CHAPTER 8: INCLUSION AND EXLUSION OF GROSS INCOME
FINAL WITHHOLDING TAX
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Final tax of taxpayer
No need to file for Income Tax Return
Deducted by the withholding agent before the income payment
Not included in computing Gross Income
Base on Passive Incomes
Applicable only within the PH. If outside, regular tax
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PASSIVE INCOME SUBJECT TO FINAL INCOME TAX (PRIDRO-FI)
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1. PRIZES
Key: 10k; 20,20,25
Exceeding 10,000
Less than and equal
10k=Regular Tax
Received By:
NRAE
NRANE
20%
25%
Received By:
NRAE
NRANE
20%
20%
25%
20%
20%
20%
20%
25%
25%
RC=15%
NRA=Exempt
Exempt
Exempt
Exempt
Exempt
25%
Citizens and
Residents
20%
2. INTEREST
Interest, Yield and
monetary benefit
from
Currency bank
deposit
Deposit Substitute
Trust fund and similar
arrangements
Expanded Foreign
Currency Deposit
Unit (EFCDU)
*exemption
applicable only for
the non-residents
Long-term deposit o
investment (5
years)=not applicable
for NRANE
Citizens and
Residents
4 less tha 5
3 less tha 4
Less than 3
Pre-terminated: Before 5-year
5%
5%
12%
12%
20%
20%
25%
25%
25%
3. DIVIDEND
Cash or property
received from
DOMESTIC
CORPORATION
Share from General
Partnership (after tax
of partnership)
Share from
Corporation
Received By:
NRAE
NRANE
20%
25%
10%
20%
25%
10%
20%
25%
Received By:
NRAE
NRANE
20%
10%
25%
25%
Received By:
NRAE
NRANE
20%
25%
Citizens and
Residents
10%
4. ROYALTIES
General, royalties
Books, literary works
and musical
composition
Citizens and
Residents
20%
10%
5. OTHER WINNINGS
Other winnings
regardless of amount
Less than or equal to
10k
More than 10k
*FRINGE BENEFITS
**INFORMAT
Citizens and
Residents
20%
PCSO Winnings (Lotto)
Exempt
Exempt
20%
20%
25%
25%
CREDITABLE WITHHOLDING TAX
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