philippine tax rates

INCOME RATES OF INDIVIDUALS AND CORPORATIONS

Submitted by: Kelsch, Diamond S.

Submitted to:

Atty. Christine Elveña – Carrantes

TAX RATES

1. COMPESATION INCOME .

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2. BUSSINESS, TRADE AND PROFESSION3. PASSIVE INCOME4. CAPITAL GAINS TAX5. TAXES ON CORPORATION6. DST TAX7. ESTATE TAX8. EXCISE TAX9. DONOR AND ESTATE TAX10. PERCENTAGE TAX11. VAT TAX

COMPESATION AND BUSSINESS TRADE AND PROFESSION

The individual income tax derived from compensation, business, trade or exercise of profession shall be computed in accordance with and at the rates established in the following schedule:Over But not Over Tax Due

P10,000

30,000

70,000

140,000

250,000

500,000

P10,000

30,000

70,000

140,000

250,000

500,000

5%

P 500 + 10% of the excess over P10,000

2,250 + 15% of the excess over P30,000





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Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment 15 of the same year at on or before July the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

1) Compensation Income

Resident Citizen Non Resident Citizen

Resident Alien

Non-Resident Alien Engage in Trade or Business

Non-Resident Alien – Not Engaged in Trade or Bussiness

Domestic Corporation

Resident Foreign Corporations

Non-Resident Foreign Corporations

Sources of Income

Within and Without Within Within Within Within Within and Without

Within Within

Nature of Income

Tax Rate

Taxable compensation arising from employer – employee relationship

5% - 32% graduate rate

Resident Citizen Employed By:

a. Regional / Area Headquarters & Regional Operating Headquarters of Multinational Corp.

Taxable Gross Compensation Income (TGCI)

15% or 5% - 32%

b. Offshore Banking Units (TGCI - 15%)

c. Petroleum Service Contractor and Subcontractor (TGCI - 15%)

5% - 32% graduate rate ‘

Alien employed by:

(1) Regional or Area Headquarters and Regional Operating Headquarters of Multinational Corp. (TGCI 15%)

(2) Offshore Banking Units (TGCI 15%)

(3) Petroleum Service Contractor and Subcontractor TGCI 15%

25% on the gross amount of compensations, remunerations,

salaries or emoluments

received from sources within the Philippines

19 Sec.

30% 30% 32%

Additional Income of Government Personnel from importers, shipping and airline companies, or their agents (overtime services)

15% creditable 15% creditable15%

creditable 15% creditable

--- -- 30% 30%

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FRINGE BENEFIT TAXFringe Benefit furnished or granted to the employee (except rank and file employees) by the employer (unless the fringe benefit is require by the nature of or necessary to the trade and business or profession of the employer, or when the fringe benefit is for the convenience of the employer)

Grossed up monetary value of fringe benefit furnished or granted to the employee (except rank and file)

Tax Rate Grossed Up Divisor Year 34% FWT 66% 1998 33% FWT 67% 1999 32% FWT 68% 2000 onwards

In the case of aliens, the tax rates to be applied on fringe benefit shall be as follows:

1. NRANEBT 25%2. Aliens employed by regional HO 15 %3. Aliens employed by OBU 15%4. Aliens employed by Petroleum Service5. Contractors and Subcontractors

Note:• Gross up divisor is the difference between 100% and the applicable rates.• In general, a nonresident alien individual who shall come to the Philippines and stay therein for an aggregate period of more than one hundred eighty days during any calendar year shall be deemed as “nonresident alien doing business in the Philippines.” Exceptions are the following: (a) Aliens Individual Employed by Regional or Area Headquarters and Regional Operating Headquarters of Multinational Companies; (b) Aliens Individual Employed by Offshore Banking Units; and (c) Aliens Individual employed by Petroleum Service Contractor and Subcontractor.

NOTE: To arrive at the grossed-up monetary value of the fringe benefit granted to nonresident alien individuals not engaged in trade or business in the Philippines, divide the monetary value of the fringe benefit by seventy-five percent (75%). In the case of fringe benefits granted to aliens employed by regional or area headquarters or regional operating headquarters of multinational company, offshore banking units, and

If the employer paying the fringe benefit is a regular domestic or resident corporation:

Final Tax Gross-up rateJanuary 1, 199834% 66%January 1, 199933% 67%January 1, 200032% 68%

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foreign service contractor and sub-contractor, divide the monetary value of the fringe benefit by eighty-five percent (85%).

Fringe benefit is any good, service or other benefit furnished or granted in cash or in kind by an employer, whether an individual or a corporation, to an individual employee (except rank and file employees) such as, but not limited to, the following:

a. housing;b. expense account;c. vehicle of any kind;d. household personnel, such as maids, drivers and others;e. interest on loans at less than market rate to the extent of the difference between the market rate and the actual rate granted;f. membership fees, dues and other expenses borne by the employer for the employee in social and athletic clubs or other similar organizations;g. expenses for foreign travel;h. holiday and vacation expenses;i. educational assistance to the employee or his dependents; andj. life or health insurance and other non-life insurance premiums or similar amount in excess of what the law allows.

Non-taxable fringe benefits:a. fringe benefits which are authorized and exempted from tax under special laws;b. contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans;c. benefits given to the rank and file employees, whether granted under a collective bargaining agreement or not;d. de minimis benefits.

Valuation of fringe benefits:Unless otherwise provided in Revenue Regulations No. 3-98, taxable fringe benefits shall be valued as follows:

a. If the fringe benefit is granted in money, or is directly paid for by the employer, then the value is the amount granted or paid for.b. If the fringe benefit is granted or furnished by the employer in property other than money and ownership is transferred to the employee, then the value of the fringe benefit shall be equal to the fair market value of the property as determined in accordance with Sec. 6(E) of the Code (Authority of the Commissioner to Prescribe Real Property Values).c. If the fringe benefit is granted or furnished by the employer in property other than money but ownership is not transferred to the employee, the value of the fringe benefit is equal to the depreciation value of the property.

2) BUSSINESS INCOMEResident Citizen

Non Resident Citizen

Resident Alien






Sources of Income Within and Without

Within Within Within Within Within and Without

Within Within

Nature of Income Tax RateTaxable income arising from business and other

5% - 32% graduate rate 25% on gross income derived

30% NCIT 30% NCIT 32

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income from businessGains realized from the sale, exchange or other disposition of real property, not located in the Philippines

Normal Tax Rate (5% - 32%)

Exempt Exempt Exempt Exempt Normal tax rate (5% - 32%)

Exempt -Exempt

sale of:1. land and/or building classified as ordinary assets; and2. other real property (other than land and/or building treated as capital asset), regardless of the classification thereof all of which are located in the Philippines

shall be subject to the creditable withholding tax(expanded) under Sec. 2.57.2(J) of Rev. Regs. No. 2-98, asamended, based on the gross selling price or current fair

marketvalue as determined in accordance with Section 6(E) of the

Code,whichever is higher, and consequently, to the ordinary

income taximposed under Sec. 24(A)(1)(c) or 25(A)(1) of the Code, as

thecase may be, based on net taxable income.

25% creditable withholding tax

(expanded) under Sec.

2.57.2(J) of Rev. Reg. No. 2-98, as

amended- and

consequently, to the ordinary income tax

under Sec. 27(A) of the Code

- In lieu of the ordinary income tax, however, it

may become liable to the MCIT

whichever is applicable.

Real property located in

the Philippines,

regardless of classification,

sold by a resident foreign

corporation shall be

subject to the

creditable withholding

tax (expanded)under Sec. 2.57.2(J) of Rev. Regs.

No. 2-98, as amended,

andconsequently

, to the ordinary

income tax under Sec. 28(A)(1) or

to theMCIT under Sec. 28(A)(2), both of the Code,

whichever is applicable.

subject to the final

withholding tax at the rate of thirty-two

percent (32%)

Income payments to partners of General Professional Partnerships

15% creditable if the gross income for the current year exceeds

15% creditable if the gross income for the current year exceeds P720,000; and

15% creditable if the gross income for the current year exceeds P720,000; and 10% if otherwise

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n.a

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P720,000; and 10% if otherwise

10% if otherwise

Annuity

Concept - These refer to annuity policies sold by insurance companies, which provide installment payments for life, or for a guaranteed fixed period of time whichever is longer or for life and guaranteed fixed period.

The portion of each annuity payment that represents return of premium is not taxable while that portion that represents interest is taxable. Annuities which are not exempt from tax are included in the computation of gross income.

If an annuity is an exclusion, then it is not to be included in the computation of gross income. But if it fails to comply with the requirements of a tax-exempt annuity, then the same is taxable and included in the computation of gross income

Rental Income: Concept - Amount or compensation paid for the use or enjoyment of a thing or right. It implies a fix sum or property amounting to a fix sum to be paid at stated times for the use of property.

• Scope - All amount or property received from lease contract, whether used in business or not.

• Items considered as rental income - 1) Agreed amount per month or per year. 2) Obligations of lessor to third parties which the lessee undertakes to pay as further consideration of the lease, such as: a) Real estate taxes on leased premises paid by the lessee to the government. b) Insurance premiums paid by lessee on policy covering leased property. c) Dividends paid by lessee to stockholders of lessor-corporation, in lieu of rent. d) Interest paid by lessee to holder of bonds issued by lessor-corporation, instead of rent.

• If in the nature of prepaid rentals (advance rental), the entire amount thereof is taxable income to the lessor in the year received, if so received under a claim of right and without restriction as to its use, and whether the lessor is on the cash or accrual method of accounting. • If in the nature of a loan, no taxable income to the lessor when received.

• Security deposit applied to the rental of the terminal month or period of contract must be recognized as income at the time it is applied

• If in the nature of security deposit for compliance by the lessee of the terms of the contract, it is not income to the lessor. Income will only be realized in the event that the lessee violates any provision of the contract.

• Value of permanent improvements made by lessee on leased property that will become the property of the lessor upon the expiration of the lease. The lessor shall report this income under any of the following methods:a) At the time when such buildings improvements are completed, the fair market value thereof, (outright method), orb) He may spread over the life (or remaining period) of the lease, the estimateddepreciated value of such buildings or improvements at the termination of the lease and report as income for each year of the lease, an aliquot part thereof. (Spread-out method)

Cinematographic film rentals and other payments by any payer

Cinematographic Film and Similar Works

5% creditable

5%-32% graduate rates


5% creditable


25% final tax

5% creditable

25 final tax

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Payments to film owners, lessors or distributor

5% creditable

5% creditable 5% creditable

25% final tax

5% creditable 5% creditable

25%

Rentals, charters and other fees derived from lease of aircraft, machineries and other equipment

N/A 7½%

Gross rentals, lease or charter fees from leases or charters to Filipino citizens or corporations, as approved by the Maritime Industry Authority

N/A 25%

Professional fees, talent fees, etc., for services of taxable juridical persons

Professional fees, talent fees of the following individuals:

a. lawyers; certified public accountants; doctors of medicine; architects; civil, electrical, chemical, mechanical, structural, industrial, mining, sanitary, metallurgical and geodetic engineers; marine surveyors; doctors of veterinary science; dentist; professional appraisers; connoisseurs of tobacco; actuaries; and interior




25% final



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decorators, designers and all other profession requiring government licensure examinations and/or regulated by the Professional Regulations Commission, Supreme Court

b. actors and actresses; singers; lyricists; composers; emcees; professional athletes; directors and producers, and other recipients of talent fees




Commissions paid to certain brokers and agents

10% creditable

N/A 10% creditable

N/A N/A N.A N.A

Commissions of independent and exclusive distributors, medical/technical and sales representatives, and marketing agents of multi-level marketing companies

10% creditable

N/A 10% creditable

N/A 10% creditable

10% creditable10

N/A

Payments on purchases of minerals, mineral products and quarry resources

10% creditable

N/A 10% creditable

N/A 10% creditable 10% creditable

Payments made to suppliers of agricultural products

1% creditable

N/A 1% creditable

N/A 1% creditable 1% creditable

Payments made by the government to its local/resident supplier of goods and local/resident supplier of services other than those covered by other rates of withholding tax

1% creditable to supplier of goods; 2% creditable to supplier of services

N/A1% creditable to supplier of goods; 2% creditable to

1% creditable to supplier of goods; 2% creditable to supplier

N/A 1% creditable to supplier of goods; 2% creditable to supplier of services

1% creditable to supplier of goods; 2% creditable to supplier of services

N/A

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(except any single purchase of P10,000 and below)

supplier of services

of services

3) PASSIVE INCOMEResident Citizen


Resident Alien








Within Within

Nature of Income Tax RateI) INTEREST

On interest on currency bank deposits, yield or other monetary benefits from deposit substitutes, trust funds & similar arrangement

Exception: If the depositor has an employee trust fund or accredited retirement plan, such interest income, yield or other monetary benefit is exempt from final withholding tax

20% 20% 20% 20% 25% 20% Interest Income on foreign loans contracted on or after Aug. 1, 1986 (20%fwt)

30%

Interest income under the Expanded Foreign Currency Deposit SystemNote: If the loan is granted by a foreign government, or an international or regional financing institution established by governments, the interest income of the lender shall not be subject to the final withholding

7.5% Exempt 7.5% Exempt ExemptGross interest income derived by

a domestic corporation and a resident foreign corporation from

a depositary bank 7.5% FWT.

Any income from transaction with depository banks under FCDS shall be exempt from

income tax

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tax

Interest income from long-term deposit or deposit in the form of savings, common or individual trust funds, deposit substitute investment management accounts in denomination of P10,000 or as prescribed by the BSP.

Interest on long term deposit - Exempt In case of Pretermination:

Number of years lapsed before pretermination: (Holding Period)

4 yrs. to less than 5 yrs - 5%3 yrs. to less than 4 yrs. - 12%

Less than 3 yrs. - 20%

25% 20% 20% 30%

Interest Income by FCDU Depositary banks

N/AIncome derived by a depository

bank from foreign currency transactions with local

commercial banks including branches of foreign banks, other depositary banks, and residents

10% Final Tax.

30%

Interest Income on foreign loans N/A 30%2) DIVIDENDS

Cash and/or property dividends actually or constructively received

• from a domestic corp. or • from a joint stock company, insurance or mutual fund companies, or and regional operating headquarters of a multinational company• on the share of an individual in the distributable net income after tax of a taxable partnership (except that of a GPP) of which he is a partner, or • on the share on the net income after tax of an association, joint account, or a joint venture or consortium taxable as a corporation of which he is a member of co-venturer.

Current Tax rate: 10%Gross income (within) FWT Year

6% - 19988% - 1999

10% - 2000 onwards

NOTE: Tax on dividends shall apply on income earned on or after Jan. 1,

1998. Sec. 73(c) provides that dividends distributed are deemed

made from most recently accumulated profits

Gross Income (within)

20% FWT

Gross income (within) 25% Exempt Exempt 15%

Dividends from Foreign Corporation

Regular Income Tax rules apply.

5% - 32% graduated rates

If considered as income within5% - 32% graduated interest

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NOTE:Taxable, provided the following requisites are present:(1) More than 50% of the Gross Income of the foreign corporation was derived from sources within the Philippines;(2) The coverage for the determination of the income was for the three-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the corporation has been in existence).Taxable only in the amount which bears the ratio to the dividends as the gross income of the corporation for such period derived from sources within the Philippines bears to gross income from all sources.

Inter-corporate dividends and income from a taxable partnership

N/A Dividends received by a

domestic corporation

from another domestic

corporation shall not be

subject to tax.

Dividends received from

a domestic corporation not subject to tax.

Dividend received from a domestic

corp.15% FWT, Provided foreign law allows taxpayer clause,

otherwise it will be subject to the

normal domestic rate

3) ROYALTIES

Royalties in general (Other royalties: e.g. patents and franchises)

20% 20% 20% 20% 25% 20% 20% 30%

Royalties on books, literary works and musical composition

10% 10% 10% 10% 25% 20% 20% 30%

4) PRIZES and Winnings

Prizes won in the Philippines Php 10,000 or more

20% 20% 20% 20% 25% N/A

Prizes won P10,000 and below Regular (Progressive) Income Tax rules apply. N/A

Winnings in general 20% 20% 20% 20% 25 N/AWinnings from Philippines Charity sweepstakes and lotto winnings

Exempt

3) Informer’s Reward

Informer’s Reward

(A cash reward may be given to any person instrumental in the discovery of violations of the

10%Requisites:1. Definite sworn information which is not yet in the possession of the BIR.2. The same lead to the discovery of fraud upon internal revenue laws or provisions thereof.3. Enforcement results in recovery of revenues, surcharges and fees and or conviction of the guilty party or imposition

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National Internal Revenue Code or discovery and seizure of smuggled goods)

of any fine or penalty4. The informer is other than a/an:

a. Internal Revenue officials or employeesb. Other public officials or employeesc. Relatives of those in a. and b. within the 6 degree of consanguinity

Cash Reward – Whichever is the lower of the following per case:1. 10% of revenues, surcharges or fees recovered and or fine or penalty imposed and collected or2. P1,000,000**It should be noted that the maximum net cash reward of the informer is P900,000 per case due to the 10% withholding final tax. Even if a case is filed if there is no recovery, there is no cash award.

4) CAPITAL GAINS TAXResident Citizen


Resident Alien








Within Within

Nature of Income Tax Rate

Capital gains from sale of shares of stock not listed / traded in the local stock exchange

Net capital gains (within)Not over P100,000 – 5%

In excess of P100,000 – 10%5% if gain is not more than P100K. 10% in excess of P100K

Capital gains on shares of stocks of Foreign Corporation with principal place of business outside Philippines

Taxable on the normal

tax rate

Not Taxable

Not Taxable Taxable N/A N/A

capital gains from sale, exchange or disposition of real property located in the Philippines classified as capital assets

1. Gross Selling Price or FMV whichever is higher 6% Final Tax2. If sold to the government or any of its political subdivision or agencies or to GOCC, 6% Final Tax or Normal Tax Rate, at the option of taxpayer.3. If proceeds is from disposition of principal residence and is fully utilized in acquiring or constructing a new principal residence within 18 months from the date of disposition, (date of notarization) the capital gain is exempt from the capital gains tax subject to the following conditions.a. Historical cost or adjusted basis of property

Gross Selling Price or FMV whichever is higher 6% Final Tax

N/A

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sold is carried over to the new principal residence.b. The commissioner is notified within 30 days from the date of disposition of the taxpayer’s intention to avail of the tax exemption.c. Tax exemption can only be availed of once every 10 years.d. Unutilized portions of the proceeds is subject to capital gains tax to be computed proportionately. The tax on the unutilized portion shall be paid within 30 days after the expiration of the 18-month period.

SCOPE OF THE 6% CAPITAL GAINS TAX:

Location of Real Property

Individuals Corporation

Citizen Alien

ResidentNon-Resident

Resident NR-ETB

NR-NETB Domestic Resident Non-resident

Philippines √ √ √ √ √ √ Not Applicable

Abroad x x x x x x x x

TAXES ON CORPORATIONTax Rate Taxable Base

1. Domestic Corporations:a. In General 30% (effective Jan. 1, 2009) Net taxable income from all sources

b. Minimum Corporate Income Tax* 2% Gross Incomec. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income2. Proprietary Educational Institution 10% Net taxable income provided that the gross income from unrelated trade,

business or other activity does not exceed 50% of the total gross income3. Non-stock, Non-profit Hospitals 10% Net taxable income provided that the gross income from unrelated trade,

business or other activity does not exceed 50% of the total gross income4. GOCC, Agencies & Instrumentalities

a. In General

b. Minimum Corporate Income Tax

c. Improperly Accumulated Earnings

30%

2%

10%

Net taxable income from all sources

Gross Income

Improperly Accumulated Taxable Income5. National Gov't. & LGUs

a. In General


30%

2%


Gross Income

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c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income6. Taxable Partnerships

a. In General


c. Improperly Accumulated Earnings

30%

2%

10%


Gross Income

Improperly Accumulated Taxable Income7. Exempt Corporationa. On Exempt Activities

b. On Taxable Activities

0%

30% Net taxable income from all sources

8. General Professional Partnerships0%

9. Corporation covered by Special LawsRate specified under the respective

special laws10. International Carriers 2.5% Gross Philippine Billings11. Regional Operating Head 10% Taxable Income

12. Offshore Banking Units (OBUs10%

30%

Gross Taxable Income On Foreign Currency Transaction

On Taxable Income other than Foreign Currency Transaction

13. Foreign Currency Deposit Units (FCDU)10%

30%

Gross Taxable Income On Foreign Currency Transaction

On Taxable Income other than Foreign Currency Transaction NOTE: *Beginning on the 4th year immediately following the year in which such corporation commenced its business operations, when the minimum corporate income tax is greater than the tax computed using the normal income tax.

1. Resident Foreign Corporation

1) a. In General – on net taxable income

b) Minimum Corporate Income Tax

c) Improperly Accumulated Earnings

30%

2%

2.5%

on net taxable income

on gross income

on improperly accumulated taxable income

2) International Carrier 2.50% on gross Philippine billings

3) Regional Operating Headquarters 10% on gross income

4) Corporation Covered by Special Laws Rate specified under the respective special laws

5) Offshore Banking Units 10% On gross income

6) Foreign Currency Deposit Units 10% On gross income

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SPECIAL RESIDENT FOREIGN CORPORATIONSPECIAL RFC TAX BASE TAX RATW

International Carriers Gross Philippine Billings 2½%

Offshore banking unitsInterest income derived from foreign currency loans

granted to residents other than OBU or local commercial banks including local branches of

foreign banks authorized by the BSP to transact w/ OBUs

10%

Resident depositary banks Interest income derived from foreign currency loans granted to residents other than offshore units in the

Philippines or other banks under the expanded system

10%

Regional or area headquarters Not subject to income taxregional operating headquarters Taxable income within the Philippines 10%

SPECIAL NRFC TAX BASE TAX RATE

Non-resident cinematographic film owner, lessor or distributor

Gross income from all sources within the Philippines 25%

Non-resident owner or lessor of vessels chartered by Philippine Nationals

Gross rentals, lease or charter fees from leases or charters to Filipino citizens or corporations, as approved by the Maritime Industry Authority

4½%

Non-resident owner or lessor of aircraft, machineries and other equipment.

Rentals, charters and other fees derived from lease of aircraft, machineries and other equipment

7½%

DOCUMENTARY STAMP TAXDocument Taxable Unit Tax Due Per Unit % of Unit Taxable Base

Debentures and Certificates of Indebtedness P200.00 or fraction thereof P1.50 0.75% Face value of Document

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Original Issue of Shares of Stock with par value P200.00 or fraction thereof 2 1%Par value of shares of stocks actual consideration for the

issuance of shares of stocks

Original Issue of Shares of Stock without par value

P200.00 or fraction thereof based on actual consideration

2 1%

Sales, Agreements to Sell, Memoranda of Sales, Deliveries or Transfer of Due-bills, Certificate of Obligation, or Shares or Certificates of Stock

P200.00 or fraction thereof 1.5 0.75%Par value of such due-bills, certificate of obligation or

stocks

Bonds, Debentures, Certificate of Stock or Indebtedness issued in foreign Countries

P200.00 or fraction thereof 1.5 0.75%Par value of such bonds,

debentures or Certificate of Stocks

Certificate of Profits or Interest in Property or Accumulation

P200.00 or fraction thereof 0.5 0.25%Face value of such certificate /

memorandumBank Checks, Drafts, Certificate of Deposit not bearing interest and other Instruments

On each Document 1.5

Bonds, Loan Agreements, Promissory Notes, Bills of Exchange, Drafts, Instruments and Securities Issued by the Government or any of its Instrumentalities, Deposit Substitutes Debt Instrument, Certificates of Deposit bearing interest and others not payable on sight or demand (except loan agreement or promissory notes exceeding P250,000.00 for personal use or family use)

P200.00 or fraction thereof 0.3 0.15%Face value of the

instrument/document

Bills of Exchange or order drawn in foreign country but payable in the Philippines

P200.00 or fraction thereof 0.3 0.15%

Face value of such bill of exchange or order or the

equivalent of such value, if expressed in foreign currency

Foreign Bills of Exchange and Letter of Credit P200.00 or fraction thereof 0.3 0.15% Face value of such bill of exchange or order or the

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equivalent of such value, if expressed in foreign currency

Life Insurance Policies P200.00 or fraction thereof 0.5 0.25% Amount Insured by the PolicyPolicies Of Insurance upon Property P4.00 premium or fraction thereof 0.5 12.50% Premium chargedFidelity Bonds and other Insurance Policies P4.00 premium or fraction thereof 0.5 12.50% Premium charged

Policies of Annuities, Annuity or other instruments

P200.00 or fraction thereof 1.5 75%Capital of annuity, or if

unknown 33 1/3 times the annual income

Pre-Need Plans P500.00 or fraction thereof 0.5 0.10% Value or amount of the PlanIndemnity Bonds P4.00 or fraction thereof 0.3 7.50% Premium chargedCertificates of Damage or otherwise and Certificate or document issued by any customs officers, marine surveyor, notary public and certificate required by law or by rules and regulations of a public office

Each Certificate 15

Warehouse Receipts (except if value does not exceed P200.00)

Each Receipt 15

Jai-alai, Horse Race Tickets, lotto or Other Authorized Number Games

P1.00 cost of ticket and 0.1 10% Cost of the ticket

Additional P0.10 on every P1.00 or fraction thereof if cost of ticket exceeds P1.00

Bills of Lading or Receipts Each Proxy 15(except charter party)Powers of Attorney Each Document 5Lease and other Hiring agreements of memorandum or contract for hire, use or rent of any land or tenements or portions thereof

First 2,000 3 1.50%

For every P1,000 or fractional part thereof in excess of the first P2,000 for each year of

the term of the contract or agreement1 1%

Mortgages Pledges of lands, estate, or property and Deeds of Trust

First 5,000 20 0.40% Amount Secured

On each P5,000 or fractional part thereof in excess of 5,000

10 0.20% Amount Secured

Deed of Sale, instrument or writing and Conveyances of Real Property (except grants, patents or original certificate of the government)

First 1,000 15 1.50%

Consideration or Fair Market Value, whichever is higher (if government is a party, basis shall be the consideration)

For each additional P1,000 or fractional part thereof in excess of P1,000

15 1.50%

Charter parties and Similar Instruments 1,000 tons and below

P500.00 for the first 6 months PlusP50

each month or fraction thereof in

excess of 6 monthsP1,000 for the first 6

months

1,001 to 10,000 tons

Plus P100 each month or fraction

thereof in excess of 6 months

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Over 10,000 tonsP1,500 for the first 6

monthsPlus P150 each month or fraction

thereof in excess of 6 months

EXCISE TAXDescription Tax Rate Tax Base

Produced from sap of coconut, nipa, cassava, camote, buri palm or sugarcane P 8.96 Proof LiterProduct in a pot still by small distillers (up to 100 liters/day and 50% alcohol volume) P 4.48 Proof LiterProduced from raw materials other than aboveNet Retail Price per bottle of 750 ml volume capacity (excluding VAT and Excise Tax) is less than P250.00

P 84.00Proof Liter

Net Retail Price per bottle of 750 ml volume capacity (excluding VAT and Excise Tax) is P250.00 up to P 675.00 P 168.00 Proof LiterNet Retail Price per bottle of 750 ml volume capacity (excluding VAT andExcise Tax) is more than P 675.00 P 338.00 Proof LiterMedicinal preparations, flavoring extracts and all other preparations, except toilet preparations, of which, excluding water, distilled spirits form the chief ingredient

Description Tax Rate Tax BaseNet Retail Price per bottle (excluding VAT and Excise Tax) is P500.00 or less P 112.00 Per LiterNet Retail Price per bottle (excluding VAT andExcise Tax) is more than P500.00 P 336.00 Per LiterStill wines containing 14% or less alcohol P 13.44 Per LiterStill wines containing over 14% but not over 25% alcohol P 26.88 Per LiterFortified wines containing more than 25% alcohol by volume (taxed as distilled spirits) Proof Liter

Description Tax Rate Tax BaseNet Retail Price per liter (excluding VAT and Excise Tax) is less than P14.50 P 6.89 Per LiterNet Retail Price per liter (excluding VAT and Excise Tax) is less than P14.50 P 10.25 Per LiterNet Retail Price per liter (excluding VAT and Excise Tax) is less than P14.50 P 13.61 Per Liter

Description Tax Rate Tax BaseUp to 1600 cc 15% Manufacturer's or Importers Selling Price*Up to 2000 cc 35% Manufacturer's or Importers Selling Price*Up to 2700 cc 50% Manufacturer's or Importers Selling Price*2701 cc or over 100% Manufacturer's or Importers Selling Price*

Description Tax Rate Tax BaseUp to 1800 cc 15% Manufacturer's or Importers Selling Price*Up to 2300 cc 35% Manufacturer's or Importers Selling Price*Up to 3000 cc 50% Manufacturer's or Importers Selling Price*3001 cc or over 100% Manufacturer's or Importers Selling Price*

Description Tax Rate Tax BaseJewelry, pearls, precious and semi-precious, whether real or imitation 20% Wholesale PriceOr Value of Importations*Perfumes and Toilet Waters 20% Wholesale PriceOr Value of Importations*Yachts and other Vessels for Pleasure or Sports 20% Wholesale PriceOr Value of Importations*

Description Tax Rate Tax BaseNon-metallic minerals and quarry resources

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a) Locally extracted or produced 2% Actual Market Value of gross Outputb) Imported 2% Value of ImportationGold and Chromitea) Locally extracted or produced 2% Actual Market Value of gross Outputb) Imported 2% Value of ImportationCoppera) Locally extracted or produced 2% Actual Market Value of gross Outputb) Imported 2% Value of ImportationIndigenous Petroleum 3% Fair International priceNatural Gas or Liquefied Natural Gas (locally extracted) 2% Actual Market Value of gross Output Coal and Coke P10.00 Per metric ton

Description Tax Rate Tax BaseLubricating Oils P 4.50 Per LiterGreases P 4.50 Per LiterProcessed Gas P 0.05 Per LiterWaxes and Petrolatum P 3.50 Per LiterDenatured alcohol used for motive power P 0.05 Per LiterUnleaded Premium Gasoline P 4.35 Per LiterLeaded Premium Gasoline P 5.35 Per LiterRegular Gasoline P 4.80 Per LiterNaptha P 4.80 Per LiterNaptha to be used for petro-chemicals P 0.00 Per LiterAviation Gasoline P 4.80 Per LiterAviation Turbo Jet Fuel P 3.67 Per LiterKerosene P 0.60 Per LiterKerosene used as aviation fuel P 3.67 Per LiterDiesel Fuel Oil P 1.63 Per LiterLPG used as Motive Power P 1.63 Per LiterLiquefied petroleum gas P 0.00 Per LiterAsphalt P 0.56 Per LiterBunker Fuel Oil and similar fuel P 0.30 Per LiterBase stocks for lub, oils and greases, HVD, aromatic extracts, etc P 4.50 Per Liter or KgLubricating Oils P 4.50 Per LiterGreases P 4.50 Per LiterProcessed Gas P 0.05 Per LiterWaxes and Petrolatum P 3.50 Per LiterDenatured alcohol used for motive power P 0.05 Per LiterUnleaded Premium Gasoline P 4.35 Per LiterLeaded Premium Gasoline P 5.35 Per LiterRegular Gasoline P 4.80 Per LiterNaptha P 4.80 Per LiterNaptha to be used for petro-chemicals P 0.00 Per LiterAviation Gasoline P 4.80 Per LiterAviation Turbo Jet Fuel P 3.67 Per LiterKerosene P 0.60 Per LiterKerosene used as aviation fuel P 3.67 Per LiterDiesel Fuel Oil P 1.63 Per LiterLPG used as Motive Power P 1.63 Per LiterLiquefied petroleum gas P 0.00 Per Liter

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Asphalt P 0.56 Per LiterBunker Fuel Oil and similar fuel P 0.30 Per LiterBase stocks for lub, oils and greases, HVD, aromatic extracts, etc P 4.50 Per Liter or Kg

Donor’s TaxNet Gift Over But not Over The Tax Plus Of the Excess Over

Shall be100,000.00 exempt

100,000.00 200,000.00 0 2% 100,000.00200,000.00 500,000.00 P 2,000.00 4% 200,000.00500,000.00 1,000,000.00 14,000.00 6% 500,000.00

1,000,000.00 3,000,000.00 44,000.00 8% 1,000,000.003,000,000.00 5,000,000.00 204,000.00 10% 3,000,000.005,000,000.00 10,000,000.00 404,000.00 12% 5,000,000.00

10,000,000.00 and over 1,004,000.00 15% 10,000,000.00Estate Tax

Over But not Over The Tax Plus Of the Excess OverShall be

P 200,00.00 ExemptP200,000.00 500,000.00 0 5% P 200,000.00

500,000.00 2,000,000.00 P 15,000.00 8% 500,000.002,000,000.00 5,000,000.00 135,000.00 11% 2,000,000.005,000,000.00 10,000,000.00 465,000.00 15% 5,000,000.00

10,000,000.00 1,215,000.00 20% 10,000,000.00

PERCENTAGE TAXESPercentage Tax

Coverage Basis Tax RatePersons exempt from VAT under Sec. 116 Gross Sales or Receipts 3%Domestic carriers and keepers of garages Gross Receipts 3%

International Carriers: International air/shipping carriers doing business in the Philippines

Gross Receipts3%

Franchise Grantees:Electric , gas and water utilities Gross Receipts 2%Radio and television broadcasting companies whose annual gross receipts of the preceding year do not exceed P 10,000,000 and did not opt to register asVAT taxpayer

Gross Receipts3%

Banks and non-bank financing intermediaries Interest, commissions and discounts from lending activities as well as income from leasing on the basis of remaining maturities of instruments:

Finance Companies Short term maturity (not over 2 years) 5%Medium term (over 2 years but not over 4 years) 3%Long Term MaturityOver 4 years but not over 7 years 1%Over 7 years 0%On Dividends 0%On royalties, rentals of properties, real or personal, profits from exchange and all other items treated as gross income under Sec. 32 of the Code

5%

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On interest, discounts and other items of gross income paid to finance companies and other financial intermediaries not performing quasi banking functions

5%

Interest, commissions and discounts paid from their loan transactions from finance companies as well as income from financial leasing shall be taxed based on the remaining maturities of instruments:Short term maturity (not over 2 years) 5%Medium term (over 2 years but not over 4 years) 3%Long Term MaturityOver 4 years but not over 7 years 1%Over 7 years 0%

Life Insurance Companies (except purely cooperative companies or associations)

Total premiums collected 5%

Agents of foreign insurance companies: (except reinsurance premium)? Insurance agents authorized under the Insurance Code to procure policies of insurance for companies not authorized to transact business in the Phils.

Total premium collected 10%

? Owners of property obtaining insurance directly with foreign insurance companies

Total premium collected 5%

Proprietors, lessee or operator of the following:Cockpits Gross receipts 18%Cabarets, Night or Day Clubs Gross receipts 18%Boxing exhibitions Gross receipts 10%Professional basketball games Gross receipts 15%Jai-alai and race track (operators shall withheld tax on winnings) Gross receipts 30%Every stock broker who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities

Gross selling price or gross value in money of shares of stocks sold, bartered, exchanged or otherwise disposed

½ of 1 %

A corporate issuer/stock broker, whether domestic of foreign, engaged in the sale, barter, exchange or other disposition through Initial Public Offering (IPO)/secondary public offering of shares of stock in closely held corporations

Gross selling price or gross value of in money of shares of stocks sold, bartered, exchanged or otherwise disposed in accordance with the proportion of stocks sold, bartered or exchanged or after listing in the stock exchange

? Up to 25 % 4%? Over 25% but not over 33 1/3% 2%? Over 33 1/3 % 1%

Value Added Tax Taxable items Tax Rate

On sale of goods and properties 12% of the gross selling price or gross value in money of the goods or properties sold, bartered or exchanged

On sale of services and use or lease of properties 12% of gross receipts derived from the sale or exchange of services, including the use or lease of properties

On importation of goods 12% based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise

taxes, if any, and other charges, such as tax to be paid by the importer prior to the release of such goods from customs custody; provided,

that where the customs duties are determined on the basis of quantity or volume of the goods, the VAT shall be based on the landed cost

plus excise taxes, if any.

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