Individual Income Taxation
Passive Income
Basic (Regular,
Ordinary) Tax
Final Income
Tax
Capital Gains
Tax
A1 20-35%
10% or 20%
final tax on
certain passive
income
‘’
15% (shares of
stocks) or
6% (real
property)
‘’
Basic Tax
(Gross
Income)
RC, NRC, RA, NRA-ETB
Pure Compensation
Income Earner
Professional/Business
Base: Compe. income
w/o deduction
A2 20-35%
Base: Taxable.
income or
8% optional
(Gross- P250k)
Mixed-Income Earner
A1 + A2
NRA-NETB
Gross Income
25%
Base: Gross Income
25%
Base: Gross
Income
15% (shares of
stocks) or
6% (real
property)
Corporate Income Taxation
Train Law
Create Law
July 1, 2020-June
30,2023
Domestic Corporation
30%
Taxable income w/n & w/o
Proprietary Educ.
Institution and
Hospitals
GOCC
Taxable Partnership
Resident Foreign
Corporation
10% Special Tax
Rate
25%
20% MSME*
1% Pref. Rate
Train- 2%
Create- 1%
Base: Gross Income
✓
✘
(Unrelated: <50%)
20% or 25%
30%
25%
20% MSME*
25%
✓
✓
Net Income w/n
Taxable income w/n
Offshore Banking Unit
Exempt/special
25%
✓
Regional Operating
Headquarters
Non-Resident Foreign
Corporation
10% Special Tax
Rate
30%
FWT
25%
✓
25% FWT
✘
Gross Income w/n
Base: Gross
Income
NRAETB NRANETB, DC,RFC
NRFC
Interest Income
earned abroad by RC
✓
earned by those ETB of
lending, financing
✓
Interest from currency bank
deposits, yield or any other
monetary benefit from deposit
substitutes, trust fund
20%
20%
NRAETB = 20%
Interest under EFCDU
received by residents
Interest earned by
NRANETB
15%
NRC= ✘
LTDIC in banks
25%
20%
NRANETB,NRFC =25%
✘
25% on
Gross
Income
exempt
✘
15%
(Train:7.5%)
25%
*pre-terminated (TB:entire income)
4 to <5yrs
3 to <4yrs
<3yrs
Royalties, general
Royalties on books,
Literature Works, Musical
composition
5%
12%
20%
20%
5%
12%
20%
20%
25%
25%
25%
25%
10%
10%
25%
NRANETB, NRFC= 25%
Earned by RC
Earned as active business
income
Dividends
✓
Liquidating div. in excess
of invested cap
Share in the NI of GPP
Div. from FC
✓
Intercorporate div. rec. by DC
✓
✓
DC, RFC = exempt
NRFC = 25%
(Unrelated:>50%)
30%
Final Income Tax
RC, NRC,
RA
-Indiv: taxable
-DC: taxable if corp failed
to comply RR 5-2021)
Div. w/n FC by FC
✓
20%