GRADUATED TAX RATE BEGINNING 2023 TAXABLE YEAR
INCOME
TAX
Not over P250,000
Exempt
Over P250,000 but not over
15% of excess over P250,000
P400,000
Over 400,000 but not over P800,000 P22,500 + 20% in excess of 400,000
Over P800,000 but not over P2M
102,500 + 25% in excess of
P800,000
Over P2,000,000 but not over 8M
P402,500 + 30% in excess of P2M
Over 8,000,000
P2,202,500 + 35% in excess of P8M
GRADUATED TAX RATE FROM 2018 TO 2022 TAXABLE YEAR
INCOME
TAX
Not over P250,000
Exempt
Over P250,000 but not over
20% of excess over P250,000
P400,000
Over 400,000 but not over P800,000 P30,000 + 20% in excess of 400,000
P130,000 + 25% in excess of
Over P800,000 but not over P2M
P800,000
Over P2,000,000 but not over 8M
P490,000 + 30% in excess of P2M
Over 8,000,000
P2,410,000 + 35% in excess of P8M
Passive Incomes derived from Philippine Sources subject to Final
Withholding Tax
Received by
1. INTEREST
Citizens & NRA-ETB NRAResidents
NETB
a. Interest from any currency bank
20%
20%
25%
deposit
b. Yield of any other monetary
20%
20%
25%
benefit from deposit substitutes
c. Yield or any other monetary
25%
benefit from trust funds and similar
20%
20%
arrangement
d. Interest income received from a
depositary bank under expanded
foreign currency deposit system
Note: Only residents are subject to this
type.
e. Interest income from long-term
deposit or investment
If pre-terminated before fifth year, a
final tax shall be imposed based on
remaining maturity as follows:
4 years to less than 5 years
3 years to less than 4 years
Less than 3 years
2. ROYALTIES
a. Royalties, in general (other than
royalties described in letter B)
b. Royalties in books, as well as
other literary works and musical
compositions
3. PRIZES
15%
NRC Exempt
Exempt
Exempt
Exempt
Exempt
25%
5%
12%
20%
Citizens &
Residents
5%
12%
20%
25%
25%
25%
NRANETB
NRA-ETB
20%
20%
25%
10%
10%
25%
Citizens &
Residents
NRA-ETB
NRANETB
20%
20%
25%
Citizens &
Residents
NRA-ETB
NRA-N
ETB
20%
20%
25%
Exempt
20%
Exempt
20%
25%
25%
Prizes exceeding P10,000
Note: Prizes <P10,000 are subject to basic
tax except those received by NRAs NETB
which are subject to 25% FWT
4. OTHER WINNINGS
Under CREATE Act
Other winnings regardless of
amount
PCSO Winnings
Amount is < P10,000
Amount is > P10,000
4. CASH and/or PROPERTY DIVIDEND
a. Cash and/or property dividens
actually/constructively received from
a domestic corp. or from joint stock
company, insurance or mutual fund
companies and ROHQ of
multinational companies
b. Share of an individual in the
distributable net income after tax of a
Partnership (other than GPP)
c. Share of an individual in the net
income after tax on an Association, a
Joint Account, or a Joint Venture or
Consortium taxable as a corporation,
which he is a member or a coventurer
Citizens &
Residents
NRA-ETB
NRANETB
10%
20%
25%
Tax Treatment of Fringe Benefits
Fringe benefits given to:
10%
20%
25%
Rank and File
Managerial/Supervisory
10%
20%
25%
Capital Gains Subject to CGT
Citizens & NRA-ETB
Residents
1. Capital gain from sale of shares of
stock of a domestic corporation not
traded in local stock exchange
2. Sale of real property located in the
Philippines
2. Capital gain on sale of real property classified as capital asset
Selling price (or FMV, whichever is higher)
Pxx
Rate
x 6%
CGT
Pxx
NRANETB
15%
15%
15%
6%
6%
6%
1. Capital gain on sale of shares of stock [TAX BASE]
Selling price
Pxx
Less: Cost
(xx)
Capital gain
Pxx
Rate(beginning Jan 1, 2018)
x 15%
CGT
Pxx
Included in
Taxable
Income
Yes
No
Subject to Basic
Tax and CWT on
compensation
Yes
No
Subject to
FBT
No
Yes
Items of Fringe Benefit subject to Tax
1. Housing
2. Expense account
3. Vehicle of any kind
4. Household personnel such as maid, driver and others.
5. Interest on loan at less than market value rate to the extent of the
difference between the market rate and actual rate granted.
6. Membership fees, dues and other expenses borne by the employer for
the employee in social and athletic clubs and similar activities
7. Expenses for foreign travel
8. Holiday and vacation expenses
9. Educational assistance to the employee or his dependents.
10. Life or health insurance and other non-life insurance premiums or
similar accounts in excess of what the law allows.
Tax Exempt Fringe Benefits
1. Fringe benefits which are authorized and exempted from income tax
under any special law such as:
- Contributions required under SSS law
- Contributions required under GSIS law
- Similar contributions under an existing law
- Premiums for group insurance of employees open
2. If the grant of fringe benefits to the employee is required by the nature
of, or necessary to the trade, business, or profession of the employer
3. De minimis benefit.
4. if the grant of benefits is for the convenience or advantage of the
employer
FRINGE BENEFIT TAX BASE AND RATE
Taxpayer
Citizen, RA, NRAETB
Monetary value (net of tax)
Pxx
Divide by gross monetary value
65%
factor
Grossed-up monetary value
Pxx
X FBT rate
35%
Fringe benefit tax
Pxx
NRA-NETB
Pxx
75%
Pxx
25%
Pxx