except when
otherwise
1
provided in
this Title,
gross income
means all
income
derived from
whatever
source
Owner of
Special NFRC vessels
Gross Income meaning:
Cinematographic Owners Within the Philippines 1. Registered
25% in MARINA
2. Chartered
4.5 % Gross Rentals by Philippine
Owner of Vessels Nationals
Chartered by Filipinos
Owner of
7.5% Gross Rentals Equipment:
Owner of Aircrafts, -need not be
equipment or machine related to
aircraft
machineries
INTERCORPORATE DIVIDENDS
Kind of Corporation Source Tax Rate Taxable Base Notes
Domestic Corporations Within and without Received from Amount of dividends
Philippines Domestic
Corporations:
Exempt
Resident Foreign Within the Philippines If received from DC: Amount of dividends
Corporation Exempt
(Reason: it is income
2
without PH)
3
Non Resident Foreign Within Philippines If received from DC: Amount of dividends
Corporation 15% (if Tax Sparing
Rule applies)
ROYALTIES, PRIZES
Kind of Corporation Source Tax Rate Taxable Base Notes
Domestic Corporation Within and Without From Domestic
Philippines Royalties: Gross Income
GR: 20%
From Foreign
Royalties:
30%
Prizes:
30%
Resident Foreign Within Philippines From Domestic Gross Income
Corporation Royalties:
GR: 20%
From Foreign
Royalties:
Exempt
Prizes:
30%
NRFC Within Philippines From Domestic Gross Income
Royalties:
GR: 30%
From Foreign
Royalties:
Exempt
Prizes:
30%
4
INTERESTS ON BANK DEPOSITS, DEPOSIT SUBSTITUTES, LTDIC, LOAN ETC.
Kind of Corporation Source Tax Rate Taxable Base Notes
20%
In Foreign currency:
7.5%
Loan:
30%
Bank deposits:
In Foreign currency:
7.5%
Loan:
30%
Bank deposits:
In Foreign Currency:
Exempt
(Reason: Non
Resident)
Interest on Foreign
Loan:
20%
FMV =
assessor’s
Domestic Corporation Within and Without Of lands or buildings: value or zonal
Philippines 6% Gross Selling Price or value
Fair market value,
whichever is higher Rules on
Presumed
Gain
1. In case of
Shares of
Stock
If selling price
is less than
FMV =
deemed
donation
2. In case of
Land and or
building
If selling price
is less FMV=
not deemed
donation
(reason: tax
base is always
the higher
between the
two)
Resident Foreign n/a N/A (reason: they NOTE: Based
Corporation cannot own a land) on recit, Atty
Bravo believes
that they are
subject to 6%
CGT???
Non resident foreign n/a N/A NOTE: Based
Corporation (reason: they cannot on recit, Atty
6
own a land) Bravo believes
that they are
subject to 6%
CGT???
SALE OF SHARES OF STOCK
Kind of Corporation Source Tax Rate Taxable Base Notes
Domestic Corporations Within and without DC
Philippines (In Shares of Stock 1)
not listed in Stock
exchange or 2)listed in
Stock exchange but Net Capital Gains Net Capital
not traded in the Gains
stock exchange) = Gross Selling
price – cost
5%= not over 100,000
½ of 1%
7
Non Resident Foreign Within Philippines DC: Net Capital Gains
Corporation
(In Shares of Stock 1)
not listed in Stock
exchange or 2)listed in
Stock exchange but
not traded in the
stock exchange)
10%=over 100,000
If unrelated activity
exceeds 50%:
30%
Non Profit Hospital If unrelated activity
does not exceed 50%:
10%
If unrelated activity
exceeds 50%:
30%
GOCCs (SSS, PHIC, LWD & Exempt
PCSO)
MCIT
BRPT
IAET
11